NatWest loan holiday

mjp1974

I have a loan with NatWest and enquired about taking a 3 month loan holiday. Their information states this is possible but will put the loan into a arrears which will affect my credit score as if I missed payments. Is this correct? If so how is that helping people? I also have a loan with AA and was able to take a 3 month holiday which they have confirmed does not affect the credit file and they couldn’t have been more helpful. I would be grateful if anyone could clarify exactly what NatWest’s approach means.

glennstar

I would say that the AA are not abiding by their PoR obligations. Strictly speaking you are late and NW is obliged to record it as such.
With regard your question about how this is helping anybody?.. I think the point isn't that you expect NW to lie (there is no other way of putting it) but more that you would expect any future lender to see that there are late payments during May-July 2020 (or more realistically May-Sep 2020 at the rate things are going) and recognise this as a COVID-19 related incident and to react accordingly.
You would have a case if you post in 18 months or two years time about a lender/insurer/other who has interpreted this late payment negatively and ask how they are helping, rather than railing against NW for doing what they are obliged to do.

Forbearance is the bank not taking action against you. It isn't about the bank misleading other financial institutions in the future.

Kellie123456

I've had the same experience and I find it outrageous. I have a loan with Yorkshire Bank and they gave me the holiday no problem but Natwest say I'll be in arrears and in 3 months they will contact me to talk about how I'm going to pay it back. I'm self employed. It's an absolute joke. I'll be moving all of my bank accounts I have with them ASAP. How banks are getting away with this I don't know and why weren't they all given the same instruction from the Government to allow people to take payment holidays, not give them a break which will shaft their credit score? I'd love to be working and earning money and paying my loans right now but I can't through absolutely no fault of my own. Unbelievable. 

[Deleted User]

You need to ask them how they're reporting to the CRAs.  They're absolutely correct that you would be in arrears, but that's not the issue.

Jackie8761

Hi my partner has also had the same experince with Natwest after taking almost 1 week to get through 2 hours on hold then cut off he finally got to speak to someone who told him if he takes a 3 month holiday or any break  it will effect his credit rating he is self employed so we will some how have to find the money to pay for a car loan which we need as he is a driving instructor and could be off work for 6 months I am disgusted with Nat west and there service no support from them or and help what so ever 

jonesMUFCforever

Jackie8761 said:

Hi my partner has also had the same experince with Natwest after taking almost 1 week to get through 2 hours on hold then cut off he finally got to speak to someone who told him if he takes a 3 month holiday or any break  it will effect his credit rating he is self employed so we will some how have to find the money to pay for a car loan which we need as he is a driving instructor and could be off work for 6 months I am disgusted with Nat west and there service no support from them or and help what so ever 

Jackie please note I'm not picking on you here.
What exactly are you wanting the bank to do? Do you think they should write off your husband's debt? This kind of thing has never happened before in modern times - the banks are doing what they can - they do NOT have to offer loan holidays to anybody.
Should they let him not pay with no comeback whatsoever?
Does your husband not have any savings? Has he enquired about state aid to self employed (even if he does not get it until June)?
When the CRA's get their data from the banks they will show what they are told to show - your husband and millions of others will be in the same boat.

Kellie123456

jonesMUFCforever said:

Jackie8761 said:

Hi my partner has also had the same experince with Natwest after taking almost 1 week to get through 2 hours on hold then cut off he finally got to speak to someone who told him if he takes a 3 month holiday or any break  it will effect his credit rating he is self employed so we will some how have to find the money to pay for a car loan which we need as he is a driving instructor and could be off work for 6 months I am disgusted with Nat west and there service no support from them or and help what so ever 

Jackie please note I'm not picking on you here.
What exactly are you wanting the bank to do? Do you think they should write off your husband's debt? This kind of thing has never happened before in modern times - the banks are doing what they can - they do NOT have to offer loan holidays to anybody.
Should they let him not pay with no comeback whatsoever?
Does your husband not have any savings? Has he enquired about state aid to self employed (even if he does not get it until June)?
When the CRA's get their data from the banks they will show what they are told to show - your husband and millions of others will be in the same boat.

