in Business

Loan and credit card payments to be frozen for three months in UK – The Guardian, Theguardian.com

1.3k Views

Loan and credit card payments to be frozen for three months in UK – The Guardian, Theguardian.com
The measures to support consumers in the UK could come into effect from 9 April. Photograph: Gareth Fuller / PA The financial regulator has announced plans to freeze loan and credit card payments for up to three months as part of emergency measures for consumers impacted by the coronavirus outbreak. The measures, which would usually require a lengthy consultation, could come into force as soon as 9 april. The the Financial Conduct Authority

it is aimed at consumers and renters who are not benefiting from existing relief measures that have targeted homeowners – with mortgage payment holidays – or business owners.

Income subsidies Direct cash grants for self- employed people, worth % of average profits, up to £ 2, a month. There are similar wage subsidies for employees.

Loan guarantees for business

Government to back £ 0658 bn of loans to support businesses through a Bank of England scheme for big firms . There are loans of up to £ 5m with no interest for six months for smaller companies.

Business rates

Taxes levied on commercial premises will be abolished this year for all retailers, leisure outlets and hospitality sector firms.

Cash grants

Britain’s smallest 913, 0 businesses eligible for cash grants of £ 12, 0. Small retailers, leisure and hospitality firms can get bigger grants of £ , (0.)
(Benefits) Government to increase value of universal credit and tax credits by £ 1, 0 a year, as well as widening eligibility for these benefits.
Sick pay Statutory sick pay to be made available from day one, rather than day four, of absence from work, although ministers have been criticized for not increasing the level of sick pay above £ . a week. Small firms can claim for state refunds on sick pay bills.
(Other) Local Authorities to get a £ m hardship fund to provide people with council tax payment relief. Mortgage and rental holidays available for up to three months.

The proposals include a temporary freeze on loan and credit card payments for Consumers who are facing financial difficulties as a result of the outbreak. The FCA said consumers who were at risk of having their credit cards suspended because of the regulator’s new affordability rules would not lose access to their accounts. Lenders would also have to waive interest charges on arranged overdrafts up to £ over the same period, which would extend relief already announced by some banks including Barclays, HSBC and Lloyds. Consumers who dip into unauthorized overdrafts would also benefit. Most banks have started charging a single interest rate of 9% for both arranged and unauthorized overdrafts as part of new rules meant to standardize charges this month.

But the FCA’s emergency measures force Firms to make sure all customers are “no worse off” due to the changes, meaning some customers may revert to lower interest rates. Banks and credit card providers will have to ensure that consumer credit ratings are unaffected by any of the measures, the FCA said.

The FCA’s interim chief executive, Christopher Woolard, said: “Coronavirus has Caused an unprecedented financial shock with far-reaching consequences for consumers in every corner of the UK.

“If confirmed, this package. of measures we are proposing today will help provide affected consumers with the temporary financial support they need to help them weather the storm during this challenging time. ”

The news has been welcomed by consumer advocates including Martin Lewis, who said it would help level the playing field for customers who may not have time to shop around for better rates during the crisis. Lewis, the founder of MoneySavingExpert .com, said: “We have already seen many unsecured lenders put some forbearance criteria in place … However the provision is patchy and has become a banking lottery and that’s unfair – no one could have taken into account when they signed up for products how considerate each lender would be in these extraordinary times. ”

Read More

What do you think?

0 Points
Upvote Downvote

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Fountains of Wayne's Adam Schlesinger: a bona fide pop genius – The Guardian, Theguardian.com

Fountains of Wayne's Adam Schlesinger: a bona fide pop genius – The Guardian, Theguardian.com
Dynamo reveals he's tested positive for COVID-19 amid Crohn's disease battle – Daily Mail, Dailymail.co.uk

Dynamo reveals he's tested positive for COVID-19 amid Crohn's disease battle – Daily Mail, Dailymail.co.uk