Councils may consider waving missed payments and mortgage holders may be able to take a payment holiday if they have been affected by the recent floods, credit rating agency Experian has advised.
The agency has informed that councils and lenders may take missed payments on a case by case basis and their there should be some leeway available for those drastically affected by flooding.
James Jones, head of consumer affairs at Experian, said: “This is a terrible time for large swathes of the population and our thoughts go out to anyone who has had their home or business affected by flooding.
“But there is some solace to be had from banks, building societies and councils, who have come to the fore and promised their customers and residents that – if they are able to show they do not have access to their home or are financially squeezed – missed payments may not be chased.
“For example, councils will consider cancelling council tax payments on a case-by-case basis if residents have been unable to use local services, while banks and building societies have highlighted they may waive overdraft fees in some cases. Homeowners may also be able to request a payment holiday from their mortgage with the sum added to the end of their mortgage term.
“We advise individuals to contact their loan provider as soon as they can to explain any missed payments or the possibility that payments may be missed in future. This could result in these being removed from your credit history so they will not affect any future credit applications.
“If you believe a missed payment has been unfairly logged on your credit report, we can help to resolve any ‘data disputes’ with lenders by contacting them on your behalf. However, the final say does rest with the lender, so please do provide them as much information as possible on how the flooding has affected your ability to pay.”
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