Gareth Shaw, Head of Money at Which?, said:
“While the FCA is rightly proposing guidance for firms to continue supporting customers struggling as a result of coronavirus, it’s very concerning that the regulator is no longer requiring insurers to proactively contact those who miss a payment. Customers missing payments are likely to be vulnerable, and firms should be doing everything they can to engage with and support those who need it most.
“With much of the country facing further restrictions due to the pandemic and support measures like the furlough scheme coming to an end, many people could be facing a perfect storm of financial pressures in the coming months. The regulator must reconsider its position on winding down vital protections like payment deferrals and the damaging long-term impact that these extenuating circumstances will have on a consumer’s credit file.”