Help for consumers

Loan and credit card payments to be frozen

Pressure eased on consumers

Banks are being urged to introduce a three-month payment freeze on loans and credit cards where consumers face difficulties with their finances as a result of coronavirus.

This will ensure that for customers who have been hit financially by the coronavirus and already have an arranged overdraft on their main personal current account, up to £500 will be charged at zero interest for up to three months.

The change is expected to come into effect from 9 April.

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

“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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