To ask the Chancellor of the Exchequer, what steps is he taking to limit enforcement action by debt collection agencies during the covid-19 pandemic.
Answered on
18 May 2020
The Government’s priority is to support as many people as possible who have had extreme disruption to their lives as a result of COVID-19. Debt collection firms are regulated by the Financial Conduct Authority (FCA).
The FCA has announced a series of measures to provide consumers with temporary relief if they are facing payment difficulties during the COVID-19 pandemic. This includes requiring firms to provide consumers with 0% interest on the first £500 of an arranged overdraft for three months and allowing consumers either a 3-month payment holiday or to make nominal payments towards credit cards, store cards, catalogue credit and certain personal loan agreements.