A financial authority has proposed loan and credit card repayments to be frozen

The Financial Conduct Authority (FCA) are pushing for a ‘stop gap’ to support those who have been financially impacted by the coronavirus outbreak.

The FCA is looking to introduce the new measures quickly in order to allow breathing space for those struggling with monthly payments.

The proposal includes a temporary payment freeze on loans and credit cards for up to three months, zero interest on the first £500 of an overdraft and that no credit rating will be affected by financial struggles during this time.

The FCA are pushing for a 'stop gap' to help those financially struggling

Although the measure’s will affect many different businesses, the FCA are asking a decision to be made by Monday, April 6 to ensure that the measures would come into force by April 9.

Christopher Woolard, Interim Chief Executive of the FCA, 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 FCA stress that if people are able to make payments on debts then they should, and these measures should only be those who need them.

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