Where you already have a payment deferral we will keep in contact with you from time to time during your deferral to make sure it is still the best solution for you. As your deferral comes to an end, we will contact you to explain the various options available, and the amount of additional interest we expect to accrue as a result of the deferred payments
It is important that we speak with you at this stage, as if we do not hear from you, your deferred payments will be moved to the end of your loan, which may result in you paying more interest on your loan, and paying for a longer period of time.
It is in your interests to resume your payments and repay the deferrals and any additional interest if you are able to. If you won’t be able to then we can help you find the right solution, which could be:
- Resume your contractual payments and add the deferred amounts to the end of your loan. If we agree this option, we recommend that you make over-payments where possible to minimise the length of time your loan is extended and so that you reduce the amount of additional interest you will pay in total.
- If you are unable to resume your contractual payments, we can work with you to agree a temporary payment plan to pay what you can afford towards your loan. If we do this, we will need to review your situation after 60 days.
- We may be able to extend your payment deferral. If we do this, your payment deferral can be extended up to maximum of 6 months, including the months you have already deferred. Any extended payment deferral must end by 31st July 2021.
- If none of the above are suitable, we can allow you some time to review your finances or seek free, independent debt advice or we can agree token payment arrangements with you for a period of time.
If we have agreed a payment deferral with you, your credit file will be held at the status it was prior to entering the initial deferral and will not show arrears resulting from the deferred payments.
Please be assured that whichever treatment your deferred payments follow, we will not report them on your credit file as arrears. We will clearly communicate with you which treatment your deferred payments will follow and our team will be happy to answer any questions you may have. We will also try to work with you after your deferrals to find solutions that will help you reduce the additional interest you need to pay.
Once your payment deferral has ended, if you miss further payments, they will be reported on your credit file.