Icelandic news translated into English

November 11, 2008

Three thousand asked to change their car loans

Filed under: economy,families — newsfrettir @ 5:48 pm
Tags: , ,

Three thousand persons have asked to change their payments on their car loans from Lýsing since october. 16 thousand clients have 23 thousand car contracts from Lýsing. In two and a half days the sales representatives served 900 persons who asked for payment delays for November.

The clients of Lýsing are confused because of a request from the government the October 22 to finance companies They asked that they would allow to freeze loans in foreign currency without special payments around that. That they would not request a special insurance or payment for freezing loans. Then it would be possible to freeze loans uncommitted to the financial state of the clients. In an announcement from the Ministry of Trade said: “It is expected that other finance companies will have the same treatment.”

Lýsing is on the other hand asking for a 7000 ISK payment if the client asks for a change in their car loan payments. It asks for an agreement from the co-signer that the loan is prolonged. The condition to have the loans changed are that all the previous payments are up to date and paid for.

Sævar Bjarnason, manager of personnel division of Lýsing, says the company is as many others just trying to stay afloat in the economic crisis. “We are not a central ban. We do not have a government insured business as many of our competitors and we have to make sure we are able to pay our dues with our payments.”

He points out that it is not a condition that there is a co-signer on all loans, but he is a consulting agent in changes of loan agreements that are already at hand. Then the price for changing deals was 10 thousand, but it was decided to lower it to 7 thousand. “The amount is divided if the client has two cars.” He says it is very important that clients review their status at Lýsing. It is important that people do not delay their payments unless they need to.

Sævar says that since the company itself has to make their payments it has been decided to find a solution that fits both the clients and the company. “There is not a lot of money available today and that is why we have to make money for the demands. We are working with the clients as we are a service company that needs to do well.” The clients are offered to pay half the capital stock for three months. After that time it is planned that they pay full payments.

“But it is a while till that happens and hopefully the situation will be so that it is capable for people to make their payments with a decent order. The working environment of companies and homes as intolerable today.”

(News article by Gunnhildur Arna Gunnarsdóttir)
Original Article in Icelandic

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