Helping our customers during coronavirus
We know that many of our customers have been impacted by coronavirus. This help page explains the support that we can provide to you. It may also answer some of the questions that you have at this time.
Free, independent support
If you’d like to speak to someone independent, below is a list of other organisations that give free debt advice and can help with whatever money worries you have.
If you don’t know where to start, the Money Navigator Tool on the Money Advice Service gives instant help based on what you tell it about your circumstances.
You can also get advice on how to deal with financial difficulties as a result of coronavirus on the FCA website.
Useful links and telephone numbers:
- 1. Jump to How to ask for a payment holiday
- 2. Jump to How a payment holiday works
- 3. Jump to How you will know that the payment holiday is in place
- 4. Jump to Why you pay more for a payment holiday
How to ask for a payment holiday
If you’ve had a payment holiday for 3 months or more and you cannot restart your payments, you may be able to extend your payment holiday to a maximum of 6 months.
Your payment holiday can be extended by one month at a time. This will include the Payment Holidays that you have taken so far. Any additional payment holidays must start straight after your current payment holiday and must finish by 31 July 2021.
If you don't ask us to extend your Payment Holiday again, we'll assume that you can start making your payments.
Before extending your payment holiday, you should think about whether you can start your payments again. When you take a payment holiday, you pay more overall as it takes longer for you to pay back the amount borrowed. The longer your payment holiday, the more you pay. You may also incur extra vehicle related costs if you keep the vehicle for longer.
If you’ve had a payment holiday for 6 months and you can't restart your payments, contact us on 0333 202 7968 to discuss your options.
Are your money worries longer term?
A payment holiday can help if you need to take a short break from making your payment. This may be due to a short-term loss of or reduction in your income or your household income. If your money worries are longer term, please call us on 0333 202 7968 so we can discuss if a payment holiday is right for you.
To give you the best support when you call us, please have details of your income and expenditure handy. This may include your wage slips, bills and bank statements. If your payment is due within 5 days, you won’t be able to have a payment holiday for this payment.
If you can't make the payment, you can stop it by speaking to your bank and asking them not to pay the Direct Debit. You'll then need to call us on 0333 202 7968 so that we can discuss your options with you. We may able to back date your payment holiday to cover your missed payment.
If you are more than two payments behind, you may not be able to have a payment holiday. Please call us on 0333 202 7968 so that we can discuss other ways that we can help.Back to top
How a payment holiday works
A payment holiday can help if you need to take a short break from making your payments due to a short-term change in your income. If you're worried the impact may be longer term, a payment holiday may not be right for you. Please call us on 0333 202 7968 to talk about other options that could help.
If you defer your payments by 3 months, this means that you won't make a car finance payment for 3 months. If you defer your payments by 6 months, you'll not make any payments for 6 months.
You'll pay more as you take longer to pay back the amount borrowed. We'll work out how much extra you'll need to pay and we will add this to your agreement.
We'll work out how much is due by using the interest rate shown in your agreement. The extra amount won't be more than £100 for each month that we defer your payments. This means if you take a 3 month payment holiday, the extra amount won't be more than £300. If you defer your payments by 6 months, the extra amount won't be more than £600.
You'll be asked to pay the extra amount the month after your final payment is due by making additional monthly payments. If the amount is more than your monthly payment, it will be split over a number of months. This means that you'll not pay more than your normal monthly payment each month.
You don't need to ask your bank to make any changes to your direct debit. We'll take care of this for you.
If your payment holiday has come to an end and you can't restart your payments, you can extend your Payment Holiday to up to 6 months. You'll need to extend your Payment Holiday one month at a time. This means that you only take a break from your payments for as long as you need.
A Payment Holiday won't show as missed payments on your credit file but lenders may take it into account when making future lending decisions. You should keep in mind that lenders may use other sources of information when they make a decision to lend to you in the future.Back to top
How you will know that the payment holiday is in place
We will defer your payments one month at a time. Each month you will receive a letter confirming your next payment date has been moved by one month. This letter will tell you how much extra you will pay as the result of deferring your payments by taking a payment holiday that month. You will need to add up the amount shown in each of the letters to work out the extra amount that you will pay overall.Back to top
Why you pay more for a payment holiday
We'll need to adjust the amount you pay as you'll take longer to pay back the amount you’ve borrowed.
