The Financial Conduct Authority (FCA) is proposing further support for borrowers affected by the coronavirus (COVID-19).
The UK’s financial regulator announced tailored measures for borrowers in September and said it would keep them under review as the situation evolved. It made further proposals following the announcement of a second national lockdown for England.
The FCA has proposed to extend payment deferrals and other support to personal loans, credit cards, motor finance, rent-to-own, buy-now-pay-later and pawnbroking customers who are experiencing payment difficulties because of COVID-19.
These proposals will mean that those who have not yet had a payment deferral will be eligible for two payment deferrals of up to six months in total. In addition, those who currently have an initial payment deferral will be eligible for a further payment deferral of up to three months.
Commenting on the proposals, Eric Leenders, Managing Director of Personal Finance at UK Finance, said: ‘Lenders continue to provide unprecedented support to borrowers impacted by the COVID-19 crisis and are working closely with the FCA to ensure customers continue to receive the help they need.
‘It will always be in the long-term interest of customers who are able to do so to resume making payments, but for anyone who is still struggling ongoing support will be available.’