(Alliance News) - UK lenders are seeking regulatory approval to loosen repayment rules for credit cards to help customers cope during the coronavirus crisis, the Financial Times reported Monday.
According to the newspaper, banks have asked the UK Financial Conduct Authority to waive the current regulatory requirement that customers make a minimum repayment each month. The banks are expecting to reach an arrangement to postpone credit card bills of customers by up to three months, it said.
Credit card issuers will still be able to charge interest and fees during the payment holiday, and the total debt would still have to be repaid by consumers, the FT reported. The banks also plan to ensure credit ratings of customers are not affected if they miss payments.
The FCA declined to provide a comment to the newspaper.
https://www.ft.com/content/56da8f56-45d4-421b-b465-fb10b1224e8a
By Tapan Panchal; tapanpanchal@alliancenews.com
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