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17 April, 2020 Open access

FCA announces proposals to support high-cost credit customers facing financial difficulties due to coronavirus

New package of measures includes a one-month interest-free payment freeze on payday loan repayments

The Financial Conduct Authority (FCA) has announced a package of proposals to support high-cost credit customers facing financial difficulties due to coronavirus (COVID-19).

The new measures - intended to complement measures already introduced by the FCA to support loan and credit consumers during the coronavirus pandemic - include an expectation that payday lending firms will provide a one-month interest-free payment freeze to customers facing payment difficulties due to the coronavirus pandemic.

In addition, the FCA proposals include -

NB - further details of the FCA’s expectations on firms are outlined in draft guidance on high-cost credit; rent to own, buy now pay later and pawnbroking; and motor finance.

The FCA says that it intends to finalise its proposals by 24 April 2020, with them coming into force shortly afterwards, and invites comments by 20 April 2020.

For more details see FCA proposes help for motor finance and high-cost credit customers from fca.org.uk