On 27 January 2021, the FCA confirmed that it was updating its guidance on mortgages and consumer credit repossessions.

In November 2020, the FCA published guidance providing that firms should generally not enforce repossessions before 31 January 2021. On 13 January 2021, the FCA published updated draft guidance for comment.

For mortgages, the FCA is extending the guidance so that firms should not enforce repossessions, except in exceptional circumstances, before 1 April 2021.

For consumer credit, the updated guidance provides that firms will be able to repossess goods and vehicles from 31 January 2021. The guidance emphasises that this should only be as a last resort, and subject to complying with relevant government public health guidelines and regulations, for example on social distancing and shielding. Firms will also need to consider the potential wider impact on vulnerable customers, including because of the pandemic, when deciding whether repossession of goods or vehicles is appropriate.

Both sets of updated guidance come into effect on 29 January 2021.