Financial regulators the world over have all proposed newly thought up plans to set in motion the payment freezes sorely needed by customers struggling to make ends meet, let alone pay car financing, loans, and other buy-now-pay-later agreements due to the on-going COVID-19 pandemic.
If the said proposal is lawfully approved, companies will be duly required by the government to provide non-negotiable three-month payment freezes to all customers who formally request for one due to recent economic problems. However, loan interests will still continue despite the payment freeze to help finance and leasing payments get through the whole endeavor along with their customers.
Specifically on car loans, lenders are also not able to repossess a customers’ unpaid vehicles. These plans only take into account the people with rent-to-own, buy-now-pay-later or pawnbroking agreements as they’d rather use their money for food and necessities instead of being required to pay back their dues as consideration for coronavirus pandemic issues. Help will be given with the same three-month freeze and interest will accrue yet again. There is one other benefit attached to this proposal: other types of loans, specifically payday loans, will get a shorter term consideration of one-month interest-free payment freeze. Sounds great, right?
Information on World Finance brought to you by:
Stay updated with our latest news: