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Debt solutions

5th April 2023 · 2 minute read

Published by The Real Debt Guy

  • Token payment method
  • Token payments

token payment plan (TPP) stepchange

How long can I make Token Payments for?

To keep it short and sweet, there is no time limit.

If you’re thinking that can’t be right, let’s go back to what the Token Payments are all about by visiting the FCA Handbook….

Not in the mood to read? We got you covered. Listen instead by clicking YouTube link at the bottom of the page.

FCA Handbook Section 7.3.5 (3)

Section 7.3.5 (3) accepting token payments for a reasonable period of time in order to allow a customer to recover from an unexpected income shock, from a customer who demonstrates that meeting the customer existing debts would mean not being able to meet the customer priority debts or other essential living expenses (such as in relation to a mortgage, rent, council tax, food bills and utility bills).

Token Payments are based on what you can afford. It’s as simple as that. If you are still experiencing financial difficulty, and you’re paying what you can afford, continue to pay the token payments. There is no time limit on how long a person can experience financial difficulty.

"Just checking in"

However, as a reminder, creditors and debt collectors are advised to contact you about your payment plan at least once in a 12-month period, to see if it is still affordable. You may also find that they send you another income and expenditure to complete.

If your circumstances haven’t improved, all you need to do is let the creditor or debt collector know, and state that you want to stay in the current plan. There is no timeframe for your financial situation to improve, so there is no timeframe for your plan to change.

The information in this article is considered to be true and correct at the date of publication.

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