Frequently Asked Questions (FAQs)
These FAQs should assist you in making a choice in either availing of a Bank of Ireland Finance (BIF) COVID-19 Payment Break for the first time or in guiding you through the options available to you if you are coming to the end of an existing COVID-19 Payment Break.
- 1. Who can apply for a Bank of Ireland Finance (BIF) COVID-19 Payment Break?
Business customers who have a Business Hire Purchase, Business Lease (incl. Contract Hire), or Insurance Premium Finance (IPF) Credit Agreement and are experiencing temporary impacts as a result of COVID-19 can apply for an extension to their existing 3 month COVID-19 Payment Break on their Credit Agreement using the instructions found under Question 2.
Personal Customers who have a Consumer Hire Purchase or a Personal Contract Plan (PCP) Credit Agreement who are experiencing temporary impacts as a result of COVID-19 can apply for an extension to their existing 3 month COVID-19 Payment Break on their Credit Agreement using the instructions found under Question 2.
Please note that the closing date for applying for your first COVID-19 Payment Break has now passed as of 30th September 2020.
- 2. How do I apply for a COVID-19 Payment Break for the first time?
You can no longer apply for for an initial COVID-19 Payment Break on your credit agreement with Bank of Ireland Finance.
The closing date for applying for your first COVID-19 Payment Break was 30th September 2020.
- 3. Since level 5 restrictions have been applied across the country for 6 weeks from 21 October, are the banks reintroducing COVID-19 payment breaks?
Banks, including Bank of Ireland, are following the industry guidance in relation to providing assistance to customers who may be experiencing difficulty with their repayments due to the additional measures introduced by the Irish Government to contain the spread of COVID-19. If you feel you may have difficulty with your repayments we encourage you to contact us as soon as possible and we will explore options to help you manage your repayments depending on your circumstances.
Should you require additional support, please contact our Customer Service Team on 1890 66 44 66 so we can discuss your requirements.
- 4. I am a Business or Personal Customer coming to the end of my first Payment Break. How do I apply for an additional COVID-19 Payment Break on my Credit Agreement?
For customers coming to the end of their initial COVID-19 Payment Break, the options available will be detailed in your ‘Options Email’ which we send out towards the end of your initial Payment Break. Please review this document carefully as it sets out important information as well as detailing how you can apply for each option.
Personal Customers can apply for an additional Payment Break by clicking on this link and filling in the online form.
Business Customers can apply for an additional Payment Break by clicking on this link and filling in the online form.
Important Information: It is important to remember that a COVID-19 Payment Break may not be suitable for you. Such a Payment Break will only be suitable for you if the impacts on your income or your business are temporary only and if you meet our criteria which are set out in Question 9.
If you feel as though you may not be in a position to return to making payments on your credit agreement at the end of the Payment Break period, you should contact us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday).
By taking a COVID-19 Payment Break, it will mean that the total cost of credit on your credit agreement will be higher than it would have been if you had not taken a Payment Break.
- 5. What are the options available to me at the end of my first Payment Break?
At the end of your first COVID-19 Payment Break we will write to you to provide you with 5 options as outlined below.
Full details on the options will be detailed in your ‘Options Email’ and are also available on our website.
Personal Customers can apply for a Payment Break by clicking on this link and filling in the online form.
Business Customers can apply for a Payment Break by clicking on this link and filling in the online form.
Please review this information carefully as it sets out important information as well as detailing how you can apply for each option.
Option 1: You do not need to extend the existing COVID-19 payment break and wish to recommence your credit agreement payments as outlined in your recent ‘Provision of Payment Break’ letter.
Option 2: You continue to experience a temporary reduction in your income and you want to apply for an additional 3 month COVID-19 Payment Break and extend the revised term by 3 months. (Please note that this option is not available for Contract Hire or Personal Contract Plan (PCP) customers).
Option 3: You continue to experience a temporary reduction in your income and you want to apply for an additional 3 month COVID-19 Payment Break but want to keep the term (duration) the same as agreed on your original credit agreement.
Option 4: You do not need to extend the existing COVID-19 Payment Break and want to recommence your credit agreement payments in line with the term of your original credit agreement. (Please note that this option is not relevant for Contract Hire customers).
Option 5: You are concerned that you may experience longer term financial pressure and you would like to explore additional supports to help you to pay your credit agreement.
If you have any questions on any of the options available to you, please call us on please contact us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday).
- 6. If I took one COVID-19 payment break and returned to making repayments for a time, can I still apply for the second COVID-19 payment break now?
