By Huw Jones
LONDON, July 1 (Reuters) - Consumers in difficulties due to
the COVID-19 pandemic will have more time to ask for a temporary
freeze on their credit card payments, Britain's Financial
Conduct Authority said on Wednesday.
Measures introduced in April to offer temporary relief to
customers with credit cards and interest-free bank overdrafts
were due to end this month.
The FCA said that customers yet to request a payment freeze
or an arranged interest-free overdraft of up to 500 pounds, will
have until Oct. 31 to apply.
"For those who are now in a position to restart payments, it
will be in their best interests to do so. But for those who
still need it, the package we are confirming today ensures there
is help and further support," said Christopher Woolard, the
FCA's interim chief executive.
Firms should contact customers coming to the end of a first
payment freeze to find out if they can resume payments - and if
so, agree a plan on how the missed payments could be repaid, the
watchdog said.
The FCA also said on Wednesday that temporary curbs on how
banks charge for overdrafts during the pandemic would not be
extended.
"Firms that do choose to increase their charges from this
temporary level should give customers impacted by coronavirus an
opportunity to seek extra support before any changes take
effect," the FCA said.
Wednesday's statement does not apply to other forms of
consumer credit including motor finance, payday loans,
pawnbroking, rent-to-own and buy-now pay-later products whose
COVID-19 related measures will be updated soon, the FCA said.
(Reporting by Huw Jones; Editing by Andrew Heavens)
