Borrowers who fall behind on payments on cars and other household goods face the risk of repossession as the Financial Credit Authority (FCA) lifts the Pandemic related ban.
From the 31st January, credit providers such as car leasing firms and retailers with repayment schemes will be able to seize goods to recoup unpaid amounts.
The existing ban on home repossessions remains in place until the 1st April.
The FCA have said ‘This [repossession] should only be a last resort, and subject to complying with relevant government public health on social distance and shielding.’
The guidance also requires firms to take into account whether a customer is ‘vulnerable’ before a decision to repossess card, furniture or other household goods is made.
Mortgage borrowers and those on short-term credit agreements can still apply for a payment freeze until the 31st March 2021. The holiday can last up to six months, so if you haven’t already used up your full entitlement, now is the time to apply to your lender.