FCA announces proposals to further support consumer credit customers

Regulatory Updates | 19/06/20

The FCA has announced proposals which would provide continued support for users of certain consumer credit products, who are facing a financial impact because of the exceptional circumstances arising from coronavirus. The proposals outline the support firms would be expected to provide credit card and other revolving credit (store card and catalogue credit) and personal loan customers coming to an end of a payment freeze, as well as those who are yet to request one.

For customers yet to request a payment freeze or an arranged interest-free overdraft of up to £500, the time to apply for one would be extended until 31 October 2020. For those who have already taken up support and are still experiencing temporary payment difficulties due to coronavirus, firms would continue to offer support with options including a further payment deferral or reducing payments to an amount the customer can afford for a further three months.