Wow. 

jonesMUFCforever

Kellie123456 said:

jonesMUFCforever said:

Jackie8761 said:

Hi my partner has also had the same experince with Natwest after taking almost 1 week to get through 2 hours on hold then cut off he finally got to speak to someone who told him if he takes a 3 month holiday or any break  it will effect his credit rating he is self employed so we will some how have to find the money to pay for a car loan which we need as he is a driving instructor and could be off work for 6 months I am disgusted with Nat west and there service no support from them or and help what so ever 

Jackie please note I'm not picking on you here.
What exactly are you wanting the bank to do? Do you think they should write off your husband's debt? This kind of thing has never happened before in modern times - the banks are doing what they can - they do NOT have to offer loan holidays to anybody.
Should they let him not pay with no comeback whatsoever?
Does your husband not have any savings? Has he enquired about state aid to self employed (even if he does not get it until June)?
When the CRA's get their data from the banks they will show what they are told to show - your husband and millions of others will be in the same boat.

Wow. 

Your point?

mcpitman

jonesMUFCforever said:

Kellie123456 said:

jonesMUFCforever said:

Jackie8761 said:

Hi my partner has also had the same experince with Natwest after taking almost 1 week to get through 2 hours on hold then cut off he finally got to speak to someone who told him if he takes a 3 month holiday or any break  it will effect his credit rating he is self employed so we will some how have to find the money to pay for a car loan which we need as he is a driving instructor and could be off work for 6 months I am disgusted with Nat west and there service no support from them or and help what so ever 

Jackie please note I'm not picking on you here.
What exactly are you wanting the bank to do? Do you think they should write off your husband's debt? This kind of thing has never happened before in modern times - the banks are doing what they can - they do NOT have to offer loan holidays to anybody.
Should they let him not pay with no comeback whatsoever?
Does your husband not have any savings? Has he enquired about state aid to self employed (even if he does not get it until June)?
When the CRA's get their data from the banks they will show what they are told to show - your husband and millions of others will be in the same boat.

Wow. 

Your point?

There isn't one, it's just an answer the contributor doesn't like (an honest well thought out one, that recognizes reality).

Fx777

I think the point here that people are trying to make is that why is it that NatWest seem to be so different from many of the other loan providers?  AA, Yorkshire Bank, Lloyds and others are all offering payment holidays (which do not affect your credit file by showing you as in arrears) for 3 months and then the payments simply continue after the 3 month break.  The loan is just extended by 3 months.  NatWest are saying yes we will give you a break, but not in the same way, they are saying when the loan payments recommence in 3 months you need to play catch up with the missing payments (the others are not asking this) as your account would be in arrears. The NatWest answer is not actually helping anyone in this current situation. Its making the situation worse by negatively affecting their customers credit ratings.  I do not get the posts siding with NatWest on this at all..... it simply does not help the people in this situation. There is news today that loan and credit card payments are to be frozen for 3 months to help people because of the virus, so I would hope that this, if it does get the support of banks on Monday 6th April, that they all (including NatWest) will be able to offer a proper break without putting the account into arrears (in much the same lines as the mortgage holidays). 

Thrugelmir

Fx777 said:

I think the point here that people are trying to make is that why is it that NatWest seem to be so different from many of the other loan providers?  AA, Yorkshire Bank, Lloyds and others are all offering payment holidays (which do not affect your credit file by showing you as in arrears) for 3 months and then the payments simply continue after the 3 month break.  The loan is just extended by 3 months.  NatWest are saying yes we will give you a break, but not in the same way, they are saying when the loan payments recommence in 3 months you need to play catch up with the missing payments (the others are not asking this) as your account would be in arrears. The NatWest answer is not actually helping anyone in this current situation. Its making the situation worse by negatively affecting their customers credit ratings.  I do not get the posts siding with NatWest on this at all..... it simply does not help the people in this situation. There is news today that loan and credit card payments are to be frozen for 3 months to help people because of the virus, so I would hope that this, if it does get the support of banks on Monday 6th April, that they all (including NatWest) will be able to offer a proper break without putting the account into arrears (in much the same lines as the mortgage holidays). 

Given some time all we settle down. Easy to make a big announcement at a Press Conference. The nitty gritty then needs to be worked through. Which will come in the form of official guidance. 
The banks had 24 hour notice of mortgage holidays. Hardly surprising that they couldn't cope when their phones started ringing. Probably hadn't even got their internal process in place. People to be patient and not expect instant responses.