Covid-19 Impact on Banks, And fixes. The Black Swan Opportunity

Download Now

The Black Swan Opportunity | Get your bank digital ready.

IBSI Special 5 Digital Report Package with Special Offer. Subscribe now

IBS Journal: The iconic monthly FinTech magazine

May 2020 issue out now! Subscribe now

India FinTech Report 2020

Insights into the historical and projected market size of key FinTech categories. Subscribe now

FCA confirms temporary measures for financial relief during COVID-19

The FCA today confirmed temporary measures to provide financial relief to those facing payment difficulties during the COVID-19 pandemic. The measures include firms being asked to offer a temporary payment freeze on loans and credit cards for up to three months and allow affected customers who already have an arranged overdraft on their main personal current account, up to £500 charged at zero interest for three months. It also includes ensuring customers using payment freeze measures to not have their credit files affected and that no overdraft customer is worse off.

Christopher Woolard, interim Chief Executive at the FCA, said, “We know many people are suffering financial pressures brought on as a result of the coronavirus pandemic. The measures we’ve announced are designed to provide people affected with short-term financial support through what could be a very difficult time. The changes will provide support for consumers with credit cards, loans and overdrafts, facing temporary financial difficulties because of the pandemic.”

FCA states that the rule changes will be in force from today and the full range of measures will apply by Tuesday 14 April 2020, thus allowing firms the time to ensure they have the appropriate level of resources available to handle customer requests.

Woolard continued, “Customers should think carefully before making use of these measures and only do so if they need immediate help. Where they can still afford to make payments, they should continue to do so. We know there is still more work to be done, and we will be announcing further measures to support consumers in other parts of the credit market in the future, including in the motor finance sector next week.”

Related IBS Intelligence Research​

Related Posts