BBC: Coronavirus: Banks to allow customers to defer mortgage payments

[Mike 03]

Although this article is about the UK, it is full of suggestions for how U.S. financial institutions might alleviate the financial burden of the coronavirus on Americans.

Taxpayer-owned bank RBS will allow people affected by the coronavirus outbreak to defer mortgage and loan repayments for up to three months. TSB said it would also allow a mortgage window, but for two months, and both banks said savers could close fixed-term savings accounts without charge.

This is designed to allow people to access cash if they need it as the impact of the virus is felt.

Banks are also announcing extra support for affected businesses.

Other support for individuals facing financial difficulties owing to the virus includes:

Refunds on credit card cash advance fees
The option of applying for an temporarily increased credit card borrowing limit
Asking for an increased cash withdrawal limit of up to £500
The measures are similar to those already in place for people facing financial difficulties.

"We understand that there may be circumstances where a personal customer may fall into financial difficulty as a result of the impacts of coronavirus, for instance, loss of income," a spokesman for RBS said.

"We will look to understand each customer's situation on a case-by-case basis and can offer a number of options to help them manage their finances."

UK Finance, which represents the major banks, said that all banks would consider increasing overdrafts or allowing repayment relief for loan or mortgage repayments for those affected by the virus.

snip

Changes to mortgage agreements in some way mirror the situation in Italy, one of the areas most affected by the outbreak.

With significant restrictions on the population in place, Laura Castelli, Italy's deputy economy minister, said mortgage payments would be suspended across Italy.

Lending to businesses

Other banks are following suit. Barclays said it was offering 12-month capital repayment holidays on existing loans over £25,000, and would also offer extended or new overdraft facilities to business customers.

"Our network of relationship managers has been reaching out to SMEs across the UK to see if they require additional support during this time, as we do regularly when we see any events which may have an impact on our clients," said Ian Rand, chief executive of Barclays Business Banking. RBS said on Monday that it was offering more flexibility over loans to businesses.

Link: https://www.bbc.com/news/business-51817947

Our financial institutions should consider offering solutions such as these.

[dalton99a]

1. Self-quarantine means no paycheck for most people

[durablend]

2. Dream on!

Profits over people. Even if they did off that they'd add on 50% interest as a penalty and even then they'd have the foreclosure/eviction papers ready "just in case"