FCA proposes credit-card payment freeze and £500 overdraft for all

The Financial Conduct Authority has said that loan and credit card repayments could be frozen for three months, while those affected financially by the virus outbreak will benefit from a £500, fee-free overdraft.

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Loan and credit card repayments are to be frozen for three months as the Financial Conduct Authority (FCA) urges banks to provide consumers with financial relief in the face of an unprecedented crisis. The regulator has also proposed that banks offer a £500 interest-free overdraft, with anyone financially affected by the coronavirus pandemic eligible to apply.

The stopgap measures aim to support users of consumer credit products that might be facing financial difficulties because of the “exceptional circumstances” arising from the virus.

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Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.