Credit reporting in disaster scenarios
Jenn Reid, Equifax’s VP of Automotive Marketing and Strategy, said in the NIADA’s May issue of Used Car Dealer magazine that the credit reporting industry strongly encourages lenders and creditors in working with customers to take full advantage of reporting guidance and report the accommodations given to consumers accurately to the credit reporting agencies.
- The CARES Act allows businesses with 500 or fewer employees to apply for a loan from the Paycheck Protection Program or Economic Disaster Loan program
- $349 billion in small business interruption loans for sick/medical leave, employee salaries, mortgage or rent payments, utilities and any other debt obligations
- Borrowers have opportunity for forgiveness equal to their payroll cost through June 30
- Payment of payroll taxes is delayed
- Forbearance and deferred payment scenarios have a nearly neutral impact on a consumer’s credit score. The same is true for natural disaster coding.
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