Check If You Qualify

Coronavirus: Regulator Tells Banks to Give Borrowers a Break

Sharon McDougall - Updated - 22nd June 2023 - 2 minutes to read

The UK’s financial services regulator has told banks and other lenders they ought to give their customers a break from repayments if they need one as the coronavirus crisis unfolds.

A temporary payment freeze on personal loans and credit cards for up to three months is among the measures outlined by the Financial Conduct Authority (FCA), with lenders given until Monday April 6th to respond those proposals.

Expectations are that the rules giving borrowers affected by coronavirus more breathing space will be officially introduced from April 9th.

In addition to the freeze on loan and credit card payments, the FCA has said it wants to see banks giving their customers access to £500 worth of interest-free overdraft facilities for up to three months.

Borrowers are being encouraged to keep up their repayments on loans and credit cards if they can make them but there is clearly an expectation that a very large number of people across the UK will be struggling to pay their bills in the coming weeks and months.

The instruction from the FCA to banks and lenders is to ensure that consumers are not penalised for suffering financially due to coronavirus and that no one should see their credit ratings damaged because they’ve taken advantage of opportunities to temporarily freeze their repayments.

“Coronavirus has caused an unprecedented financial shock with far-reaching consequences for consumers in every corner of the UK,” said the FCA’s interim chief executive Christopher Woolard.

“If confirmed, this package of measures we are proposing today will help provide affected consumers with the temporary financial support they need to help them weather the storm during this challenging time,” he added.

In Scotland, SMPs recently supported emergency coronavirus legislation that incorporated rules designed to grant people who are struggling to pay their debts the right to apply for six months of ‘breathing space’ during which they can seek advice on viable debt solutions.

If you live in Scotland and you are worried about your personal debts for any reason then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation. 

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall


Other News

Debt Levels Soaring across Scotland, New Figures Show Debt Level Rising

Debt Levels Soaring across Scotland, New Figures Show

Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’ Financial Hardship

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’

Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.

Scots with Disabilities Urged to Check Eligibility for New Benefits Scottish Man In Wheelchair

Scots with Disabilities Urged to Check Eligibility for New Benefits

Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.


Why Choose Us

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

Usp Handshake

We offer an

Instant Initial Consultation

Usp Palm Wallet

We'll Help You

Lower Monthly Payments

Usp Hand Heart


Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.


Useful tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners