--- title: "Interest Freeze Request Letter — Free Template | CrisisCompass | CrisisCompass" source_url: "https://crisiscompass.co.uk/interest-freeze-request-letter" retrieved_by: "AnswerRail Edge Engine v1.1.0-parity-v20 (https://answerrail.com)" level_of_detail: "standard" token_payload_reduction: "90.2%" raw_html_bytes: 125516 compiled_body_bytes: 12326 entities_extracted: 6 currency_recall_static_html: "100%" monitored_currency_tokens: 25 faq_answer_recall_static_html: "100%" monitored_faq_answers: 4 link_recall_static_html: "100%" monitored_content_links: 12 omitted_dynamic_states: ["non_default_tab_panels", "volume_slider_tiers"] conversion_notes: "Origin renders alternate tabs and volume pricing sliders via client-side JavaScript; serving default static AST state." rfc_compliance: "RFC 9110" last_verified_at: "2026-10-25T08:51:46.673Z" cache_age_seconds: 0 origin_cache_control: "public, max-age=0, must-revalidate" --- > **Canonical Source:** [https://crisiscompass.co.uk/interest-freeze-request-letter](https://crisiscompass.co.uk/interest-freeze-request-letter) > > *Free template to request an interest and charges freeze from your creditor. Stop debt growing while you make reduced payments during financial difficulty.* ### Organization: CrisisCompass | Field | Value | | :--- | :--- | | **Organization** | CrisisCompass | | **Official Website** | https://crisiscompass.co.uk | | **Overview** | Independent UK crisis management, financial support guidance, and emergency contingency portal. | ### Entity: CrisisCompass | Property | Detail | | :--- | :--- | | **Type** | WebSite | | **Name** | CrisisCompass | ### Frequently Asked Questions (FAQ) **Q: Is CrisisCompass free?** > A: Yes. All core tools — Survival Check, Benefits Finder, Hardship Letter Generator, Budget Calculator, Debt Priority Checker, and AI Chat — are completely free. Optional premium PDF documents start from £2.99. **Q: Is CrisisCompass financial advice?** > A: No. CrisisCompass provides general information and tools. For personalised financial advice, we recommend contacting StepChange (0800 138 1111) or Citizens Advice (0800 144 8848). **Q: Is my data safe?** > A: We store data locally in your browser wherever possible. The Financial Survival Check results are never saved to our servers. See our Privacy Policy for full details. ### Frequently Asked Questions (FAQ) **Q: Will my creditor definitely freeze interest?** > A: While not guaranteed, FCA rules require creditors to consider your request fairly. Most major creditors will freeze interest for customers who can demonstrate financial difficulty and are making an effort to repay. **Q: Will an interest freeze affect my credit file?** > A: Your credit file may show that you are in a financial difficulty arrangement. However, this is typically less damaging than continued missed payments or a default. **Q: How long does an interest freeze last?** > A: Typically 3–6 months, though some creditors will extend it if your circumstances have not changed. Some debt management plans include interest freezes for the full duration of the plan. **Q: Can I request this by phone instead?** > A: Yes, you can request an interest freeze by phone. However, a letter creates a written record and gives you time to present your situation clearly. You might also find our Creditor Call Scripts helpful if you prefer to call. # Request to Freeze Interest and Charges If you are in financial difficulty, asking your creditor to freeze interest and charges can stop your debt from growing while you make reduced payments. Under FCA rules, creditors must consider this request. 2 min readLast reviewed: March 2026 [Generate Your Letter →](/tools/letters)[Calculate Your Budget →](/tools/budget)[Check Debt Priorities →](/tools/debt-priority) ⚡ 100% Free Statutory Self-Advocacy Tool • Zero PaywallCited Statute: **FCA CONC 7.3.4G & Breathing Space Regs 2020** ## Instant Statutory Letter & Notice Generator (100% Free) Generate a legally cited UK forbearance, payment plan, or HMRC Time-to-Pay letter in 30 seconds. Zero paywalls, zero sign-up required. 