The proposal outlines the options companies will be required to provide customers coming to an end of a payment holiday, as well as those who are yet to request one. For customers yet to request a payment holiday, the time to apply for one would be extended until 31 October 2020. For those who are still experiencing temporary payment difficulties due to coronavirus, companies should continue to offer support, which could include extending a payment holiday by a further three months.

According to FCA, payment holidays and partial payment holidays offered under this guidance should not have a negative impact on credit files. This guidance would not prevent companies from providing more favourable forms of assistance to the customer, such as reducing or waiving interest.

Companies should also consider signposting customers towards sources of debt advice. Debt advice may be helpful for customers coming to the end of payment holidays and may be particularly useful for consumers with pre-existing payment shortfalls or who are likely to be in longer-term financial difficulty.