LONDON - Britain's financial watchdog has proposed a repayment freeze for consumers with auto finance leases, goods bought on high-cost credit, and pawned belongings during the coronavirus pandemic.
"If customers are experiencing temporary financial difficulties due to coronavirus, firms should not take steps to end the agreement or repossess the vehicle," the FCA said in a statement. "This shorter period reflects both the much shorter length of most loans and, given interest rates tend to be higher than for other high cost credit products, prevents firms from accruing additional interest during the freeze period," the FCA said.
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