Alphera - No Payment Holidays

billbu

I've just phoned up my car finance provider as I am a contractor and currently can't work due to coronavirus.
I asked for a payment holiday with the latest FCA guidance and they have point blank refused payment holidays on my payments. They have simply stated that I can make "reduced" payments for the next 3 months, and then will have 2 months to repay these arrears after the 3 month period! Where do they think i'm going to get this money from? They won't split the balance over the remainder of the term on the agreement!

I think this behaviour is abhorrent given the current circumstances. Are they complying with the FCA guidance or not?

yksi

It sounds correct to me - I have a personal loan with a major bank, they have offered a three-month holiday and been very clear that there will be increased payments afterwards to make up the payments missed. Much as we like to hate them, they aren't charities, will be losing horrendous amounts of money right now and will need to claw back the money as soon as they can get it. You should have the option to refinance your loan to another provider as long as your contract allows early exit.

Galloglass

Why not give the car back if you are more than 50% into the contract. You can't use the car and it is sitting there depreciating.

billbu

my concern is whether they can force me to re-pay this money within 2 months of the end of the period. I understand the money will need to be repaid, but if they ask me for 50% extra per month after the end of the period then that's unreasonable. 
I have more than 50% term to go