Credit card freeze given for six months in front of new lockdown.
Credit card freeze extended for six weeks in front of new lockdown. Payment holidays on credit cards, car finance, personal loans and pawned goods have been extended in front of tougher coronavirus restrictions. The Financial Conduct Authority (FCA) said consumers which had not yet deferred a transaction can right now ask for one for up […]

Credit card freeze extended for six weeks in front of new lockdown.

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

The Financial Conduct Authority (FCA) said consumers which had not yet deferred a transaction can right now ask for one for up to six months.

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

"It is essential that consumer credit consumers who can find the money to do so continue making repayments," it said.

"Borrowers need not take more than up this support in case they require it."

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

Mortgage holidays provided for up to 6 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.

although it's now reviewed the rules - which apply throughout the UK - amid anxieties tougher restrictions will hit much more people's finances. The payment holidays will also apply to those with rent to own as well as buy now pay later deals, it stated. Read the following credit cards features:

Moreover, anyone already benefitting from a payment deferral will be able to apply for a second deferral.

Nevertheless, the FCA would not comment on if folks could still have interest on the very 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 bodies as well as lenders regarding how to carry out these proposals as quickly as possible, and often will make another announcement shortly," the FCA said of the transaction deferrals.

In the meantime, it said customers should not contact lenders who will offer information "soon" regarding how to apply for the assistance.

It advised anyone still experiencing transaction 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 package by Kevin Peachey, Personal finance correspondent The extension of payment holidays will be a relief to lots of men and women already in lockdown and dealing with a drop in income, and those just about to go back to limitations.

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

The monetary watchdog is worrying that deferrals should not be used unless they are actually needed, and that "tailored support" may be a better choice for many people.

Folks which feel they will end up with a short term squeeze on their finances will watch developments keenly & hope for an extension to interest-free overdrafts.

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

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