The regulations come into force on 4 May 2021 and establish protective periods, or breathing spaces under a debt respite scheme, during which creditors are prevented from carrying on certain activities in respect of breathing space debts. There is a standard, 60 day breathing space for people with problem debt and a mental health crisis breathing space for debtors receiving treatment for a mental health crisis.
Breathing spaces can only be started by an FCA-authorised debt advice provider, or a local authority providing debt advice to residents. Debtors who are unable or unlikely to be able to repay their debts apply for a standard breathing space by seeking debt advice from a debt adviser who then assesses if a breathing space is appro…
Read the full article at: https://www.pinsentmasons.com/out-law/news/2021/03/fca-confirms-rule-changes-clarify-firms-compliance-debt-relief-regulations
