The financial watchdog has said that it would extend payment holidays on credit cards, car finance, personal loans and pawned goods before tougher coronavirus restrictions come into effect this week.
Consumers who have not yet had a payment deferral under guidance issued in July can request one that lasts for up to six months, the Financial Conduct Authority said in a statement issued this morning
Borrowers who have already had one deferral would be able to apply for a second deferral they added
For high-cost, short-term credit like payday loans, consumers could apply for a payment deferral of one month if they have not already had one, the FCA said.
“We will work with trade bodies and lenders on how to implement these proposals as quickly as possible, and will make another announcement shortly,” the FCA said adding
In the meantime, consumer credit customers should not contact their lender just yet. Lenders will provide information soon on what this means for their customers and how to apply for this support if our proposals are confirmed.
Consumer credit customers who have already benefitted from payment deferrals and are still experiencing payment difficulties should speak to their lender to agree tailored support.
It may also be in the interests of consumer credit customers who expect to have long-term financial difficulties to agree other forms of tailored support with their lender.
