Credit card freeze extended for six weeks in advance of new lockdown.
Credit card freeze given for six months in front 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 consumers which had not really deferred a transaction might now ask for one for up to 6 […]

Credit card freeze given for six months in front 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 consumers which had not really deferred a transaction might now ask for one for up to 6 months.

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

"It is essential that consumer credit customers who can pay for to do therefore continue making repayments," it said.

"Borrowers need only take up the assistance 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 as much as 6 months
Next England lockdown' a devastating blow' The FCA had previously brought in payment holidays for recognition customers in April, extending them for 3 months in July.

Though it's now analyzed the rules - which apply across the UK - amid fears tougher restrictions will hit much more people's funds. The transaction holidays will apply to those with rent to own and buy now pay later deals, it stated. Read the following credit cards features:

Furthermore, anyone probably benefitting from a transaction deferral will be able to apply for a second deferral.

But, the FCA wouldn't comment on if folks could really have interest on the very first £500 of their overdrafts waived. It said it would come up with a fuller statement in due course.

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

In the meantime, it said customers should not contact lenders who will give information "soon" on how to apply for the support.

It advised anybody still experiencing payment difficulties to talk 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 box by Kevin Peachey, Personal finance correspondent The extension of payment holidays will be a relief to a lot of people already in lockdown and dealing with a fall in income, and those just about to return to restrictions.

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

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

Men and women that think they will just have a short term squeeze on their finances will pay attention to developments keenly and hope for an extension to interest-free overdrafts.

Importantly, banks and other lenders have a duty to identify any person who is insecure and make certain they're supported. As this crisis intensifies, the number of individuals falling into that group is actually apt to grow.

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