Forbearance - withdrawal of agreement for motor finance

wellsconsumer

I took an arranged Covid payment holiday from Close Brothers Motor Finance. There was an agreement reached by phone but nothing was ever put in writing. They have now sent me a letter stating that they are withdrawing the forbearance arrangement  'as I have been unable to commit to a payment plan' and have informed me that the full amount is now due. They are adding charges daily and there are obviously implications to my credit file. This month, the first month of paying again in full, they took a direct debit - the full standard payment but no more. I am now extremely concerned because I took the payment holiday due to lack of income. It seems unreasonable and unfair, is is legal or permitted?

mattyprice4004

If the holiday is over, then they're going to resume payments - and interest etc will be added daily throughout the holiday as while payments are suspended, interest is not. 
It sounds reasonable and fair to me unless there's more than meets the eye - was a payment plan agreed in the telephone call or did they request you set one up afterwards? 

Brie

Should the whole amount have been paid by now, if you hadn't taken the payment holiday??  That might be why they say the full amount is due.  

Hopefully you are in a better place financially now so it might be a good idea to look at how you can clear this debt sooner rather than later.  If they say the money is due I would expect you would be allowed to make extra payments each month or pay a lump sum now to lower the balance and interest charges.

p3ncilsharpener

Brie said:

Should the whole amount have been paid by now, if you hadn't taken the payment holiday??  That might be why they say the full amount is due.  

Hopefully you are in a better place financially now so it might be a good idea to look at how you can clear this debt sooner rather than later.  If they say the money is due I would expect you would be allowed to make extra payments each month or pay a lump sum now to lower the balance and interest charges.

No, they're saying the full amount is due because the OP (as far as they're concerned) is now in breach of their agreement.  AKA they're in default.

OP needs to call them and arrange a repayment plan.  It appears they don't just want to resume repayments but want the OP contributing extra to pay off the arrears.