In 2020, the Financial Conduct Authority (FCA) announced that you could freeze your freeze loan and credit card payments for another three months - until 31 October.

Payment freezes were first announced in April to help people who are struggling with their finances due to coronavirus.

The new announcement means that:

• At the time, anyone already on a payment holiday could extend it by a further three months. Remember, you should only do this as a last resort. If you can start paying again, you should do so, to avoid financial difficulty in the future.

• At the time, if you hadn't yet applied for a credit card or loan payment holiday, you have until 31 October 2020 to apply. That deadline has long passed and the scheme is now closed.

• Partial payment holidays were also available at the time. This is a good idea, as you'll rack up less interest.

The three month extension also applied to zero interest overdrafts at the time - if you had an arranged overdraft on your main personal current account, you could borrow up to £500 at zero interest for three months. Banks also had to make sure you were no worse off on price compared with what you were charged before the then-new overdraft pricing charges came into force.

What is a payment freeze?

A payment freeze is where you stop making repayments on your credit card or loan for a period of time. This measure isn’t free - you’ll need to pay any interest you’ve accrued once the payment holiday is over.

The rules don't just apply credit cards and personal loans. They also include guarantor loans, logbook loans, home collected loans, a loan issued by a Community Development Finance Institution, and some loans issued by regulated credit unions.

The benefit of freezing your payments is that it can help you free up cash for the things you need most during the COVID-19 crisis, such as paying your utility bills and buying essentials like food and prescriptions. However, you will still build up interest.

You can also organise a payment freeze on your mortgage if you’re struggling with your finances.

Freezing your card vs freezing your payments vs freezing interest: what's the difference?

"Freezing" a credit card can mean three completely different things, and mixing them up can lead to the wrong call with your lender. Blocking the card stops it being spent on. Freezing payments pauses what you owe each month. Freezing interest stops the balance growing. Only the last two have anything to do with financial difficulty - the first is a security feature you can switch on and off yourself in seconds.

When people ring their lender and say they want to "freeze" their credit card, they usually mean one of the middle two: they want the pressure of the monthly payment lifted, or they want the balance to stop growing. If you have simply mislaid your card, you almost certainly want the first option - most UK card apps have a freeze or lock button on the card screen, and switching it on blocks new transactions immediately without cancelling the card or triggering a replacement. If your card has been stolen or used fraudulently, freeze it first, then report it to your provider so it can be properly cancelled and reissued.

How can I arrange one?

To set up a payment holiday, find your lender's application form inside our COVID-19 hub. Most lenders have online application forms, or if you prefer, you can phone them (but you may have to wait in line as call centres are likely to be particularly busy during this period).

Next step: Find your lender's application form in our COVID-19 hub and apply for a payment holiday now.

Unfortunately it’s not a guarantee that you’ll be granted a payment holiday. The FCA has reminded people that there are situations where a lender might refuse a payment deferral, for example, where it’s not in the customer’s interests to do so.

Should I get a payment freeze?

You should only take a payment freeze if you really can’t make your repayments. Your balance will still gather interest while it’s ‘frozen’, so this measure is only intended to provide you with short-term financial support.

If your debts are becoming unmanageable and you’re worried you won’t be able to meet your repayments after this period, a payment freeze might not be the answer. If this is the case, reach out to StepChange for free, impartial advice on your finances.

Can you ask your credit card company to freeze interest and charges?

Yes. You can ask your credit card company to freeze interest and charges, and in some circumstances they are obliged to help. This is a separate request from a payment freeze - you are asking the lender to stop the balance growing rather than to pause what you pay. It is not granted automatically, but it is one of the standard forms of support lenders are expected to consider when a customer is in genuine financial difficulty.

When lenders will consider freezing interest

Under CONC 7 of the FCA Handbook - specifically CONC 7.3.5G - lenders must treat customers in financial difficulty with forbearance and due consideration. Suspending, reducing, waiving or cancelling interest and charges is explicitly listed as an option. To get there, you will normally need to show evidence of difficulty - a drop in income, illness, redundancy, relationship breakdown, or simply an income and expenditure assessment showing that after essential bills there is not enough left to cover the contractual minimum payment.

