Support for struggling car finance customers is extended

The Financial Conduct Authority has announced further support for car finance customers who are struggling to make payments due to the coronavirus crisis.

Customer signing a car finance loan agreement

A further three-month package of support for motorists with car finance has been announced by the Financial Conduct Authority.

The FCA’s new package follows on from its original three-month payment freeze announced in April.

The new guidelines say car finance companies should automatically contact customers who have already taken out a payment freeze, asking if they can resume payments.

If they are able to do so, they should then work out a plan on how the missed payments can be made. If they cannot, payments can be frozen or reduced for a further three months.

Payment freeze extensions can be requested up until 31 October 2020. Those who haven’t requested a payment freeze up to now will can still do so up to 31 October 2020.

A ban on repossessions will also be extended until 31 October 2020.

“Our measures will ensure that people who are still facing temporary payment difficulties because of this pandemic continue to have access to the help they need,” said FCA interim chief executive Christopher Woolard. “However, if you can afford to start making repayments, you should.”

Even if they are only partial repayments, the FCA says it is in customers’ best interests to begin doing so.

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Richard Aucockhttps://www.motoringresearch.com/
I'm director at Motoring Research. I run a bit, cycle a bit, have a huge love for the automotive industry.

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