FCA Has Just Asked the Finance Firms to Halt the Payments of Car Holders
FCA has asked the finance firms to freeze the payments of the car holders and to not repossess the cars from the people who are unable to pay their installments because of the money problems due to the ongoing health crisis. The authority advised the companies not to end the agreements made with the car-holders and stopped the firms to not take back the vehicles from the ones facing some temporary financial hardships.
Companies are bound to not alter the contracts
The proposal advised by FCA is already being put on a fast track with the response of the finance firms to be made public coming Monday. While taking into account the financial hardships faced by the individuals during the ongoing crisis, the regulations will soon be finalized by the authority.
It will come into force soon after that. It is being said by the authority that the firms will be bound to not alter the agreements and contracts for a similar reason. The finance companies will not recalculate the PCP balloon payments because the cars are already depreciated because of the crisis.
The authority further proposed that the companies will have to help the customers in finding the best solution possible if the car owners say that they want to keep the vehicle after the PCP agreement ends. They will also work with the customer if the borrower is not able to make the balloon payment because of the pandemic.
An alternative solution if payment isnâ€™t in their interest
These measures were taken to further target the companies that are working through similar schemes. The Chief Executive of the FCA spoke on the matter and said that they are continually noticing the struggle that car owners are facing due to the pandemic.
He said that the FCA is looking forward to intervening further and limit the financial companies from putting stress on the customers. The purpose of the FCA is to listen to the grievances of the people, and that is what they are doing.
While the people are looking forward to receiving some relief during these tricky times, the companies are also facing massive shortfalls. Woolard further said that if stop-payments didnâ€™t work for the customers, the company would have to look for an alternative solution. In both ways, customers are at an advantage.
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