700,000 customer accounts given payment holiday – UK Finance

Almost 700,000 customer accounts have been given a payment holiday on their credit card as of 30 April, UK Finance has revealed.

The trade association also said its members have provided almost 470,000 payment holidays on personal loans for customers impacted by coronavirus.

Lenders have been working with the FCA to help people facing temporary financial pressures due to the Covid-19 pandemic by providing a payment freeze on credit cards and personal loans of up to three months, as well as offering customers the option of interest-free borrowing on the first £500 of their overdrafts.

UK Finance also revealed over 27 million customer accounts have been offered three months of interest-free borrowing on the first £500 of their arranged overdrafts if needed, and that any overdraft interest waived by lenders during this period will not have to be repaid at a later date.

UK Finance CEO, Stephen Jones, commented: “Many people across the country are facing financial pressures due to the coronavirus, and lenders are taking decisive action to help them through these tough times.

“Payment holidays on loans and credit cards and interest-free overdrafts can provide much-needed support to those with short-term cash flow pressures, whether it’s to cover next week’s grocery shop or next month’s utility bill.

“A payment holiday may not be the right choice for everyone, and lenders have a range of options to help customers through the Covid-19 crisis.

“We would encourage any customers concerned about their financial situation to check with their lender, starting by looking at their website which will have the latest information on the support available.”

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