The UK regulator Financial Conduct Authority (FCA) has announced that it will extend payment holidays on personal loans, credit cards, auto finance and pawn shops to further support borrowers affected by the coronavirus pandemic
Those who have not yet had a payment deferral according to his July guidelines can request one that lasts up to six months, he said in a statement.
During this time, borrowers who have already had a deferral will be able to apply for a second
For high-cost short-term credits (such as payday loans), consumers might request a one month deferral if they haven’t already had one
The FCA has also advised consumer credit clients to continue to make repayments if they can afford it, adding that borrowers should only take help when needed.
« We will be working with commercial organizations and lenders on how to implement these proposals as quickly as possible, and will make another announcement shortly, » the watchdog said.
« In the meantime, consumer credit clients should not contact their lender yet. Lenders will provide information soon on what this means for their clients and how to request this support if our proposals are confirmed »
The update follows the latest government restrictions in response to rising infections across the country
England will be placed under a month-long lockdown on Thursday, ending December 2, to curb a second wave of COVID-19
Under the new measures non-essential stores and hotels will have to close and travel will be subject to new restrictions.However, schools and colleges will be allowed to remain open
Prime Minister Boris Johnson said: ‘Christmas will be different this year, maybe a lot different, but I sincerely hope that by acting tough we can allow families across the country to be together
« We are not going back to the full scale lockdown of March and April, the measures I have described are much less primitive and less restrictive However, I am afraid that from Thursday the basic message will be the same : stay home, protect the NHS and save lives «
Over the weekend, the total number of coronavirus cases in the UK since the start of the pandemic reached 1,000,000
Mortgage, finance, coronavirus, financial conduct authority
World News – US, UK regulator extends loan and credit card payment holidays ahead of COVID lockdown -19
