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Reaction to financial relief for people impacted by Covid-19

For more information and interviews contact Sarah-Jayne Clifton, Tel: 07980 599002

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

Reacting to the news, Sarah-Jayne Clifton, Director of Jubilee Debt Campaign said:

“The FCA’s proposals to provide people affected by Covid-19 with a three-month payment freeze on credit cards and loans and an interest free £500 overdraft are very welcome. Without urgent action, Covid-19 risks deepening the debt trap faced by millions of families across the country.

But the regulator shouldn’t allow banks to charge interest during a payment break. It would be immoral for the banks to make extra profits off the back of the misfortune of families hit hard by the pandemic. There should be no build-up of interest during the payment freeze and no impact on credit records, and the option for a freeze must be available for people with car and rent-to-own agreements as well as credit cards and loans.”

For full details of the FCA’s proposals see: www.fca.org.uk

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