FCA proposes further support for consumer credit borrowers impacted by COVID-19

05 Nov 2020

The Financial Conduct Authority (FCA) is proposing further support for borrowers affected by the coronavirus (COVID-19).

The UK's financial regulator announced tailored measures for borrowers in September and said it would keep them under review as the situation evolved. With a second national lockdown starting today, it has made further proposals.

The FCA has proposed to extend payment deferrals and other support to personal loans, credit cards, motor finance, rent-to-own, buy-now-pay-later and pawnbroking customers who are experiencing payment difficulties because of COVID-19.

These proposals will mean that those who have not yet had a payment deferral will be eligible for two payment deferrals of up to six months in total. In addition, those who currently have an initial payment deferral will be eligible for a further payment deferral of up to three months.

Commenting on the proposals, Eric Leenders, Managing Director of Personal Finance at UK Finance, said: 'Lenders continue to provide unprecedented support to borrowers impacted by the COVID-19 crisis and are working closely with the FCA to ensure customers continue to receive the help they need.

'It will always be in the long-term interest of customers who are able to do so to resume making payments, but for anyone who is still struggling ongoing support will be available.'