Reaction to FCA announcement on freeze on loan payments

For more information and interviews contact Eva Watkinson, Tel: 07870187861

The FCA has announced their final proposals for temporary measures to support users of many credit products who are facing a financial impact because of coronavirus.

Reacting to the news, Eva Watkinson, Head of Campaigns at Jubilee Debt Campaign said:

“We welcome the announcements made today by the FCA, which will provide a three-month payment freeze on loans and credit cards. Last week almost 80 organisations and academics signed an open letter to the Chancellor calling for action to stop Covid-19 deepening the debt trap faced by millions of families across the UK.

“However, we are disappointed that the new measures allow interest to be added on and paid in future, excluding overdrafts of up to £500. Borrowers may find themselves having to deal with a large amount of interest accrued at the end of the period, worsening further the UK’s household debt crisis.

“We are also calling on the Government to go further and write-off historic council tax and social security debt to help ease the burden on struggling families at this time. No family should have to service debt while fighting coronavirus.”

For full details of the FCA’s proposals see: https://www.fca.org.uk/news/press-releases/fca-confirms-temporary-financial-relief-customers-impacted-coronavirus

Notes

The Jubilee Debt Campaign is a UK charity working to end poverty caused by unjust debt through education, research and campaigning: https://www.jubileedebt.org.uk

Jubilee Debt Campaign’s Privacy Policy is available at https://jubileedebt.org.uk/wp/wp-content/uploads/2018/05/Privacy-policy.pdf

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