Consumers who have fallen behind on vehicles payments could soon have their vehicles repossessed come the end of the month as the Financial Conduct Authority (FCA) ends the ban on repossessions.
At the start of the pandemic, motor finance lenders and the FCA agreed to delay repossessions as well as offering payment freezes in order to help with people on furlough and who have been made redundant.
Both lenders and the FCA agree that repossession should be an absolute last resort and that payment plans and other solutions would be looked at first.
“Firms will also be expected to consider the impact on customers who may be vulnerable, including because of the pandemic, when deciding whether repossession of goods or vehicles is appropriate,” the FCA added.
With this in mind and the pandemic not showing any signs of easing, where does leave consumer finance in 2021. The automotive finance market has always been strong in Q1, but how long is it going to take to bounce back from the effects of lockdown.
At The Vehicle Financer, we have lenders that specialise in people who have had issues with their credit in the past. The lenders we work with are still financing vehicle for self employed people and people who are on furlough or have returned back to work. Getting finance might be easier than you think. Applying to us wont damage your credit as our lenders only do a soft search. You can apply for finance directly by visiting our website.