FCA consults UK firms on payment freeze on loans

Christopher Woolard, Interim Chief Executive of the FCA. Image Credit: FCA.

The Financial Conduct Authority, the UK’s financial services regulator, is consulting firms on proposals to try and help UK consumers during the current covid-19 economic stress.

The consultation period runs until Monday 6th April. And if implemented, the proposed measures would come into force on Thursday 9th April.

The proposals include for firms to allow customers facing covid-19 caused financial stress to temporarily freeze their payments on their loans and credit card debts for up to 3 months.

The proposals also include limits on overdraft fees that should be charged to customers over the next 90 days.

Firms should also ensure that customers that use these measures do not have their credit scores affected as a result.

Interim Chief Executive of the FCA, Christopher Woolard, said “If confirmed, this package of measures we are proposing today will help provide affected customers with the temporary financial support they need to help them weather the storm during this challenging time.”

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