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Credit card freeze given for 6 weeks ahead of new lockdown.
Credit card freeze given for 6 months in front of new lockdown. Payment holidays on credit cards, automobile finance, personal loans and pawned items have been extended ahead of tougher coronavirus restrictions. The Financial Conduct Authority (FCA) said consumers that had not yet deferred a payment can now request one for up to 6 months. […]

Credit card freeze given for 6 months in front of new lockdown.

Payment holidays on credit cards, automobile finance, personal loans and pawned items have been extended ahead of tougher coronavirus restrictions.

The Financial Conduct Authority (FCA) said consumers that had not yet deferred a payment can now request one for up to 6 months.

Those with short term credit such as payday loans can defer for one month.

"It is essential that consumer credit consumers who can pay for to do and so continue to make repayments," it said.

"Borrowers should not take more than up the support if they need to have it."

It comes after the government announced a nationwide lockdown for England starting on Thursday, which will force all non-essential retailers to close.

Mortgage holidays provided for up to six months
Next England lockdown' a devastating blow' The FCA had already brought in payment holidays for credit clients in April, extending them for three weeks in July.

Though it's now reviewed the rules - which apply throughout the UK - amid fears tougher restrictions will hit a lot more people's funds. The transaction holidays will even apply to those with rent to own as well as buy-now pay later deals, it stated. Read the following credit cards features:

Additionally, anyone probably benefitting from a payment deferral is going to be ready to apply for a second deferral.

Nonetheless, the FCA would not comment on whether folks could still have interest on the very first £500 of their overdrafts waived. It said it will come up with a fuller statement in due course.

"We will work with trade bodies and lenders on how to implement these proposals as quickly as you possibly can, and can make an additional announcement shortly," the FCA said of the payment deferrals.

In the meantime, it said clients should not contact lenders who'll offer info "soon" regarding how to apply for the support.

It advised anyone still encountering transaction difficulties to speak to their lender to agree "tailored support".

On Saturday, the FCA also announced plans to extend payment holidays for mortgage borrowers.

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Analysis box by Kevin Peachey, Personal finance correspondent The extension of payment holidays will be a relief to a lot of men and women already in lockdown and facing a fall in earnings, and those just about to go back to limitations.

Though the theme running through this FCA statement is the fact that a debt issue delayed is not really a debt problem resolved.

The financial watchdog is worrying that deferrals shouldn't be used unless they are truly needed, and this "tailored support" may be a better choice for a lot of people.

People who believe they will end up with a short term squeeze on the finances of theirs will observe developments keenly & wish for an extension to interest-free overdrafts.

Importantly, other lenders and banks have a duty to recognize any person who's vulnerable and make sure they're supported. As this crisis intensifies, the number of individuals falling into that group is actually likely to grow.

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