A second Payment Deferral may be granted as follows:

  • Customers who currently have a Payment Deferral will be eligible to apply for a further Deferral, as long as the total length of the Payment Deferrals doesn’t exceed a maximum of 6 months.  
  • Customers who have not yet had any Payment Deferrals can apply for Deferrals of up to 3 months each, with a maximum of 6 months of Deferrals in total.
  • Customers who previously had a Payment Deferral of less than 6 months can also apply for a further Payment Deferral, as long as the total length of Deferrals doesn’t exceed 6 months.

Please note that Payment Deferrals must end on 31 July 2021. This means that, depending on when you apply, you may not receive Payment Deferrals which last the maximum 6-month period. Therefore, please consider this when deciding when to apply. 

Payment Deferrals mean that your monthly payments are delayed. They still have to be paid at some point during the life of your finance agreement and do not change the length of your finance agreement as they simply alter the time when the Deferred Payments have to be made. This means that, at the end of your Deferral period you will still owe the same amount of money as you did before you took out the Payment Deferral and may therefore have less time to pay it back.

As noted above, Payment Deferrals can be helpful in an emergency, but they should be not used unless absolutely necessary.  We agree with the FCA that people who can afford to continue their repayments should do so; Payment Deferrals could actually make such people’s financial situation worse, not better.