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Credit card freeze given for 6 weeks in front of new lockdown.
Credit card freeze extended for 6 weeks in front of new lockdown. Payment holidays on credit cards, car finance, private loans and pawned items have been extended in front of tougher coronavirus restrictions. The Financial Conduct Authority (FCA) said clients that had not even deferred a payment could today request one for up to 6 […]

Credit card freeze extended for 6 weeks in front of new lockdown.

Payment holidays on credit cards, car finance, private loans and pawned items have been extended in front of tougher coronavirus restrictions.

The Financial Conduct Authority (FCA) said clients that had not even deferred a payment could today request one for up to 6 months.

Those with short term recognition like payday loans are able to defer for one month.

"It is essential that customer credit consumers who can find the money to do so continue making repayments," it said.

"Borrowers should take no more than up the assistance in case they need to have it."

It comes after the government announced a nationwide lockdown for England starting on Thursday, which is going to force all non essential retailers to close.

Mortgage holidays extended for as much as six months
Next England lockdown' a devastating blow' The FCA had already brought in fee holidays for recognition clients in April, extending them for three weeks in July.

however, it has nowadays assessed the rules - which apply across the UK - amid anxieties tougher restrictions will hit many more people's finances. The transaction holidays will even apply to those with rent to own and buy-now pay-later deals, it said. Read the following credit cards features:

Moreover, anyone probably benefitting from a transaction deferral will be able to apply for a second deferral.

Nevertheless, the FCA would not comment on whether folks could still have interest on the first £500 of their overdrafts waived. It said it will make a fuller statement in course that is due.

"We will work with trade bodies as well as lenders regarding how to apply these proposals as quickly as is possible, and can make another announcement shortly," the FCA said of the payment deferrals.

In the meantime, it said clients shouldn't contact lenders who will offer information "soon" on how to apply for the support.

It advised anyone still encountering payment difficulties to speak to their lender to agree "tailored support".

On Saturday, the FCA also announced plans to extend payment holidays for mortgage borrowers.

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Analysis box by Kevin Peachey, Personal finance correspondent The extension of payment holidays will be a help to many people already in lockdown and dealing with a decline in income, and those just about to get back to restrictions.

But the theme running through this FCA declaration is that a debt problem delayed is not a debt problem resolved.

The financial watchdog is stressing that deferrals shouldn't be used unless they are truly necessary, and this "tailored support" may be a much better option for a lot of people.

People which believe they will only have a short-term squeeze on their finances will watch developments keenly and hope for an extension to interest free overdrafts.

Importantly, other lenders and banks have a duty to identify anyone who is vulnerable and make certain they're supported. As this crisis intensifies, the number of folks falling into that grouping is actually apt to grow.

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