The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law in response to the current global pandemic. The CARES Act provides several provisions that assist consumers financially.
The CARES Act provides temporary relief for borrowers with “federally-backed mortgage loans,” which means loans owned, insured, or guaranteed by FHA, USDA, VA, Fannie Mae, or Freddie Mac. Please contact our firm if you would like us to determine if your loan is federally backed.
If you have a federally backed loan, no foreclosure can take place until at least May 17, 2020. In addition, you can request a forbearance for up to 180 days, and then request an additional forbearance for another 180 days after that.
The CARES Act provides relief for student loan borrowers. Direct Loan and covered FFEL borrowers will have the option of suspending their payments through September 30, 2020. While student loan payments are suspended, the loans shall not accrue any interest and the month of a suspended loan payment will be treated as if a loan had been made for purposes of loan forgiveness and loan rehabilitation. The suspension period should also result in no negative credit reporting.
Please contact us if you are noticing any inaccurate reporting with your student loans during this time period.
The CARES Act also provides protections on credit reporting. If you get a forbearance, payment deferral, or other accommodation the creditor shall report that account with the same status as prior to the accommodation to a consumer reporting agency. If the creditor fails to do so, please be sure to contact our firm to see how we can assist.
Also, the three major credit reporting agencies, Experian, Equifax, and TransUnion, are offering free weekly credit reports through April 2021. We recommend every consumer obtain a copy of their credit report from each bureau. If you notice any errors in your credit report, be sure to contact us to see how we can assist.
If you are still getting collection calls during this stressful time, be sure to keep track of who is calling you, when they are calling, and the frequency of their calls. Unlawful collection statutes, protect consumers and limits the behavior and actions of third-party debt collectors. It also restricts the means and methods by which collectors can contact debtors, including the number of times per day and the time of days collectors can contact debtors.