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Credit Cards & Loans

Over a million credit card payment deferrals granted

Paloma Kubiak
Written By:
Paloma Kubiak

Lenders have granted 1.05 million credit card payment holidays while 707,000 have been provided for personal loan customers facing financial difficulties in the last three months due to coronavirus.

Customers who have been granted payment deferrals will be contacted by their credit card providers before the end of the three-month period to plan their next steps.

Depending on their circumstances, they may be offered further support with full or partial payment deferrals.

Around 27.2 million customer accounts have also been offered three months of interest-free borrowing on the first £500 of their arranged overdrafts if needed.

Those who are yet to request a payment deferral or an arranged interest-free overdraft of up to £500 will have until 31 October 2020 to apply for one.

The figures up to 9 July 2020 from banking and finance trade body UK Finance, also reveal that 1.9 million mortgage payment deferrals have been granted as well as £46bn of lending to over 1.1 million businesses through government Covid-19 lending schemes.

Eric Leenders, managing director of personal finance at UK Finance, said: “Many borrowers facing financial pressures are taking up the measures being offered by lenders to help them get through this crisis.

“The banking and finance industry has a clear plan to help the country through these tough times and is committed to providing ongoing support to those customers who need it.

“Each customer will face a unique set of circumstances. But no matter what your situation, if you are facing temporary financial difficulties due to the coronavirus pandemic there will be support still available to help you through these challenging times.”