Payment Deferral FAQs

What happens when my Payment Deferral period ends?

At the end of your Payment Deferral period, your normal monthly repayments under your finance agreement will restart so, before that happens, you will need to choose how your Deferred Payment(s) will be made up. We have a range of options to assist you in making up with Deferred Payment(s) and the right one for you will depend on your personal circumstances.

Once you have considered all of these options you can confirm which one you would like to choose by using our digital platform, MoneyManager.


What do I do if I cannot make my repayments?

If you cannot afford to restart your normal monthly payments, please contact us at MoneyManager  or call us on 0333 200 0030 as soon as you can, to discuss your options.

Also, if you are worried about your debts, you can get free, impartial debt advice and information about managing your money from the Money Advice Service Money Navigator tool and the FCA’s webpage ‘Dealing with financial difficulties during the coronavirus pandemic

Can I have another Payment Deferral?

Payment Deferrals are only intended to provide short term emergency help for people facing an immediate financial crisis due to the Covid-19 pandemic. Whilst helpful in some cases, they are not something that should be used as a matter of routine and, for people who can afford their repayments, taking a Payment Deferral can actually make both their medium to long term financial situation and credit record worse, not better.  As the FCA (our regulator) has confirmed that means if you can afford your repayments it is in your best interests to start repaying, rather than delaying even more of your instalments.   

Payment Deferrals do not excuse you from having to pay the instalments you deferred nor do they extend the length of your agreement, they just delay when during your agreement you have to pay those instalments.  This means that, at the end of your Deferral period you still owe the same amount of money as you did before, it is just that you have less time to pay it back.   

For people who have been impacted by COVID-19 and who cannot make payments as a result, Payment Deferrals are one of the tools we have to try and help but please contact us at https://moneymanager.motonovofinance.com/  or call us on 0333 200 0030 as soon as you can, to see how we can help you.

Is my agreement in arrears as a result of taking a Payment Deferral?

The terms of your original agreement haven’t changed so your account will technically be in arrears until your Deferred Payments are made up.  However, the good news is that, as long as you keep to the terms of the option you choose we will not treat your account as being in arrears and will not notify your Deferred Payment(s) to credit reference agencies as arrears.

Please note that, if your account was in arrears before your Payment Deferral or if your account goes into arrears after the agreed Payment Deferral period, including if you fail to make your normal monthly payments when due or fail to make any payment required under the option you choose, that will be recorded on your credit file.

We also need to make you aware that while your Payment Deferral will not be reported to credit reference agencies as a deterioration in your credit position, when making credit decisions in the future lenders may take into account a range of information, which may include information you provide or information from your bank account that may relate to your Payment Deferral.

Why did you send me a “Notice of Sums in Arrears” letter?

As stated in the letter sent with the Notice, the Consumer Credit Act requires us to issue these Notices but please don’t worry, if you are maintaining your option and normal monthly payments you can disregard them.

If you miss any payments under your finance agreement, the option you choose or any other payments we have agreed, you will receive further correspondence from us, which you will need to act on.

What should I do if I cannot afford to restart my normal monthly payment?

If you are worried about whether or not you will be able to restart your monthly payments, please get in touch with us as soon as possible and we will do our best to help you.

You can contact us here MoneyManager or call us on 0333 200 0030.


Payment Deferral Options

Why are there extra payments?

We offered Payment Deferrals of up to 3 months to provide short-term support to customers who were financially impacted by COVID-19, and in line with FCA Guidance. The Deferred Payments were postponed, not cancelled so they still need to be made up.  There is  no cost to you, if your Deferred Payment(s) are made up before your first restarted normal monthly payment is due.  However, if you would like to spread making up the Deferred Payment(s) you can do that but there is an interest cost for doing so.

What options are available to me to make up my Deferred Payment(s)?

There are a range of options available. To find out more click here.

Will I be charged interest on my Payment Deferral arrangement?

We did not charge you for granting or arranging your Payment Deferral and we will not charge you any interest over the Deferral Period.

If you choose our Pay Now option you will not incur any additional costs or interest. Keep in mind that if you choose to make up your Deferred Payments through our Spread the Cost or Pay at the End, options interest, at a rate equivalent to the APR for your finance agreement, will be charged on your Deferred Payment(s), from the end of the Deferral Period until they are made up.  

What do I do if I cannot afford to make my Deferred Payment(s) immediately?

We have made a range of options available to support you in making up your Deferred Payment(s).  Please read through the full range of options, to see which one might fit your circumstances best. 

How can I calculate the cost of each Deferred Payment option?

Our Payment Deferral Interest Calculator is available to help our motor finance customers work out what each payment option could mean for your finances.

If you have a personal loan with us, please call us on 0333 200 0030 to discuss any interest charge calculations. 

Keep in mind that if you choose the Pay Now option you will not incur any additional costs and your account will immediately be back up to date.

Have the terms of my finance agreement changed?

No, all of the original terms of your finance agreement have remained the same.