Under guidance from the European Banking Authority and the Central Bank of Ireland, customers who availed of a COVID-19 payment break had the option to extend their payment break for an additional 3 months should they need it. However, the option of another COVID-19 payment break is no longer available.
If you experience difficulty with your repayments due to the additional measures introduced by the Irish Government to contain the spread of COVID-19 we encourage you to contact us and we will explore options to help you manage your repayments depending on your circumstances.
Should you require additional support, please complete the form below and one of our customer service agents will be in touch with you and we will explore options to help you manage your repayments depending on your circumstances.
If you are a Personal customer, click here.
If you are a Business customer, click here.
- 7. What are the options available to me at the end of my additional Payment Break?
At the end of your additional COVID-19 Payment Break we will send you another ‘Options Email’ which will provide you with 2 options as outlined below.
Option 1 – Return to making payments on you Credit Agreement: You do not need any further assistance and you want to recommence your Credit Agreement payments as outlined in the ‘Modification Letter’ that we sent to you recently.
Option 2 – Further financial support is required: You are concerned that you may experience longer term financial pressure and you would like to explore additional supports to help you to repay your Credit Agreement.
Full details of the options will be detailed in this second ‘Options Email’ and are also available on our website. It is very important that you read this information carefully and consider which option best suits your circumstances. If you feel that you may have difficulty in resuming making payments to your Credit Agreement at the end of your extended Payment Break you should contact us on the details below as soon as you can. You should also consider getting independent financial or legal advice if you are not clear on which option suits you best.
If you are a Personal customer who requires further financial support for Hire Purchase or PCP credit agreements click on this link. If you are a Business customer who requires further financial support for Lease, Business Hire Purchase, Contract Hire and IPF Loans click on this link.
If you have any questions on the options available to you, please contact us on 1890 66 44 66 (our lines open 9am to 5pm Monday to Friday).
- 8. If I availed of 2 COVID-19 payment breaks (6 months total) can I apply for another 3 months (9 months total)?
While we are aware that some customers may be experiencing additional financial difficulty due to the new restrictions introduced by the Government on 21 October, a further extension to the COVID-19 payment break is not available.
However, should you require additional support due to the new COVID-19 restrictions, please complete the form below and one of our customer service agents will be in touch and we will explore options to help you manage your repayments depending on your circumstances.
If you are a Personal customer, click here.
If you are a Business customer, click here.
- 9. Am I eligible for a COVID-19 Payment Break for my Credit Agreement?
The Payment Break is available to Personal and Business customers with a credit agreement with Bank of Ireland Finance (BIF) who have experienced temporary impacts as a result of COVID-19 and meet the following criteria:
- This is a precautionary request or reflects a temporary reduction in my income which has occurred as a result of the current health crisis and I am not in financial difficulty and/ or was not concerned about my ability to meet future payments
- I am not in a forbearance arrangement with the Bank or, if I am, I have met all terms and conditions for a minimum of 12 months
- Prior to 1st March 2020, I was not in arrears, and I am not currently in arrears for 2 months or more on any finance agreement or any other BOI business or personal finance.
- Your credit agreement must have been drawn down prior to the 16th March 2020 in order to avail of the 3 month Payment Break
This criteria set out above applies to both Personal and Business customers who wish to apply for their first Payment Break or those coming to the end of their initial Payment Break who wish to apply for an additional Payment Break.
If you don’t meet the criteria set out above we may still be able to help you – please contact us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday)
- 10. Will a COVID-19 Payment Break affect my Credit Record?
- Under the Credit Reporting Act 2013, we are required to provide personal and credit information for credit applications and credit agreements of €500 and above to the Central Credit Register (“CCR”).
- A Payment Break will not reflect as a “payment past due” on your Credit record.
- You can insert a statement of 200 words or less relating to any information relating to your credit agreement on the CCR. Further information is available at www.centralcreditregister.ie.
- 11. What happens to my payments during my first or second COVID-19 Payment Break?
Once the Payment Break has been put in place, the payments on your credit agreement will be stopped until the end of the Payment Break and you will not be required to make payments to your credit agreement during the break period. Payments to the credit agreement will recommence on your normal payment date once the break period has ended. This date and the amount of the payments will be clearly outlined in your ‘Provision of Payment Break’ letter in the case of your first Payment Break and your ‘Modification’ letter in the case of your second Payment Break.
It is important that there are adequate funds in your paying account on the date on which payments will re-commence.
If you feel as though you may not be in a position to return to making payments on your credit agreement at the end of the Payment Break period, you should contact us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday).
