Payment freeze for credit card and personal loans to continue
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The Financial Conduct Authority (FCA) has confirmed that payments on credit card, personal loans and other revolving credit products will remain frozen for a further three months for those who are still experiencing temporary payment difficulties due to coronavirus.
The payment freeze includes store cards, catalogue credit and those who have agreed an arranged interest-free overdraft of up to £500.
The FCA has said customers yet to request a payment freeze or an arranged interest-free overdraft of up to £500, will have until 31 October 2020 to apply for one.
Christopher Woolard, interim chief executive at the FCA, said: “Since the coronavirus crisis began, we have made support available for those borrowers financially affected by the pandemic. For those who are now in a position to restart payments, it will be in their best interests to do so. But for those who still need it, the package we are confirming today ensures there is help and further support.”
The FCA has urged however that if customers can afford to return to regular repayment, or make partial payments, it is in their best interest to do so.
The watchdog also ruled that the extension of any payment freeze will not negatively impact an individuals’ credit score.
- Read all of our articles relating to COVID-19 here.
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