Car finance customers who can’t pay during second lockdown set to be offered payment deferrals

Time 8:32 am, November 2, 2020

Further help for car finance customers who are struggling to make repayments due to the second lockdown is expected to be announced this week.

The Financial Conduct Authority has issued a holding statement about its plans for consumer credit as the country faces lockdown from Thursday.

In the statement it says borrowers who can afford to make their car finance repayments should continue to do so and ‘only take up support if they need it’.

But the FCA says it will be proposing updates to its temporary guidance to support consumer credit customers affected by coronavirus.

The city watchdog said: ‘To support those financially affected by coronavirus, we will propose that consumer credit customers who have not yet had a payment deferral under our July guidance can request one. 

‘This could last for up to six months unless it is obviously not in the customer’s interests. 

‘Under our proposals borrowers who are currently benefiting from a first payment deferral under our July guidance would be able to apply for a second deferral.’

The FCA says it will be working with lenders on how to implement the proposals as quickly as possibly and, for now, consumers should NOT contact their lender.

The FCA said: ‘Lenders will provide information soon on what this means for their customers and how to apply for this support if our proposals are confirmed.

‘Consumer credit customers who have already benefited from payment deferrals and are still experiencing payment difficulties should speak to their lender to agree tailored support.’

On Saturday, the FCA said it would look to extend the help made available to mortgage customers.

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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