Coronavirus support for customers
Dear Mutual Customers
You may have seen in the press that due to the coronavirus the Financial Conduct Authority (FCA) have introduced new rules limiting default charges and late payment fees, they call this “temporary payment deferrals”.
Mutual has never charged default interest, late payment fees or any extra fees to our customers. We have never believed that it is fair to penalise people when they are genuinely unable to pay. The amount you owe can never go up.
How “temporary payment deferrals” work
We understand that coronavirus is a difficult and worrying time for you. Mutual will support you and help you manage your account. We will always treat you fairly.
Due to the potential impact of the coronavirus (COVID19) you can request a temporary payment deferral of up to 3 months if your finances have been affected. A payment deferral means a temporary stop or reduction in payments. Your agent will manage your request and agree how we will support you.
You can request a temporary payment deferment if;
- You have been impacted by coronavirus, and
- Your ability to repay has been temporarily affected – for example because of a reduction or loss in your income or household income
What is a temporary payment deferment?
A temporary payment deferment means you can ask to temporarily stop payments for up to 3 months depending on how your circumstances have been affected by coronavirus.
If your expected loss of income is for a shorter period than 3 months then the payment deferral can last for less than 3 months. For example; we can agree that you can defer 1 months’ worth of payments and then resume payments.
If your loss or reduction in income is partial then we can agree a reduced payment level with you to help you manage your account
If we have agreed to a payment deferral, we will review the situation with you regularly to see if your circumstances have changed.
Will Mutual agree to my request for a temporary payment deferral?
Yes, if your ability to repay has been impacted by coronavirus we will agree to a suitable payment deferment which meets your individual circumstances. Where necessary this can involve a payment deferral of up to 3 months.
How will it affect my credit record?
Due to the impact of coronavirus, we have frozen the arrears status as of the end of February 2020. This means if you were up to date at the end of February and you start to fall behind with payments, for whatever reason, you will not be reported in arrears on your credit file during the outbreak.
It is important you keep paying your Mutual accounts so:
- We can help you if you need anything
- Your credit record is protected when the coronavirus outbreak is over and we return to normal reporting of arrears
If you were already in arrears at the end of February any improvement in arrears statuses (i.e. catching up with arrears already on your account prior to February 2020) will be reported, so if you are able to catch up this will benefit you. Your arrears status will not get worse during the outbreak. Please be aware that how arrears will be reported at the end of the outbreak has not yet been decided.
Will I pay any extra interest or charges?
No, Mutual have never added interest, fees or any extra charges so you will not end up paying anything extra on the cost of your credit because of a payment deferral.
What do I need to do to request a temporary payment deferral?
If your ability to repay your account has been affected by coronavirus and you wish to request a temporary payment deferral then please;
- Contact your agent to discuss your circumstances, they may ask for reasonable proof of a change of circumstances
- Your agent is your main point of contact and is there to help you manage your account
- If you cannot get hold of your agent please ring your local branch
- Your agent will review your account with you regularly and stay in contact with you during any payment deferral period.