FCA PUBLISHES DRAFT GUIDANCE ON SUPPORT FOR CONSUMER CREDIT AND OVERDRAFT CUSTOMERS

The Financial Conduct Authority (FCA) published draft guidance yesterday on tailored support for users of consumer credit and overdraft products who continue to face payment difficulties due to coronavirus (Reuters). The FCA confirmed that customers can continue to request a three-month payment deferral up until 31 October 2020. After that date, lenders will be required to provide tailored support and show flexibility to those still struggling with their repayments (Daily Mirror, online only).

UK Finance said lenders stand ready to provide ongoing help to credit card, personal loan and overdraft customers who continue to be financially impacted by the coronavirus pandemic. Throughout the Covid-19 crisis, the UK's banking and finance sector has been working hard to support people's financial wellbeing. According to the latest UK Finance figures, the industry has provided 1,085,000 credit card payment deferrals, 738,000 personal loan payment deferrals, and over 27 million interest-free overdrafts since the outset of the crisis.

Eric Leenders, Managing Director of Personal Finance at UK Finance, said:

?The industry has provided unprecedented support to customers as part of its clear plan to get Britain through the coronavirus crisis.

?It will always be in the best interest of customers who are able to resume their loan payments to do so. However, lenders stand ready to offer tailored support and flexibility to those who continue to face financial difficulties and will be working closely with the Financial Conduct Authority as it finalises this guidance.

"It is vital that those who are experiencing payment difficulties get in touch with their provider and make use of online support as soon as possible to discuss the options available to them.?

OECD CALLS FOR TARGETED MEASURES TO SUPPORT GLOBAL ECONOMY

The Organisation for Economic Co-operation and Development (OECD) has raised its economic forecasts for 2020 as it said most economies had rebounded faster than expected once lockdowns were lifted (The Times, £, online only). The UK economy is predicted to contract 10.1 per cent this year, lower than the 11.5 per cent predicted in June but still the second deepest recession in the G7 behind Italy. The OECD also urged governments to adopt more targeted measures to support their economies now the initial wave of the coronavirus pandemic has passed (Financial Times, £, p8). The organisation said that fiscal support would still be needed but that this should be focused more on retraining and supporting the hardest hit households (The Guardian, p27).

Meanwhile, the US central bank has pledged to continue its support for the US economy for several years, as consumers and businesses slowly recover from the impact of the coronavirus pandemic (BBC News). Federal reserve officials predicted that interest rates in the United States will remain at close to zero until at least the end of 2023 (The Times, £, online only). It comes ahead of today's meeting of the Bank of England's Monetary Policy Committee, where the Financial Times (£, p2) reports the Bank's policymakers may set out further stimulus measures to boost the UK economy.

NEWS IN BRIEF

Katy Worobec, Managing Director of Economic Crime at UK Finance, is quoted by Stylist (online only) on the need for the voluntary Code on authorised push payment fraud to be complemented by legislation, as clearer rules would mean ?everybody knows exactly where they stand?.

Several UK mortgage lenders have committed to measuring the climate emissions linked to their entire loan books as part of the Partnership for Carbon Accounting Financials, an initiative backed by former Bank of England governor Mark Carney (Financial Times, £, online only).

The housing market recovery is likely to end when the government's stamp duty holiday expires next April, the housebuilder Redrow has warned (The Times, £, p42).

Two thirds of employers believe staff are at least as productive when they work from home, according to a survey by the Chartered Institute of Personnel and Development (CIPD) (Daily Telegraph, £, B3).

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