More than one million borrowers have received loan payment breaks

More than one million customers have benefited from payment deferrals on loans and credit cards.

Data from banking trade body UK Finance shows lenders have granted 707,000 payment deferrals to personal loan borrowers and 1.05 million to credit card users.

It comes as the Financial Conduct Authority has told regulated firms to provide flexibility for borrowers hit by the coronavirus pandemic.

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

“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.”

The FCA has said that peer-to-peer lenders, alongside other sectors like payday loans, are not included in the loans, but would come under normal forbearance rules.

The regulator explained that P2P regulated credit agreements are not covered by the guidance but where a firm that happens to be a P2P platform also carries out regulated lending to consumers where the platform itself is the lender, then that would be covered.

However, Zopa, the largest consumer P2P lender, has said it will give borrowers payment breaks.