Consumer expert reveals how to fight off car repossession threats
The news consumer champion, Richard Thomson has received a significant number of appeals for help from readers threatened with repossession of their cars after they’ve run into temporary difficulty meeting repayments due to coronavirus.
But he says people struggling with consumer credit problems, including borrowers with payday loans, are now covered by measures recently launched by the Financial Conduct Authority (FCA).
Firms lending on personal contract purchase, PCP or hire purchase, HP, are required to give payment breaks of up to three months to car finance customers.
They must also not try to repossess a vehicle or end an agreement if a customer is in difficulty due to the outbreak and requires the use of it.
The FCA says that customers facing financial difficulties are duty bound to contact lenders as soon as possible and be aware any payment holiday may ultimately result in higher monthly repayments or extended loan terms when the relaxation comes to an end.