NILA members understand that we serve a section of society that has been particularly hard-hit by the economic consequences of public policy aimed at managing the COVID-19 pandemic.
Many of those we serve have lost their jobs or seen their incomes significantly reduced. We are playing our role in ensuring that our customers are able to minimize negative financial consequences and their effect on credit scores. As the nation slowly re-opens, it is our aim to ensure that all customers exit the pandemic in the best shape possible, limiting the likelihood of long-term consequences, particularly for those have worked diligently to build their credit with us.
NILA members are continuing to operate from branch offices in ways that minimize risks to health, in accordance with the Centers for Disease Control guidance and common sense. This has given customers a simple, familiar and reliable mechanism for accessing options to manage their finances and take advantage of lender expertise.
Some of the things that members are doing are listed below.
Loan Modifications
NILA members are working with customers to provide options for credit deferments, extensions, and other loan modifications, as well as certain late fee waivers. On top of this, NILA members are not pursuing new repossession actions or new recovery litigation for those customers who have suffered since the pandemic began. We hope that these steps will allow current borrowers to restart their financial lives having sustained only the minimal possible damage once the country re-opens for business.
Credit Insurance Benefits
Customers who chose to purchase optional credit unemployment insurance are now able to receive the benefits of that insurance. These insurance policies will make payments on loans of covered customers who lose their job due to the pandemic. NILA members are working closely with the insurance carriers to ensure that these benefits are paid promptly.
Credit Reporting
In order to avoid disrupting the process of financial mobility for customers working on building strong credit histories, NILA members’ voluntary loan modifications preserve the credit ratings of customers who are experiencing temporary hardship.
Information and Advice
NILA member offices are able to provide non-loan advice and direction for customers, distributing financial literacy materials (for example, the AFSA Education Foundation’s Money$kill program) so borrowers can make informed decisions on how to manage their broader financial affairs during the crisis. Branch offices are able to point borrowers to other forms of relief, such as the Internal Revenue Service’ website for those seeking information on Economic Impact Payments and the Consumer Financial Protection Bureau website for general information.
SOURCE: NILA
