S&U PLC (LSE: SUS) has announced that the Financial Conduct Authority (FCA) has lifted the collection process restrictions imposed on its motor finance subsidiary, Advantage Finance. This development is significant as it reflects the ongoing cooperation between S&U and the FCA regarding forbearance procedures for borrowers experiencing financial difficulties.
Background on the Restrictions
Previously, certain restrictions were voluntarily agreed upon by S&U while the company collaborated with the FCA to develop and implement measures aimed at assisting borrowers facing financial hardships. These measures were essential in addressing the needs of customers during challenging financial times.
Current Status and Future Outlook
While the collection restrictions have been lifted, S&U has indicated that discussions with the FCA are still ongoing. The company is optimistic about achieving a positive outcome from these discussions, which may further enhance its operational flexibility and customer support capabilities.
Chairman’s Statement
Chairman Anthony Coombs expressed satisfaction with the outcome, stating, “I am very pleased that the close dialogue and cooperative relationship we are forming with the Financial Conduct Authority resulted in this agreement.” He emphasized S&U’s commitment to maintaining strong customer relationships and highlighted that the reforms stemming from their discussions with the FCA are expected to strengthen these relationships even further.
Conclusion
The lifting of collection process restrictions by the FCA marks a positive step for S&U PLC and its subsidiary, Advantage Finance. The company’s proactive approach in engaging with the regulator and its focus on customer relationships positions it well for continued success in the motor finance sector. Stakeholders will be keen to observe how the ongoing discussions with the FCA unfold and their implications for S&U’s operations moving forward.
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