Loans: Coronavirus

(asked on 8th June 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that future lending decisions are not affected by payment holidays that have been taken during the covid-19 outbreak.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 15th June 2020

The Government recognises the important role payment holidays play in providing temporary support to consumers through this period and continues to work closely with the Financial Conduct Authority (FCA) to support consumers facing financial difficulty as a result of the COVID-19 outbreak.

Lenders must act responsibly when deciding whether and how much credit to issue. This includes assessing consumers’ ability to repay. The information on a consumer’s credit file is an important part of this assessment. FCA guidance makes clear that, during a payment holiday, accounts should be recorded to ensure the consumers’ current credit data position is maintained or frozen for the duration of the payment holiday period. The Government expects that this should not impact on a consumer’s credit file.

Consumers should speak to their lender about their options when coming to the end of their payment holiday.

Reticulating Splines