- 12. Can I make payments to my Credit Agreement during the period of my first or second payment break?
During the Payment Break period, you are not required to make any payments to your credit agreement. However, if you feel that you can make out of course or lump sum payments to your credit agreement during the Payment Break period you should. By doing so, it will mean that you will not pay as much interest on your credit agreement as you would if you did not make any payments at all.
Important Information: If you wish to make an out of course or lump sum payment during the payment break period, please contact us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday).
- 13. Will I pay more as a result of taking my first COVID-19 Payment Break?
Yes, by taking your first COVID-19 Payment Break, you will pay more than if you had not taken a Payment Break at all. It is important to remember that interest will still be applied to your credit agreement during the Payment Break period. As a result, the amount you need to repay will increase by the amount of additional interest that is applied to cover the period of the Payment Break. These changes will be clearly set out for you in your ‘Provision of Payment Break’ letter. Please also see illustrative examples set out in Question 24.
By making out of course or lump sum payments to the credit agreement during the Payment Break period, it will mean that you will not pay as much interest as you would if you did not make any payments at all.
Important Information: If you wish to make out of course or lump sum payments during the payment break period, please contact us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday).
- 14. Will I pay more as a result of taking my second COVID-19 Payment Break?
Yes, by taking an additional COVID-19 Payment Break, you will pay more than if you had not taken a Payment Break at all. It is important to remember that interest will still be applied to your credit agreement during the Payment Break period. As a result, the amount you need to repay will increase by the amount of additional interest that is applied to cover the period of the Payment Break. These changes will be clearly set out for you in the ‘Modification’ letter we send you once your Payment Break is put in place. Please also see illustrative examples set out in Question 24.
However, by making out of course or lump sum payments to the credit agreement during the Payment Break period, it will mean that you will not pay as much interest as you would if you did not make any payments at all.
Important Information: If you wish to make out of course or lump sum payments during the payment break period, please contact us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday).
- 15. What do I need to consider before taking a Payment Break?
Some points to consider when applying for your first Payment Break or if you are coming to end of the first Payment Break and wish to apply for an additional Payment Break.
- The balance outstanding on your credit agreement will be higher at the end of the Payment Break period than it was at the start of the Payment Break. We have included some examples below to illustrate the impact of taking a Payment Break on your credit agreement. Please see illustrative examples in Question 24.
- As a result of taking a Payment Break, you will pay more interest on your credit agreement than you would if you did not take a Payment Break
- You can make out of course or lump sum payments during the Payment Break period and this will result in a lower cost of credit to you than if you did not make any payments at all to the credit agreement during the Payment Break period.
- If you are not confident that you will be in a position to make payments at the end of the Payment Break period, a Payment Break is likely not a suitable option for you. You can speak to us about additional supports by calling us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday).
- At the end of your first Payment Break, you can choose to extend the term by the Payment Break period or you can choose to repay within the original term by making increased monthly payments to your credit agreement. Please see illustrative examples in Question 24.
- Please note a term extension is not available for Personal Contract Plan (PCP) or Contract Hire products. If you have any doubts about taking a Payment Break, we strongly recommend you get independent legal and/or financial advice
- 16. Will the interest rate change as a result of applying for my first COVID-19 Payment Break?
No. The interest rate will remain as the same fixed interest rate applied at the start of your credit agreement.
However you will pay additional interest. Please see illustrative examples in Question 24.
- 17. Will the interest rate change as a result of applying for an additional COVID-19 Payment Break?
No. The interest rate will remain as the same fixed interest rate applied at the start of your Credit Agreement.
However you will pay additional interest.
Depending on the option you choose the cost of credit will differ. There are no additional charges if you wish to apply for an additional Payment Break apart from the additional interest that continues to apply during the term of the Payment Break.
You will find further information on each of these options within your ‘Options Email’ and examples set out in Question 24.
- 18. How long will it take to put my first Payment Break in place after I apply?
You can no longer apply for an initial COVID-19 Payment Break on your Personal or Business Credit Agreement with Bank of Ireland Finance.
The closing date for applying for your first COVID-19 Payment Break was 30th September 2020.
- 19. How long will it take to put my second Payment Break in place after I apply?
We understand how important this request is for you. Once we receive your request we will endeavour to put your additional Payment Break in place and issue you with a ‘Modification’ letter within 10 working days of your request.
- 20. Do I need to take any action when I receive my ‘Provision of Payment Break’ letter for my initial Payment Break?
All customers who applied for an initial Payment Break before 30th September will have been processed and will have received their Provision of Payment Break letter. Once you received this letter, you will need to let us know if you wish to accept the term of the Payment Break by return email.
