News UK FCA announces help for payday loans, motor finance, payday loans and other high cost credit

To help people under financial strain the Financial Conduct Authority has announced plans to support customers facing payment difficulties due to COVID-19.

The proposed measures are wide ranging and bespoke to the type of payment. For example

- on a motor vehicle where a balloon payment is due and customer does not have the cash - the firms should work to find a solution.
- payday lenders should provide 1 month interest free
- rent-to-won, buy-now-pay-later and pawnbroking agreements will be expected to give a 3 month freeze.

The FCA welcomes comments on these proposals until 5pm on Monday 20 April 2020 and expects to finalise proposals by Friday 24 April 2020. Read more on the FCA website here.