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The Financial Conduct Authority has extended applications for payment leave, with a warning.
The CFA has brought a transitional license of up to six months for those who have difficulty tracking loan payments, non-public loans, auto loans, car financing, rent with option to purchase, buy now pays later, pawnshops and major short-term costs. . to customer credits clients financially affected by coronavirus at the beginning of the year.
The show must end with a deadline of October 31, the same day Boris Johnson announced that England would enter a one-month blockade starting November 5.
Money-saving expert Martin Lewis tweeted Saturday (October 31) that he hoped the FCA would take the resolution to increase its support.
On Monday, November 2, the FCA posted the following announcement on its website:
“We said we would remain ours for client credit borrowers under review as the coronavirus pandemic (Covid-19) evolved.
“Following the announcement of the latest government restrictions in reaction to the coronavirus outbreak, we will offer updates to our transitority recommendation on non-public loans, auto loans, car financing, leasing, buy now, pay-after, pawnshops, and higher cost. . short-term credits customers clients financially affected by the coronavirus. “
The FCA continued to warn: “It is vital that the customer proves to customers that they can do so and continue to pay.
“Borrowers deserve to settle for this only if they want it. “
Martin Lewis has already suggested that those who pay a full license to conduct a self-assessment to see if they would gain advantages from taking one.
He warned, “If you want it, take it, but take it if you want.
“It’s because if a payment license is a smart monetary break and, if you have problems with other bills, it’s bigger than missing bills without an agreement, there are genuine consequences:
“Interest is increasing. Most of these products are debt products. Interest is frozen (excluding payday loan leave), so it continues to accrue during the period.
“Normally, you make refunds that reduce the amount you owe and reduce interest, however, the fact that you don’t pay while interest is still active means you’ll be charged more.
“This may be your ability to earn long-term credits. When the coronavirus payment licence was first launched, the FCA and the Chancellor were willing to note that this would not be in their credit report, nor in their long-term chances of obtaining credits.
They added the FCA in their statement: “To those financially affected by the coronavirus, we will propose that customers who pay customers who have not yet had a payment deferment as a component of our July forecast would possibly request one. This may also last. until the end”. to 6 months unless this is the case. This is clearly not in the most productive interests of the client: according to our proposals, borrowers who have recently obtained an initial deferment according to our July forecast can also request a temporary deferral.
“In the meantime, customer credit customers deserve not to touch their lender yet. Lenders will soon provide them with information on what this means for their customers and how to apply if our proposals are confirmed. “payment difficulties deserve to contact your lender to agree on a personalized arrangement.
Additional announcements have also been made for those with personal loans:
“For short-term high-cost loans (such as payday loans), consumers can apply for a one-month deferment if they have already had one.
The CFA is expected to make an announcement later in the day after consultation with advertising organizations and lenders.
Later in the day will also be announced more about the loan repayment license.