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#2241080 - 08/14/20 06:58 PM "Affected" by pandemic credit reporting
Compliance Poster Offline
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Joined: Sep 2001
Posts: 440
Below is from the CARES Act on not reporting delinquencies during an accommodation triggered by a consumer affected by the coronavirus disease pandemic. What does “affected” mean, other than by contracting Covid-19? For instance, can “affected” mean or goes as far as a borrower losing one’s job or due to a business closure because of the pandemic?

Also, we granted an across-the-board waiver of a month’s payment for our borrowers due to the pandemic. Does that constitute an “accommodation” to all borrowers during that month although individually borrowers did not request an accommodation?

Thanks

The term ‘accommodation’ includes an agreement to defer 1 or more payments, make a partial payment, forbear any delinquent amounts, modify a loan or contract, or any other assistance or relief granted to a consumer who is affected by the coronavirus disease 2019 (COVID–19) pandemic during the covered period.

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#2241304 - 08/19/20 09:01 PM Re: "Affected" by pandemic credit reporting Compliance Poster
ComplyCycle Offline
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ComplyCycle
Joined: Dec 2014
Posts: 454
I am not sure if you'll find a definitive black and white answer, but in my opinion "affected" should be broadly interpreted. I'd consider illness, job loss, and income loss as elements to consider when determining if COVID-19 has "affected" a consumer. The CARES Act is intended to assist consumers, so it doesn't make sense to narrowly interpret the contents.

I'd also consider an across the board waiver as an accommodation since you granted relief to a consumer. Nothing in the "accommodation" definition indicates that the consumer must have requested it.

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