People who struggle to pay credit cards, loans, and auto finance for extra time for bills – who qualifies?
People who have difficulty paying credit card payments, loans, auto finance payments, and payday loans will have more time to pay their bills due to the second foreclosure.
Payment holiday will also be available for borrowers in England who have not already taken one since July, and it will last for up to six months.
Who will be eligible?
The financial regulator, the Financial Conduct Authority (FCA) has proposed extending support to borrowers after the government confirmed the nationwide lockdown in England.
The payment holidays were first announced in March and were due to end on October 31, with banks agreeing to offer “tailor-made support” to borrowers who needed it afterwards.
Arranging a payment holiday means your account won’t go into arrears with businesses being suspended from reporting missing payments on credit reports.
The new proposals would mean:
Those who have not had a payment holiday will be entitled to two payment deferrals of up to six months in total Those who have already had a payment holiday will be entitled to another payment deferral of up to three months customers, such as those with payday loans, who have not yet had a payment holiday will be able to suspend repayments for one month If you have already had two payment holidays, you should contact your lender for support on measure
Borrowers will now have until January 31, 2021 to request an initial payment deferral.
Those who have high cost short term credit loans and have not yet had a payment holiday will also be able to benefit from a payment deferral of up to one month.
What if I have already taken payment leave?
If you’ve already taken payment leave, you won’t have to worry about paying it back immediately.
In the proposals, the FCA says companies should not report people on payment leave until Jan.31, 2021 as having missed a payment on their credit report.
Those who have already had two payment holidays will not be able to claim any additional payment deferral under the new proposals.