Struggling with credit cards or overdraft? Updated FCA Guidance
Marc Allison • 10 July 2020
Updated FCA guidance for credit customers
The FCA has provided additional information around the support available for customers of certain credit products when they come to the end of a payment break.
Customers will have until 31 October 2020 to request a payment break or arrange an interest-free overdraft of up to £500.
For credit card, store card, catalogue credit, and personal loan customers
Coming to the end of a payment break
Lenders will get in touch with customers to explain what will happen when the payment break ends. For customers who can afford to resume payments at the end of a payment break, it is in their best interest to do so and their lender will work with them to find the best way to catch up on missed payments. However, if a customer is not yet able to restart payments, they should let their lender know. Lenders may offer a further 3-month payment break or another option depending on the customer’s circumstances.
Cancelling a customer’s credit card, store card or catalogue credit
It’s important to note that under the FCA measures, lenders are not prevented from cancelling a customer’s credit card, store card, or catalogue credit. However, if the customer depends on these products to pay for essential items and living expenses such as mortgage, rent, council tax, or food and utility bills, then they should let their lender know as soon as possible.
Impact on a customer’s credit file
When temporary measures such as payment breaks were first announced, the FCA stated that firms should not report a worsening status to customers’ credit files as a result of taking a payment break. However, it is important to highlight that this does not mean a customer’s credit file will not change during this period as files are impacted by a range of factors. Lenders should provide customers with information on the potential impact on their credit file of taking a payment break. Credit files will only be protected for the duration of the payment break, so missed payments outside of an agreed break will likely have a negative effect on a customer’s credit file.
For overdraft customers
Customers that already have an arranged overdraft
Customers that already have an arranged overdraft can ask their current account provider for up to £500 of overdraft borrowing with no interest for 3 months, and can also ask for support above this amount if they need it. Support will vary between banks. Customers can request this support by 31 October 2020, and if they have already received it, can request another 3 months.
Further Support
CHAP can offer advice and assistance on a wide range of debt issues as well as advice on benefit or housing issues. If you feel you have been affected by the above or if you need other advice regarding debt, benefits or housing, you can contact us through our live chat service, which is available from 10am to 6pm Mondays and Wednesdays and 10am to 3pm on Fridays at www.chap.org.uk or you can contact us via phone on 030 0002 0002.
November 27th marked a proud and memorable milestone for CHAP as we celebrated our 25th anniversary with a special event at the Scottish Parliament. Our event, entitled 'Transforming Lives - resilience & equity for all', was hosted at Holyrood and provided a unique opportunity to celebrate and reflect on a quarter-century of providing free, independent advice and support to individuals and families in need across Ayrshire. The event brought together partners, funders, MSPs, staff and trustees, creating valuable space for meaningful conversations about the ongoing challenges faced by those experiencing housing, debt and financial insecurity. Throughout the afternoon, guests took the time to speak with our team, learn more about our services and share ideas on how we can continue working together to support communities and prevent people from reaching crisis point. The event was sponsored by Kenneth Gibson MSP, whose ongoing support for CHAP has been invaluable. Kenneth welcomed guests and helped create an open, positive atmosphere that encouraged discussion and connection, reinforcing the importance of partnership working in addressing complex social issues affecting our communities. We were delighted to be joined by Màiri McAllan MSP, Cabinet Secretary for Housing, who kindly said a few words recognising CHAP’s achievements, professionalism and the breadth of services we provide. Her comments highlighted the importance of early intervention and acknowledged how closely our work aligns with the Scottish Government’s priorities to tackle the housing crisis, reduce poverty and improve outcomes for families across Scotland. Hearing this recognition at a national level was both encouraging and affirming for our team. We would like to extend our sincere thanks to Kenneth Gibson MSP and Màiri McAllan MSP, as well as all our partners and funders who took the time to join us and celebrate this important milestone. Your engagement, support and shared commitment to help tackle inequality and financial exclusion mean a great deal to our charity. We are also extremely grateful to the businesses who generously sponsored key elements of the event: TES-AMM (Europe) Ltd for the catering, Branding Hub Ayr for providing printed materials, and Stagecoach West Scotland for supplying a complimentary coach and driver to transport our staff and guests from Ardrossan to Edinburgh and back safely and in comfort. The event was a privilege and a real highlight in CHAP’s 25-year history and a reminder of the strength of the partnerships that make our work possible. As we look ahead, we remain committed to growing, adapting, and continuing to support as many individuals and families as we can - and we look forward to the next exciting chapter of our journey. A video of highlights from the event can be viewed on our YouTube channel here .
