• GL
Choose your location?
  • Global Global
  • Australia
  • France
  • Germany
  • Ireland
  • Italy
  • Poland
  • Qatar
  • Spain
  • UAE
  • UK

DWF comments on FCAs further support for consumer credit customers

01 July 2020
small banner press

John Perez, Head of Lender Services at DWF, comments on the latest FCA announcement, confirming their further support of consumer credit product users experiencing temporary payment difficulties due to COVID-19. John said: 


“The FCA’s decision to provide further support for consumer credit customers is undoubtedly good news for those who are continuing to feel the impact of Covid-19. However, the move raises concerns about how the industry itself will continue to cope on a financial basis. 

"In the motor finance market, we have seen new business in April reduce by 94% compared to the same period last year. In addition to this significant drop in new business, lenders will continue to have to take the hit on defaulting accounts, ensuring that they provide support and forbearance over and above usual standards. It’s a cost that will bite right into lenders’ bottom lines.

"The general economic outlook will mean that the cost to lenders in ensuring they meet the new temporary measures set by the FCA will place a significant strain on liquidity and profitability.

"The Finance Leasing Association have called for the Government and Bank of England to support lenders at this crucial time.

"Lenders should look to automated solutions that customers can use to implement forbearance solutions. There has been an unprecedented demand on lenders and their call centre teams over the last few months, leading to disgruntled customers who are often waiting hours before calls are answered. Those lenders who began planning for this contingency at the start of the lockdown are likely to be in a much stronger position to service their customer base.”

Further Reading

We use cookies to give you the best user experience on our website. Please let us know if you accept our use of cookies.

Manage cookies

Your Privacy

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. We mainly use this information to ensure the site works as you expect it to, and to learn how we can improve the experience in the future. The information does not usually directly identify you, but it can give you a more personalised web experience.
Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change permissions. However, blocking some types of cookies may prevent certain site functionality from working as expected

Functional cookies

(Required)

These cookies let you use the website and are required for the website to function as expected.

These cookies are required

Tracking cookies

Anonymous cookies that help us understand the performance of our website and how we can improve the website experience for our users. Some of these may be set by third parties we trust, such as Google Analytics.

They may also be used to personalise your experience on our website by remembering your preferences and settings.

Marketing cookies

These cookies are used to improve and personalise your experience with our brands. We may use these cookies to show adverts for our products, or measure the performance of our adverts.