On 19 June, the Financial Conduct Authority (FCA) announced proposals to extend credit card and loan payment holidays.
If the proposals are approved, here’s what it will mean:
If you’re already on a payment holiday, you should be able to extend it for a further three months.
However if the lender thinks this would land you in further financial difficulty, it will be able to deny the payment holiday and offer other help.
If you’ve not yet applied for a card or loan payment holiday, you can do so until 31 October 2020.
This lets people who are currently making payments but are concerned about the future have more time to make the decision rather than rush to apply.
You’ll also be able to take partial payment holidays. So, if you can make some payments towards your monthly card or loan payment, but can’t pay the whole amount, you’ll be able to come to an agreement with your lender to do so.
This could be a better option than a full payment holiday as less interest will accrue, meaning future repayments would be lower than if you’d taken a full payment holiday.
If you’d like more help understanding this our advice team can be reached at advice@ourpca.uk
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