Car finance payment holidays

C.w_Wilson

My fiancé is a mobile hairdresser. She has already taken 3 months payment holiday for her car finance at the beginning of the outbreak due to not being able to work. She then began making payments again as restrictions were lifted.
Now we have been thrown in to another lockdown and she has zero income yet again and can’t afford to make the payments. Her finance company are being very, very difficult and saying they can’t offer her another payment holiday without seeing bank statements to prove she has no money coming in over the next 3 months. They offered to “take the car away” if she can’t afford it anymore.
i find this incredibly invasive, are they allowed to do this? I was under the impression that anyone was entitled to up to 6 months worth of payment holidays? It’s not like she’s choosing not to work, she is being told she isn’t allowed. I feel like she is being punished by the finance company for something that she can’t control.
any advice would be appreciated.

Jeremy535897

See https://www.moneyadviceservice.org.uk/en/articles/coronavirus-covid-19-car-payment-holidays
"If they feel that a payment holiday would obviously not be in your best interests, you might not be able to get a payment holiday."

A payment holiday is not an automatic right. The lender in your fiancée's  case presumably wishes to establish whether increasing her debt with more interest is in her best interests (and theirs).

Thrugelmir

C.w_Wilson said:

 I feel like she is being punished by the finance company for something that she can’t control.

Alternatively you could take the view she has something she cannot afford. The arrears will simply mount and put pressure on future earnings. As the amount to repay every month increases. 

Normally people get upset and start venting when they've something to hide when it comes to financial matters. Showing the finance house the bank statements to prove financial difficulty should be a straightforward task. 

C.w_Wilson

Thrugelmir said:

C.w_Wilson said:

 I feel like she is being punished by the finance company for something that she can’t control.

Alternatively you could take the view she has something she cannot afford. The arrears will simply mount and put pressure on future earnings. As the amount to repay every month increases. 

Normally people get upset and start venting when they've something to hide when it comes to financial matters. Showing the finance house the bank statements to prove financial difficulty should be a straightforward task. 

She can definitely afford it. She has had the car for 4 years and never missed a payment. The difficulty arises when you are told you can no longer work. All she has received from the government since March £3k, bearing in mind we have a mortgage to pay etc. I challenge anyone to go from March until January with next to no income without feeling the pinch.

Grumpy_chap

Is the grant from the Government SEISS, or CJRS?

Thrugelmir

C.w_Wilson said:

Thrugelmir said:

C.w_Wilson said:

 I feel like she is being punished by the finance company for something that she can’t control.

Alternatively you could take the view she has something she cannot afford. The arrears will simply mount and put pressure on future earnings. As the amount to repay every month increases. 

Normally people get upset and start venting when they've something to hide when it comes to financial matters. Showing the finance house the bank statements to prove financial difficulty should be a straightforward task. 

She can definitely afford it. She has had the car for 4 years and never missed a payment. The difficulty arises when you are told you can no longer work. All she has received from the government since March £3k, bearing in mind we have a mortgage to pay etc. I challenge anyone to go from March until January with next to no income without feeling the pinch.

Having an emergency savings pot has always been a core element of managing ones own finances. Up to people themselves how they choose to spend their money. Culture these days is want it now.  When times get hard for whatever reason. Then people run into problems. Covid has simply highlighted the extent of the issue. 

C.w_Wilson

Thrugelmir said:

C.w_Wilson said:

Thrugelmir said:

C.w_Wilson said:

 I feel like she is being punished by the finance company for something that she can’t control.

Alternatively you could take the view she has something she cannot afford. The arrears will simply mount and put pressure on future earnings. As the amount to repay every month increases. 

Normally people get upset and start venting when they've something to hide when it comes to financial matters. Showing the finance house the bank statements to prove financial difficulty should be a straightforward task. 

She can definitely afford it. She has had the car for 4 years and never missed a payment. The difficulty arises when you are told you can no longer work. All she has received from the government since March £3k, bearing in mind we have a mortgage to pay etc. I challenge anyone to go from March until January with next to no income without feeling the pinch.

Having an emergency savings pot has always been a core element of managing ones own finances. Up to people themselves how they choose to spend their money. Culture these days is want it now.  When times get hard for whatever reason. Then people run into problems. Covid has simply highlighted the extent of the issue. 

Your being slightly unfair. You’ve already assumed that she can’t afford the car, and your now assuming we “want it now” and don’t have a savings pot. We did have a savings pot. A rather substantial one in my opinion (£3k). In case you missed what I said, we have a mortgage to pay. I have a car, she has business insurance l for her car, obviously her car to pay. The post goes on. We have exhausted our savings trying to keep abreast of our bills, it’s nothing to do with living outside our means as you seem to be suggesting. It is literally that her income has went to zero. 

C.w_Wilson

Grumpy_chap said:

Is the grant from the Government SEISS, or CJRS?

The grant was from government, can’t remember what the name of it was, but it was 80% of her average earnings over 3 months that she got.

Grumpy_chap

Is she self-employed or Ltd Co?

C.w_Wilson

Grumpy_chap said:

Is she self-employed or Ltd Co?

She is self employed 

Grumpy_chap

If she is self-employed, the first SEISS grant was for 80% of 3 months.

There was a second SEISS grant.  She may have missed this.  If she did not claim it, I understand it is now passed.

The third SEISS grant is also 80% of 3 months.  It requires an impact in the period Nov-Dec-Jan and that the profits have been substantially impacted.  Given she is a sole-trader mobile hairdresser, it is obvious that the criteria will be met.  If she is eligible to claim this, then she needs to act quickly as the close date is at the end of this month (29th I think).  Based on what you have said, that will be £3k again and I am sure very welcome.