UK Watchdog Asks Lenders to Offer Relief to Loan, Credit Card Customers
April 02 2020 - 4:16AM
Dow Jones News
By Sabela Ojea
The Financial Conduct Authority said Thursday that it is
proposing a number of measures aimed at offering relief to loan and
credit card customers during the coronavirus pandemic.
The British financial regulator said that it will support
customers hit by the pandemic through a short-term package for a
period of up to three months, asking lenders to offer a temporary
payment freeze on loans and credit cards to those who are
struggling.
Lenders should offer up to 500 pounds ($619.20) at zero interest
to overdraft customers at their personal accounts, the FCA said,
adding that firms will also have to make sure customers aren't
charged more than they would have been before the recent overdraft
changes came into force.
The financial regulator noted that "coronavirus has caused an
unprecedented financial shock with far-reaching consequences for
consumers," and added that these measures are planned to come into
force on April 9 after a brief consultation.
"If confirmed, this package of measures we are proposing today
will help provide affected consumers with the temporary financial
support they need to help them weather the storm during this
challenging time," the British watchdog said, adding that firms can
offer more generous assistance to their customers.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
April 02, 2020 04:01 ET (08:01 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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