Credit card freeze given for 6 weeks in front of new lockdown.

Credit card freeze extended for six weeks ahead of new lockdown.

Payment holidays on credit cards, automobile finance, private loans and pawned goods have been extended in advance of tougher coronavirus restrictions.

The Financial Conduct Authority (FCA) said buyers who had not yet deferred a payment might now request one for up to six months.

Those with short term credit like payday loans can defer for one month.

“It is important that customer credit shoppers who could find the money to do therefore continue making repayments,” it said.

“Borrowers should not take more than up the assistance if they require it.”

It comes after the federal government announced a nationwide lockdown for England beginning on Thursday, which will force all non essential retailers to close.

Mortgage holidays extended for up to 6 months
Second England lockdown’ a devastating blow’ The FCA had already brought in fee holidays for credit customers in April, extending them for three months in July.

however, it has today analyzed the rules – which apply across the UK – amid fears tougher restrictions will hit a lot more people’s funds. The transaction holidays will likely apply to those with rent to own and buy now pay-later deals, it said. Read the following credit cards features:

Furthermore, anyone probably benefitting from a payment deferral will be ready to apply for a second deferral.

But, the FCA wouldn’t comment on if people can still have interest on the first £500 of their overdrafts waived. It said it would make a fuller statement in due course.

“We will work with trade bodies as well as lenders regarding how to carry out these proposals as quickly as is possible, and can make an additional announcement shortly,” the FCA said of the transaction deferrals.

In the meantime, it said customers should not contact lenders who’ll offer information “soon” on how to apply for the support.

It advised anyone still encountering transaction difficulties to talk to their lender to agree “tailored support”.

On Saturday, the FCA also announced plans to extend payment holidays for mortgage borrowers.

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Analysis package by Kevin Peachey, Personal finance correspondent The extension of charge holidays will be a help to lots of individuals already in lockdown and dealing with a drop in earnings, and those just about to go back to restrictions.

But the theme running through this FCA statement is that a debt issue delayed is not really a debt problem solved.

The financial watchdog is stressing that deferrals shouldn’t be used unless they’re truly needed, and that “tailored support” may be a much better choice for a lot of people.

People who think they’ll only have a short term squeeze on their funds will pay attention to developments keenly & wish for an extension to interest free overdrafts.

Importantly, other lenders and banks have a duty to determine anyone who’s vulnerable and ensure that they’re supported. As this crisis intensifies, the amount of men and women falling into that group is likely to rise.

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