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Car finance and rent-to-own payment holidays extended until October

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Financial Conduct Authority (FCA) has confirmed extended support for borrowers struggling to make payments on car finance, buy-now-pay-later (BNPL) agreements and payday loans, due to the coronavirus pandemic.

The guidance comes into force on Friday, July 17 and also covers customers using rent-to-own (RTO) and pawnbroking businesses.

Firms will provide customers with support by freezing or reducing payments to a level they can afford, on their motor finance, BNPL or RTO agreements for a further three months.

Customers who have not yet had a payment freeze, or asked for an extension of an existing payment freeze, can request this up until October 31.

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