2nd April 2020
The country is experiencing an unprecedented change to everyday life, with the ability to work being curtailed for millions. In a bid to ease financial hardship, the UK government has launched a number of emergency schemes, and has also dropped the interest base rate to a mere 0.1%
It is generally accepted that everyone is likely to feel the pinch over coming weeks and months. We are in it together.
Or are we?
What is distinctly unpalatable to many is profiteering from the crisis, and I am not talking about hand sanitizer and toilet rolls being sold with a mark up.
If you own a car and make monthly payments, it is probably your second largest outgoing after your mortgage. Typically if you have a car on a finance plan, interest rates can be anywhere from 0% to 10%, with the average being around 5.9%
AltNewsMedia has spoken to some of the finance companies behind the car dealerships, and uncovered the ugly truth that rather than pass on the Government interest rate drop, the self employed or people currently without an income who take a payment holiday will be charged additional interest. Worse still, this is at the old existing rate, and no assistance based on the Government measures is being passed on.
The tax payer bailed out the banks and finance houses in 2008, so profiteering now is particularly distasteful. It was not the intention of the Chancellor and Boris Johnson to drop interest rates only for the finance houses to make more profit. The intention was to benefit the public at large.
Jaguar Land Rover (via Black Horse Finance) have ‘generously’ capped monthly additional interest at £100! So a 3 month payment holiday through the crisis will cost you an extra £300 – the payments you skip still need paying of course as the term is merely extended. Your being charged for your misfortune, and it is good business for the lender, as they take advantage of the new low base rate.
The Government must act now to stop organisations taking advantage of the new interest rate and failing to pass it onto customers.