Car finance and payday borrowers to be given payment and interest breaks

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Car finance and payday borrowers to be given up to three month breaks from payments and interest

, who until now, have had to negotiate help on a case by case basis themselves.

"These measures build on the interventions we announced last week, and will provide much needed relief to consumers during these difficult times."For high cost short-term credit loans, such as payday loans, the FCA says firms will be expected to provide a one month interest-free payment freeze to customers facing payment difficulties due to the coronavirus pandemic.

After the end of the freeze, firms should allow borrowers to pay the deferred payment in an "affordable way".

 

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