Motor finance customers experiencing financial difficulties during the Coronavirus (COVID-19) outbreak may find temporary relief in measures announced by the FCA on April 24th.
With concern that some consumers in the UK’s £75bn car loan market will not be able to cover their monthly vehicle repayments, the FCA worked at speed to come up with a package that urges firms to halt repossessions. From Monday 27th April, credit firms are required to provide payment freezes and to follow stipulated fair practice guidelines.
Christopher Woolard, interim Chief Executive at the FCA, said: “We have worked at pace to introduce temporary financial relief tailored for a range of specific credit products. Many firms are already working with their customers, but these measures ensure all consumers affected by the coronavirus emergency can apply for a temporary freeze on their payments.”
What does this mean for you?
If you are experiencing difficulties making repayments on motor finance due to COVID-19 the FCA urges you to talk to your credit provider. You should be able to request a payment deferral at any point after the guidance came into force (27th April) for a period of 3 months.
Further information can be found on the FCA website. https://www.fca.org.uk/news/press-releases/fca-confirms-support-motor-finance-and-high-cost-credit-customers