You may have to pay other costs if you extend your Payment Holiday.
If you keep your vehicle for longer, you'll need to pay for your insurance and road tax for longer.
If you have a warranty or breakdown cover, it may not cover you for the extended time that you'll have the vehicle. You may also need to pay for an additional MOT or service.
The value of the vehicle will reduce over time. As you take longer to pay back the finance, the vehicle may be worth less than the outstanding balance.
If you have a PCP finance agreement, your maximum permitted mileage will stay the same. If you hand your vehicle back and you have exceeded the permitted mileage, you'll be charged for excess miles.Back to top
If you’ve reached the end of your payment holiday and can restart your payments
You'll restart your monthly payments and after you pay the last regular monthly payment, you'll pay the extra amount.
Your monthly payment will be for the same amount as before your payment holiday.
If you've been charged an extra amount for taking a payment holiday, you'll not pay this until after your last payment. If it is more than your monthly payment, it will be split over a number of months. This means that you'll not pay more than your normal monthly payment each month.
The payment date for your monthly payments will likely have changed as a result of taking a payment holiday. You would've received a letter from us telling you the new payment date. You can also check your payment date, just log into your online account and check the ‘My account’ screen.
If you’ve cancelled your Direct Debit, please reinstate it at least 8 working days before your next payment is due. To do this, you can sign in to your online account and select ‘Update bank details’. You’ll then need to enter your sort code and account number.
If it’s too late to reset your Direct Debit for when your payments restart, you can make a payment by debit card using the “Make a payment’ option in your online account.
If you're unsure if you've cancelled your Direct Debit, you can check if it is still active with your bank. You should be able to find this information on your bank’s online banking or mobile banking app. If not, you’ll need to call your bank.Back to top
If you need extra support to make your payments
A payment holiday means you can pause your usual payments for up to 3 months to help stop you falling behind. After that, you start paying the same amount each month as before your payment holiday.
If you’ve had a payment holiday for 3 months or more and you can’t restart your payments, you may be able to extend your payment holiday to up to 6 months.
Taking a payment holiday won’t directly affect your credit score, as it won’t show that you’ve missed payments during this time. But lenders take a wide range of information into account when making decisions on borrowing, and this includes details you may provide about how you’ve managed your account, such as taking a payment holiday.
If you’re not able to restart your full monthly payments, we may be able to increase the length of your agreement which will reduce how much you pay each month. This is called a Term Extension.
A Term Extension will cost you more in the long term as it will take you longer to pay back the amount borrowed.
If you ask us for a Term Extension we’ll need to do a credit file check and you’ll need to sign an agreement to confirm you’re happy with the changes.
If you’ve already taken a payment holiday before taking a Term Extension, you won’t need to pay any extra amounts added for taking a payment holiday.
Any payment holidays you’ve asked for but haven’t yet been taken will be cancelled. To keep your payment holiday, wait until they have completed before requesting a Term Extension.
As part of the application, you’ll be able to use a Term Extension calculator to work out the best option for you. You can also use the Budgeting Tool to work out how much you can afford to pay each month.
To apply for a Term Extension, you can sign in to your online account and select ‘Manage Payment Holiday’.
If your payment is due within the next 8 days, you should wait until after you have made your next monthly payment to apply for a Term Extension. If you can’t make your next payment, call us on 0333 202 7968 to see how we can help.
If the change to your income is short-term or you think things might change again soon, a long-term option like a term extension, might not be the best option for you right now. We’ve listed other available options below or you can talk to us about what options might be best for you.
If you don’t want to keep your vehicle, you can end your agreement early and hand it back to us. This is called Voluntary Termination and you may still have an amount to pay if you do this.
If you want to keep your vehicle, there are options such as giving you a period of breathing space to sort out your finances or a reduced payment plan. These options will impact your credit file, so make sure you talk to us about what this means for you.Back to top
If you've reached the end of your payment holiday and can't restart your payments.
If your income is still impacted by coronavirus and you can't restart your payments, we have options available to help. Use our online tool first to work out what you can afford to pay. You can then call us, on 0333 202 7968 so we can talk it through.
To ensure we can give you the best support when you call us, please get all details of your income and expenditure ready before you call. This may include wage slips, bills and bank statements.Back to top
If your income is still impacted by coronavirus and you can't restart your payments we have options available to help.
