Credit card customers able to defer repayments for another three months
Sarah Coles, from investment platform Hargreaves Lansdown, said:"Banks will be able to ramp up overdraft charges to the sky-high levels they were planning before this all kicked off. Suddenly you could be left paying around 40% interest on your coronavirus debts.On Friday, the FCA said it did not propose to extend this temporary measure. The overdraft rules benefit some people, primarily those who had previously fallen into using unarranged overdrafts.
"The proposals would provide an expected minimum level of financial support for consumers who remain in, or enter, temporary financial difficulty due to coronavirus," said Christopher Woolard, interim chief executive at the FCA. Banks pointed out that many people would still be charged interest during payment deferrals, which would increase the debt.
More leeway on credit repayments will come as a huge relief to many families juggling bills during the crisis.But, aside from overdraft costs, the help is not free money.
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