Car Finance Customers have been warned by debt charities over accepting car finance holidays from car finance lenders.
Last week, the industry regulator instructed lenders to offer payment holidays to customers who need them. However 5 weeks later and some customers are still waiting to be contacted as lenders are saying they are doing everything they can.
In 2019, consumers borrowed £38bn to finance cars. And there is a mixed reaction to people having payment holidays as it extends the debt period and also increases the monthly payments at the end of the period.
Debt charities warned families could “face real hardship” over any delays in agreeing coronavirus-related car finance payment holidays. Last month, the industry regulators had instructed lenders to offer payment holidays to customers who need them. In an article on the BBC, BBC Radio 5 Live has found that customers of some car finance providers still haven’t been granted breaks, despite asking for the last six weeks.