FCA Proposes Financial Relief for Customers Affected by COVID-19

The UK FCA is offering a series of temporary financial relief to support clients affected by the coronavirus. FCA asked all stakeholders to respond with a deadline of Monday, 6 April, 2020, at 9 am. If confirmed, the measures will begin to take effect on 9 April, 2020 

02 April, 2020 | AtoZ Markets – The UK is on a much worse trajectory than China when it comes to coronavirus deaths. The country recorded 382 deaths overnight on Tuesday, which was the highest number of daily deaths in the country until Wednesday. On Wednesday, 565 people died from the infection, and 4,283 new cases of infection were reported.

FCA Proposes New Consumer Credit Financial Relief Measures

On Thursday, the UK Financial Conduct Authority proposed a series of new measures to support households facing sudden financial difficulties due to the coronavirus. This package intends to complement relief to support mortgage holders, staff on leave, tenants and the self-employed. FCA temporary financial relief includes:

  • Temporary payment freezes on loans and credit cards when consumers experience financial difficulties due to the coronavirus, for a maximum duration of three months.
  • Customers who financially affected by the coronavirus will be billed at zero interest for a maximum of three months. It also includes customers who already have an overdraft arranged in their main personal current account, up to £ 500
  • Ensure that all overdraft customers are not worse off compared to the prices charged to them before the entry into force of recent changes in overdrafts
  • Ensure that the credit rating of consumers using one of these temporary measures will not affect for this reason.

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Temporary Measures to Support Affected Customers 

The coronavirus caused an unprecedented financial shock, with far-reaching consequences for consumers across the UK. If confirmed, the package we are proposing today will provide affected consumers with the temporary financial support. They need it to help them weather the storm during these difficult times, “said Christopher Woolard, Interim Chief Executive of the FCA. FCA also said:

We asked all stakeholders to respond with a deadline of 9:00 am on Monday, 6 April, 2020. If confirmed, the measures will begin to take effect on 9 April, 2020 “.

Lenders don’t need to put these measures in place before they come into force. Lenders may need a short time to put in place the arrangements necessary to implement these measures. Consumers should not yet contact their lender unless they already offer voluntary assistance. FCA is planning to make another announcement regarding these measures next week.

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