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 in relation to any payments covered by a Payment Plan or Payment Deferral providing you are adhering to these arrangements. You will need to take action in relation to any other arrears shown on a Notice of Sums in Arrears.

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

For BMW Financial Services customers experiencing temporary financial difficulties as a result of COVID-19, we have been able to provide support – known as a Payment Deferral – via an online process.

Following the latest guidance published by the Financial Conduct Authority (FCA) in November 2020, applications for an initial or additional Payment Deferral can now be made until 31 March 2021. Customers with a Payment Deferral covering payments beyond 31 March 2021 will be entitled after this date to apply to extend their deferral providing these deferrals cover consecutive payments and subject to the maximum of 6 months in total. Also, a Payment Deferral must not cover any payments after 31 July 2021.

The maximum length of deferred payments remains six months in total.

If you have resumed monthly repayments after an initial Payment Deferral and experience temporary financial difficulties again due to COVID-19, you can apply for a further deferral of up to three months (subject to a maximum of six months’ deferred payments overall when taking into account previous deferred payments).

Any application should be made at least five working days before your next monthly payment becomes due.

For more information on Payment Deferrals, please click here.

Free and impartial debt advice and money guidance is available at not-for-profit debt advice bodies. Please see:

The Money Advice Service’s Navigator Tool and Debt Advice Locator Tool, and
The FCA information page ‘Dealing with financial difficulties during the coronavirus pandemic’.

If you are experiencing payment difficulties we strongly recommend that you access the help that you feel best suits your circumstances.

You can get guidance or not-for-profit debt advice through both digital and telephone services and, subject to local and national pandemic restrictions, face to face. See www.moneyadviceservice.org.uk for details.

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

While in more ‘usual’ times, BMW/BMW Motorrad/MINI 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 Payment 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 deferral.

For further information on Payment Deferrals, please click here.

If you are experiencing ongoing financial difficulties at this time you should call us on 0370 505 0150 to discuss the options available to you.

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 1.

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: HSBC Bank PLC
- Payee: BMW Financial Services
- Sort Code: 40-41-70
- Account Number: 60001953
- 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.

What does the updated FCA guidance on Repossessions (published 27 January 2021) mean for customers?

In line with Financial Conduct Authority (FCA) Guidance on Repossessions issued on 27 January 2021, BMW Financial Services continues to engage with our customers to ensure that any repossession activity is only undertaken as a last resort.

Any Repossession activity will be completed in accordance with all relevant Government Public Health guidelines, including with regards to social distancing and shielding.

For further information on the latest published FCA Guidance on Repossessions please visit: https://www.fca.org.uk/publications/finalised-guidance/finalised-guidance-consumer-credit-and-coronavirus-updated-tailored-support-guidance-firms

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