Many banks and other companies are helping those who can’t pay due to pandemic to delay or defer payments. The new stimulus bill, which will soon be signed into law, provides some protection for consumers from getting negatives on their credit report due to such a late payment. (sec. 4021)
The bill requires banks and companies to report all bills as ‘current’ in the event that the consumer reached an agreement with the company on a deferred or partial payment. For example, if a credit card company agrees to allow you to pay nothing for a full statement, they can not legally report it as a negative to the credit reporting agencies.
The law remains for the longer of the following two: 1) 120 days from when it gets signed into law, and 2) 120 days after the coronavirus pandemic is officially over. The measure falls short of a bill which some lawmakers introduced last week which would have put a 4 months hold on any negative credit reporting marks.
Payment delays on federal student loans are also sanctioned by the massive stimulus bill, and thus should not result in any sort of ding on your credit either.
This is pretty common sense stuff which probably would have happened anyway. People can feel more comfortable requesting the kind of assistance they need, knowing that their credit report is protected if you keep up your end of the bargain.
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- Lawmakers Overhaul PPP Loan Forgiveness Program For Small Businesses
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