Memo on Automatic Payment Relief by Student Loan Servicers During Coronavirus Pandemic
In a memo, the SBPC, explains why servicers should automatically implement payment relief and protections for distressed borrowers across their entire loan portfolios in response to the coronavirus pandemic.
The memo lays out how as servicers across the consumer finance industry struggle to adapt and respond to the heightened need for assistance caused by the coronavirus pandemic, their strategy of implementing payment relief and other borrower protections on a case-by-case basis is unworkable and likely violates a range of federal and state consumer financial laws. Immediate action by servicers can protect these companies against litigation risk and help borrowers avoid distress and default.
Read the Memo: Loan Servicing, Enforcement Risk, & the Coronavirus Pandemic