Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the equity of interest rates charged by credit card companies deferring payments on loans as a result of the covid-19 outbreak.

On 14 April, the Financial Conduct Authority (FCA) published guidance that sets out what it expects firms to do for customers facing payment difficulties due to the exceptional circumstances arising from COVID-19.

In relation to credit cards, the guidance states that firms should exercise forbearance in the form of suspending, reducing, waiving, or cancelling any further interest or charges, deferring payment of arrears, or accepting token payments for a reasonable period of time.

The guidance also covers credit card rates, with the expectation that firms review their prices to consider whether they are consistent with the obligation to treat customers fairly and to ensure that they do not pose unjustifiable burdens on customers who may be experiencing temporary payment difficulties.

The Government is committed to doing whatever it takes to get our nation through the impacts of COVID-19 and will continue to work closely with the FCA and industry. The Government stands ready to announce further action wherever necessary.