The closing date for applying for your first COVID-19 Payment Break was 30th September 2020.
- 21. Do I need to take any action when I receive my ‘Modification letter’ on my additional Payment Break?
Once you have applied and we have completed the relevant checks, we will send you a ‘Modification’ letter confirming the details of your additional Payment Break. If you are not happy with what we have put in place, you have 14 days from the date of this letter to contact us at bif.credit@boi.com and we will reverse the Payment Break.
- 22. If I have more than one BIF Credit Agreement, will I need to apply for each Payment Break separately?
Yes. Please ensure that all relevant Credit Agreement Numbers or car/vehicle Registration Number (if you do not know your Credit Agreement Number) are included on your request. If you are unsure of your credit agreement details, please contact us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday).
- 23. What can I do if I am still unsure what to do about my Payment Break options?
If you are not sure of your options or have any questions please contact us on 1890 66 44 66 (lines open 9am to 5pm Monday to Friday).
- 24. How much does taking a COVID-19 Payment Break cost me?
This will depend on the amount remaining, term remaining and the interest rate applicable on your credit agreement and on which Payment Break Option you choose. We have provided you with some information below to show you how much additional interest could be applied to your credit agreement as a result of taking a Payment Break. The information below is for illustrative purposes only and will vary on the amount of interest that will be applied to your individual credit agreement as a result of taking a Payment Break:
Examples of cost of credit for Payment Breaks
Illustrative Example 1
Credit Agreement: Hire Purchase/ Lease Option 1 Option 2 Option 3 Option 4 24 Monthly Payments made Original Credit Agreement Initial 3 Month Payment Break with term Extension Additional Payment Break with term Extension Additional Payment Break within Original Term No additional Payment Break and return to original term Finance Amount €20,000 €20,000 €20,000 €20,000 €20,000 Original Term (Months) 60 60 60 60 60 Revised Term (Months) 60 63 66 60 60 Interest Rate 7.17% 7.17% 7.17% 7.17% 7.17% Monthly Payments €397.73 €404.90 €412.21 €486.17 €437.92 Interest amount payable under original credit agreement (a) €3,863.80 €3,863.80 €3,863.80 €3,863.80 €3,863.80 Total additional Interest payable (b) N/A €258.30 €521.21 €266.96 €133.16 Total Interest payable over amended agreement (c=a+b) €3,863.80 €4,122.10 €4,385.01 €4,130.76 €3,996.96 Important notice:
The above example illustrates that for a credit agreement of €20,000 with an original 60 month term and 24 monthly payments made.
Under Option 1 you would have to repay an additional €258.30 in interest as a direct result of taking an initial COVID-19 Payment Break and extending the term of your credit agreement.
Under Option 2, by extending the term of the credit agreement by an additional 3 months to allow for a total of 6 months Payment Break, the total additional interest you would pay over the two Payment Breaks would be €521.21.
Under Option 3, if you choose an additional Payment Break and choose to return your agreement back to its original term, the total additional interest you would pay over the two Payment Breaks would be €266.96.
Under Option 4, if you don’t require an additional Payment Break and choose to return your agreement back to its original term, the total additional interest you would pay would be €133.16.
Illustrative Example 2
Insurance Premium Finance (IPF) Option 1 Option 2 Option 3 Option 4 3 Monthly Payments made Original Credit Agreement Initial 3 Month Payment Break with term Extension Additional Payment Break with term Extension Additional Payment Break within Original Term No additional Payment Break and return to original term Finance Amount €20,000 €20,000 €20,000 €20,000 €20,000 Original Term (Months) 11 11 11 11 11 Revised Term (Months) 11 11 11 11 11 Interest Rate 7.8% 7.8% 7.8% 7.8% 7.8% Monthly Payments €1,890.00 €1,927.32 €1,965.11 €7,710.29 €3,054.01 Number of Monthly Payments remaining 8 8 8 2 5 Interest amount payable under original credit agreement (a) €790.00 €790.00 €790.00 €790.00 €790.00 Total additional Interest payable (b) N/A €298.54 €600.88 €300.58 €150.04 Total Interest payable over amended agreement (c=a+b) €790.00 €1,088.54 €1,390.88 €1,090.58 €940.04 Important notice:
The above example illustrates that for an Insurance Premium Finance (IPF) agreement of €20,000 with an 11 month term and 3 monthly payments made.
Under Option 1 you would have to repay an additional €298.54 in interest as a direct result of taking an initial COVID-19 Payment Break and extending the term of your IPF agreement.
