Updated Coronavirus support for customers

Help with your accounts during coronavirus

Please let us know if your circumstances have changed because of coronavirus and you think you may be unable to make your next payment. We will never charge extra added interest, late or missed payment fees.

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 temporary 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 temporary payment deferral, we will review the situation with you regularly to see if your circumstances have changed.

You can request a temporary payment deferral due to the impact of coronavirus up until 31/10/2020

Deferred payments will still need to be repaid at a later date.

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 a temporary payment deferral affect my credit record?

Due to the impact of coronavirus, we have frozen the arrears status on credit files as of the end of February 2020. This means that 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.

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 to satisfy us that you are eligible for help
• 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.

What happens when I come to the end of my temporary payment deferral period?

Your agent will get in contact with you to discuss your financial circumstances. You can also contact your agent or your local branch if you are worried about what will happen.

• If you can return to full payments then it is in your best interests to do so
• If you continue to need help then we will provide you with help

If you are still facing temporary payment difficulties as a result of coronavirus at the end of your first payment deferral period, we will continue to provide support to you by reducing payments to a level you can afford for up to a further 3 months.

If you need further help there will be no negative impact on your credit file because of this. Please remember that credit files aren’t the only source of information that lenders can use to assess creditworthiness. Once coronavirus support ends, subsequent payment performance will be reported as normal.

Because Mutual do not charge added interest, fees or any other charges there will be no extra cost to you as a result of further support.

What happens to the payments I missed under payment deferral support?

You still need to make any missed or partial payments that were due while you were under payment deferral support. You can repay the missed payments by:

• Paying extra each week to catchup the missed or partial payments, or
• Returning to full payments at your contracted amount and repaying the missed amounts by lengthening the term of your agreement.

Because no interest is added, you will not pay more by using either of these options.

Where can I receive further help and money guidance?

You can receive help and money guidance from the Money Advice Service: https://www.moneyadviceservice.org.uk/en/tools/money-navigator-tool

You can find free and impartial debt advice help from the FCA’s information page: https://www.fca.org.uk/consumers/dealing-financial-difficulties-coronavirus

Please let us know if you need printed information on where to find help.