FCA CONFIRMED: Taxi drivers and motorists can take further 3-month vehicle repayment break if needed


Taxi drivers and other motorists still struggling with the financial effects of COVID-19 can now take a further 3-month payment break according to new FCA guidance.


The FCA (Financial Conduct Authority) confirmed the extra support measures now available for users of motor finance, buy-now pay-later, rent-to-own, pawnbroking and high-cost short-term credit products, who continue to face payment difficulties due to coronavirus.

As part of the new guidance released by the FCA, taxi drivers still facing financial difficulties can extend their payment break by a further 3 months until 31 October.


The ban on repossessions will also continue until 31 October. This applies to motor finance and rent-to-own customers still facing temporary payment difficulties as a result of coronavirus and who need their vehicles or goods.


Christopher Woolard, Interim Chief Executive at the FCA, said: “Our measures will ensure that people who are still facing temporary payment difficulties because of this pandemic, continue to have access to the help they need. However, if you can afford to start making repayments, you should.”

The full list of measures include:

  • If customers can afford to return to regular repayment, or make partial payments, it is in their best interest to do so.

  • Firms should contact customers coming to the end of a first payment freeze to find out if they can resume payments – and if so, agree a plan on how the missed payments could be repaid.

  • For customers still facing temporary payment difficulties as a result of coronavirus:

  • Firms will provide them with support by freezing or reducing payments to a level they can afford, on their motor finance, buy-now pay-later (BNPL) or rent-to-own (RTO) agreements for a further 3 months.

  • For BNPL customers, where a loan is within the promotional period, this will mean offering customers an additional extension to that period.

  • For pawnbroking agreements, where a loan is within the redemption period (irrespective of when the redemption period is due to end) this will mean firms offering a further extension to the redemption period. If the redemption period has already ended, this will mean agreeing not to sell the item during the payment deferral period.

  • Customers that have not yet had a payment freeze or requested an extension of an existing payment freeze can request this up until 31 October 2020.

  • High-cost short-term credit (HCSTC) customers can only apply for a payment freeze under this guidance once up to 31 October 2020 in respect of each HCSTC agreement. For those customers who have had a payment freeze and are still experiencing payment difficulties, firms will provide a range of support – including formal forbearance – in accordance with the FCA Handbook.

  • The ban on repossessions will continue until 31 October 2020 – this applies to motor finance and RTO customers still facing temporary payment difficulties as a result of coronavirus and who need their vehicles or goods.

  • Where a customer needs further temporary support to bridge the crisis, any payment freezes or partial payment freezes offered under this guidance should not have a negative impact on credit files. However, consumers should remember that credit files aren’t the only source of information which lenders can use to assess creditworthiness.

The FCA also added that when implementing the new guidance, firms should be particularly aware of the needs of their vulnerable customers and should consider how they engage with them. Firms should also help customers understand the types of debt help and money guidance that are available and encourage them to access the resources that can help them.


The new guidance comes into force today (17 July).

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