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

Credit card freeze given for 6 months ahead of new lockdown.

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

The Financial Conduct Authority (FCA) said customers which had not yet deferred a payment might today request one for up to 6 months.

Those with short-term recognition like payday loans are able to defer for one month.

"It is crucial that customer credit clients who can afford to do therefore continue making repayments," it said.

"Borrowers must only take up this support if they require it."

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

Mortgage holidays provided for up to six months
Second England lockdown' a devastating blow' The FCA had already brought in fee holidays for credit customers in April, extending them for 3 months in July.

But it has today reviewed the rules - which apply across the UK - amid fears tougher restrictions will hit a lot more people's finances. The payment holidays will also apply to those with rent to own and buy now pay-later deals, it stated. Read the following credit cards features:

Furthermore, anyone already benefitting from a transaction deferral will be ready to apply for a second deferral.

However, the FCA wouldn't comment on whether folks could still have interest on the initial £500 of their overdrafts waived. It said it would come up with a fuller statement in course which is due.

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

In the meantime, it said buyers should not contact lenders who will offer info "soon" regarding how to apply for the support.

It advised anybody 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 fee holidays will be a relief to a lot of folks already in lockdown and struggling with a drop in income, and those just about to go back to limitations.

Though the theme running through this FCA statement is that a debt problem delayed is not really a debt problem resolved.

The monetary watchdog is worrying that deferrals shouldn't be used unless they are truly needed, and this "tailored support" may be a better choice for many people.

Folks which think they will only have a short term squeeze on their funds will observe developments keenly & hope for an extension to interest-free overdrafts.

Importantly, banks along with other lenders have a duty to identify any person who's insecure and make certain they are supported. As this crisis intensifies, the amount of folks falling into that grouping is actually likely to grow.

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