Coronavirus – Freeze on pawn, payday and car loan payments

Industry News | 17/04/20

People struggling with payday loans, car finance and pawn shop borrowing will be granted a payment holiday under plans by the City watchdog. The Financial Conduct Authority (FCA) said the measures would help borrowers who are experiencing money problems amid the Covid-19 outbreak.The FCA wants motor finance firms to grant a three-month freeze. It is also asking firms specialising in rent-to-own, buy-now-pay-later and pawnbroking loans to delay repayments.

Those people with a payday loan will be given a one-month reprieve under the FCA’s plan. Last week, the watchdog announced a three-month freeze on loan and credit card repayments.

Source: BBC