Martin Lewis reveals car finance support extensions will be ‘rubber stamped’ in weeks

Martin Lewis revealed the regulator is set to “rubber stamp” the extra help within the next couple of weeks. The changes will see car finance customer support up until 31 October which will help those suffering financial concerns. 

Any extension will mean companies will not be able to repossess cars for non-payment until after the new deadline. 

However Mr Lewis Revealed the help had not been legally extended yet so urged those who needed help to “apply soon”. 

The current deadline will see car finance help end on July 27 and motorists could be caught out if regulators make a U-turn on a decision to extend a scheme. 

Mr Lewis said: “With car finance, pawnbroking, buy-now-pay-later and rent to own, on Friday the regulator announced proposals to extend this help until 31 October. 

READ MORE: New car finance rule will reassure drivers

Consultation on the changes is due to end tonight after the regulator announced proposals to extend the scheme. 

The FCA’s proposals say firms should contact their customers at the end of the first payment freeze to find it whether they can resume payments. 

Plans should be put into place to agree how missed fees can be repaid while keeping support in place for those who need it. 

Customers still facing financial difficulty should be provided reduced patients at a level they can afford for a further three months. 

Another freeze on payments could also be considered if it is thought to be in the motorists best interests. 

However, the ban on repossessing cars until 31 October 2020 will be of great relief to many drivers who may have worried about losing their vehicles due to the coronavirus. 

Christopher Woolard, Interim Chief Executive at the FCA said it wa simpornat motorosts got the “assistance” they needed. 

He said it was in motorists “best interest” to consider resuming payments but reassured drivers help “will be there” for those that most need it. 

Mr Woolard said: “It is vital that people facing temporary payment difficulties because of the impact of coronavirus get the assistance they need. 

“For those who have already taken a payment freeze and can afford to start making payments, even partially, it is in their best interest to do so, but for those that need help it will be there.”

Speaking on the new changes, Adrian Dally, head of motor finance at the Finance and Leasing Association said the new changes recognised the current situations customers were in. 

He said many customers will now be able to resume full payments while partial payments had become an option for many as they slowly returned to work. 

The FCA first issued help for motorists back in April where they encouraged firms to issue payment holidays. 

These were introduced to ensure no drivers lost their vehicle due to the financial implications of the coronavirus. 

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