• UK Finance members have offered 27 million interest-free overdrafts, provided 961,700 payment deferrals on credit cards and 688,900 payment deferrals on personal loans.
   
• Lenders are committed to providing ongoing support to those customers that need it.
   
• The Financial Conduct Authority's (FCA) draft guidance provides important clarity for customers with credit cards, personal loans and overdrafts and the potential next steps for those coming to the end of a payment freeze. 

UK Finance welcomes the Financial Conduct Authority's (FCA) consultation proposals today on providing continued support to customers with credit cards, personal loans and overdrafts and will work closely with the FCA to help it finalise its guidance as quickly as possible.

This draft guidance follows extensive collaboration between the industry and regulator and provides important clarity on how lenders can support those customers that need it.

For borrowers yet to request a payment freeze or an arranged interest-free overdraft of up to £500, the time to apply for one would be extended until 31 October 2020. For those who have already taken up support and are still experiencing temporary payment difficulties due to coronavirus, firms would continue to offer support with a range of options available.

Interest will normally continue to be charged during payment deferrals and so customers should consider their options carefully and only apply or extend a deferral if they are facing temporary financial difficulties and need immediate help. Customers in more severe financial difficulty should speak to their lender about the most appropriate action to take, which could include speaking to an independent debt charity to talk through the options and agree a way forward.

As of 12 June 2020, UK Finance members have offered 27 million interest-free overdrafts, provided 961,700 payment deferrals on credit cards and 688,900 payment deferrals on personal loans. Firms are continuing to work to ensure that these steps will not adversely affect customers? credit files, as taking a payment deferral will not be reported to credit reference agencies as the customer being in arrears. 

Eric Leenders, UK Finance Managing Director, Personal Finance, said:

The banking and finance industry has a clear plan to help the country through these tough times and is committed to providing ongoing support to those customers who need it. The FCA draft guidance follows extensive collaboration between the industry and regulator and provides welcome clarity on the potential next steps available to consumer credit customers.

?The industry will be responding to these draft proposals and looks forward to the regulatory guidance being finalised swiftly to ensure both borrowers and lenders can plan ahead to ensure customers can have some peace of mind regarding the consequences of Covid 19 on their money.

?For those who can afford to restart repayments, it is in their best long-term interest to do so; however, there are a range of options available to support customers who cannot repay just now and lenders stand ready to help . 

?Any customer with concerns over their financial situation should check with their lender to see what support would be the best option for them.