Coronavirus Response: the European Commission welcomes ‘Best Practices’ to provide relief for consumers and businesses
The Commission recently organised two roundtable meetings with stakeholders to discuss relief measures where all represented parties declared their openness to cooperation and dialogue. Over 25 organisations participated in both roundtables including from: consumer organisations, business federations and Insurance companies.
On 14 July 2020, the European Commission has welcomed a list of ‘best practices’ agreed by the financial sector, and consumer and business organisations, to help further mitigate the impact of the coronavirus pandemic. It sets out concretely how different market participants can support citizens and businesses throughout the crisis.
Today’s ‘best practices’ cover several issues, including:
- Payment moratoria for consumer and business loans, and for insurance contributions: these measures can help those facing financial difficulties by deferring payments;
- Enabling safer cashless payments while ensuring cash payments remain available for those who need them;
- Ensuring loans aimed at mitigating the impact of coronavirus are provided swiftly, and that the fees and interest rates incurred are fair;
- Legitimate insurance claims are processed and paid out as quickly as possible.
The positive role that intermediaries have played during this crisis is highlighted by the European Commission, and “good practices” do not impose further obligations on the intermediation sector that do not comply with existing regulations.