To ensure we can give you the best support when you call us, please get all details of your income and expenditure ready before you call. This may include wage slips, bills and bank statements.
- 1. Jump to I'm reaching the end of my Flex car finance (PCP) contract and need to check on next steps.
- 2. Jump to I want to exercise my right to terminate my agreement.
I'm reaching the end of my Flex car finance (PCP) contract and need to check on next steps.
Keep the vehicle
If you wish to keep the vehicle, you will need to pay the optional final payment. You can do this online or by calling us on 0344 202 7968 and selecting the 'make a payment' option.
Return the vehicle
If you wish to return the vehicle to us, we can arrange this for you. Due to Government guidance our collection process might take longer than usual. So get in touch as soon as you can.
If your end of contract date is more than 28 days away, you don't need to take any action at the moment. Please contact us when your end of contract payment date is within 28 days and we can help you with what to do next.
If your end of contract date is within 28 days, you should do the following:
- Email us at Mbox-PCPReturns@lbgassetfinance.co.uk to confirm that you wish to return the vehicle. You'll need to include your agreement number. We'll be back in touch as soon as we can to arrange collection.
- If you haven't already done so, please cancel your direct debit so that no further payments are made to us. Your agreement will be placed on hold until the vehicle is collected. You'll not be charged any late payment fees. We'll also ensure that there is no impact on your credit file.
- You must stop using the vehicle by your end of contract date.
- This is the due date for your optional final lump sum payment. You'll find this in the reminder letters that we sent you advising that your contract is coming to an end.
- You must keep your insurance and Road Tax in place until your vehicle is collected.
- You'll need to keep the vehicle safe and in your possession until we collect it. We do ask that you ensure the vehicle is maintained. Please top up oil and water levels when needed and start the engine and let it run for 15 minutes each week.
- You'll still have to pay any charges that may be due if you have exceeded the mileage allowance. You'll find your mileage allowance and excess mileage rate on your agreement. You'll also have to pay any charges that may be due for damage to the vehicle other than fair wear and tear. We'll contact you about any charges that may be due after the vehicle has been collected.
I want to exercise my right to terminate my agreement.
If you want to end your agreement and return the vehicle, please send an email to Collections.VTMailbox@lbgassetfinance.co.uk.
You'll need to include your agreement number and a telephone number so that we can call you back. We'll call you back as soon as we can to explain how this works. We are currently receiving a very high number of calls and emails so it may take us a few days to call you back.Back to top
Due to Government guidance our collection process might take longer than usual. So get in touch as soon as you can.
I'm not using my vehicle due to coronavirus and want to know how to maintain it.
It's best to make sure the vehicle is maintained in accordance with the manufacturer’s handbook. This includes topping up oil, water and tyre pressures regularly. Also, making sure MOT is in date.
Please read the AA’s advice on how to look after your vehicle while not using it regularly.
For diesel cars (from 2009) fitted with a Diesel Particulate Filter (DPF), please read the AA’s advice on how to maintain the performance of the DPF.Back to top
My vehicle is due for an MOT but I cannot get it to a garage
If your vehicle is registered in Northern Ireland (NI). From 20th July 2020 test centres started back up on a phased basis and with decreased capacity . This means if you have a certain type of vehicle, you may be able to book an MOT . If you can book an MOT, a Temporary Exemption Certificate (TEC) will no longer be issued . If you can’t book an MOT, the TEC will still be available . Please see the NI Government’s website for more information about vehicle testing.
In all other areas, MOTs were reintroduced from 1st August 2020. If the MOT was due before 1 August you will still receive a 6 month exemption from testing but you can get an MOT done before the end of the 6 month exemption if you want. All vehicles must continue to be properly maintained and kept in a roadworthy condition.
You can read more information on the Government’s website.
If your MOT was due before the 6 month exemptions started the MOT must still be arranged. You should check the circumstances for which you can drive your vehicle if the MOT expired prior to 30th March. All vehicles must be kept in a roadworthy condition and garages will remain open for essential repair work.
Department for Transport Website - Getting an MOT from 30th March 2020Back to top
You can use our online service to complete the actions below. You will need to login to your account using your date of birth, postcode and agreement number. You then need to click on the relevant button.