Financial Wellness Group welcomes the FCA’s ‘financial relief for customers’ but calls for interest and charges to be frozen for all customers who need help

Leading debt advice provider, Financial Wellness Group welcomes the temporary ‘financial relief for customers’ measures announced by the FCA today and expected to come into force on 9th April, but calls for them to go further.

Deborah Ware, chief operating officer of Financial Wellness Group said: “with millions of people experiencing an income drop because of coronavirus, these new measures will be very welcome.

“To make the scheme quick and simple to implement and to ensure that all lenders treat customers consistently, interest and charges should be frozen during the three-month payment break period. Its vital that consumers don’t find that their debt has increased whilst they are unable to meet their repayments.

“Advice providers can play a central role in this new scheme: for consumers looking for assistance, a regulated debt advice provider can contact all their lenders on their behalf. Advice providers make this type of request daily and can deal efficiently with lenders.

“When these measures expire, after three months, there will be a further spike in demand for debt advice and the FCA, MaPS and HM Treasury should ensure the sector is adequately resourced to ensure all who need advice are able to access it.”