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Credit card freeze given for six months in advance of new lockdown.

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

The Financial Conduct Authority (FCA) said customers which had not yet deferred a payment can today request one for up to six months.

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

“It is important that customer credit clients who could afford to do so continue making repayments,” it said.

“Borrowers need not take more than up this assistance if they need 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 extended for up to 6 months
Next England lockdown’ a devastating blow’ The FCA had previously brought in fee holidays for recognition customers in April, extending them for 3 months in July.

however, it has today assessed the rules – which apply across the UK – amid anxieties tougher restrictions will hit many more people’s funds. The payment 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 will be able to apply for a second deferral.

Nevertheless, the FCA would not comment on whether people can really have interest on the initial £500 of their overdrafts waived. It said it would come up with a fuller statement in due course.

“We will work with trade bodies and lenders regarding how to employ these proposals as quickly as possible, and often will make another announcement shortly,” the FCA said of the transaction deferrals.

In the meantime, it said buyers should not contact lenders who will provide info “soon” regarding how to apply for the assistance.

It advised anybody still experiencing transaction difficulties to talk to their lender 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 individuals already in lockdown and dealing with a fall in income, 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 much of a debt problem solved.

The monetary watchdog is stressing that deferrals should not be used unless they’re actually needed, and that “tailored support” could be a better choice for a lot of people.

Men and women who think they will end up with a short-term squeeze on their finances will observe developments keenly & hope for an extension to interest-free overdrafts.

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

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