Wed, May 6, 2020

Mark Turner Discusses Car Finance Payment Freeze

Mark Turner, Managing Director in Duff & Phelps' Compliance and Regulatory Consulting practice, was featured in the Daily Mail, The Independent and Express discussing a  proposed payment freeze during the coronavirus pandemic for UK motorists in financial debt.

The Financial Conduct Authority (FCA) has introduced a temporary three-month payment freeze for motorists in car finance debt and encourages finance companies not to take steps to end car finance agreements or take any action to repossess the vehicle during this period. With UK drivers borrowing up to £48 billion in car finance, motorists will be supported to ease the burden of monthly repayments and still be permitted to drive their vehicles during this period. 

Mark suggests the payment freeze comes as a relief to motorists but warned that the decision could create further pressure businesses in these volatile times.

He added: “Appropriate government support might be needed to protect consumers and businesses, to prevent creating a knock-on effect for the auto industry.”

“While three-month payment holidays will be welcomed by many individuals in difficulty, there is a real risk that some customers who could afford to continue payments might see the saving as an opportunity to increase their spending, and find themselves in greater financial difficulty later down the line.”

“There is no one-size-fits-all approach and firms need to be mindful of granting payment freezes and need to take steps to assess each individual case on its own merits,” Mark added.

Read the full article in Daily Mail here.

Read the full article in Independent here.

Read the full article in Express here.

Marks comments have also been featured in the following publications: Yahoo! Finance, Graffio Tech, Click Lancashire, Amed Post, Daily Star Post, US Post.