Our partners at Social Bite are inviting people to make a real difference in the run-up to Christmas by giving a Gift of Kindness to help someone who is homeless. A £28 donation can offer someone much more than a hot meal. It provides: A Christmas dinner A meaningful gift A pack of essential items A safe bed for the night And beyond the festive season, each donation helps to give someone the chance of a fresh start with ongoing support from Social Bite throughout the year. If you’re able to contribute, your generosity could change someone’s life. Please consider donating here: www.social-bite.co.uk/giftkindness For more information on Social Bite and their movement to end homelessness, please visit: www.social-bite.co.uk
CHAP is pleased to announce that, thanks to funding from the East Ayrshire Anti-Poverty & Inequalities Fund, it has been able to establish a network of outreach services in East Ayrshire. In addition to our current outreach based at CentreStage in Kilmarnock, we have now expanded our support service to cover the Cumnock, Dalmellington and Newmilns areas. To ensure our services remain accessible and shaped by local residents, we ran an online consultation - with the results allowing us to identify the locations where residents are most likely to face barriers when accessing support. We have been fortunate in partnering with local organisations who are able to provide a safe space for our advisers to meet clients in need of a helping hand with housing issues, benefit entitlements and managing debt. The location details and dates for the expanded outreach service is provided below: Cumnock - Yipworld, 19 Barrhill Road, Cumnock KA18 1PG Starting from Wed 19th November, then the third Wed of each month (excl. December) Dalmellington - The Zone Initiative, 10 Main High Street, Dalmellington KA6 7QN Starting from Wed 3rd December, then the first Wed of each month (excl. January) Newmilns - Commando Factory Gym, 14 Stoneygate Road, Newmilns KA16 9AL Starting from Wed 26th November, then the fourth Wed of each month (excl. December) All CHAP services are free, independent, and confidential. Please note that these are not drop-in services - all appointments must be booked in advance by calling Freephone 030 0002 0002 .
This November marks a very special milestone for CHAP as we celebrate our 25th anniversary. Reaching a quarter of a century is no small achievement, and we’re incredibly proud to have supported thousands of people across Ayrshire since 2000. Over the years, CHAP has grown from a small local advice project into a well-established and trusted charity providing free, independent and confidential advice on housing, debt, welfare rights. We’ve developed strong partnerships, expanded our services, and adapted to meet the changing needs of our communities. From helping individuals facing homelessness to delivering financial education in schools and supporting homeowners at risk of repossession through the AHAP service , our commitment has always been the same - to help people find stability, security, and confidence in difficult times. We’ve achieved so much along the way and worked alongside national and local partners to tackle poverty and promote financial wellbeing. Each step has been driven by our belief that everyone deserves a fair chance at a better quality of life, and our commitment remains to empower individuals and families to thrive. None of this would have been possible without the dedication and compassion of our team. To our incredible staff, board of trustees, volunteers, partners, funders and donors - thank you. Your continued support, passion, and belief in our mission have contributed to making CHAP what it is today. Of course, the landscape for third sector organisations remains uncertain. Many charities have not been as fortunate in reaching such a significant milestone. Funding is increasingly competitive, while the need for our services continues to grow as more households face financial strain and insecurity due to the current cost of living crisis and lack of affordable housing. Despite these challenges, we remain determined to continue delivering vital support to those who need it most, while working to secure our long-term sustainability. It’s been a challenging, but always rewarding, journey. As we celebrate 25 years of helping our community, we’re also looking ahead with optimism and determination - ready to face new challenges, strengthen key partnerships, and continue making a difference for the next 25 years and beyond.
