Consumer finance companies activate customer support initiatives
WASHINGTON–(BUSINESS WIRE)–Member companies of the American Financial Services Association (AFSA), from auto finance to traditional installment loans, cater to customers who are being hit hard by the federal government shutdown, the longest shutdown in US history.
Based on a survey conducted by AFSA this week among its members, consumer finance companies have activated emergency response initiatives, including loan extensions, deferrals and account actions at no cost to assist their clients in circumstances beyond their control.
In addition to federal employees across the country, lenders say non-government employed contractors and local business owners are also impacted by the shutdown.
Some companies treat this situation the same way they would treat customers affected by natural disasters like hurricanes or wildfires. They offer deferrals, no late fees, and special reporting codes to credit bureaus so that affected customers’ credit report does not show a customer as delinquent.
“Bottom line, each customer has a unique financial situation, therefore, we are good at working with customers to create a plan outside of their normal payment schedule, if necessary,” a spokesperson said. an auto lender. “We have a lot of experience handling these types of events, and we’ve learned that it’s enough to talk to customers and discuss options that meet their needs”
Another lender with a segment of its customer base serving in the military said it would restructure loans by offering modified terms, extensions or refinancing depending on individual situations.
Based in Washington, DC, the American Financial Services Association (AFSA), now in its 103rd year, is the national trade association for consumer credit, committed to protecting consumer access to credit and choice. Its 450 members include traditional installment lenders, vehicle finance/leasing companies, consumer and commercial finance companies, mortgage lenders and managers, payment card issuers, industrial banks and industry suppliers. For more information, visit www.afsaonline.org.