The strain COVID-19 has placed on the US economy is no longer news. However, what is more worrisome is how more people are suffering from this economic burden than others. The US Department of Labor has reported that more than one in 10 Americans have filed for unemployment in the last two weeks of March and the first week of April. This goes to show that a lot of people are unable to meet their financial needs or pay off their debts. One of the payments most people are having a hard time paying this period is the care loan payment. Thankfully, there is relief available to many people.
Provisions of Financial Conduct Authority (FCA): The FCA which is the regulatory body for over 58,000 financial service firms has put in place a regulation that mandates all financial service firms place a payment freeze for car payments for three months and at the end of the freeze, the firms are to accept the deferred payment via different means. The firms are also expected to not carry out any repossession of vehicles during this coronavirus period.
Special programs from lenders: Most financial institutions have followed the leadership of the FCA and adjusted their own payment policies. For instance, Fifth Third Bank now offers a deferral payment on car loans for up to 90 days. Ally Bank, on the other hand, offers a deferral payment of 120 days. For Key Bank, it’s a 90 day deferral payment with no report made to credit bureaus so it does not mess up your credit in future, for USSA it’s a 60 days deferral payment. It is advisable to contact your lender promptly to enjoy these benefits. However, the firm would insist on reviewing assets, credits scores and other similar factors before processing the deferrals or other benefits.
Relief from automakers: Automakers are now providing similar relief programs as financial firms. As a quick guide, here are a few automobile companies and the relief they currently offer during this pandemic:
Toyota: offers a 90-day deferral payment for all new and untitled vehicles but only available to their Tier 1-3 customers and not available in Pennsylvania.
BMW: BMW’s offer is also a 90-day deferral payment which applies for both its used and new vehicles but the payment terms however, defer. Used vehicles have a 60-month payment term while new vehicles enjoy a 72-month term and require elite-super elite Tier status to qualify. This offer excludes both Maine and Pennsylvania.
Mercedes: A 90-day deferred payment is available to only customers in credit Tiers A1-T2. The offer is valid from 20th April- 1st June, not available in Pennsylvania and doesn’t apply Mercedes’ ex-Courtesy Vehicles (CVP).
Honda: Offers interestingly, alongside a 90 day deferred payment, a 1,000 cash assistance for its loyal customers to enable purchase or lease of a new vehicle. But, this is subject to certain exceptions and regulations.
If you are like so many other Americans, you are struggling with car payments right now. If this applies to you, you need help right away. Do not let your financial problems get worse. The attorneys at Dsouza and Strachan Law Group have the skills and experience to guide you through these tumultuous financial waters. Contact Dsouza and Strachan today for a free consultation.