Coronavirus – Customer information

If you are a customer suffering financial difficulties or anticipating payment problems because of Coronavirus, speak to your lender as soon as possible – they are there to help. You will find their contact details on your finance agreement, but please help them to help you by using online forms and emails where possible as call levels are very high at the moment. If you need further assistance with this, please click here

Consumer FAQs
Motor finance

My motor finance payment is due soon, and I won’t be able to pay. What do I do?

Contact your lender, but as call volumes are very high at the moment, do check if they have online contact forms. If you do call, please be sure to have your motor finance agreement next to you so that the call centre staff can work through your request as quickly as possible and find the best option.

My PCP agreement is due to end soon, but the dealership is closed. Does that mean I have to pay the balloon and keep the car?

No, you should only pay the balloon if that’s what you would have chosen to do before the Coronavirus circumstances.  Get in touch with your lender asap to tell them what you would like to do, then see how they can help make that happen.

Will I have to take the final payment option when my car finance agreement ends next month because closures of car dealerships will make it difficult to return a vehicle. Could that happen? 

No. The abiding principle in all cases is that customers are able to choose the option that best suits their circumstances at the end of an agreement. Just contact to your lender to see what can be arranged. 

What if I can’t meet my monthly payment, or the balloon payment at the end of the agreement, will my car be taken away?

The objective behind forbearance in many circumstances is that the car should stay with the customer. Contact your lender and they’ll suggest a solution.

If a motor finance agreement is due to end quite soon, can buyers ask for extensions on their deals or leases until the crisis is over?

Yes, they can. They should get in touch with their lender as soon as possible and, as this scenario may suit both parties, there may be an option to discuss charges. It’s always worth asking. 

How are lenders organising the return of vehicles, or are they asking customers to keep them, without driving them until the crisis is over?

Lenders can still collect cars and move them around, but the practicalities of this process are still being ironed out. Contact your lender to see what can be arranged.  

Are your motor finance members generally shutting down during this period, or continuing to allow buyers to take out new leases or finance deals, and if so, what measures they're taking (e.g. delivery, sanitization, and so on)?

Our members are still open for business, so if a customer wants a car, they should get in touch as normal and the lender will sort out the logistics – taking all the precautions around delivery that you would expect. 

Asset Finance (leasing and hire purchase)

I can’t make the next payment for the equipment in my factory, but without it I won’t be able to reopen for business. What do I do?

Your asset finance lender will have a range of options to help. Get in touch with them as soon as you can, and make sure you have all the details of your agreement to hand if you’re calling them, but ideally contact them online if you can.

Consumer Finance

Second charge mortgages

I have a second charge mortgage on my home but I can’t work, so I can’t make the payment. Will I lose my home?

No, you won’t. Your lender will be able to help, so please don’t worry. Just get in touch so they can get started on finding the best solution for you – which could include a three month payment freeze.

Credit cards, store cards, catalogue credit and personal loans

Am I eligible for a three-month payment break?

Customers facing financial challenges due to coronavirus are able to ask for a three-month payment freeze, or to pay a nominal payment on credit cards, store cards, catalogue credit or personal loans. Your lender can consider other measures, such as reductions in monthly payments, if appropriate. In addition, your customer cards and credit facility will not be suspended during this period – unless there are exceptional circumstances, such as fraud on your account. 

Get in touch with your lender to explain your circumstances. Make sure you have all of your details to hand if you call them, but ideally use an online contact form if your lender has one.

Do I still have to make minimum payments on my credit card?

Lenders have asked the regulator to suspend this, so if you agree a three-month payment freeze you won’t have to make the minimum payments for the moment.

What if I fall behind with my repayments?

Customers facing financial challenges due to coronavirus can ask for a three-month payment freeze or to pay a nominal payment on credit cards, store cards and catalogue credit. Your lender can consider other measures, such as reductions in monthly payments, if appropriate.

Will these measures affect my credit score?

Lenders are working hard to help ensure that any payment freezes offered in response to the Coronavirus disruptions should not impact your credit file.

 

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