LONDON (UK) – The Financial Conduct Authority said on Monday that it would extend payment holidays on credit cards, car finance, personal loans and pawned goods before stricter coronavirus curbs come into effect this week.
Those who have not yet had a payment deferral under guidance issued in July can request one lasting up to six months, said the watchdog in a statement.
According to the FCA, borrowers having one deferral are allowed to apply for a second one.
“Borrowers should only take up this support if they need it,” the FCA said in a statement.
For high-cost, short-term credit like payday loans, consumers are allowed to apply for payment deferral of one month if they have not already had one, said the FCA in its statement.
“We will work with trade bodies and lenders on how to implement these proposals as quickly as possible, and will make another announcement shortly,” it said.
