The FCA has confirmed the temporary financial relief that was outlined last week for customers impacted by coronavirus will be going ahead from today.

The regulator had revealed plans last Thursday for a package of targeted temporary measures to help people with some of the most commonly used consumer credit products.

Following a short consultation, the FCA confirmed the rule changes are coming into force from today, with the full range of measures to be applied by Tuesday 14 April – allowing time for firms to ensure they have the appropriate level of resources available to handle customer requests.

The measures announced include a temporary payment freeze on loans and credit cards for up to three months for consumers negatively impacted by coronavirus, with the regulator also wanting to ensure consumers using any of its temporary payment freeze measures will not have their credit file affected.

The FCA will also be expecting firms to allow any affected customers who already have an arranged overdraft on their main personal current account, up to £500 charged at zero interest for three months. The regulator wants to ensure that all overdraft customers are left no worse off on price when compared to the prices they were charged before the recent overdraft pricing changes came into force.

FCA interim chief executive, Christopher Woolard, suggested that customers should “think carefully” before making use of the measures, and only do so if they need “immediate” help.

“Where they can still afford to make payments, they should continue to do so,” Woolard said.

“We know there is still more work to be done, and we will be announcing further measures to support consumers in other parts of the credit market in the future, including in the motor finance sector next week.”

interactive investor personal finance campaigner, Myron Jobson, welcomed the regulator’s confirmation of the measures, and commented: “They offer much-needed financial respite to those who have fallen into arrears or have plunged deeper into a financial hole because of loss of income due sudden illness, being furloughed or redundancy as a result of the Covid-19 pandemic. 
 
“It would appear that the coronavirus will disrupt the status-quo for the foreseeable future, so it is important for people to pay closer attention to their financial wellbeing and take some time to plan ahead to mitigate the impact of Covid-19 on their bottom line. Consumers should remember that payment holidays will not constitute free money – you’d need to pay it back.”

Hargreaves Lansdown personal finance analyst, Sarah Coles, said: “If covering debt repayments has been keeping you up at night, you may finally sleep more soundly tonight – because the biggest banks are stepping in to help today.

“The FCA has also made it clear that once the three months is over, customers mustn’t be thrown to the wolves. Those who are still struggling at that point should be given all the help possible to keep on top of their debts.

“It’s incredibly unusual and very welcome to see the FCA react so quickly. Rather than waiting until it has a solution for every kind of debt before launching the lot, it is pushing this through quickly.”

OpenMoney CEO, Anthony Morrow, added: “These new measures bring clarity for those unsure how to deal with their financial difficulties and mean that all providers will have to make changes to support their customers and limit the financial burden that this crisis has created.
 
“Although any debt owed will still need to be repaid eventually, those concerned about keeping up with repayments should make use of the support now available.

“The longer the pandemic lasts, the more people will fall into financial difficulties. It’s important to review your finances now, speak to your provider if you need help and as always, if you are concerned, we’d recommend contacting the Money Advice Service for further guidance.”

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