With the nights now drawing in and the temperature dropping, heating your home becomes an increasing worry - especially if you’re on a tight budget or have extra heating needs. At CHAP, we want to help you make the most of the support available and avoid getting into debt because of energy bills. Here’s your guide to what's available to assist you over the winter. Support from Social Security Scotland There are three key payments you should know about - and you may already qualify without needing to apply. Winter Heating Payment (WHP) This is a one-off annual payment for households who are on certain low-income benefits (such as Universal Credit, Pension Credit, Income Support or Income based Jobseeker's Allowance) and might have extra heating needs over the winter months. Winter Heating Payment will be paid from December 2025 and will be £59.75. You don’t always need to apply - if you were already on the qualifying benefits during the qualifying week (3 November to 9 November 2025) you should receive it automatically. More information: www.mygov.scot/winter-heating-payment Pension Age Winter Heating Payment (PAWHP) The benefit replaces the older Winter Fuel Payment and is for people of State Pension age who are in receipt of certain qualifying benefits. If you're eligible, you could get a payment of between £101.70 and £305.10. Most eligible people get the payment automatically and do not need to apply. You’ll get a letter to confirm your payment, with letters due to be sent from November 2025. More information: www.mygov.scot/pension-age-winter-heating-payment Child Winter Heating Payment (CWHP) This is a one-off yearly payment for families of disabled children or young people who receive certain disability-related benefits, to help with increased heating costs over winter. The payment amount for 2025/26 is £255.80. You typically don’t need to apply - it’s automatic if you’re eligible. More information: www.mygov.scot/child-winter-heating-payment Support from Energy Suppliers Some energy suppliers are also stepping up to help their customers reduce heating costs and keep homes warm. OVO Energy and Octopus Energy are both offering free electric blankets to help households facing financial hardship stay warm without the high cost of heating an entire home. Electric blankets are a cost-effective way to keep warm, using just 2-4p per hour to run. Priority is given to: Older people Those with mobility issues Individuals with health conditions that make them more vulnerable to the cold Both energy firms require customers to apply directly to be considered. As part of the process, Octopus Energy may ask you to complete a Paylink budget form to review your household income and spending before confirming your eligibility. They’ve allocated 10,000 blankets, limited to one per household, with most applications reviewed and decided on within a week. This is a great initiative offering some much-needed warmth and relief for those struggling with heating costs this winter. Find out more: octopus.energy/blog/free-electric-blankets-for-our-most-vulnerable oes.ovoenergy.com It helps to look after your heating system too - bleeding radiators, servicing your boiler, and covering sources of draughts will all help your home stay warmer at lower cost. How CHAP can help If you’re worried about your heating this winter - whether it’s how you’re going to pay the bills, whether you’re warm enough, or whether you’re eligible for all the help available - please get in touch with us. We provide free, independent, confidential advice on benefits, housing, debt and more. We also have a selection of hats and scarves that were kindly donated by knitwear manufacturer Robert Mackie of Scotland ( www.robertmackie.com ). These are available to anyone in need - just contact us to request them. Please stay warm and safe this winter and be assured that support is available if you're struggling. Call us on Freephone 030 0002 0002
