LONDON, April 17 (Xinhua) -- The British Financial Conduct Authority (FCA) proposed Friday a range of targeted temporary measures covering motor finance and high cost credit agreements to help consumers facing payment difficulties due to the COVID-19 pandemic.
The proposals, which cover high-cost short-term credit (including payday loans), buy-now pay-later, rent-to-own and pawnbroking, are expected to complement existing governmental measures to support consumers impacted financially during the pandemic, said the financial watchdog.
The regulator advised firms to offer a three-month payment freeze for motor finance consumers facing payment difficulties due to the outbreak.
It also suggested the high-cost short-term credit firms to provide a one month interest-free payment freeze to customers facing payment difficulties due to the coronavirus pandemic.
Other measures include buy-now pay-later, rent-to-own and pawnbroking getting a three-month payment freeze, according to the FCA.
Conducting a brief consultation on the above measures, the organization asked all stakeholders to respond before next Monday.
"We are very aware of the continued struggle people are facing as a result of the pandemic. These measures build on the interventions we announced last week, and will provide much needed relief to consumers during these difficult times," said Christopher Woolard, interim chief executive at the FCA.
Earlier, the FCA has taken targeted measures designed as a stop-gap to quickly support consumers who are impacted by COVID-19, including suggesting firms to offer a temporary payment freeze of up to three months on overdraft loans and other credit cards. Enditem