Under Option 2, by extending the term of the credit agreement by an additional 3 months to allow for a total of 6 months Payment Break, the total additional interest you would pay over the two Payment Breaks would be €600.88.
Under Option 3, if you choose an additional Payment Break and choose to return your agreement back to its original term, the total additional interest you would pay over the two Payment Breaks would be €300.58.
Under Option 4, if you don’t require an additional Payment Break and choose to return your agreement back to its original term, the total additional interest you would pay would be €150.04.
Illustrative Example 3
Personal Contract Plan (PCP) Option 1 Option 3 Option 4 13 Monthly Payments made Original Credit Agreement Initial 3 Month Payment Break without Term Extension (repaid at the end of the agreement) Additional Payment Break without Term Extension No additional Payment Break and return to original term (by increasing remaining monthly repayments) Finance Amount €18,000 €18,000 €18,000 €18,000 Original Term (Months) 37 37 37 37 Interest Rate 5.6% 5.6% 5.6% 5.6% Monthly Payments €281.93 €281.93 €281.93 €326.53 Number of Monthly Payments remaining 23 20 17 20 Total Amount of the Payment Break N/A €936.91 (3 payments plus interest) Due in Month 37 €1,860.77 (6 payments plus interest) Due in Month 37 €936.91 (3 payments plus interest) Due in Month 37 Optional Final Payment/Guaranteed Minimum Future Value (GMFV) €10,303.80 €10,303.80 €10,303.80 €10,303.80 Interest amount payable under original credit agreement (a) €2,453.28 €2,453.28 €2,453.28 €2,453.28 Total additional Interest payable (b) N/A €91.12 €260.31 €46.28 Total Interest payable over amended agreement (c=a+b) €2,453.28 €2,544.40 €2,713.59 €2,499.56 Important notice:
The above example illustrates that for a PCP agreement of €18,000 with a 37 month term and 13 Monthly Payments made.
Under Option 1 you would have to repay an additional €91.12 in interest as a direct result of taking an initial COVID-19 Payment Break. The term of the PCP Agreement is not extended. This means that the payments that would have been paid during the Payment Break are then payable at the end of the agreement in addition to the Optional Final Payment as set out in the example above. You are not required to make the Optional Final Payment if you decide to hand back the car in accordance with the terms and conditions of your PCP Agreement but you will be required to pay the ‘Total Amount of the Payment Break’ as set out in the table above.
Under Option 3, if you choose an additional Payment Break and keeping your agreement within its original term, the total additional interest you would pay over the two Payment Breaks would be €260.31.
Under Option 4, if you don’t require an additional Payment Break and choose to increase your monthly payments to pay the ‘Total Amount of the Payment Break’ over the PCP remaining term instead of paying it at the time the Optional Final Payment is due, the total additional interest you would pay is €46.28.
Please note that the option to extend the term is generally not offered for a PCP agreement as the GMFV of the vehicle is agreed upfront, and to allow term extensions on such contracts would impact on the GMFV of the vehicle and would have a direct impact on your ability to hand back the vehicle to your dealer at the end of the original term. If you are not sure that the options illustrated for PCP are suitable for your contract, please do contact us on bif.credit@boi.com and we can discuss what else could be available for you.
Illustrative Example 4
Contract Hire Lease Option 1 Option 3 28 Monthly Payments made Original Credit Agreement Initial 3 Month Payment Break without Term Extension (repaid at the end of the agreement) Additional Payment Break without Term Extension Finance Amount €37,500 €37,500 €37,500 Term (Months) 60 60 60 Interest Rate 4% 4% 4% Monthly Payments €613.50 €929.21 €1,119.96 Number of Monthly Payments remaining 32 29 26 Interest amount payable under original credit agreement (a) €4,303.96 €4,303.96 €4,303.96 Total additional Interest payable (b) N/A €73.61 €220.85 Total Interest payable over amended agreement (c=a+b) €4,303.96 €4,404.07 €4,504.35 Important notice:
The above example illustrates that for a Contract Hire agreement of €37,500 with a 60 month term, and 28 Monthly Payments made Before COVID-19.
Under Option 1 you would have to repay an additional €73.61 in interest as a direct result of taking an initial COVID-19 Payment Break but the term of your Contract Hire agreement remains the same.
Under Option 3, if you choose an additional Payment Break and choose to return your agreement back to its original term, the total additional interest you would pay over the two Payment Breaks would be €220.85.
Please note that the option to extend the term is not available for a Contract Hire agreement as as the asset is returned at a specific age to the supplying dealer on a specific date.