Orkney and Shetland MP, Alistair Carmichael, has called on the Financial Conduct Authority (FCA) to clarify its position on changes to individual credit ratings relating to the impact of coronavirus. Mr Carmichael has written to the FCA to ask for its response to concerns that people requesting mortgage or loan holidays due to the economic impact of the coronavirus outbreak may face an adverse change to their credit rating.
Mr Carmichael said:
“People should not be penalised for taking measured and necessary actions to protect themselves in exceptional circumstances. It is only right that there be a recognition of the impact of coronavirus in approaching people’s credit ratings. Loan holidays may be the only option available to many people to tide them over in the coming weeks. They should not have to worry about how it might impact their credit, long after this crisis is over.
“I have also asked that the FCA clarify its position on bank overdraft charges during the crisis. I hope that the FCA will respond on these matters urgently and give reassurance to people that punitive measures by banks and credit ratings agencies are not acceptable.”