PAYMENT DIFFICULTIES.

One potential option that might be suitable for you (depending on your particular circumstances) is a payment arrangement under which you would make a reduced monthly payment at a level you can afford for a period of time - or possibly no payments for a short period - and subsequently making up the arrears that accrue.   

When considering an amount you can afford to pay, it is important that you take into account other debts, financial obligations and essential living costs.   

You may wish to refer to the Money Advice Service’s Money Navigator Tool at to help you consider whether this type of arrangement is right for you.  You can find this free tool by searching for ‘Navigator’ at www.moneyadviceservice.org.uk   

We would need to agree any such arrangement with you first. We can talk to you about the details of such an arrangement and how it may help you.   

Please note that any arrears that accrue will be reported on your credit file and may affect your future credit applications. Please see below for more details.  

The most appropriate option for you depends on your own individual circumstances. 

If you have a hire-purchase agreement (HP or Personal Contract Purchase - PCP) that is regulated by the Consumer Credit Act, you have the right to end your agreement early (known as ‘Voluntarily Termination’) if you no longer wish to keep the vehicle. You will have to:  

• Return the vehicle, and  
• Pay for any vehicle damage and/or excess mileage, and 
• Pay any arrears (please note any payments we have deferred under a payment deferral made between 27 April and 31 October 2020 are not treated as arrears for this purpose), and 
• If you have paid less than half of the Total Amount Payable under your agreement, you will also have to pay the difference between what you have paid and half of the Total Amount Payable. 

If you wish to discuss this option please call us. If you are unable to make full payment of the above sums at this time, we may be able to agree an arrangement for you to make payment over a mutually-agreed timeframe. 

You may wish to consider settling the agreement by paying the settlement figure and then keeping or selling the vehicle.   

A settlement figure can be obtained by logging onto your MyFinance account. If you do not yet have a MyFinance account, this can be easily set up using the same link.  

As you will be keeping the vehicle, the amount you will pay will usually be higher than on a Voluntary Termination.  

If you are in payment difficulties, we want to talk with you so we can try to support you.   

If you are unable to resume your monthly payments and do not reach agreement with us on how to proceed, you will build up arrears and we may become entitled to end your agreement and repossess the vehicle. We would give you notice before doing so and before taking the vehicle back we may need to apply to court for permission. We would of course take into account local and/or national Coronavirus restrictions.   

After repossessing the vehicle there may be an outstanding balance for you to pay after we have sold the vehicle and a Default would be recorded on your credit file with Credit Reference Agencies. 

As required under consumer credit reporting requirements, we will report any arrears to your credit file to Credit Reference Agencies.  For example, if we agree an arrangement for you to pay a reduced monthly amount for a period, the shortfall that arises will be reported as arrears.   

If we have deferred any of your payments under a payment deferral made between 27 April and 31 October 2020: while we have not reported a worsening status to your credit file in respect of your payment deferral, your deferral may still affect our and other lenders’ future lending decisions. We and other lenders may take into account other information resulting from a deferral when making future lending decisions to ensure a suitable affordability assessment is made, e.g. information provided by applicants or bank account information.