Credit card freeze extended for 6 weeks ahead of new lockdown.
Credit card freeze extended for 6 months in advance of new lockdown. Payment holidays on credit cards, car finance, private loans and pawned goods have been extended in advance of tougher coronavirus restrictions. The Financial Conduct Authority (FCA) said shoppers which had not really deferred a transaction could today request one for up to six […]

Credit card freeze extended for 6 months in advance of new lockdown.

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

The Financial Conduct Authority (FCA) said shoppers which had not really deferred a transaction could today request one for up to six months.

Those with short term credit like payday loans can defer for one month.

"It is essential that consumer credit buyers who can afford to do therefore continue making repayments," it stated.

"Borrowers need take no more than up this support if they need it."

It comes after the government announced a nationwide lockdown for England starting on Thursday, which will force all non-essential retailers to close.

Mortgage holidays extended for as much as six months
Next England lockdown' a devastating blow' The FCA had already brought in fee holidays for recognition clients in April, extending them for three months in July.

although it has now analyzed the rules - which apply across the UK - amid anxieties tougher restrictions will hit a lot more people's funds. The transaction holidays will apply to those with rent to own as well as buy now pay later deals, it said. Read the following credit cards features:

Furthermore, anyone probably benefitting from a transaction deferral is going to be in a position to apply for a second deferral.

Nevertheless, the FCA would not comment on whether individuals might still have interest on the initial £500 of their overdrafts waived. It said it will make a fuller statement in due course.

"We is going to work with trade systems and lenders regarding how to apply these proposals as quickly as is possible, and can make another announcement shortly," the FCA said of the payment deferrals.

In the meantime, it said buyers should not contact lenders who'll offer information "soon" regarding how to apply for the support.

It advised anyone still experiencing transaction difficulties to talk to the lender of theirs to agree "tailored support".

On Saturday, the FCA also announced plans to extend payment holidays for mortgage borrowers.

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Analysis box by Kevin Peachey, Personal finance correspondent The extension of payment holidays will be a relief to many men and women already in lockdown and struggling with a fall in earnings, and those just about to return to limitations.

although the theme running through this FCA statement is the fact that a debt problem delayed is not really a debt problem solved.

The monetary watchdog is stressing that deferrals should not be used unless they are truly necessary, and that "tailored support" might be a better choice for a lot of people.

Men and women that believe they will end up with a short-term squeeze on the funds of theirs will pay attention to developments keenly and hope for an extension to interest free overdrafts.

Importantly, other lenders and banks have a duty to identify anyone who's insecure and make sure they are supported. As this crisis intensifies, the amount of folks falling into that grouping is actually likely to grow.

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