What is a payment holiday (also known as payment freeze)?
A payment holiday is a break from having to pay your monthly payments for up to three months.
Who can apply for a payment holiday?
You must be the agreement holder or the authorised third party recorded on our systems to apply. If you're not, you should ask the person who’s named on the agreement to complete this form.
A payment holiday is available if you were up to date on your agreement prior to coronavirus impacting your household financial situation.
A payment holiday is not intended for customers already in arrears before coronavirus impacted household income. We do have other options available to help if you were already in arrears for other reasons.
What will happen to interest?
It is important to remember that you'll still be charged interest during your payment holiday. If you are accepted for the payment holiday, the length of your loan will be extended so that you can make up the payments missed and the additional interest that will become payable as a result of not making payments during the payment holiday.
An explanation of how much additional interest will be payable and the change to your loan term will also be sent in writing via email or post.
You will need to confirm that you agree to the changes to your agreement before we can make these changes. Details of how to do this will be included in the explanation we will send to you.
Will this affect my credit rating?
No. It has been agreed by the Credit Reference Agencies that during the period of the payment holiday due to the Covid19 outbreak, reporting will be made using the same account status that was provided before the payment holiday started.
It is important to ensure your payments are still made until we confirm your application for a payment holiday has been successful.
When will my payment holiday begin?
Should your request be accepted, your payment holiday will begin from the date of your application. You don’t need to call us - we’ll be in touch once the payment holiday application has been accepted.
If you pay by Direct Debit, we’ll stop collecting your payments when the payment holiday begins. Please don’t cancel your Direct Debit as this needs to be in place for us to collect your normal payments when the payment holiday is over.
If you pay by another method, you’ll need to stop your payments and make sure they begin again when the payment holiday ends. If you have a standing order set up with your bank you would need to cancel this.
What if I need more help?
You can get advice from a number of charities and not-for-profit organisations, like the ones listed below: