Day: July 3, 2020

City watchdog looks to extend payment holidays on high-cost credit

Customers unable to keep up with high-cost credit payments may not have to pay anything until November under new guidance from the City watchdog.

The Financial Conduct Authority has proposed to extend payment freezes due to end this month for a further three months to October 31. The extension will cover all companies that offer high-cost credit including motor finance and rent-to own, buy-now pay-later schemes and pawnbrokers.

Firms will offer a further payment deferral or reduce payments to an amount the customer can afford. People yet to request a payment holiday would be able to do so until October

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We are in danger of being sunk by ‘the paradox of thrift’

What makes the current hiatus in consumption unique is that it has been imposed on us, rather than is the accidental result of some financial crisis.  We haven’t been able to go to restaurants, shops, bars or to travel. Policymakers are therefore hoping that demand has been merely suspended, or delayed, rather than permanently harmed, and that with the lifting of many restrictions this Saturday, will come surging back, like a dam break, in initially above normal quantities.

Experience in this regard from Germany and certain parts of the US, which are about a month ahead of Britain in terms

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How to get travel insurance with full coronavirus cover

Summer holidays beckon as borders open up, but travellers are likely to find themselves with little to no cover if they fall ill or if their trip is cancelled due to coronavirus. 

Most travel insurance providers have rewritten their policies to include virus-related exclusions. This means that holidaymakers will be left with little protection and will have to bear the cost of any disruptions. 

Leicester’s new lockdown restrictions serve as a reminder that plans can be dashed overnight if the spread of coronavirus picks back up either in your home region or your destination of choice. 

Most policies taken out

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Days of the shovel are long gone. The times demand we adapt, adapt, adapt

Gove extolled the need for the Government to “learn quickly, adjust and respond”. But the best economic mechanism we have for rapid adjustment to changed circumstances is, in fact, a market economy, driven by profit and loss. As lockdowns end we need businesses and workers to reorganise according to their new realities. “The times demand” policies that: make workers cheaper to hire, remove barriers to changing jobs, encourage reskilling or retraining, incentivise private investment or innovation in making existing businesses safe, allow premises to be repurposed, and remove barriers to entrepreneurs finding new ways to serve our wants and needs.

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