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COVID-19 Updates

Regulatory Risks in Providing Coronavirus-based Payment Deferrals

Read Time: 1 min

The coronavirus outbreak has resulted in an economic recession spurred by shelter-in-place orders that have shuttered doors for nonessential businesses, including most car dealerships. Virtually every major auto financier has now implemented some sort of payment relief program that allows consumers to defer payments with or without interest. However, no good deed goes unpunished, and there are many compliance considerations that lenders will have to keep on their radar. 

Mark Edelman and Kelly Lipinski (Cleveland) joined Auto Finance News for a compliance roundtable to address the key issues auto lenders are facing today. From eligibility and proof, to F&I products and servicing implications, Mark and Kelly detailed actionable advice for lenders to mitigate regulatory risks with deferral programs.

“Lenders need to be thoughtful that they are putting in place a program that will be applied in a fair manner, a meaningful manner, and in a consistent manner,” Lipinski advised, noting that auto lenders need to evolve with the changing terrain the coronavirus pandemic has brought on.

Tune into the exclusive interview here.

Insights

Published Article

Post-COVID Economic Trends in Auto Finance

December 1, 2020

The COVID-19 pandemic and its economic consequences have dramatically affected the auto finance industry. The pandemic has presented challenges and opportunities for auto finance lenders that will require accommodation in terms of expectations, procedures and future planning. The pandemic has created a scenario in the auto finance industry with a heightened demand for personal vehicle ownership, a reduction in manufacturing and an increase in unemployment. The result is that auto finance companies must navigate a unique landscape as they seek to satisfy the increased demand for their services coupled with the need to protect and secure their investments in the face of an uncertain financial future.

Published Article

Repossessions during the COVID-19 pandemic

May 29, 2020

During normal times, creditors face a number of requirements when looking to exercise their self-help repossession rights in the event of a borrower’s default. Some jurisdictions have imposed additional motor vehicle repossession requirements and limitations that creditors need to be aware of as a result of the COVID-19 pandemic.

Published Article

Keep your regulatory health in check

May 18, 2020

Auto finance customers’ concerns about the impact of the coronavirus may be addressed, in part, with traditional loss-mitigation tools. Deferral and extension agreements are commonly used and typically consumer-friendly. In fact, just under a year ago — which feels like several centuries ago — we published an article laying out best practices for loan extensions or deferrals.More