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Payment Holidays

Return to Coronavirus: Guidance and information

What are payment holidays?

If you’re on a payment holiday, you’ll have a maximum of 6-month break from payments. During this time, your minimum payment will be £0.

Applications have ended, but our support will continue as long as you need it

In line with guidelines from the Financial Conduct Authority, applications for an initial payment holiday closed on 31 March. You can still apply for an extension from this date, as long as you ask for it before your first payment is due, following the end of your first payment holiday.

Any extension will last either a maximum of 3 months or up until 31 July, which is the deadline for the payment holiday scheme to end.

Here’s an example to help:

You take a payment holiday, effective from 3 March, which should end on 2 June. Before it ends, you ask and get an extension. But instead of lasting 3 months, the extension ends on 31 July. Any statements issued up to then will show £0 as the minimum payment.

Get in touch if you’re eligible and need an extension, or if you still need support but don’t qualify for an extension. The number to call is 03444 812 812.

Interest is still charged and minimum payments will increase

We will keep charging interest during your payment holiday, which means your balance will go up.

So at the end of your payment holiday, your minimum payment will be higher than it is now.

If you use your card, your balance will increase further and as a result you could find keeping up with payments becomes more difficult. It will also take longer to pay off your balance if you only pay the minimum.

For a £500 balance, the following table shows the impact to a minimum payment at the end of the payment holiday.

Payment information 34.94% interest rate , and minimum payment at 1% of balance 34.94% Interest rate and minimum payment at 3% of balance
Current minimum payment £17.64 £27.64
Minimum payment during payment holiday £0.00 £0.00
Minimum payment when payment holiday ends £19.02 £29.79
Balance when payment holiday ends £538.90 £538.90
Estimated additional interest in year by taking payment holiday £13.10 £18.78

* Examples assume there’s no additional spending during the payment holiday.
* These examples are for illustrative purposes only and do not show exactly what will happen to your account.

For a £1,500 balance, the following table shows the impact to a minimum payment at the end of the payment holiday.

Payment information 34.94% interest rate and minimum payment at 1% of balance 34.94% interest rate and minimum payment at 3% of balance
Current minimum payment £52.93 £82.93
Minimum payment during payment holiday £0.00 £0.00
Minimum payment when payment holiday ends £57.05 £89.38
Balance when payment holiday ends £1,616.69 £1,616.69
Estimated additional interest in year by taking payment holiday £39.30 £56.34

* Examples assume there’s no additional spending during the payment holiday.
* These examples are for illustrative purposes only and do not show exactly what will happen to your account.

Do payment holidays affect your credit score?

We won’t tell the credit reference agencies if you take a payment holiday, but if you don’t make payments during your payment holiday, your account will show that it's stayed the same.

Other lenders could use this information when they decide to lend to you.

What happens when your payment holiday ends

Once it’s over, you’ll need to pick up where you left off. That means making at least your minimum payments again, as we’ll resume fees for missed payments. Check your statement for details of amounts and due dates.

If you didn’t make any payments during your payment holiday, your balance will be higher. Any PPI you had on your account will add to your balance too. PPI will show as a transaction on your statement.

Direct Debits

If you didn’t make any payments during the 3-month break, your balance will have increased. That means your minimum payment will have increased, so you’ll notice your Direct Debit is a higher amount.

Direct Debits that were automatically paused will automatically resume, but if you cancelled your Direct Debit, then you’ll need to set it up again. Use the app to set up or change a Direct Debit, or contact us.

Existing Payment Plans

If you were on a Payment Plan before applying for a payment holiday, your Payment Plan will resume. Unless we told you otherwise, we’ll be in touch via email or letter with the details.

Catching up with missed payments

Set up a Payment Plan to spread the cost of missed payments across several months.

To talk to us about setting up a Payment Plan, call 03444 812 812. Alternatively, you may be able to do this in the app.

Further advice

If you’ve ended your payment holiday but you’re still struggling with money, we can help.

Contact us to explore your options.