Borrowers using payday loans, buy-now-pay-later schemes, car finance and pawnbrokers will get new help if they can’t meet payments due to

Borrowers using payday loans, buy-now-pay-later schemes, car finance and pawnbrokers will get new help if they can’t meet payments due to , the City regulator has confirmed.

The measures, introduced by the Financial Conduct Authority (FCA), were previously subject to a consultation.

The guidance comes into force on Friday and also covers customers using rent-to-own (RTO) businesses.

Borrowers using payday quick loans, buy-now-pay-later schemes, car finance and pawnbrokers will get new help if they can’t meet payments due to Covid-19 (file photo)

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For customers yet to request a payment freeze, the time to apply for one would be extended until October 31.

Firms will provide them with support by freezing or reducing payments to a level they can afford, on their motor finance, BNPL or RTO agreements for a further three months.

Customers who have not yet had a payment freeze, or asked for an extension of an existing payment freeze, can request this up until October 31.

The regulator said that if customers can afford to return to regular repayment, or make partial payments, it is in their best interests to do so (file photo)

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