Home repossessions may be allowed from April but only as a last resort, the City regulator has said.
A moratorium implemented during the coronavirus crisis was extended in January until 1 April after the Financial Conduct Authority (FCA) said consumers “could experience significant harm if forced to move home at this time as a result of repossession proceedings.”
The FCA has published updated draft guidance for firms from April.
Firms will only be able to enforce repossessions if they act in line with the FCA’s guidance - which means repossession should “only take place as a last resort if all other reasonable attempts to resolve the position have failed” - and should treat customers fairly.
The FCA said: “Firms will also need to comply with any relevant legislative requirements which may prevent firms from enforcing repossession in certain parts of the UK.”
From April 1, any potential risk of harm from coronavirus to any customers or members of their household must be considered when enforcing repossessions.
“Where the firm is aware of such risks, repossession should not be enforced until those risks have passed or can be appropriately managed,” the guidance says.
The FCA is also reminding borrowers that the deadline for payment holiday applications is 31 March.
It will continue to monitorhow firms are implementing its guidance, it said.
