The FCA has published its consultation on the handbook changes required as a result of implementation of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 (the Breathing Space Regulations).
The proposed changes to CONC can be summarised as follows:
- CONC 6.7.27R, 6.7.29R and 6.7.30R – clarification that a breathing space moratorium is deemed to be ‘equivalent of more favourable steps’ for the purposes of these sections.
- CONC 5D.3.3G(5) – clarification that where a moratorium is in place, firms don’t need to take action under the repeat use overdraft intervention rules.
- CONC 6.7.2R, 6.7.3G and 6.7.3R A and 6.7.3G B – clarification that compliance with a moratorium is appropriate action where a customer’s repayment history shows signs of actual or possible financial difficulty.
- CONC 7.3.11R – clarification that where a customer’s debts have been in a moratorium – this counts towards determining a reasonable period.
Consultation closes on 6 January 2021.