With millions of Britons continuing to feel the impact of Covid-19 on their finances, the FCA has proposed extending measures to protect credit customers after their initial three month payment holidays expire.
If you have not yet agreed a three month payment freeze or interest-free overdraft of up to £500, you now have until October 31st to do so.
For those who have already arranged payment support measures with their credit providers, companies are now required to continue helping customers who have been negatively impacted by Covid-19 and are still unable to make regular payments, whether on credit cards or loans.
IF YOU HAVE A PAYMENT FREEZE
When your payment freeze ends, you will be contacted to find out if you can afford a return to making payments.
If you feel you can make payments, but not at the previous monthly amount, the company should try to work out an affordable plan with you.
If you feel you can afford to return to normal, the company work with you to find the best method of making up the missed payments.
IF YOU HAVE OVERDRAFT SUPPORT
You can request a further 3 months of £500 interest free overdraft.
IF YOU HAVE NOT YET REQUESTED SUPPORT
You can now ask for a temporary payment freeze, payment reduction, or overdraft support until October 31st.
Any support you request from credit companies through the Covid crisis should not have an impact on your credit file.
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