FCA unveils further support for consumer credit customers affected by COVID-19

The Financial Conduct Authority (FCA) has today announced proposals to provide continued support for consumer credit customers affected by COVID-19.

The FCA has outlined new proposals which include ongoing support for customers coming to the end of a payment freeze or those who are yet to request one, for revolving credit products such as credit cards, loans and overdrafts.

According to the new plans, customers yet to request a payment freeze or an arranged interest-free overdraft of up to £500 will now be able to apply for these until October 31.

For those who have already taken up support and are still experiencing temporary difficulties due to coronavirus, firms will be expected to continue to offer support, with options including a further payment deferral or reducing payments to an agreed affordable amount for a further three months.

Christopher Woolard, Interim chief executive at the FCA, commented: “We have been working closely with other authorities, lenders and debt charities to support consumers in the current emergency.

“The proposals we’ve announced today would provide an expected minimum level of financial support for consumers who remain in, or enter, temporary financial difficulty due to coronavirus.

“Where consumers can afford to make payments, it is in their best long-term interest to do so, but for those who need help, it will be there.”

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