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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMillions Of Americans Skip Payments As Tidal Wave Of Defaults And Evictions Looms
https://www.npr.org/2020/06/03/867856602/millions-of-americans-skipping-payments-as-tidal-wave-of-defaults-and-evictions-?utm_source=pocket-newtabsnip...
But looking ahead, advocates say people could run into big trouble because the terms of these hardship programs can be all over the map.
"Credit cards, auto loans, installment loans, there are no federal guidelines," says Aracely Panameño, a director at the nonprofit Center for Responsible Lending.
She says when it comes time to make up for all those skipped payments, there are federal rules for repayment plans for home mortgages but not for many other types of loans. So she says lawmakers need to protect people. Otherwise, she says, lenders could make demands beyond what people can afford. "You must have a capacity to catch up with your payments in an affordable way," Panameño says.
Chi Chi Wu with the National Consumer Law Center agrees. Without better protections, when it comes time to make up for the missed payments, "there's going to be a lot of people who could experience massive credit reporting harm," says Wu, an attorney focusing on consumer credit issues.
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czarjak
(11,274 posts)customerserviceguy
(25,183 posts)You know those automobile insurance companies that say that they're rebating some of the premiums paid for coverage during the lockdown period? I haven't seen mine yet (thanks, State Farm) but they're about to get another windfall. Because of the insane notion that people who are having financial difficulties suddenly become bad drivers, you're going to see lowered credit scores turning into more premium dollars for these insurance companies.
And my bet is that people who manage to keep their bills paid aren't going to see any refund or rebate, either.
SoCalNative
(4,613 posts)2 weeks ago. And I have been paying my bills this whole time.
SheltieLover
(57,073 posts)Says the plan is for rebates to be applied as credits on insureds' accounts in July. I hope this happens!
customerserviceguy
(25,183 posts)when I called my local agent. Other companies have already gotten checks out to people. While I agree that it is fiscally more responsible to give credits for future purchases than to go through the hassle of mailing checks then having to account for them, I had wished that State Farm had been more prompt than the average auto insurance company.
I really resent the dollars that I pay for auto insurance, I only drive my car once a week or so to get groceries most of the time. I'm sure not taking any long trips these days, that's for sure!
SheltieLover
(57,073 posts)State Farm does offer a low mileage discount, but you must ask for it. 👍
ooky
(8,922 posts)my State Farm agent for it and they gave it to me. It wasn't a lot, but it did lower my premium a little.
SheltieLover
(57,073 posts)They should offer a lower mileage one now, imo. Their low mileage is 7500 mpy I think. Pfffft... I wont drive 750 miles in a year since the trumpdemic. 🙄
jimfields33
(15,793 posts)Not a bad total.
Blue_true
(31,261 posts)It doesn't bother me that I haven't gotten one, but if they don't rebate, then they need to send some of their bailout money to charities.
customerserviceguy
(25,183 posts)pissing more of it away on advertising. Liberty Mutual is the worst for this, you can't watch a half-hour of TV without seeing one of their stupid "buddy cop from the 1970's with a flightless bird as his partner" ads.
Blue_true
(31,261 posts)company and would not switch.
Xolodno
(6,390 posts)The cost to manage your policy is extremely low since they insure only autos....which means less employee's, overhead, etc., I think Progressive sub-contracts their motorcycle insurance to Farmers...not sure about GEICO but it wouldn't surprise me.
It certainly frustrates the larger insurers, but with that said, they also have more room when the combined ratio tanks below what they expected. Your cheap companies have less wiggle room and thus, a harder time giving you rebate. But then again, you are already paying a lower premium vs. State Farm, Farmers, Allstate, CHUBB, etc.
As to why State Farm hasn't got on the ball, no clue. But they are fucking huge company and have been known to take on losses just to maintain market share.
Blue_true
(31,261 posts)Buckeyeblue
(5,499 posts)When the program ends, you have to make a catch up payment for those that you missed. Delinquencies will be artificially low and then they'll spike.
Watch the home loans. I think we've said that before.