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November 27th marked a proud and memorable milestone for CHAP as we celebrated our 25th anniversary with a special event at the Scottish Parliament. Our event, entitled 'Transforming Lives - resilience & equity for all', was hosted at Holyrood and provided a unique opportunity to celebrate and reflect on a quarter-century of providing free, independent advice and support to individuals and families in need across Ayrshire. The event brought together partners, funders, MSPs, staff and trustees, creating valuable space for meaningful conversations about the ongoing challenges faced by those experiencing housing, debt and financial insecurity. Throughout the afternoon, guests took the time to speak with our team, learn more about our services and share ideas on how we can continue working together to support communities and prevent people from reaching crisis point. The event was sponsored by Kenneth Gibson MSP, whose ongoing support for CHAP has been invaluable. Kenneth welcomed guests and helped create an open, positive atmosphere that encouraged discussion and connection, reinforcing the importance of partnership working in addressing complex social issues affecting our communities. We were delighted to be joined by Màiri McAllan MSP, Cabinet Secretary for Housing, who kindly said a few words recognising CHAP’s achievements, professionalism and the breadth of services we provide. Her comments highlighted the importance of early intervention and acknowledged how closely our work aligns with the Scottish Government’s priorities to tackle the housing crisis, reduce poverty and improve outcomes for families across Scotland. Hearing this recognition at a national level was both encouraging and affirming for our team. We would like to extend our sincere thanks to Kenneth Gibson MSP and Màiri McAllan MSP, as well as all our partners and funders who took the time to join us and celebrate this important milestone. Your engagement, support and shared commitment to help tackle inequality and financial exclusion mean a great deal to our charity. We are also extremely grateful to the businesses who generously sponsored key elements of the event: TES-AMM (Europe) Ltd for the catering, Branding Hub Ayr for providing printed materials, and Stagecoach West Scotland for supplying a complimentary coach and driver to transport our staff and guests from Ardrossan to Edinburgh and back safely and in comfort. The event was a privilege and a real highlight in CHAP’s 25-year history and a reminder of the strength of the partnerships that make our work possible. As we look ahead, we remain committed to growing, adapting, and continuing to support as many individuals and families as we can - and we look forward to the next exciting chapter of our journey. A video of highlights from the event can be viewed on our YouTube channel here .
Our partners at Social Bite are inviting people to make a real difference in the run-up to Christmas by giving a Gift of Kindness to help someone who is homeless. A £28 donation can offer someone much more than a hot meal. It provides: A Christmas dinner A meaningful gift A pack of essential items A safe bed for the night And beyond the festive season, each donation helps to give someone the chance of a fresh start with ongoing support from Social Bite throughout the year. If you’re able to contribute, your generosity could change someone’s life. Please consider donating here: www.social-bite.co.uk/giftkindness For more information on Social Bite and their movement to end homelessness, please visit: www.social-bite.co.uk
CHAP is pleased to announce that, thanks to funding from the East Ayrshire Anti-Poverty & Inequalities Fund, it has been able to establish a network of outreach services in East Ayrshire. In addition to our current outreach based at CentreStage in Kilmarnock, we have now expanded our support service to cover the Cumnock, Dalmellington and Newmilns areas. To ensure our services remain accessible and shaped by local residents, we ran an online consultation - with the results allowing us to identify the locations where residents are most likely to face barriers when accessing support. We have been fortunate in partnering with local organisations who are able to provide a safe space for our advisers to meet clients in need of a helping hand with housing issues, benefit entitlements and managing debt. The location details and dates for the expanded outreach service is provided below: Cumnock - Yipworld, 19 Barrhill Road, Cumnock KA18 1PG Starting from Wed 19th November, then the third Wed of each month (excl. December) Dalmellington - The Zone Initiative, 10 Main High Street, Dalmellington KA6 7QN Starting from Wed 3rd December, then the first Wed of each month (excl. January) Newmilns - Commando Factory Gym, 14 Stoneygate Road, Newmilns KA16 9AL Starting from Wed 26th November, then the fourth Wed of each month (excl. December) All CHAP services are free, independent, and confidential. Please note that these are not drop-in services - all appointments must be booked in advance by calling Freephone 030 0002 0002 .