FCA proposes new consumer credit financial relief measures during COVID-19 crisis

The Financial Conduct Authority (FCA) has today unveiled a series of measures designed to support borrowers during the COVID-19 crisis.

Following the government’s introduction of mortgage relief, the FCA has proposed temporary measures aimed at users of certain consumer credit products such as loans, overdrafts and credit cards.

Under the new rules, lenders across these products would be required to offer a payment holiday of up to three months to customers experiencing financial difficulties as a result of the ongoing coronavirus outbreak and shutdown.

Firms would be required to offer a temporary payment freeze on loans and credit cards, as well as offer zero interest up to £500 on arranged overdrafts on main bank accounts.

If confirmed, the new measures are set to come into force on April 9, following consultation with stakeholders.

Christopher Woolard, interim chief executive of the FCA, commented: “Coronavirus has caused an unprecedented financial shock with far-reaching consequences for consumers in every corner of the UK.

“If confirmed, this package of measures we are proposing today will help provide affected consumers with the temporary financial support they need to help them weather the storm during this challenging time.”

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