Credit Card debt rules frozen until October amid coronavirus outbreak
18 March 2020, 12:40
People who have been struggling to replay their credit card bills could see changes amid COVID-19.
Coronavirus has left many people across the UK worried about finances as more and more people are asked to self-isolate and work from home.
However, credit card users could see a suspension in their debt rules as the Financial Conduct Authority announce changes amid the outbreak.
These changes will apply to people who have only been paying the minimum amount on their credit cards for the past 18 months, and who have been warned they may have their credit card accounts cut off.
While these people who struggled to pay off their credit card bills were previously warned they could have their accounts closed, the FCA will now be suspending their persistent debt rules.
This will last until October, at the earliest.
In September 2018, the FCA told providers they had 18 months to warn their customers of these possible changes if they didn't increase their repayments.
This 18 month period finished in February 2020.
The suspension on rules by the FCA apply to those who have previously been informed by their banks they need to increase payments.
In a statement, the FCA said: "Given the challenges facing many customers at present we think they should be given more time, until 1 October 2020, to respond to firms’ communications.
"This means that firms would not be obliged by our rules to suspend the cards of non-responders before then.
"This applies both to those who have already received communications from their provider and those that are yet to receive them.
"We will be in touch with firms shortly to confirm details of this proposal."