THE Financial Conduct Authority has confirmed a package of measures, outlined last week, to support consumer credit customers facing payment difficulties due to coronavirus.

Included in the temporary measures is a three-month payment freeze for motor finance customers who are having temporary difficulties meeting finance or leasing payments due to the pandemic.

Some finance providers have already started helping customers while the FCA measures also include:

• If customers are experiencing temporary payment difficulties due to coronavirus and need use of the vehicle, firms should not take steps to end the agreement or repossess the vehicle.
• Personal Contract Purchase (PCP) or Personal Contract Hire (PCH) agreements should not be altered in a way that is unfair. For example, recalculating PCP balloon payments based on a temporary depreciation of car prices caused by the coronavirus situation. The FCA expect firms to act fairly where terms are adjusted.
• Where a customer wishes to keep their vehicle at the end of their PCP agreement, but does not have the cash to cover the balloon payment due to coronavirus-related payment difficulties, firms should work with the customer to find an appropriate solution. Given the increased potential for disparity between the balloon payment and the value of the vehicle in the current climate, firms should ensure that solutions do not lead to unfair outcomes. For example, refinancing the balloon payment might not be appropriate in the circumstances.

• If customers are experiencing temporary payment difficulties due to coronavirus and need use of the vehicle, firms should not take steps to end the agreement or repossess the vehicle.

  Christopher Woolard, interim Chief Executive at the FCA, said: “We have worked at pace to introduce temporary financial relief tailored for a range of specific credit products.

  “Many firms are already working with their customers, but these measures ensure all consumers affected by the coronavirus emergency can apply for a temporary freeze on their payments.”