on CFPB’s constitutionalty CFPB clarifies credit reporting during

The Consumer Federal Protection Bureau in light of the Coronavirus has come out warn lenders against reporting delinquent payments to credit bureaus for the consumers who have sought mortgage relief. The Agency has provided several ways and recommendations in new guidance on the credit reporting process in light of the COVID-19 pandemic. Adding 15 days of investigation, lenders now have 45 days to investigate credit disputes. CFPB CLARIFIES CREDIT REPORTING PROCEDURES IN LIGHT OF CORONAVIRUS

In a policy statement, the Agency has said that it supports the lenders’ “voluntary efforts” to provide payment relief to customers. However, the CFPB came out clearly to say that for any company providing information to credit reporting agencies that is accurate and reflects payment relief measures, it will not take any enforcement actions or cite in examination against the company.

“During this time of uncertainty, we are providing clarity to ensure the consumer

reporting industry can continue to function,” CFPB Director Kathy Kraninger said in a press release. “Consumers rely on their credit report to purchase a new car, their new home, or to finance their college education. An effective consumer reporting system is critical in promoting fair and efficient access to credit in the consumer financial services market.”

In late March, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) which marked the

If you find that you cannot be able to make a payment, and need more time to organize yourself, or you want to discuss payment options, you should contact your lenders and servicers... largest economic recovery package in US history. The $2.2 Trillion rescue legislation will provide $150 billion for the hospitals and other health care providers, direct payments and expanded unemployment compensation provision to the US workers and families, and approximately $850 billion in loans and grants to significant industries and small business. On this not, lenders are required to report to the credit bureaus that consumers are current on their loans if the payments are adjusted through a loan modification. There is a Section of the CARES Act that amends the Fair Credit Reporting Act, which is an act that generally requires that the credit bureaus and furnishers of investigations to investigate disputes within 30 days of being notified by a consumer. While the CFPB said that it would be extending that period to 45 days, there is a caveat that “the consumer provides additional information that is relevant to the investigation during the 30 days.” “The Bureau is aware that some consumer reporting agencies and furnishers may face significant operational disruptions that pose challenges for them in investigating consumer disputes,” the policy statement said. “For example, some consumer reporting agencies and furnishers may experience significant reductions in staff, difficulty in taking disputes, or lack of access to necessary information, rendering them unable to investigate consumer reporting disputes within the timeframes the FCRA requires.”

CFPB has also provided a guideline through which you can be able to protect yourself in case you are having troubles paying your bills, loans or paying on time. There are several options that are available to you, especially if you can be able to reach out to your lenders and creditors early enough. The CFPB and other financial regulators have encouraged financial institutions to work with their customers to meet their community needs. If you find that you cannot be able to make a payment, and need more time to organize yourself, or you want to discuss payment options, you should contact your lenders and servicers to let them know about your financial situation. It is not something to take lightly, being behind on your payment can have a lasting impact on your credit.

The credit companies and the lenders may be able to offer you options to help you. This could include anything from waiving specific fees like the

ATM, overdrafts and late fees, as well as allowing you to delay, adjust, or skip some payments. Remember, this is the opportune time for scammers to take advantage of you and will be looking for every opportunity to scam you. Be very cautious of emails, texts, or social media posts that may be selling fake products or information about emerging coronavirus cases.

https://www.consumerfinance.gov/about-us/blog/protectyourself-financially-from-impact-of-coronavirus/ https://www.americanbanker.com/news/cfpb-clarifiescredit-reporting-procedures-in-light-of-coronavirus https://www.nationalmortgagenews.com/news/cfpbclarifies-credit-reporting-procedures-in-light-of-coronavirus