Freeze Interest and Surcharges on Credit Card and Loans, and increase overdrafts
Speaking in relation to the risk of people racking up months of compound interest and surcharges on loans and credit card debt due to the coronavirus epidemic, Brendan Howlin TD, has called on the Government to freeze interest and surcharges for the duration of the crisis period.
Calls for €500 Increase in Overdrafts
“No one who has lost income due to the coronavirus epidemic should be punished by their lenders imposing interest and surcharges that they cannot afford during this crisis period. There should be an immediate freeze on credit card interest, loan interest and on charges for bank account overdrafts for anyone who has lost their job due to the coronavirus epidemic. It will be hard enough to rebuild the economy once this crisis ends, without imposing the misery of extra debt on tens of thousands of households as an additional burden.
“Banks should also give people €500 extra in their overdrafts, without charge, if they have lost their jobs due to coronavirus.
“The UK financial regulator is recommending these actions and there is every reason for Ireland’s financial services to do the same. The people bailed out the banks and financial system after 2008, and it is now the turn of lenders to do more for people during the current crisis.”