Payment holidays for struggling payday loan customers and £500 interest-free overdrafts are due to end on October 31Instead the Financial Conduct Authority proposed new support, which says lenders should give users tailored help from November depending on their individual circumstances.this was then extended for another three monthsThe FCA said that although the majority of consumers will start to resume payments in full from November, many will remain in financial difficulty.
The majority of lenders are now offering payment holidays, so get in touch with your bank to find out what help it can give you.Typically, payment holidays are offered in extreme circumstances and are designed as an emergency measure to help you through a difficult financial time. “Any temporary measures being offered by lenders don’t remove financial obligations – they are designed as an emergency measure to help you get through a period where your income may have taken a serious knock.“While taking a payment break would usually be noted on your credit file, the credit reference agencies have confirmed that, during the current crisis, this should not have a future influence on your credit status.
Firms will be expected to contact overdraft customers who've received temporary support to determine if they still need help. The proposals will now be consulted on with the industry given until 10am on September 21 to comment. While Eric Leenders, managing director of personal finance at trade body UK Finance, said: "Lenders stand ready to offer tailored support and flexibility to those who continue to face financial difficulties and will be working closely with the Financial Conduct Authority.