IF YOUR small fleet includes cash for car drivers using their own vehicles on a personal lease – and you have had to furlough them – this might be useful advice from the Financial Conduct Authority (FCA).
It has confirmed that personal leasing customers who are experiencing financial difficulties during the COVID-19 outbreak can take a three month payment holiday.
The financial regulator said it expected funders to provide immediate support to customers facing payment difficulties as a result of the coronavirus outbreak.
The FCA said in its statement:
“It is intended to provide help to those who might be having temporary difficulty in making their finance or leasing payments due to a loss of or reduction in their income (or income of other members of their household) or to those who expect to experience such difficulties.”
The guidance also includes PCP and HP agreements.
The measures begin from Monday, 27 April 2020. Anybody with a personal lease who is affected can request a payment deferral at any point after the guidance comes into force for a period of three months.
James Fairclough, CEO of AA Cars, added this warning:
“It’s important to note that lenders will not make special arrangements automatically. The onus is on drivers to contact their lender before they run into difficulty. Call centres are understandably busy at present, but many providers are offering payment holiday request forms online.”