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The Financial Conduct Authority (FCA) has announced a range of new proposals meaning borrowers in financial trouble may be able to get additional help from their lenders, including new payment holidays.

You should check with your lender as to what you might be eligible for – but only do this if you’re in financial trouble as in some cases this will be recorded on your credit file, making borrowing harder in future, and you’d still have to pay interest on any outstanding debt.

For those with personal loans, credit cards, motor finance, rent-to-own, buy-now-pay-later and pawnbroking debt, the FCA proposes that:

  • those who have not yet had a payment deferral will be eligible for two payment deferrals of up to six months in total
  • those who currently have an initial payment deferral, will be eligible for a further payment deferral of up to three months

Meanwhile, high-cost short-term credit (HCSTC) customers, such as those with payday loans, who have not yet had a payment deferral, would be eligible for a payment deferral of one month.

The previous proposal for lenders to waive interest in some cases is still applicable.

There’s also additional support for those who have mortgages.

The FCA proposes:

  • those who have not yet had a payment deferral will be eligible for two payment deferrals of up to six months in total
  • those who currently have an initial payment deferral, will be eligible for another payment deferral of up to three months
  • those who have resumed repayments after an initial payment deferral will be eligible for another payment deferral of up to three months
  • no one will have their home repossessed without their agreement until after 31 January 2021