FCA extends payment holiday
The Financial Conduct Authority (FCA) has told banks and credit providers to extend payment holidays on overdrafts, loans and credit cards until October as people continue to feel the financial impact of the COVID-19 pandemic. While a policy that allows those whose income has been hit by the lockdown to defer payments was expected to be wound up at the end of July, the watchdog has proposed an extension of the support window. The FCA says lenders will be expected to continue offering repayment breaks, as well as offering support to those yet to request it. While the extension covers credit cards, store cards, personal loans and overdrafts, the FCA is yet to update separate guidance on motor finance, payday loans, rent-to-own, pawn-broking or buy now pay later. Figures show 4.2m people have taken advantage of the repayment breaks to date.