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<p>The Government recognises that the outbreak of COVID-19 may lead to consumers facing
financial difficulty and uncertainty.</p><p> </p><p>The major banks and building societies
have pledged to provide relief to customers impacted by COVID-19, including deferring
mortgage and other loan repayments, waiving fees on savings accounts, and increasing
overdraft or credit card limits.</p><p> </p><p>On 9 April the Financial Conduct Authority
(FCA) also announced a series of measures intended to provide emergency support to
consumers who are facing temporary cash flow problems as a result of the coronavirus
outbreak. These measures came into force on Tuesday 14 April.</p><p> </p><p>These
measures include, allowing consumers either a 3-month payment holiday or to make nominal
payments towards credit cards, store cards, catalogue credit and certain personal
loan agreements. It is important to note that lenders can continue to charge interest
during this 3-month period. Customers should contact their lender if they are experiencing
short-term cash flow problems and would benefit from these measures.</p><p> </p><p>In
their guidance for firms, the FCA set out their expectation that the payment deferrals
described here should not worsen the arrears status of a consumer’s credit file during
the payment deferral period.</p><p> </p><p>The Chancellor has also announced a wide
package of economic support measures including the Self-employment Income Support
Scheme and the Coronavirus Job Retention Scheme, to support businesses and consumers
during this pandemic.</p>
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