Credit card freeze extended for 6 months in front of new lockdown.
Payment holidays on credit cards, car finance, private loans and pawned goods have been extended in advance of tougher coronavirus restrictions.
The Financial Conduct Authority (FCA) said consumers that had not yet deferred a payment could today ask for one for up to six months.
Those with short term credit such as payday loans are able to defer for one month.
“It is crucial that consumer credit consumers who could afford to do and so continue to make repayments,” it said.
“Borrowers must not take more than up the assistance if they need it.”
It comes after the government announced a nationwide lockdown for England beginning on Thursday, which is going to force all non-essential retailers to close.
Mortgage holidays given for up to 6 months
Next England lockdown’ a devastating blow’ The FCA had previously brought in fee holidays for recognition customers in April, extending them for three weeks in July.
although it has now reviewed the rules – which apply throughout the UK – amid fears tougher restrictions will hit much more people’s funds. The transaction holidays will also apply to those with rent to own and buy-now pay-later deals, it stated. Read the following credit cards features:
- Home Depot Credit Card
- Apple Credit Card
- Walmart Money Card
- Wells Fargo Propel
- Travel Credit Card
- Petal Credit Card
- Amazon Credit Card
- Credit One Credit Card
- First Premier Credit Card
- Fortiva Credit Card
- Indigo Credit card
- Discover it Cash Back
In addition, anyone probably benefitting from a transaction deferral will be able to apply for a second deferral.
But, the FCA wouldn’t comment on if individuals can still have interest on the very first £500 of their overdrafts waived. It said it will make a fuller statement in due course.
“We is going to work with trade systems and lenders regarding how to apply these proposals as quickly as is possible, and will make another announcement shortly,” the FCA said of the transaction deferrals.
In the meantime, it said buyers shouldn’t contact lenders who’ll give information “soon” regarding how to apply for the support.
It advised anyone still experiencing payment difficulties to speak to their lender to agree “tailored support”.
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Analysis package by Kevin Peachey, Personal finance correspondent The extension of fee holidays will be a relief to many people already in lockdown and dealing with a drop in income, and those just about to go back to limitations.
however, the theme running through this FCA statement is that a debt issue delayed is not a debt problem solved.
The monetary watchdog is worrying that deferrals shouldn’t be used unless they are actually needed, and this “tailored support” may be a better option for many people.
Men and women who think they’ll end up with a short-term squeeze on the finances of theirs will observe developments keenly & hope for an extension to interest-free overdrafts.
Importantly, other lenders and banks have a duty to identify any individual who is vulnerable and ensure that they’re supported. As this crisis intensifies, the amount of individuals falling into that grouping is likely to rise.