I have received a Notice of Sum in Arrears from you even though I have agreed a payment plan or payment deferral due to COVID-19. What should I do?

If you have already arranged a Payment Plan or Payment Deferral with us and since received a ‘Notice of Sum in Arrears’, please don’t worry. As is stated on the correspondence sent to you regarding your payment plan or payment deferral, these are regulatory notices which we are obliged to send. We are required by law to send these to you for information purposes to keep you up to date with the current status of your agreement.

If you have received a Notice of Sum in Arrears no further action is required if you have a Payment Plan or Payment Deferral in place and you are adhering to these arrangements.

Will you allow me to defer my payment if I am having difficulty with making my payments?

Yes, you can now defer your payments for up to 3 months if you are having temporary difficulty as a result of Coronavirus. If at the end of the initial deferral you remain in temporary difficulty and are unable to resume your monthly payments you can then request an additional payment deferral of up to 3 more months. If you are able to resume your monthly payments, it will be in your interests to do so rather than apply for a further deferral.

During a Payment Deferral customers will not be required to make payments for one, two or three months and the length of their finance agreement (known as ‘term’) will be extended by the same period, up to three months. As you will take longer to pay back the amount borrowed, there will be additional costs to pay.

For more information on Payment Deferrals and to apply please click here.

If you are experiencing financial difficulties or are concerned about the financial impacts of COVID-19, the following not-for-profit organisations also provide free, confidential and impartial debt advice and support:

Citizens Advice – www.adviceguide.org.uk

National Debtline – www.nationaldebtline.co.uk

Money Advice Service – www.moneyadviceservice.org.uk

FCA Dealing with financial difficulties during the Coronavirus pandemic - www.fca.org.uk/consumers/dealing-financial-difficulties-coronavirus

Will my credit file be impacted as a result of the COVID-19 situation?

While in more ‘usual’ times, BMW Financial Services has an obligation to record arrears with credit reference agencies, in the current extraordinary circumstances where your current financial difficulty is solely as a result of COVID-19, we will not record any adverse information on your credit file as a result of a payment deferral.

However, we and other lenders may take into account other information resulting from a deferral when making future lending decisions, including, for example, information provided by applicants or bank account information. Therefore a deferral may have some impact on future lending decisions about you.

Please be aware that we will report any future arrears in the usual way, so it is important that you are sure you can afford the increased payments following the deferment.

If you do experience further financial difficulties at this time you should call us on 0370 505 0150.

What happens if my balloon payment is due to come out?

At the end of your finance agreement you have a number of options available if you do not want to pay the final balloon payment.

If you would like to keep your car you can spread the cost of the final payment by arranging a refinance. Your Retailer can arrange this for you or alternative call us directly on 0370 5050 131.

If you need a shorter term solution you could extend your current agreement for up to three months. To discuss this option call our Customer Services team on 0370 5050 150 Option 2.

If you no longer need your car you also have the option of returning it at the end of your finance agreement. Click here for more information on this process.

Please note if you have been granted a payment deferral, your balloon date will have been changed in line with the extension of your agreement. For further information on Payment Deferrals, please click here.

I've not yet signed my finance agreement but I am concerned about my ability to pay as a result of Covid-19.

For any customers who have not yet signed a finance agreement, but have concerns about their ability to make their payments for a vehicle as a result of COVID-19, we would advise you to discuss this with your Retailer prior to signing any finance agreement.

If you are still uncertain after this discussion we would encourage you to consider postponing your decision until matters become clearer.

I’ve signed my finance agreement. How does this impact my 14 day right to withdrawal?

You have 14 days to withdraw from the agreement starting on the day after you signed the agreement. If you exercise your right to withdraw, you must repay the credit in full plus interest (accrued up to the date you repay) within 30 days. Details of how to withdraw and the daily amount of interest are set out on the front of your finance agreement. If you have signed a finance agreement but not yet taken delivery of the vehicle, you are able to cancel your agreement without charge.

What are your bank details?

Our bank details are as follows;
- Bank Name: BNP Paribas
- Payee: BMW Financial Services
- Sort Code: 40-63-84
- Account Number: 85913050
- Reference: Please include your Agreement number as a reference.

What details should I include when sending you funds via a bank transfer?

Please include your agreement number as your payment reference so that we can allocate the funds to your agreement.

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Information relating to Covid-19.

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