Struggling families may have credit card and loan interest and charges cancelled in new FCA rules

Industry News | 01/10/20

Customers struggling to keep up with credit card, car finance or loan repayments could have the debt interests and charges cancelled, the city watchdog says. The new measures are aimed at helping households whose finances have been hit by the impact of the coronavirus pandemic.

The FCA says that credit card, car finance or loan customers should have charges on debt wiped if they’re struggling because of coronavirus. The Financial Conduct Authority’s (FCA) regulations also apply to debts on a store card and catalogue credit, buy-now-pay-later schemes, rent-to-own policies, payday loans and overdrafts.

The watchdog has put the measures in place to stop already struggling customers from spiralling further into unmanageable debt.

Source: The Sun