FAQs - Your questions about coronavirus

What is a payment holiday?

Sam Wooller,Customer Experience Communications Manager
Tuesday, 10 November 2020

From 31 March 2021, in line with FCA guidance, we are only able to offer payment holiday extensions. You may be eligible for a payment holiday extension from this date if you are currently in an active payment holiday with us. As with your initial payment holiday, we will review your personal situation to see if an extension is the best option for you.

A payment holiday is a deferral of your normal monthly payment(s) which we may be able to offer you if you’ve been financially impacted by the ongoing pandemic. In line with regulatory guidance, you were able to apply for an initial payment holiday of up to 3 months before 31 March 2021. From the 1 April 2021 you might be able to extend your payment holiday for up to a further 3 months if you need additional support. The total payment holiday period we can give a customer is a maximum of 6 months. No Payment Holiday can be extended beyond 31 July 2021.

A payment holiday does not mean the payments are cancelled, it just means they will be collected at the end of your agreement instead. We therefore ask you to seriously consider the length of time you request a payment holiday for.

Payment holiday extensions will be given to customers who find themselves in continued exceptional circumstances caused by coronavirus, as a payment holiday is a temporary measure to help those who need it most.

Because a payment holiday is only a ‘temporary concession’ to your original agreement, the deferred payments will technically be considered as arrears.

Although the payments will be classed as arrears, we won’t expect you to pay the deferred payment holiday amount until you reach the end of your agreement. However, due to existing legislation, we will need to issue you with a Notice of Sums in Arrears.

When you receive a Notice of Sums in Arrears because of a payment holiday, you will see we’ve added a note to this letter explaining that you do not need to pay these specific arrears immediately.

If you would like to request a payment holiday extension on your current payment holiday then please fill out the form on the page here.