As of 31st March 2021, as per the guidance of the Financial Conduct Authority (FCA), you are no longer able to apply for a ‘Payment Deferral’ on your loan account with us. If you are having difficulty in paying your loan please contact us to discuss the ways we may be able to work together to agree a suitable repayment plan.
No. It is important to remember that a payment deferral is not a payment holiday.
You will have to make up for the missed payments at the end of the deferral period, and there are various options for you to do so, either by increasing your monthly payments over the remaining term of your loan or by making a lump sum payment.
A Payment Deferral may not be in your best interests but we will be able to explain and discuss what options are available, and the effect on future payments, etc on an individual basis. There are no fees charged for assessing and setting up a payment deferral.
If due to financial difficulties you are unable to resume payments at the end of the Payment Deferral period, we will work with you to resolve these difficulties in advance of payments being missed.
You are entitled at the end of the Payment Deferral period, or other arrangement where a payment deferral has not been deemed the best approach for you, to forbearance under our existing rules, as a result of circumstances relating to Coronavirus
It is important for you to understand a payment deferral is not a payment holiday nor is it a contractual right.
Payment deferrals mean you can request to have your monthly payments deferred for a period of time without being considered as being in arrears, and are designed to help you when you are experiencing, or can reasonably expect to experience temporary payment difficulties. For example: in this case, because of the Coronavirus situation if you have been made redundant or have suffered a reduction in income,
If you contact us and explain that you are experiencing, or can reasonably expect to experience, payment difficulties due to Coronavirus then as long as:
We may ask you whether you would like to consider requesting a Payment Deferral as a solution to your financial difficulties.
The easiest way is to call us on 01268 740755 and discuss your situation with one of our team or email us at email@example.com
We will respond to you as quickly as possible, but due to high levels of calls and staff having to work from home, it may take us a little longer than usual to answer your call or deal with your request. Please rest assured, we will respond as quickly as we can.
You can request a Payment Deferral at any time after 14th April on a month by month basis for up to 3 months. This means that a Payment Deferral period could extend past the point where the three-month window for requesting a Payment Deferral has expired. Once you have requested a payment deferral we will assess your situation with you to see if it is in your best interests. We will request that you provide documentation to us to help us review your account, these could include (but not limited to) Bank Statements, payslips, correspondence from your employer and or benefits agencies.
As part of that assessment, we will give you adequate information to enable you to understand the implications of a payment deferral, including the impact on future payments.
If we are able to grant your payment deferral request, this will initially last for up to a maximum of three months, but will be reviewed on a month by month basis, subject to what your circumstances dictate would be in your best interests.
At the end of the first month, if your circumstances have not improved and you request an extension then we can extend the payment deferral period for a further (second) month as a further concession. At the end of the second month we would again review the situation with you and if your circumstances have not improved and you request an extension then we can automatically extend the payment deferral period for a further (third) month as a further concession. (On each review we will require documentation to be provided to us).
Normally the maximum payment deferral will be for three months but in exceptional circumstances, if you request a further extension, we will consider agreeing to extend it further as a further concession.
On 26th March 2020, the Government also announced a schemethat will provide 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.
The government has announced a scheme that will pay employees’ wages under the Coronavirus Job Retention Scheme. This is known as being put “on Furlough” and may allow your employer to keep you on the payroll and will pay 80% of retained workers’ salaries up to £2,500 a month. If applicable, these payments will be backdated to 1st March 2020, the scheme may be extended if necessary.
HM Revenue & Customs (HMRC) 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.
We recommend that you do not cancel your direct debit without speaking to us first.
Cancelling your direct debit is not a Payment Deferral and could possibly be counted as a missed payment. This could show up on your credit file and may adversely impact your credit rating.
If a Payment Deferral is agreed and put in place by us, we will suspend your Direct Debit, so payments are not collected during any deferral period, please do not cancel your direct debit.
Interest will still continue to be charged during the payment deferral period, but your account will not be considered to be in arrears for any payment deferral agreed
At the end of the payment deferral, your ongoing monthly payments for the remaining term of your loan will increase to cover the total cost of the payments not made during any deferral period.
Alternatively, you may have agreed to, or wish to make a lump sum payment, at an agreed time, to cover the deferred payments in order to avoid an increase in your remaining monthly payments.
If you are still not able to make your full loan payments due to circumstances relating to Coronavirus, then we may be able to offer you further help, for example, a payment arrangement, if these are appropriate to your circumstances.
When you contact us, our friendly and experienced staff will discuss any concerns you have about your account and individual circumstances
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.
TFS Loans can put in place payment deferrals for borrowers who are behind on loan payments due to circumstances related to the Coronavirus.
Or we may help you with another option better suited to your individual circumstances and in your best interest.
If you are currently behind with your payments not due to the Coronavirus, TFS Loans would expect that you already have a payment plan in place and that you are maintaining this arrangement with us before considering a payment deferral.
But please always contact us to discuss your situation and we will do our best to help you find a solution that works for you.
It is very important, that you contact us as soon as possible if you are aware of any circumstances that may lead to you being in financial difficulty and behind with payments, ideally in good time before your next payment is due.
You may also have concerns regarding payments of the loan, for which you are Guarantor.
TFS Loans is committed to helping both borrowers and guarantors in financial difficulty during this difficult time. You should contact us if you are experiencing or reasonably expect to experience payment difficulties because of circumstances related to Coronavirus.
Loans will not be considered as being in arrears during any agreed Payment Deferral period and we will not contact you for any payments during this period but we will make you aware of the Payment Deferral as we will want to keep all guarantors informed of the status of the loan for which they are potentially liable.
We will review each account on a case-by-case basis, ensuring that any arrangements we put in place are tailored personally to the customer and in their best interests.
For our general contact information and email addresses, please visit our Contact Us page.
We have set out below information produced by the Government to help people affected by the COVID-19 situation:
If you’re unable to work either because you are sick, self-isolating, there is no work for you or you are required to take time off work and are employed or self-employed, there is some useful information The Money Advice Service has put together your rights and what you’re entitled to receive.
If you cannot get sick pay from your Employer, you could get Statutory Sick Pay (SSP) for every day you are in isolation as changes have been introduced 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 must self-isolate for at least 4 days to be eligible. 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.
If you receive Universal Credit, you’ normally need to meet specific requirements to remain eligible, which can include job searching or attending regular meetings. Due to the pandemic, however, all requirements for in-person meetings are suspended and you can complete these meetings over the phone instead.
The government has also confirmed that if you’re receiving any disability benefits, you’ll no longer need to attend face-to-face meetings for the next three months. Similarly, if you’re applying for these benefits, you won’t need to complete a face-to-face assessment.
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.
Loans are subject to status and affordability. *Consolidating debts may increase the term and the total amount payable.
Before entering into any credit agreement please make sure you can afford the monthly repayments, we recommend that you seek independent advice if you are unsure of any of the terms of our agreement. There may be other taxes or costs, not paid through us or charged by us, that you have to pay in connection with the agreement.
Late repayments can cause you serious money problems. For help go to www.moneyadviceservice.org.uk
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