FCA proposes to extend repossessions ban

FCA proposes to extend repossessions ban
Credit: Jason Alden/Bloomberg

The Financial Conduct Authority (FCA) is proposing to extend its ban on house repossessions until April 1.

The regulator said its approach took into account the worsening pandemic and the government’s tighter coronavirus-related restrictions.

It added that consumers could experience significant harm if forced to move home at this time as a result of repossession proceedings.

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Under current guidance that was issued in November, firms should not enforce repossessions before January 31 except in exceptional circumstances, such as a customer requesting that proceedings continue.

The FCA said it also recognised government bans on evictions in some nations that could prevent firms from enforcing home repossessions.

The ban on bailiff-enforced evictions was extended in England until at least February 21 last week to help protect renters from the effects of the pandemic.

The regulator is inviting comments on its draft guidance by 10am on January 18.

A national lockdown was announced on January 4 by the Prime Minister following a rapid rise in coronavirus infections, hospital admissions and case rates across the country. Mainland Scotland also went into lockdown from midnight on January 5.

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