Three Month Payment Holiday for Car Financing
Coronavirus has brought a lot of financial worry to our world with many financial institutions and banks offering payment holidays to support those who have had pay cuts or job losses due to the lockdown measures. Some lending institutes were slow to react among these were some of the car financing companies.
We do now have confirmation that in the UK from the Financial Conduct Authority (FCA) on what these companies must offer to borrowers if they are suffering financially from COVID19;
- 3 month payment holiday to customers affected financially by coronavirus measures, however interest will still accrue during this period
- Lenders can not repossess a vehicle
- Lenders must offer help where possible for instance to those already in arrears
In any case regardless of financial position from coronavirus firms will be monitored and will be expected to treat customers fairly and must not introduce new or unfair charges the detrimentally affect their customers. This includes increasing or demanding payment or repossession for final balloon payments should the second hand car market drop as a result of the virus measures.