Taxi Driver Online

FCA confirms further support for motor finance and high-cost credit customers

https://www.fca.org.uk/news/press-relea ... -customers

The FCA has today confirmed the support that will be available for users of motor finance, buy-now pay-later (BNPL), rent-to-own (RTO), pawnbroking and high-cost short-term credit (HCSTC) products, who continue to face payment difficulties due to coronavirus (Covid-19).

Christopher Woolard, Interim Chief Executive at the FCA, said: ’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. However, if you can afford to start making repayments, you should.’

The measures include:

1. If customers can afford to return to regular repayment, or make partial payments, it is in their best interest to do so.

2. Firms should contact customers coming to the end of a first payment freeze to find out if they can resume payments – and if so, agree a plan on how the missed payments could be repaid.

3. For customers still facing temporary payment difficulties as a result of coronavirus:
i) Firms will provide them with support by freezing or reducing payments to a level they can afford, on their motor finance, BNPL or RTO agreements for a further 3 months.
ii) For BNPL customers, where a loan is within the promotional period, this will mean offering customers an additional extension to that period.
iii) For pawnbroking agreements, where a loan is within the redemption period (irrespective of when the redemption period is due to end) this will mean firms offering a further extension to the redemption period. If the redemption period has already ended, this will mean agreeing not to sell the item during the payment deferral period.

4. Customers that have not yet had a payment freeze or requested an extension of an existing payment freeze can request this up until 31 October 2020.

5. HCSTC customers can only apply for a payment freeze under this guidance once up to 31 October 2020 in respect of each HCSTC agreement. For those customers who have had a payment freeze and are still experiencing payment difficulties, firms will provide a range of support – including formal forbearance – in accordance with the FCA Handbook.

6. The ban on repossessions will continue until 31 October 2020 – this applies to motor finance and RTO customers still facing temporary payment difficulties as a result of coronavirus and who need their vehicles or goods.
Where a customer needs further temporary support to bridge the crisis, any payment freezes or partial payment freezes offered under this guidance should not have a negative impact on credit files. However, consumers should remember that credit files aren’t the only source of information which lenders can use to assess creditworthiness.

7. When implementing this guidance, firms should be particularly aware of the needs of their vulnerable customers and should consider how they engage with them. Firms should also help customers understand the types of debt help and money guidance that are available and encourage them to access the resources that can help them.

The guidance comes into force on 17 July 2020.

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IDFIMH

I’m not going to bother this time. Because it’s an interest free loan they won’t extend the term which has already put my repayments up by £30, if I extend again it’ll be another £30. I think I can manage the payments and by the time my mortgage ‘holiday’ ends the next grant should be paid, that should be enough to pay my mortgage up to Christmas. When, hopefully, we should be earning a bit more than we’re now. (Fingers crossed!)

Luckily for me I have no finance to pay and only a mortgage on 1 house which is covered by the rent. I really cannot see a return to normality.

there will be a new world for us in 2021 in which people do not frequent doctors surgeries, pubs and restaurants or have anything like the same need for travel.

I think the airlines headlong rush to shrink their businesses and readjust to the new era is prophetic

We will never achieve the same level of takings unless there is a large number of drivers and competitors leaving the trade and at the moment it looks like all are trying to hang on expecting it to be someone else

I think anyone with a big car finance millstone hanging over their head may be in for a rough 2021. I hope I am wrong but it does look as if the world we inhabit has changed and travel is the one area that has changed most !

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

I actually think 2021 will be a good year.

A lot of people have money, and they will want to spend it.

Our trade will contract, both in terms of work and drivers, but I'm more positive now than I was in April.

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IDFIMH

Many people are now holding business meetings by video or mobile phone

Doctors surgeries have abandoned face to face appointments permanently

Travel and tourism might recover but to the same levels ?

There are hundreds of thousands more volunteers out there shopping and providing transport for the "vulnerable"

Our market has shrunk dramatically so unless there is a sizeable reduction in provision earnings will be depressed and that is not good for those with finance agreements and mortgages. I have a driver who is facing financial ruin because he simply cannot find enough money to stem the flow of cash out of his heavily overdrawn bank account. He is working far more hours than ever before and you can see how stressed out he is.

I cannot see where I am going to find enough work to keep my drivers afloat.

I think the government may have to seriously consider increasing the national debt to write off or subsidise finance payments on vehicles and equipment not just in our trade but across a large section of the uk economy.

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

Edders a tad pessimistic, and of course if too many people talking things down it's a self-fulfilling prophecy, because people won't spend.

Think it'll be next year before any real normality, but of course depends on any second wave or whatever, and how that's reported in the media etc.

But I think things *will* *eventually* get more back to normal than many commentators portraying.

There will be a back to normal way of life just that the normal will never be as we knew it.