Loans and credit card holidays extended as England enters second lockdown

LOANS and credit card holidays are to be extended as millions of struggling households will be able to apply for extra support on their loans and debt repayments, as a result of the latest coronavirus lockdown measures.

The Financial Conduct Authority said ‘it’s in talks to extend payment breaks on loans, credit cards, motor finance, rent to own, buy-now pay-later, pawnbroking and high-cost short-term credit’ this week.

“To support those financially affected by coronavirus, we will propose that consumer credit customers who have not yet had a payment deferral under our July guidance can request one,” a statement said.

“This could last for up to 6 months unless it is obviously not in the customer’s interests. Under our proposals, borrowers who are currently benefitting from a first payment deferral under our July guidance would be able to apply for a second deferral.

“For high-cost short-term credit (such as payday loans), consumers would be able to apply for a payment deferral of one month if they haven’t already had one.

“We will work with trade bodies and lenders on how to implement these proposals as quickly as possible and will make another announcement shortly.

“In the meantime, consumer credit customers should not contact their lender just yet. Lenders will provide information soon on what this means for their customers and how to apply for this support if our proposals are confirmed.”

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