Coronavirus: Banks Announced a Relief

Banking trade body announces to give a relief to homeowners who fear falling behind on their mortgage payments because of coronavirus.

This relief includes a payment holiday or a bigger overdraft.

Banks, building societies and credit card providers understand customers’ worries about the effect that coronavirus could have on their finances.

They may face financial problems due to a drop in income or because of unexpected expenses or bills to pay.

Stephen Jones, Chief Executive of UK Finance, said 

“Providers were ready to offer repayment relief on loans or mortgages, as well as increased overdrafts.”

The announcement is above and beyond banks’ usual policies on supporting customers in financial difficulty.

Further, Jones told: “All providers are ready and able to offer support to their customers who are impacted directly or indirectly by Covid-19.

It could include offering or increasing an overdraft or allowing repayment relief for loan or mortgage repayments.

Hence,asking for help early is key.

“We would encourage customers to contact their provider as soon as possible to discuss the support available to them.

“Banks and other finance providers recognize that the cash flow of small and medium-sized businesses may be disrupted by the coronavirus impacts.

Banks commit to support viable businesses in continuing to trade while they implement their contingency plans.”

He added “We would urge businesses to contact their finance providers early to discuss how they can help support their companies through the coming weeks.”

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Association of British Insurers (ABI) stated

“Members will consider all valid claims for cancellations and travel disruption as quickly as possible where compensation is not available elsewhere.

So, Insurers will make sure extra resources are available to offer prompt help to customers.”

Moreover, insurance firms will work closely with customers to direct them to where they can receive compensation for cancelled transport, holidays or an inability to travel abroad.”

Due to covid-19,customers will get compensation from airlines, travel providers and travel agents.

Incoming Bank of England governor Andrew Bailey said

“Emergency supply chain finance is likely to support firms struggling with the impact of Covid-19.”

Mr Bailey, Chief Executive at the Financial Conduct Authority (FCA), told

“The Bank and the Treasury will need to step in and help this financing.”

He added small firms in particular were at risk from disruption from coronavirus.

Mr Bailey is due to take over from Mark Carney on March 16. He  also stressed the Bank would have to be “nimble” in its response to the coronavirus crisis.

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