We’re offering both Payment Deferral and the options above as concessions, to try and help you cope with the impact of COVID-19, and in line with FCA Guidance. They all involve temporarily suspending or varying some of our rights under your existing finance agreement but only on a temporary basis, as required to accommodate Payment Deferral, and so the actual terms of your agreement have not changed. 

If you do not keep to the terms of the option you have chosen it will terminate automatically and any remaining amount of Deferred Payment, together with interest due, will be immediately repayable.


Selecting your option for making up your Deferred Payment(s)

When do I need to tell you which option I have chosen?

You will need to choose how your Deferred Payment(s) will be made up and let us know your choice before your first restarted normal monthly payment is due.

Once you have considered all of these options you can let us know your choice by using our digital platform, MoneyManager 

I have decided which option I want, what do I do next?

To tell us which option you want to choose please visit our digital platform: MoneyManager

What happens if I don’t choose an option?

If you do not tell us which option you would like to take before your first restarted normal monthly payment, we will automatically put you into Pay at the End option.  Whilst this is the most expensive option it also gives you the most time to make up your Deferred Payment(s).

Can I change my mind about which option I want?

You cannot change your mind if you choose the Pay Now option.

If you select Spread the Cost or Pay at the End and then change your mind, please contact us.


Making Payments once you have chosen your option

How do I make payments, once I have chosen my option?

If you Pay Now, you can make a card payment to bring your account fully up-to-date at MoneyManager. If you select the Spread the Cost option or Pay at End option payments will be collected using your existing Direct Debit. So it’s important that your Direct Debit remains in place and you have enough money in your account to cover both your normal monthly payment and any additional amounts you have agreed to pay.

What if I have cancelled my Direct Debit?

If your Direct Debit is no longer active you can reinstate it quickly and easily at: MoneyManager.

Can I change the date of my monthly Direct Debit?

You can adjust the date of your monthly direct debit payment at MoneyManager.

Will my credit file be impacted by my Payment Deferral option?

If you restart your normal monthly repayments and all of the payments we have agreed under the Deferred Payments option you chose are made on time, your credit file will not be impacted.

But if you do fail to make the payments required under the option you selected or you miss any normal monthly payments, it will be recorded on your credit file and may harm your credit score.

We also need to make you aware that while your Payment Deferral will not be reported to credit reference agencies as a deterioration in your credit position, when making credit decisions in the future lenders may take into account a range of information, which may include information you provide or information from your bank account that may relate to your Payment Deferral.

What if I can’t keep up payment under the option I chose?

If your personal circumstances change and you are worried about whether or not you will be able to make either your monthly payments or any option payments, please get in touch with us as soon as possible and we will do our best to help you.

You can contact us here at MoneyManager or call us on 0333 200 0030.


Ending your finance agreement early

Can I repay my loan early if I have not made up my Deferred Payment (s)?

Choosing one of our Deferred Payment options does not affect your right to repay your loan early if you choose. Any outstanding Deferred Payment(s) and the interest due on early settlement will be added to your final payment.

Can I sell or part-exchange my vehicle if my Deferred Payment (s) are outstanding?

If you want to part-exchange your vehicle with Deferred Payment(s) and/or interest on them outstanding, you will either need to pay the full outstanding amount to us before the part-exchange or arrange for the outstanding amounts to be paid directly to us from the part-exchange proceeds.  As a result, you may have less to put towards the replacement vehicle than you would have done, if your finance agreement was fully up to date.

If you want to sell your vehicle you will firstly need to settle your finance agreement in full, including making up all Deferred Payment(s) and paying all interest due.

Your vehicle

When will I own my vehicle?

When we have received all of the payments due under your finance agreement, which includes your Deferred Payment(s) and any interest charged, ownership of your vehicle will be transferred to you.

Who is responsible for my vehicle?

You will still be responsible to MotoNovo Finance for your vehicle until we have received from you all payments due under your finance agreement, including Deferred Payments and any interest charged.

Until then you must continue to tax, MOT and insure your vehicle as set out in your finance agreement, even if the normal end date of your agreement has passed. You will also be liable to MotoNovo for any loss, damage or costs in connection with your vehicle until ownership of it transfers to you.

I have a PCP agreement - will this impact my GFV, mileage allowance or balloon payment?

No, your GFV, mileage allowance and balloon payment will remain the same as before.

Have the terms of my finance agreement changed?

No, all of the original terms of your finance agreement have remained the same.

In response to the unprecedented circumstances created by COVID-19 MotoNovo temporarily suspended or varied the enforcement of some of its rights under your finance agreement but only on a temporary basis and as required to accommodate Payment Deferral, they were  not a permanent change to your agreement   As a result, neither MotoNovo’s rights nor the rest of your agreement have permanently changed.

Whichever option you choose, further concessions to allow for those arrangements will be made automatically so you will not need to do anything apart from making your option choice and then keeping to the payments you agreed to.  Please note that any and all arrangements required in connection with your Deferred Payments will be by way of concessions and will not amount to a change to the terms of your finance agreement

 

If you cannot find the answer to your question here or you would like to discuss another matter with us please contact us.