FCA confirms support for motor finance and high cost credit customers

The Financial Conduct Authority (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.”