COVID-19 - Payment Freeze
At Advantage, we appreciate that the finances of many of our customers are likely to be adversely affected by the COVID-19 situation. We therefore want to ensure that we provide as much help as we can regarding your financial commitment to us.
If you are a customer who has been affected in this way, we are willing to offer you a payment freeze of up to a maximum of 3 months. In order to fully understand how this works, please note carefully the following information before proceeding.
Please be advised that if your agreement has already been terminated due to non payment or any other breach of your contractual obligations, or if you have voluntarily terminated your agreement, then you will not be eligible for a payment break/freeze. Please contact us to discuss your account in these circumstances.
- How will a payment freeze work?
You will be able to take a break from making payments for up to a maximum of 3 months. During this time your outstanding balance will remain the same and the outstanding payments will be added to the end of your agreement e.g. a 48 month agreement will take 51 months to be repaid.
- Will I have to pay more?
No. We will not add any additional interest or charges by agreeing to this arrangement.
- I intend to settle my agreement in the near future. Will taking a payment freeze affect this?
- When we calculate your settlement figure, we work out any interest rebate based upon a statutory formula which reduces the rebate over time. This means that, during your payment freeze, although your overall outstanding balance will remain the same the amount required to settle the agreement may increase. It may therefore be cheaper to settle your agreement sooner without taking a payment freeze.
- Will my credit rating be affected?
No. We will not report payments not made as a result of an agreed payment freeze to credit reference agencies in a way that will negatively affect your credit rating.
- Do I need to cancel my direct debit?
No. Once a payment freeze has been agreed, we will automatically suspend payments for the period of the agreement. Your direct debit needs to remain in force in order for the payments to recommence at the end of the freeze.
- Can I end a payment freeze earlier and recommence my payments?
Yes. Just let us know and we will make the necessary arrangements.
- How long will it take to set up?
Once agreed, the changes will take effect immediately, however if your future payment is due within the next 5 days please speak to a member of our team for further advice. We will also write to you to confirm the details of the arrangement.
- I am worried about my longer-term financial situation and I am not sure if a payment freeze will help?
If you are in financial difficulty and need further help, our specialist teams can discuss your individual circumstances and help to find a solution. You can reach them on 01472 233 220, but please be aware our contact centre is very busy helping customers at the moment and there may be a delay in answering your call.
- Will I need to provide proof of my circumstances?
When requesting a payment freeze, we will ask you a few simple questions about your circumstances. In some cases, we may ask for some additional information, and we will explain how this can be provided.
- I've reached the end of my payment freeze and I am able to make my usual payments.
- We will contact you to advise when your payment freeze will end and provide the date and amount of your next payment. We will also let you know what steps you can take to make up any payments you may have missed, and what the payment freeze may mean for you. You can also do this now by clicking here.
- I've reached the end of my payment freeze and I am unable to make my payments.
- A We will contact you to advise when your payment freeze will end and provide the date and amount of your next payment. If you are one of those most affected by Coronavirus and are unable to return to your normal payments, then we have taken steps to provide you with extra support. For further details click here.
- What are the consequences of adding on the deferred payments to the end of my term?
There may be additional costs incurred by you if you extend the term such as the additional cost of any breakdown cover which you have and choose to continue in the extended term, insurance, warranties and the need to keep the vehicle in good condition and MOT'd.
The vehicle will depreciate during the extended term and may be worth less at the end of the Agreement. This may mean your liability is increased in the event that you subsequently default and the vehicle is repossessed and sold. It also means the vehicle will be worth less at the end of the term when you exercise your option to purchase. It is difficult to say how much the vehicle will depreciate by due to the fact that vehicle prices are likely to fluctuate during the Covid crisis.
IMPORTANT NOTICE: We do not recommend requesting a payment freeze unless it is necessary. Taking a payment freeze will increase the length of time taken to repay your agreement in full. Until it is fully repaid, you will continue to be bound by the terms of the agreement, and you must not sell or dispose of the vehicle until then.
IMPORTANT INFORMATION ABOUT ARREARS NOTICES: Entering into a payment freeze arrangement means that we will not expect you to make any payments that fall due within the duration of the arrangement until after the end of the agreement term, and in the meantime we will not regard you as being in arrears because of this. We need to make you aware that we are required by law to send you a Statutory Arrears Notice at any point where your agreement becomes two payments overdue, and then again at six-monthly intervals until the account is brought up to date. Unfortunately, the concessions that we have agreed under the payment freeze arrangement do not change our legal obligation to send these notices. You should therefore be aware of the likelihood of receiving such notices, and to ask you to understand that any sum listed as overdue will include any due payments that have been postponed under the payment freeze arrangement. We would therefore ask you to interpret the notice accordingly and, if there are no other arrears other than the frozen payment, to ignore the notice. We apologise in advance for any inconvenience or confusion that these notices may cause, but ask you to understand that we are bound by legislation in this respect. You can also be assured that your credit file will not be negatively affected by having entered into a payment freeze arrangement or by sending a statutory arrears notice in respect of frozen payments.
In order to request a payment freeze, please click the link below. You will be then be requested to provide some more information.
|I've not had a payment freeze before||I've had a payment freeze, and I am now able to resume payments||I've had a payment freeze and I need further help*|
|* If you require this option we may need to contact you and ask for more information to help provide the most appropriate forbearance options for you.|