The Financial Conduct Authority (FCA) has confirmed temporary measures will be in place for people that have been impacted by coronavirus and suffering financial pressures on most credit and loan products.
FCA’s Chief Executive Christopher Woolard said, “This is a difficult time for people and the changes will provide support and short-term financial help for customers facing financial difficulties with loans, credit cards and overdrafts”.
“Customers that can still afford payments should continue to, and only use these measures if they require immediate help”.
“Other parts of the credit market will be looked at in the future and will include the motor finance sector”.
Firms will be expected to do the following:
The changes will come into force today and the full range of measures will apply by Tuesday 14th April 2020.
Firms will then have time to apply the changes and make sure they have the resources to receive customers requests and handle them appropriately. Most of the major banks and building societies will be making the changes today.
Customers are asked to be patient and check firm’s websites for more information and try to use their online services. This will reduce the pressure on call centres that will be experiencing high call volumes and if you can wait contact firms after the Easter break.
The FCA has confirmed the following products are covered:
The measures will not replace normal payment relief rules where these would be more suitable for the customer in serious immediate financial difficulty.
Customers that are in financial difficulty should contact the Money Advice Service (MAS) for further guidance.