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

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

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

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

Those with short-term recognition like payday loans can defer for one month.

"It is essential that consumer credit buyers who could afford to do and so continue making repayments," it said.

"Borrowers should only take up the assistance in case they require it."

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

Mortgage holidays extended for as much as six months
Next England lockdown' a devastating blow' The FCA had previously brought in fee holidays for recognition customers in April, extending them for 3 weeks in July.

however, it has now reviewed the rules - which apply throughout the UK - amid anxieties tougher restrictions will hit a lot more people's funds. The payment holidays will also apply to those with rent to own and buy-now pay later deals, it said. Read the following credit cards features:

Moreover, anyone probably benefitting from a payment deferral will be ready to apply for a second deferral.

Nonetheless, the FCA would not comment on if folks might still have interest on the first £500 of their overdrafts waived. It said it would make a fuller statement in course which is due.

"We is going to work with trade systems and lenders regarding how to implement these proposals as quickly as you possibly can, and often will make another announcement shortly," the FCA said of the payment deferrals.

In the meantime, it said buyers shouldn't contact lenders who'll offer information "soon" regarding how to apply for the assistance.

It advised anyone still experiencing payment difficulties to talk to the lender of theirs to agree "tailored support".

On Saturday, the FCA also announced plans to extend payment holidays for mortgage borrowers.

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Analysis box by Kevin Peachey, Personal finance correspondent The extension of payment holidays will be a help to many people already in lockdown and facing a drop in earnings, and those just about to go back to limitations.

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

The financial watchdog is stressing that deferrals should not be used unless they are really necessary, and this "tailored support" could be a much better choice for a lot of people.

Folks who feel they will just have a short-term squeeze on the funds of theirs will observe developments keenly and hope for an extension to interest free overdrafts.

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

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