Additional Credit Card payment holidays for those still struggling

Credit card rules change today – extra support announced for ‘high cost credit customers'

CREDIT card rules will be extended according to new rules set forward by the FCA and those rules come into force today. For those who need help because of coronavirus, it is now possible to seek extended support from credit providers.

By CONNOR COOMBE-WHITLOCK

PUBLISHED: 10:53, Fri, Jul 3, 2020 | UPDATED: 11:32, Fri, Jul 3, 2020

Additionally, those who have or are already on a payment holiday can receive additional support and extensions from their providers.

Full details of the extension can be found on the FCA’s website and the changes made were welcomed by certain public institutions.

In response to the announcement Andrew Johnson, a Money Expert at the Money and Pensions Service, had the following to say: “The extension of support measures confirmed today for credit card, personal loan and overdraft customers could be helpful for people who are experiencing temporary payment difficulties, as we know that Covid-19 is continuing to affect people’s finances. 

“It’s really important that people speak to their lenders to find out what options are available and appropriate for them, and consider what this will mean for their repayments in the long term.”

StepChange were also very welcoming of the announcement, with Peter Tutton, the Head of Policy at the charity, providing the following comments: “This extension of support for people with credit cards and revolving credit is crucial, as millions of people are not yet in any way back to normal financially.

“Our research suggests that millions of people have had to borrow to make ends meet, with 1.7 million people turning to their credit card and 1.6 million to their overdraft.

"Overdrafts will need careful oversight as the support measures become more discretionary on the part of banks."