FCA also gives further support to buy-now-pay-later and rent-to-own customers
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The UK’s financial regulator has car loan borrowers and users of other forms of high-cost credit the option of freezing payments and repossessions for three more months, amid concerns about a mounting economic toll from the coronavirus pandemic.
The Financial Conduct Authority (FCA) said on Friday that car loan, buy now-pay-later, rent-to-own and pawnbroking customers were entitled to ask to freeze or reduce payments for a further three months if they had previously requested to defer or lower payments. Asking for the support should not have any impact on their credit files, the FCA said.
Related: ‘We’ve had to rein in our spending’: how coronavirus has hit household incomes