1\. Select Statutory Notice / Letter TypeCouncil Tax Payment Plan & S.13A Hardship Request (Local Government Finance Act 1992 (s.13A))Creditor Reduced Payment & Forbearance Proposal (FCA Consumer Credit Sourcebook (CONC 7.3))6-Month Statutory Interest & Charges Freeze Notice (FCA CONC 7.3.4G & Breathing Space Regs 2020)Rent Arrears Affordable Repayment Proposal (Pre-Action Protocol for Possession Claims)Energy Debt Payment Plan & Hardship Grant Request (Ofgem Supply Licence Condition 27 (Ability to Pay))Water Company Social Tariff & WaterSure Cap Request (Water Industry Act 1991 (s.44 Social Tariffs))HMRC Time-to-Pay (TTP) Arrangement Proposal (PAYE / VAT / Corp Tax / SA) (Finance Act 2009 s.108 (Suspension of Late Payment Penalties)) Your Name / Company Name Creditor / Council / HMRC Team Account / Council Tax / UTR Reference Total Arrears / Balance (£) Affordable Monthly Offer (£) Brief Hardship Reason 2\. Your Ready-to-Send Statutory Letter (Editable)Date: 20 October 2026 To: Customer Financial Support Team Account Reference: \[Account / Council Tax / UTR Reference\] FORMAL REQUEST: 6-MONTH STATUTORY FORBEARANCE & INTEREST/CHARGES FREEZE (FCA CONC 7.3.4G) Dear Customer Financial Support Team, I am writing regarding account \[Account / Council Tax / UTR Reference\] (current balance: £1,450). I am experiencing financial hardship caused by a sudden reduction in household income combined with essential living cost increases. Under the Financial Conduct Authority (FCA) Consumer Credit Sourcebook — specifically CONC 7.3.4G and CONC 7.3.5G — firms must treat customers in default or arrears difficulties with forbearance and due consideration. CONC 7.3.5G explicitly lists suspending, reducing, waiving, or cancelling any further interest or charges when a customer provides evidence of financial difficulties. Accordingly, I request that you: 1. Freeze all contractual interest, default fees, and late payment charges on account \[Account / Council Tax / UTR Reference\] for a period of 6 months. 2. Accept my affordable token/reduced monthly payment of £45 per month during this period. 3. Restrict all communication regarding this account to writing (email or post) so I can manage my finances without telephone harassment. I will review my financial position in 6 months and contact you with an updated Standard Financial Statement. Yours faithfully, \[Your Full Name / Director Name\] 📋 Copy Letter Text (Free)🖨️ Open Print-Ready A4 PDF (£0 Free)⬇️ Download .TXT ## Why Request an Interest Freeze? When you are only able to make minimum or reduced payments, interest charges can mean your debt barely reduces — or even grows. An interest freeze: - **Stops the debt growing** while you make payments - Ensures **your payments reduce the actual balance** - Gives you a realistic path to clearing the debt - Shows creditors you are **serious about repaying** ## When to Request an Interest Freeze An interest freeze request is appropriate when: - You can only afford reduced payments - The interest charges are more than or close to your payment amount - You are setting up a debt management plan - You have had a change in circumstances (job loss, illness, reduced hours) ## What Creditors Must Do Under FCA CONC rules: - Creditors must consider freezing interest for customers in financial difficulty - They should not add charges that make the debt harder to repay - They must treat you fairly and with forbearance - Refusing without good reason can be grounds for a complaint to the Financial Ombudsman ## What to Expect - Most creditors will freeze interest for **3–6 months** initially - They may review your situation at the end of the period - Some may freeze interest for the duration of a payment plan - You will usually need to provide income and expenditure details ## Multiple Creditors If you have debts with multiple creditors, you can send this letter to each one. It may be helpful to: 1. 1Use our Budget Calculator to work out what you can afford 2. 2Divide your available amount between creditors proportionally 3. 3Send each creditor a letter explaining your situation and proposed payment 🏢 UK Limited Company Director Triage • Finance Act 2009 s.108 & ERA 1996 s.166PAYE • VAT • Corporation Tax • Bounce Back Loans ## Running a Limited Company with HMRC Arrears or Business Debt? Calculate your monthly **HMRC Time-to-Pay (TTP)** instalment and check if you qualify for a tax-free **Company Director Statutory Redundancy & Notice Payout** from the government's National Insurance Fund (Employment Rights Act 1996 s.166) if your company ceases trading. HMRC / Company Debt£28,000 £3,000£30k Express Line£150,000+ Years as PAYE Director6 years 0 yrs2 yr Statutory Min20 yrs Weekly Gross PAYE Salary£520/wk £180/wk£700 Statutory Cap Option A: Keep Trading via HMRC Time-to-Pay ~£2,422 / month over 12 months ✓ Under £30,000 threshold: Eligible for HMRC Express Self-Serve / Direct Debit Time-to-Pay arrangement without full security. Option B: Estimated Director Redundancy Claim (Gov RPS) £6,552 Tax-Free Estimate Includes ~£3,900 statutory redundancy + ~£2,652 statutory notice pay from the National Insurance Fund (Form RP1/RP2). Often covers 100% of liquidation costs. 