COVID-19 Payment Freeze
What is a Vanquis credit card payment freeze & am I eligible?
If you’re experiencing temporary financial difficulty as a result of Coronavirus, you can ask for a payment freeze. If we give you this payment freeze, you won’t need to make the usual payments to your card for up to 3 months. If you've got a missed payment on your account, we'll count that as one of the three frozen payments.
Is a payment freeze the best option for me?
A payment freeze is only suitable if your financial situation has been temporarily affected as a result of coronavirus. It is not intended to be used if you are experiencing longer term financial difficulty or if this is unrelated to coronavirus.
To help you decide if this is the right option for you may wish to use the Money Navigator Tool or obtain free independent advice from the Money Advice Service. You can also find helpful information on the FCA ‘Dealing with financial difficulties during the coronavirus pandemic’.
What is the benefit of the Repayment Option Plan Account Freeze?
During an Account Freeze, all interest and Plan charges are frozen and you are not required to make your monthly payments during the freeze period (you are able to make payments towards your account if you’re able to). Your account will not show as in arrears on your external Credit Report. Please note that you cannot use your card during an Account Freeze.
How do I activate the Repayment Option Plan Account Freeze?
What is the difference between a Repayment Option Plan Account Freeze and Vanquis Payment Freeze?
During a Vanquis Payment Freeze interest is still applied at your standard interest rates and you can still use your credit card (depending on your available credit). Therefore, your credit card balance will increase during the Payment Freeze.
It is important that you leave enough available credit for any interest/fees to be applied when your statement is produced. (You can see your estimated interest for the following month on your statement). Click here for more information on the Vanquis Payment Freeze and alternative options.
How do I request a payment freeze?
The quickest and easiest way is to apply online Payment Freeze Form.
Alternatively you can:
- TEXT -Please text us your name and a brief summary of your circumstances to 07860 093000 and our support teams will be in contact shortly.
- CALL -0330 099 3000*
We will write to you at your address to confirm when you payment freeze has been set up.
Will I get charge interest during the payment freeze?
Yes, while on a payment freeze, interest is still charged, so your credit card balance will increase during the payment freeze.
Will a payment freeze impact my credit score?
The payment freeze won‘t be reported to credit reference agencies. However, lenders may take into account other information on your credit file when making future lending decisions including, for example, information provided on credit applications or bank account information.
Can I still use my card & make payment to my account during a payment freeze?
Yes, while on a payment freeze you’ll be able to use your card as long as you stay within your credit limit. The only exception is if your card is already blocked, then that block will remain in place.
To allow flexibility IF you can afford to, you can still make payments (of any amount) to reduce your credit card balance at any time during your payment freeze. These payments will help reduce the amount of interest you are charged.
Will I still receive my monthly statement?
Yes, we will continue to send you monthly statements. These may show a minimum payment amount, but you do not need to make this payment while the payment freeze is active.
I have an automatic method of payment set up, do I have to do anything?
If you have an automatic payment set up such as a Direct Debit, Continuous Payment Arrangement (CPA) or Standing Order here is what to do:
- Direct Debit:If you pay by Direct Debit and have a payment due within 4 working days of the payment freeze being set up, we are unable to stop the payment from taking. You will need to cancel the Direct Debit with your bank.
Otherwise, during the payment freeze your Direct Debit wont be taken, we'll take care of this.
- CPA:If you pay by CPA, we’ll cancel this for you, you don’t need to do anything.
- Standing Order:If you pay by Standing Order, you will need to contact your bank to cancel your payments.
Will my minimum payment increase after the payment freeze period?
After the payment freeze, you’ll need to make your monthly payments again in the normal way. Your minimum payment and the total amount you owe will go up. This is because interest is still charged throughout the payment freeze.
How will I know when the payment freeze period is coming to an end?
We’ll be in touch again before your payment freeze ends to remind you that you’ll need to make your normal contractual monthly payments again.
What happens if I still can’t make my payments after the payment freeze period has ended?
If your circumstances change during the payment freeze period and you’re worried about being able to start making at least your minimum monthly payment again, please contact us to see what options we have available to support you.
If you are still experiencing financial difficulty at the end of the payment freeze then there are other options we can look into to provide you further support. Vanquis can offer additional arrangements to help support the management of your account but this will be reflected on your credit file. Please contact us to see what options we have available to you.