Payment holidays on credit cards, car finance, personal loans and pawned goods have been extended following the Government\u2019s announcement of a second lockdown from Thursday 5 November.<\/p>\n
The Financial Conduct Authority (FCA) has stated that individuals that had not yet deferred a payment could request a six-month payment holiday, while short-term credit can be deferred for one month.<\/p>\n
The payment holidays were brought in by the FCA in April before being extended for an additional three month period in July. However, the rules, which are UK-wide, have now been reviewed, with concerns being raised over the impact of stricter coronavirus restrictions.<\/p>\n
Additionally, the payment holidays will apply to individuals who have rent to own or \u2018buy now, pay later\u2019 deals, with anyone who is already benefitting from a deferral now able to apply for a second one.<\/p>\n
The extension of payment holidays will come as a relief to many, with non-essential retail businesses set to close at 00.01 on Thursday 5 November and individuals facing a reduction in income, particularly with the extension of the Coronavirus Job Retention Scheme (CJRS).<\/p>\n
The FCA has emphasised that payment holidays should only be used if they are \u2018really needed\u2019, while banks and lenders have a duty to identify vulnerable individuals that may require additional support.<\/p>\n
In a statement, the FCA said: \u201cWe will work with trade bodies and lenders on how to implement these proposals as quickly as possible, and will make another announcement shortly.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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