.......as FCA's Covid-19 ban ends

• Repossession ban has been in place during the pandemic to protect consumers
• Exceptional financial hardship caused by Covid-19 has seen repossessions on homes, cars and other products restricted
• FCA has proposed for motor repossessions to recommence from next month
• Home repossession ban will remain in place as part of extension until April

Motorists who have fallen behind on credit payments for vehicles can yet again have their motors seized by lenders after the regulator announced the end of a repossession ban introduced during the pandemic. The Financial Conduct Agency had introduced the special measures due to the exceptional financial hardship as a result of Covid-19. It has this week confirmed that the ban will be lifted for cars and other products after 31 January, thought it has proposed for the restriction on repossession of homes to be extended to 31 March. Under normal circumstances, lenders can seize homes and goods if somebody falls too far behind on loan repayments.

However, the impact of the pandemic on peoples livelihoods saw the FCA take action last year to protect consumers from repossessions and introduced payment holidays for mortgages and car finance. While deferrals on payments are available for an agreed period of time, the FCA is now proposing that repossessions of items bought on credit - such as cars, of which around eight in ten are bought using a finance - can resume from the start of February.

Source: This is Money