Credit card freeze extended for 6 months in advance of new lockdown.
Credit card freeze given for six months in advance of new lockdown. Payment holidays on credit cards, car finance, personal loans and pawned items have been extended ahead of tougher coronavirus restrictions. The Financial Conduct Authority (FCA) said clients who had not yet deferred a payment could right now request one for up to 6 […]

Credit card freeze given for six months in advance of new lockdown.

Payment holidays on credit cards, car finance, personal loans and pawned items have been extended ahead of tougher coronavirus restrictions.

The Financial Conduct Authority (FCA) said clients who had not yet deferred a payment could right now request one for up to 6 months.

Those with short term credit such as payday loans are able to defer for one month.

"It is crucial that consumer credit clients who are able to find the money to do therefore continue making repayments," it stated.

"Borrowers must only take up the support in case they need to have it."

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

Mortgage holidays provided for as much as six months
Second 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.

Though it's nowadays assessed the rules - which apply across the UK - amid anxieties tougher restrictions will hit many more people's finances. The transaction holidays will likely apply to those with rent to own as well as buy now pay later deals, it stated. Read the following credit cards features:

In addition, anyone probably benefitting from a payment deferral is going to be ready to apply for a second deferral.

But, the FCA would not comment on if people can still have interest on the first £500 of their overdrafts waived. It said it will come up with a fuller statement in course that is due.

"We is going to work with trade bodies as well as lenders regarding how to employ these proposals as quickly as possible, and can make an additional announcement shortly," the FCA said of the transaction deferrals.

In the meantime, it said clients shouldn't contact lenders who'll provide info "soon" regarding how to apply for the support.

It advised anybody still encountering payment difficulties to speak 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 fee holidays will be a help to a lot of folks already in lockdown and facing a decline in earnings, and those just about to return to limitations.

But the theme running through this FCA declaration is that a debt issue delayed is not a debt problem resolved.

The financial watchdog is worrying that deferrals should not be used unless they're really needed, and that "tailored support" could be a much better choice for a lot of people.

Men and women that feel they'll end up with a short-term squeeze on their finances will watch developments keenly and hope for an extension to interest free overdrafts.

Importantly, banks and other lenders have a duty to determine any individual who is vulnerable and make sure they're supported. As this crisis intensifies, the number of individuals falling into that grouping is likely to rise.

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