Possible pause on pawn repayments (UB)

good spot registerme. I can understand why they have done this, however I am unwilling to lend at all given this news. I wonder if the mainstream lenders will or indeed can continue to lend. Money that is not repaid cannot be lent out again.

It will probably affect a number of small loans, but I think the larger UB borrowers are not really struggling and will continue to repay as normal. I'm not too worried about UB, it's probably one of the least affected by Covid-19. The latest e-mail warned us that the recoveries will be slower than usual, but eventually the assets will be sold.  Freeze on repayments is also something to be expected across the industry.

Please note that the guidance "does not apply to peer to peer agreements" (https://www.fca.org.uk/publications/finalised-guidance/rent-own-buy-now-pay-later-and-pawnbroking-agreements-and-coronavirus-temporary-guidance-firms). P2P loans were excluded from the earlier consumer loans guidance and we simply argued that the same exclusion should apply here for consistency purposes and the FCA agreed (sections 4.32 and 4.33 in www.fca.org.uk/publication/feedback/fs20-4.pdf). However it should be noted that the FCA expects P2P firms "to offer appropriate forbearance at an early stage where the customer indicates they are experiencing payment difficulties as a result of coronavirus" (section 2.3 in www.fca.org.uk/publication/feedback/fs20-3.pdf).

We at Unbolted have always offered significant forbearance to our borrowers and continue to do so in the current scenario where borrowers may require forbearance not only due to Covid-19 but due to any other reason where we feel forbearance is appropriate. We do so not only because it is the right policy for our borrowers but because it is the right policy for our lenders. Many of our borrowers who require forbearance eventually renew or repay their loans and in those scenarios where sale is required, our robust recovery process and valuations process protects lenders' interests.