- Set out the FCA’s expectations on firms to offer a temporary payment freeze on loans and credit cards where consumers face difficulties with their finances as a result of coronavirus, for up to three months.
- Ensure that for customers who have been hit financially by the coronavirus and already have an arranged overdraft on their main personal current account, up to £500 will be charged at zero interest for up to three months.
- Require firms to make sure that all overdraft customers are no worse off on price when compared to the prices they were charged before the recent overdraft changes came into force.
- Ensure consumers using any of these temporary measures should not have their credit rating affected because of this.
This will supersede any other offer the banks have given already. Hope that this helps everyone. I have included the current list but it will be made much more simpler from today.
List from MSE. Stay safe ever fca.org.uk/new…rus
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Not compulsory in any way. Just an expectation. My bank "Monzo" aren't doing this AFAIK.
I had a text from Halifax yesterday about this. I didn’t have to apply for it either. It was automatic.
No bank will give majority of customers a £500 overdraft limit. Many will have a much lower limit.
As such it will be very limited.
Not sure that's correct though? (edited)
Starling not doing this either.
Will only work if you have an arranged overdraft of £500 or more already in place, first £500 of the arranged overdraft with Halifax interest free until 9th July. If you have not got a £500+ arranged overdraft already, you have to contact the bank to apply for one. On First direct I had a £250 arranged overdraft, but I had to call them to get this increased to £500 arranged overdraft, took over one hour on the phone (poor quality phone line at first direct) and involved credit checks. (edited)
Sorry, I meant to say I didn’t apply for the no Interest offer, that was automatic. I did already have the overdraft in place before this. Apologies if there was any confusion.
No problem, it is just that when I read the First direct page on the £500 interest free overdraft, I thought it was also automatic, but reading the small print and speaking to them, I had to apply for an arranged £500 overdraft. So others might have to do the same if they don't have an arranged overdraft of £500 already in place.
Personal Loan customers can use three (up from two) repayments holidays (consecutively, or all within a 12 month rolling period)
These will still however increase the overall interest accrued if you use them