COVID-19 – Three Month Moratorium on Consumer Credit Debts
Alerter by Richard Mawrey QC: The Covid-19 crisis has led the Financial Conduct Authority to issue authoritative guidance to consumer credit lenders which will oblige them to grant a three month moratorium on debts and to reduce interest costs.
The lockdown resulting from the Coronavirus pandemic has resulted in huge numbers of people finding that their income has abruptly dried up. This has two adverse consequences on the credit market: firstly absence of income means that those who are able to borrow may have to do so to keep themselves afloat and secondly, those with existing consumer credit debts will find it difficult, in some cases impossible, to pay the sums due.
In consequence the FCA issued new guidance on 9 April 2020 which comes into force on Tuesday 14 April 2020.
Read more in the attached alerter