The persistent debt rules

There is also a route that does not depend on hardship at all. The FCA's persistent debt rules under CONC 6.7 apply to credit cards when, over any 18-month period, you have paid more in interest, fees and charges than you have repaid of the actual borrowing. At the 18-month point your provider must write to you and prompt you to increase your payments. If nothing changes by 36 months, the lender must offer a way to repay the balance in a reasonable period - usually three to four years - and if you cannot afford that, they must consider reducing, waiving or cancelling interest and charges. If you have had one of these letters, respond to it rather than ignore it.

What to say when you call

Be direct. A clear opening line such as "I'm in financial difficulty and I'd like to discuss forbearance" moves the conversation out of general customer service and into the lender's specialist support team. Say what has changed, what you can realistically afford each month, and ask explicitly for interest and charges to be frozen while you get back on track. Ask for the outcome in writing.

What your lender may ask for

Expect a budget conversation. Most lenders work through an income and expenditure assessment, often using the Standard Financial Statement format, which sets out reasonable spending allowances for essentials. You may be asked for proof of income, benefit awards, or evidence of a change in circumstances. Having recent payslips, bank statements and a list of your other debts to hand makes the call much shorter.

Outcomes you might be offered

• Interest and charges frozen for an initial period, often 30, 60 or 90 days, then reviewed

• A reduced payment plan at an amount your budget shows you can afford

• Token payments - typically £1 a month - where there is genuinely no disposable income

• A repayment plan under the persistent debt rules to clear the balance over a set period

• The account being defaulted and closed, with the balance repaid at a reduced rate or passed to a debt collection agency

What it does to your credit file

Almost all of these outcomes are reported. A reduced or token payment arrangement is usually flagged with an arrangement to pay marker, which stays on your credit report for six years from the date it is recorded and tells future lenders you paid less than the contractual amount. A default stays for six years from the default date. Neither is ideal, but both are far better than repeatedly missing payments with no agreement in place, and the damage fades as the marker ages.

When to go to a debt charity instead

If you owe money to several creditors, or the numbers simply do not work, go to a free debt charity before negotiating individually. StepChange, National Debtline and Citizens Advice all give free, impartial advice and can deal with creditors on your behalf. A debt management plan set up through a charity consolidates your payments into one affordable monthly amount, and creditors are asked to freeze interest and charges for the life of the plan - most agree, though they are not legally required to. Charities can also advise on Breathing Space, bankruptcy, an IVA or a Debt Relief Order if a plan is not the right fit.

Will freezing payments impact my credit score?

Under the 2020-21 pandemic scheme, the FCA confirmed that a payment freeze arranged in advance would not be recorded as missed payments. That protection has ended: a payment concession agreed today is normally reported to the credit reference agencies, usually as an arrangement to pay, and can affect your credit score and report. ClearScore isn't a credit reference agency, but we show you your Equifax credit score and report for free - and checking won't affect your score.

Remember that missing any payments before discussing this with your bank or lender is likely to damage your credit score and could make it harder for you to borrow in the future.

See our guide to protecting your credit score during coronavirus.

Payment freeze FAQs

Can I still get a COVID-19 payment holiday in 2026?

No. The pandemic scheme closed to new applications on 31 March 2021 and all deferrals ended by 31 July 2021. You can still ask your lender for support if you are struggling, but it will be assessed under their normal forbearance obligations rather than the emergency rules.

Can I freeze my credit card payments if I'm not in arrears yet?

Yes, and it is better to ask early. Lenders would far rather hear from you before you miss a payment. Contact them as soon as you can see a problem coming - you will have more options, and you avoid the arrears markers that come with simply not paying.

How do I freeze my credit card in my banking app?

Most UK card apps have a freeze, lock or block option on the card details screen. Open the app, select the card, and tap it. Spending is blocked immediately and you can unfreeze the card yourself just as quickly. This stops the card being used - it does not pause your repayments or stop interest.

Does freezing my card stop direct debits and recurring payments?

Not necessarily. Freezing a card typically blocks new card transactions, but many providers still allow existing recurring card payments or direct debits set up on the account to go through. If you need a specific recurring payment stopped, cancel it with the provider or ask your bank to block it directly.

