Credit card freeze extended for six weeks ahead of new lockdown.
Credit card freeze extended for six months ahead of new lockdown. Payment holidays on credit cards, car finance, personal loans and pawned items have been extended in front of tougher coronavirus restrictions. The Financial Conduct Authority (FCA) said buyers who had not even deferred a transaction could now request one for up to 6 months. […]

Credit card freeze extended for six months ahead of new lockdown.

Payment holidays on credit cards, car finance, personal loans and pawned items have been extended in front of tougher coronavirus restrictions.

The Financial Conduct Authority (FCA) said buyers who had not even deferred a transaction could now request one for up to 6 months.

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

"It is crucial that consumer credit clients who are able to afford to do therefore continue making repayments," it said.

"Borrowers must only take up the support in case they require it."

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

Mortgage holidays provided for as much as 6 months
Second England lockdown' a devastating blow' The FCA had already brought in fee holidays for recognition clients in April, extending them for 3 months in July.

Though it has today reviewed the rules - which apply throughout the UK - amid fears tougher restrictions will hit many more people's finances. The transaction holidays will apply to those with rent to own and buy-now pay-later deals, it stated. Read the following credit cards features:

Moreover, anyone already benefitting from a transaction deferral will be ready to apply for a second deferral.

However, the FCA wouldn't comment on whether individuals can really have interest on the first £500 of their overdrafts waived. It said it would come up with a fuller statement in due course.

"We will work with trade systems and lenders on how to carry out these proposals as quickly as possible, and can make an additional announcement shortly," the FCA said of the transaction deferrals.

In the meantime, it said clients shouldn't contact lenders who will offer information "soon" regarding how to apply for the support.

It advised anyone still encountering transaction difficulties to speak 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 charge holidays will be a help to lots of men and women already in lockdown and struggling with a fall in earnings, and those just about to go back to restrictions.

But the theme running through this FCA declaration is the fact that a debt issue delayed is not really a debt problem solved.

The financial watchdog is stressing that deferrals should not be used unless they're really needed, and this "tailored support" may be a better option for a lot of people.

People who believe they'll only have a short term squeeze on their funds will observe developments keenly & wish for an extension to interest free overdrafts.

Importantly, other lenders and banks have a duty to recognize any person who's vulnerable and make certain they're supported. As this crisis intensifies, the amount of men and women falling into that grouping is apt to grow.

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