Extension of deadline for payment holidays debt
Borrowers with personal loans, credit cards and rentto-own products will have more time to apply for payment holidays under new coronavirus support measures outlined by the City regulator.
As England prepares for a new national lockdown from Thursday, the Financial Conduct Authority (FCA) has proposed to update its temporary guidance around some types of consumer borrowing, including personal loans, credit cards, motor finance, rent-toown and buy now pay later.
Under the proposals, consumer credit customers who have not yet had a payment holiday will still have time to request one, unless that course of action is not in the customer's interests.
A similar announcement was made regarding mortgage customers at the weekend.
People were previously given until October 31 to apply for a payment holiday, after which time lenders were to move to a system of giving more tailored support, based on individual needs rather than blanket deferrals.
The FCA also said that payday loan customers will be able to apply for a one-month payment holiday if they have not already had one.
The FCA say consumer credit customers who have already benefited from payment deferrals, but are still experiencing payment difficulties, should speak to their lender to agree a tailored support arrangement.
Joanna Elson, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: "The FCA has been right to respond quickly to this second lockdown.
"Extending the availability of payment deferrals on both mortgages and consumer credit is a sensible approach."