Today (Monday 27 April), the Financial Conduct Authority (FCA)’s support for high cost, short-term credit (HCSTC), and motor finance customers comes into force.

We welcome the speed at which the FCA has moved on this – especially in respect of payment deferrals for those struggling, and the amended guidance to ensure both existing and new customers are given the necessary support.

There is a requirement for firms to use the deferral period to agree appropriate longer-term solutions with their customers, and the FCA has also provided greater clarity on forbearance options in the HCSTC guidance, which we would expect firms to consider.

However, Fair By Design (and the co-signees of our response to the FCA’s consultation) believe that interest should be waived for customers on all credit products for the period of payment deferral – not just for payday loans.