The Financial Conduct Authority (FCA) recently announced that it is providing support for borrowers who are experiencing financial difficulties due to the coronavirus pandemic. The FCA is a regulatory body in the UK that regulates financial services and markets.
The FCA has put in place measures to help those who are struggling to make payments on their loans and mortgages. These measures include:
• Allowing borrowers to apply for a payment deferral of up to three months on their loan or mortgage payments.
• Allowing borrowers to reduce their payments or switch to interest-only payments for up to six months.
• Allowing borrowers to switch to a different type of loan or mortgage with lower interest rates.
• Waiving late payment fees and other charges for borrowers who are experiencing financial difficulties.
• Encouraging lenders to provide additional support to those who are struggling to make payments.
The FCA has also announced that it will be monitoring lenders closely to ensure that they are following the measures outlined above. The FCA has stated that it will take action against any lender that does not comply with these measures.
The FCA’s announcement is welcome news for those who are struggling financially due to the pandemic. It is important for borrowers to remember that they should contact their lender if they are having difficulty making payments. Lenders are required to provide assistance and support to those who are in need.
It is also important for borrowers to remember that they should not take out additional loans or credit cards if they are already struggling financially. Taking out more debt can make it even harder to pay back existing loans and mortgages.
The FCA’s announcement is a positive step towards helping those who are struggling financially due to the pandemic. It is important for borrowers to remember that they should contact their lender if they are having difficulty making payments, and that they should not take out additional loans or credit cards if they are already struggling financially.