A $150 billion pile of frozen loans starts to worry US banks
Millions of Americans getting breaks on their loans are about to hear from their banks.
Nationwide, lenders are preparing to take a closer look at consumers who have arranged to delay payments, potentially pushing some out of the programs, as the industry tries to get a clearer picture of how many customers are truly unable to keep up during the coronavirus pandemic.
Forbearance programs from March are nearing expiration dates, when many banks are set to decide whether to continue letting people put off roughly $150 billion of debt including credit cards balances, personal loans and car payments. In interviews, executives said they’re concerned that at least some borrowers sought relief unnecessarily and that they should be coaxed into paying. A number of firms aim to whittle out such participants, or charge interest to continue.
“I would imagine we may have to go beyond 90 days” of forbearance, Southern Bancorp Inc. Chief Executive Officer Darrin Williams said in an interview, referring to the expiration date for many programs. “I feel pretty strongly that many of the folks who took advantage of the consumer payment holiday we provided probably didn’t have to. But if it’s offered, why not, right?”
https://www.msn.com/en-us/money/companies/a-dollar150-billion-pile-of-frozen-loans-starts-to-worry-us-banks/ar-BB14mCix?li=BBnbfcN
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banks can just take it out of that 700 billion they stole!
