Coronavirus support

 

Update

After 31st March 2021, you will not be able to apply for a new payment deferral due to financial difficulties caused by the Coronavirus. You are only able to apply for a further payment deferral if you are currently in an active payment deferral period, the total length of the combined payment deferrals does not exceed six months and the further payment deferral does not extend beyond 31st July 2021.

Repayment of Payment Deferral Amounts

At the end of a Payment Deferral period, you will have to make up for the missed payments and the additional interest that has accrued during the Payment Deferral period plus any interest that will accrue on these amounts until they are cleared. There are various options for you to do this. For example, by increasing your monthly payments or by making a lump sum payment. When you call we will be able to explain to you what options are available to you and what they will cost. If you are unable to resume payments at the end of the Payment Deferral period because of payment difficulties at that time, we will work with you to resolve these difficulties in advance of payments being missed.
If having been in:

  • a payment deferral; or
  • a different solution where a Payment Deferral has been deemed not to be in your best interests but your circumstances are affected by the Coronavirus we will waive any extra interest accrued during the relevant period if at the end of it you are entitled to further forbearance under our existing rules.

If at the end of the Payment Deferral period we cannot contact you and you subsequently miss a loan payment due then we will treat the account as being in arrears and act in accordance with our collections and recoveries policy.

Interest on your loan during the Payment Deferral Period

You will still be charged interest during the Payment Deferral period. However, when the Payment Deferral period is over, we will help you work out an affordable repayment plan to repay the interest accrued and the payments deferred during this period.

When the Payment Deferral ends

At the end of the payment deferral, you will hopefully resume making payments.
If you are still not able to make your full loan payments due to circumstances relating to Coronavirus, then we may offer you further help, for example, a payment arrangement, if these are appropriate to your circumstances.

Your credit file

As long as we have agreed to your Payment Deferral then we will not report to the credit reference agencies that any contractual payments have been missed. However, you should be aware that if you take out a Payment Deferral this may impact your ability to obtain credit in the short-medium term future.

Are you a Guarantor?

As a Guarantor, you may also have concerns regarding payments of the loan, for which you are Guarantor. UK Credit is committed to helping both borrowers and Guarantors in financial difficulty. You should contact us if you are experiencing or reasonably expect to experience payment difficulties because of circumstances related to Coronavirus.

As the loan will not be considered as being in arrears during the Payment Deferral period we will not pursue you, the Guarantor, for any payments during this period but we will make you aware of the Payment Deferral as we will want to keep you informed of the status of the loan for which you are potentially liable.

We will review each account on a case-by-case basis. We can then make sure any arrangements we put in place are tailored personally to you and are in your own best interests.

How can we help you?

From 1st April 2021, if you are struggling financially as a result of coronavirus, UK Credit will provide you with tailored support that will take into account your individual circumstances. UK Credit will review each account on an individual basis to ensure that those experiencing financial difficulties receive the appropriate support they need. Please call the team on 01603 369 250 or email us at myloan@ukcredit.co.uk if you require further assistance. In most cases in order to help you find the most appropriate solution to your financial difficulties UK Credit will need to complete a review of your account and complete an income and expenditure assessment. If you have already completed an income and expenditure assessment with another creditor, debt charity i.e. Stepchange, or through a financial advisor then please send this to us. Upon completing this review UK Credit can determine what forbearance is right for your circumstances.

You may benefit from talking to someone other than us although we will always do our best to help you. There are a number of sources of debt help and money guidance available that are free to use and impartial, provided by a number of not-for-profit debt advice bodies.

If you are experiencing short term difficulty you may feel you are able to deal with your own debts without the need for full debt advice. In which case we would recommend you:

  1. work out your own budget for which the above FCA link may be helpful
  2. ensure you pay essential expenses and priority debts before any discretionary expenses or non-priority debts. The Money Advice Service may be helpful for this
  3. contact all creditors (including us) to discuss your repayments and what is affordable.

Are you a Guarantor?

As a Guarantor, you may also have concerns regarding payments of the loan, for which you are Guarantor. UK Credit is committed to helping both borrowers and Guarantors in financial difficulty. You should contact us if you are experiencing or reasonably expect to experience payment difficulties because of circumstances related to Coronavirus.

Useful information

What we’re doing at UK Credit

We review each account on a case-by-case basis. This means we can help you put in place solutions that are tailored to you and are in your best interests.
If you need to contact us, you can find our details here.

Off work due to Coronavirus?

If you’re required to take time off work and are employed or self-employed, The Money Advice Service has put together some useful information covering your rights and what you’re entitled to receive.

Employed

The government announced on the 2nd November 2020 the extension of the Coronavirus Job Retention Scheme which will continue to pay employees’ wages. This will pay 80% of retained workers’ salaries up to £2,500 a month.

HM Revenue & Customs (HMRC) has published guidance confirming who is eligible to claim from the government’s Coronavirus Job Retention Scheme to cover wages for employees who have been furloughed due to Coronavirus, what amounts are available through the scheme, and how employers should make claims.

Self-employed

The government announced, on the 2nd November an extension to the scheme which provides support for self-employed individuals who have lost income as a result of the Coronavirus pandemic. Under the Self-employment Income Support Scheme, self-employed individuals will be able to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the next three months. The scheme may be extended if necessary.

Statutory Sick Pay

The government has introduced changes to Statutory Sick Pay (SSP) for anyone required to self-isolate or take time off. During the crisis, SSP will be paid from the first day of illness rather than the fourth day. You’ll also be able to claim SSP if you’re caring for anyone in your household that has been told to self-isolate.

SSP is £94.25 a week and can be paid for up to 28 weeks. To be eligible for SSP, you need to earn at least £118 a week. However, if you’re not eligible for SSP, you can instead claim Universal Credit or Employment and Support Allowance.

How is Coronavirus affecting benefits?

Information and advice can be found from Citizens Advice

Seek financial help as soon as possible

If you’re concerned that your debts are mounting up and you’re unable to repay them, we’d always suggest seeking independent help from a debt advice charity such as StepChange. They provide a free, impartial and confidential service and they have experience helping people in similar positions.