Home Business NewsBusinessAutomotive News FCA protects motor finance and high-cost credit customers

FCA protects motor finance and high-cost credit customers

by LLB Editor
24th Apr 20 9:57 am

The FCA will be introducing the package of measures outlined last week to support consumer credit customers facing payment difficulties due to coronavirus (Covid-19).

The targeted temporary measures being implemented are a 3 month payment freeze for motor finance, buy-now pay-later (BNPL), rent-to-own (RTO) and pawnbroking agreements. For high-cost short term credit (including payday loans) payments will be frozen for one month with no additional interest to be charged.

Christopher Woolard, interim Chief Executive at the FCA, said: “We have worked at pace to introduce temporary financial relief tailored for a range of specific credit products.

“Many firms are already working with their customers, but these measures ensure all consumers affected by the coronavirus emergency can apply for a temporary freeze on their payments.”

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