The Financial Conduct Authority (FCA) is fast-tracking new measures that will force banks to freeze loans and credit card payments for up to three months to help those individuals whose finances are affected by the Coronavirus outbreak.
The measures should be in force by 9 April 2020 and will include:
- A three-month repayment freeze on loans;
- A temporary freeze on credit card and store card debt up to three months; and
- Zero-interest for three months on up to £500 for customers affected by Coronavirus using an arranged overdraft for up to three months.
The FCA wants to ensure that “consumers are no worse off and not paying more than they would have under previous prices.”
It is not yet clear whether these measures will apply automatically or whether borrowers will have to apply, so it is best to speak to your bank or lender to clarify your position.
The FCA also said that consumers using any of these measures should not see their credit rating affected.