Emma RadmoreFollowing the announcement in June last year, a draft of the new Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium (England and Wales) Regulations 2020 were published yesterday.
The Regulations set out a proposed debt respite scheme for individuals facing problem debt which would permit them to have 60 days of breathing space – effectively a window where they incur no interest, fees or charges and all enforcement action is paused. The breathing space window would only be available for those who take professional debt advice.
For those customers receiving mental health crisis treatment, an alternative version of breathing space will be available for the duration of their treatment.
The regulations will come into force on 4 May 2021 with many parts having retrospective effect.