How long can a payment deferral last?

There is no fixed limit outside the old pandemic scheme. Lenders commonly agree one to three months at a time, review your situation, then extend if the difficulty is ongoing. Longer support is usually restructured into a reduced payment plan rather than a full pause.

Will a payment deferral show on my credit report now that the pandemic rules have ended?

Usually yes. The blanket protection that applied in 2020 and 2021 was temporary. A deferral agreed today is normally reported as an arrangement to pay, which is visible to lenders for six years and may affect future applications. Lenders weigh your credit history alongside other factors, such as your income, existing borrowing and whether repayments are affordable.

Can my lender refuse to freeze my payments?

Yes. There is no automatic right to a payment freeze, and a lender can decline if they judge it is not in your interests - for example, if pausing payments would leave you with a much larger problem later. They must still consider some form of appropriate support, so ask what alternatives they can offer and complain if you are simply turned away.

What's the difference between a payment freeze and Breathing Space?

A payment freeze is an informal arrangement with one lender. Breathing Space, formally the Debt Respite Scheme, is a legal protection in England and Wales accessed through a debt adviser. It gives you 60 days during which most creditors must pause interest, charges and enforcement action across your qualifying debts. It is broader and legally binding, but it is time-limited and you can normally only use it once every 12 months.

Will freezing payments stop my card being used or my limit being cut?

Possibly. Lenders often suspend further spending on an account while support is in place, and they may reduce your credit limit or close the account to new borrowing. Ask what will happen to the account before you agree, so you are not caught out if you were relying on that card.

What happened to COVID-19 payment holidays - and what's available now

The emergency payment holiday scheme described in this article no longer exists. It was a temporary measure introduced by the Financial Conduct Authority (FCA) during the coronavirus pandemic, and it has been closed for several years. If you are struggling with credit card or loan repayments today, you still have real protections - but they work differently, and the rules on interest and your credit report are not the same as they were in 2020.

The timeline

The FCA first announced payment freezes on credit cards, personal loans and other regulated credit in April 2020, offering an initial three-month deferral. That was extended in the summer of 2020, with the deadline for new applications pushed back to 31 October 2020 - the announcement this article originally covered. Following further lockdowns, the FCA extended the window again: the final deadline to apply for a new payment deferral was 31 March 2021, and any remaining deferrals had to end by 31 July 2021. After that date, the scheme closed completely and lenders stopped accepting applications under the pandemic rules.

Why the credit score protection was a one-off

During the pandemic scheme, the FCA instructed lenders not to record COVID-19 payment deferrals as missed payments or arrears on your credit file. That was a deliberate, temporary carve-out designed to stop millions of people being penalised for a public health emergency. It was never a permanent rule. Any payment concession you agree with a lender now is reported normally - usually as an arrangement to pay, or as arrears if payments are missed without agreement. You should assume a modern payment concession will be visible to future lenders.

What replaced it

When the emergency scheme wound down, the FCA published its Tailored Support Guidance, which pushed lenders back towards their standing obligations under CONC 7 of the FCA Handbook. Those forbearance duties have always existed: a lender must treat customers in financial difficulty with forbearance and due consideration, which can include suspending or reducing payments, freezing or reducing interest and charges, accepting token payments, or agreeing a longer-term repayment plan. Unlike the pandemic scheme, this support is not automatic - it is assessed case by case, based on your circumstances.

What the Consumer Duty changed

Since July 2023, the FCA's Consumer Duty requires firms to deliver good outcomes for customers, including those in vulnerable circumstances. In practice, that raises the bar on how a lender must respond when you tell them you are struggling. They are expected to make it easy to contact them, to communicate clearly about your options, and to offer support that actually suits your situation rather than a one-size-fits-all script. If a lender ignores you, pressures you into an unaffordable arrangement, or fails to explain the consequences, that is grounds for a complaint and, if unresolved, a referral to the Financial Ombudsman Service.

The sections that follow are retained as a record of the rules that applied in 2020 and how the pandemic scheme worked. They do not describe support you can apply for today.