FCA proposes credit card, loan payment freeze to protect consumers

Credit_cards_AdobeStock_575x375_02April20
By Tom Brown
02 Apr 2020

The UK Financial Conduct Authority has proposed a three month freeze on all credit card and loan payments to help customers facing economic difficulties in the wake of the Covid-19 pandemic, measures which could drive losses on junior ABS bonds.

Under new proposals, customers will be allowed payment deferrals on their credit card or revolving credit agreements for the next three months without being considered to be in arrears. The interest will also accrue during this period if the customer chooses to defer.

The move represents an extension of ...

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