Following the emergency consultation launched last week, this morning, the FCA has confirmed the range of temporary relief that must be implemented by firms by 14 April at the latest.
The new rules require that, where customers are negatively impacted by coronavirus, they can:
- take advantage of a payment freeze on loans and credit cards for up to 3 months;
- if they already have an arranged overdraft on their main personal current account, be able to access up to £500 charged at 0% interest for 3 months;
- be assured that their overdraft price is no worse off on price when compared to the price it was charged before the recent overdraft pricing changes came into force;
- be assured that use of any of the above will not affect their credit file.
The FCA further confirmed that the following products are also covered by this requirements:
- guarantor loans
- logbook loans
- home collected loans
- loans issued by community development finance institutions
- loans issued by credit unions (where they are regulated)
FCA has published temporary guidance for firms on:
- Personal Credit Cards and Coronavirus
- Personal Loans and Coronavirus
- Personal Overdrafts and Coronavirus