📄 Download B2B HMRC Time-to-Pay Proposal, Cashflow Table & s.172 Board Minute (£29 Instant Pack)🏪 Commercial Rent (CRAR) & Trade Creditor Pack (£19) Need free confidential charity guidance for a sole trader or SME? Call **Business Debtline** free on [0800 197 6026](tel:08001976026) (uk\_b2b\_corporate\_insolvency self-serve governance triage). 🏠 Ofgem ECO4 & £7,500 Boiler Upgrade Scheme (BUS) • 2026 Funding Open12 Verified UK MCS-Accredited Installers ### Cut Monthly Energy Bills by £650–£1,100/yr: Check £7,500 Heating & ECO4 Grant Eligibility If anyone in your household receives **Universal Credit, Pension Credit, PIP, Attendance Allowance, Carer's Allowance, or Council Tax Reduction** (or your household income is under £31,000 under ECO4 Flex), you may qualify for 100% funded insulation, solar, or the **£7,500 Government Boiler Upgrade Grant** with zero repayment required. ✓ £7,500 BUS Voucher✓ ECO4 Flex Low-Income Route✓ Direct MCS-Certified Assessment Check My Postcode for £7,500 / ECO4 Grants →Takes 45 seconds • No impact on credit score - **[Check Unclaimed Council Credit Balances & Band Reductions (CouncilCredit.co.uk)](https://councilcredit.co.uk?utm_source=crisiscompass&utm_medium=sovereign_hub)** — SI 1992/613 Reg 14 • Household & CommercialSearch Ledger →UK councils hold over £310m in unrefunded credit balances from closed accounts, overpayments, and backdated Band A–H revaluations. Check if your council owes you a BACS refund. - **[Reclaim Backdated Small Business Rates Relief (RatesReclaim.co.uk)](https://ratesreclaim.co.uk?utm_source=crisiscompass&utm_medium=sovereign_hub)** — LGFA 1988 s.43(4B) • UK Shopfronts, Workshops & OfficesCheck Relief →Sole-property UK businesses with a Rateable Value ≤ £12,000 qualify for 100% Small Business Rate Relief. Audit your property or refer a local business for a £75–£150 partner referral reward. ## Frequently Asked Questions Will my creditor definitely freeze interest? While not guaranteed, FCA rules require creditors to consider your request fairly. Most major creditors will freeze interest for customers who can demonstrate financial difficulty and are making an effort to repay. Will an interest freeze affect my credit file? Your credit file may show that you are in a financial difficulty arrangement. However, this is typically less damaging than continued missed payments or a default. How long does an interest freeze last? Typically 3–6 months, though some creditors will extend it if your circumstances have not changed. Some debt management plans include interest freezes for the full duration of the plan. Can I request this by phone instead? Yes, you can request an interest freeze by phone. However, a letter creates a written record and gives you time to present your situation clearly. You might also find our Creditor Call Scripts helpful if you prefer to call. ## Related Guides - **[Hardship Letter for Credit Card Debt](/hardship-letter-credit-card-debt)** — Free hardship letter template for credit card debt. Generate a professional letter requesting reduced payments, interest freeze, or a payment plan from your credit card provider. - **[Reduced Payment Request Letter](/reduced-payment-request-letter)** — Free letter template to request reduced payments from a creditor, lender, or service provider during financial difficulty. ## Sources & Further Reading [FCA Consumer Credit Sourcebook](https://www.fca.org.uk/firms/consumer-credit)[StepChange Debt Charity](https://www.stepchange.org/)[Citizens Advice — Debt](https://www.citizensadvice.org.uk/debt-and-money/) ### Get a free recovery plan by email We'll send you a personalised action plan with next steps, plus practical tips over the following week. Subscribe This page provides general information only and is not financial or legal advice. 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