It is important for member businesses with Bounce Back Loans to be aware of the following information.
The FCA has published guidance to loan providers on how they are expected to treat businesses that have decided to use the Pay As You Grow (PAYG) repayment option for their Bounce Back Loan. The core principle in the guidance is that the FCA expects loan companies to have clear, effective and appropriate policies and procedures for dealing with customers.
Regardless of the delivery channel or the communication channel used, firms should treat all customers in a manner that supports them and leads to appropriate and fair outcomes.
The Guidance includes sections on:
- Identifying and supporting customers in financial difficulties
- Helping customers make informed choices before selecting PAYG
- Ability to opt out of automated journeys
- Provision of repayment plans
- Effective oversight of third-party debt collection agents
- Support for vulnerable customers
- Referring customers for debt advice support
This guidance for firms collecting payments under a Bounce Back Loan where the collection of that debt is a regulated activity can be accessed here.