Deferred Covid-19 Payments May Report as Late

[CreditInspired]

Great article Brian_Earl_Spilner. Thanks for sharing. 

[Brian_Earl_Spilner]

---

@Nomad3 wrote:

I thought they would tag it as "no data" for the deferment?

---

Who really knows how it will be reported? Having worked at chase auto, I know that deferment plans already existed, so they shouldn't have any issues. But, if a lender does not normally offer deferments, we don't know what will happen. Especially with something of this magnitude.

[tcbofade]

...and every lender may report differently.

I've got a local CU that will allow you to skip your December loan payment if you've made the previous eleven payments on time... it's wrapped around to the end of the loan, interest still applies, and they still report as paid that month.

[ChargedUp]

The article essentially shows that all the reporting burden is on any of the lenders that are offering deferred payments. If there are any lates reported, it's going to leave themselves red-faced once their names start coming out into the news and the general public, along with hoards of CRA disputes to deal with. I would assume these lenders are simply going to report an on time payment, or simply not report at all during the deferment period. While what we're experiencing is unprecedented, I would hope that their IT is at least competent enough to figure this out before causing damage to the credit profiles of otherwise good customers.  (Seeing some of their websites, I know... this may be a tall order, but let's hope!)

[Adkins]

---

@tcbofade wrote:

...and every lender may report differently.

I've got a local CU that will allow you to skip your December loan payment if you've made the previous eleven payments on time... it's wrapped around to the end of the loan, interest still applies, and they still report as paid that month.

---

+1

My credit union does this every year, and sometimes during the year, if you've continued to make on time payments. 

[iced]

---

@Anonymous wrote:

Gonna be lots of "I wouldn't have taken it if I knew this would happen" misery going around. 7 years is a long time to deal with the repercussions of taking assistance you don't need. 

---

Which leads to the question: why would anyone take assistance they don't need? People know deferrals and forebearances don't stop the interest, so it seems pointless to pay more for something if you don't need to.

[Anonymous]

---

@iced wrote:

---

@Anonymous wrote:

Gonna be lots of "I wouldn't have taken it if I knew this would happen" misery going around. 7 years is a long time to deal with the repercussions of taking assistance you don't need. 

---

Which leads to the question: why would anyone take assistance they don't need? People know deferrals and forebearances don't stop the interest, so it seems pointless to pay more for something if you don't need to.

---

Adding to your comment is my distrust of financials. As has been reported in this and other threads where questions exist on what get's reported to the credit bureaus it may pay to be very careful!

[Anonymous]

---

@iced wrote:

---

@Anonymous wrote:

Gonna be lots of "I wouldn't have taken it if I knew this would happen" misery going around. 7 years is a long time to deal with the repercussions of taking assistance you don't need. 

---

Which leads to the question: why would anyone take assistance they don't need? People know deferrals and forebearances don't stop the interest, so it seems pointless to pay more for something if you don't need to.

---

People are freaking out and trying to hold on to all the cash that they can in case something happens that inhibits their ability to pay later. I get the freak out, my roommate just told me literally while I was typing this that she's probably going to get fired because of a mistake she made on paperwork while in a psych med transition last month, I just hope the people who are taking advantage of all the assistance are prepared for the potential consequences. 

[iced]

---

@Anonymous wrote:

---

@iced wrote:

---

@Anonymous wrote:

Gonna be lots of "I wouldn't have taken it if I knew this would happen" misery going around. 7 years is a long time to deal with the repercussions of taking assistance you don't need. 

---

Which leads to the question: why would anyone take assistance they don't need? People know deferrals and forebearances don't stop the interest, so it seems pointless to pay more for something if you don't need to.

---

People are freaking out and trying to hold on to all the cash that they can in case something happens that inhibits their ability to pay later. I get the freak out, my roommate just told me literally while I was typing this that she's probably going to get fired because of a mistake she made on paperwork while in a psych med transition last month, I just hope the people who are taking advantage of all the assistance are prepared for the potential consequences. 

---

I can understand that some people are experiencing anxiety as a psychological response to events happening around them, but I guess I don't understand why some of those people allow that anxiety to interfere and modify their decision making processes. That's a question that's OT for this thread though, so I'll go read up on that elsewhere.

[Brian_Earl_Spilner]

---

@iced wrote:

---

@Anonymous wrote:

Gonna be lots of "I wouldn't have taken it if I knew this would happen" misery going around. 7 years is a long time to deal with the repercussions of taking assistance you don't need. 

---

Which leads to the question: why would anyone take assistance they don't need? People know deferrals and forebearances don't stop the interest, so it seems pointless to pay more for something if you don't need to.

---

Well, in my case, chase is deferring and not charging fees or interest. Normally they would continue to charge interest.