The Financial Conduct Authority (FCA) has today proposed a package of support measures to help consumers facing payment difficulties due to coronavirus.
The FCA has said that the proposals are intended to complement the measures already announced by the Government. The proposals are currently out for consultation until Monday, 20th April. They specifically cover motor finance and high-cost short-term credit, such as payday loans.
High-cost, short-term credit
The FCA has proposed that payday lending firms should be expected to provide a 1 month interest-free payment freeze to customers facing payment difficulties due to coronavirus.
Motor finance
The FCA expects firms to provide a 3-month payment freeze to customers who have difficulties meeting finance or leasing payments due to coronavirus. Additionally, the FCA has stated that firms should not change contracts, including recalculating payment schedules.
The FCA has said that following the closure of the consultation period on Monday, 20th April they will finalise the proposals by Friday, 24th April. The proposals will subsequently come into force in the following weeks.
You can read more online on the FCA's website here.
