Illinois Department of Financial and
Professional Regulation Announces Help for Consumers Struggling to
Make Payments on their Debts Due to the COVID-19 Crisis and Guidance
for its Regulated Financial Sectors
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[April 04, 2020]
CHICAGO
– The Illinois Department of Financial and Professional Regulation
today announced a series of actions to ensure the protection of
Illinoisans in many areas of consumer borrowing, servicing, and
collections. The Department also provided Guidance to its regulated
entities, state banks, credit unions, installment lenders, payday
lenders, title loan lenders, sales finance lenders including auto
loans, currency exchanges, student loan servicers, mortgage
servicers, and collection agencies concerning their lending,
servicing, and collection during the COVID-19 pandemic.
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IDFPR guidance for state banks and credit
unions and help for their consumers
The Illinois Department of Financial and Professional Regulation (IDFPR),
Division of Banking and Division of Financial Institutions strongly
urges banks and credit unions to respond to borrowers affected by
the current economic environment, such as small businesses, hourly
workers, and independent contractors.
Although IDFPR is aware that many state banks and credit unions are
already providing modifications, forbearances, and new loans to
consumers and businesses, IDFPR is encouraging all banks and credit
unions to consider taking the following actions:
• Offering payment accommodations (such as allowing borrowers to
defer payments at no cost or extending the payment due dates)
• Providing new loans on favorable terms to businesses and consumers
• Waiving certain fees (such as those for ATM usage, overdrafting,
and late payments on credits cards and other loans)
• Increasing ATM daily cash withdrawal limits
• Easing restrictions on cashing out-of-state and non-customer
checks
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• Increasing credit card limits for creditworthy borrowers
• Alerting customers to the heightened risk of scams and price
gouging during the COVID-19 disruptions
• Reminding customers to contact their financial institutions before
entering into unsolicited financial assistance programs
• Ensuring that consumers and small businesses don’t experience a
disruption of service if financial institutions close their offices
Additionally, banks and credit unions should contact customers via
app announcements, text, email, or otherwise to explain the
above-listed assistance being offered to customers. Guidance to
Illinois-licensed depository institutions regarding support for
borrowers impacted by COVID-19 may be viewed here
https://www.idfpr.com/
COVID-19.asp.
The Department supports banks and credit unions using their capital
and liquidity buffers to lend and undertake other supportive actions
in a safe and sound manner. For more information, institutions can
refer to the Interagency Statement on Loan Modifications and
Reporting for Financial Institutions Working with Customers Affected
by the Coronavirus, FDIC Financial Institution Letter FIL-20-2020,
and NCUA Letter to Credit Unions 20-CU-02 as applicable. There is
also an FAQ for credit unions intended to consolidate answers to
common questions DFI has received from credit unions during the
COVID-19 pandemic.
The Department recognizes such efforts serve the long-term interest
of Illinois communities and banks and credit unions when conducted
with appropriate management oversight and that they are consistent
with safe and sound practices and applicable laws, including
consumer protection laws. Prudent efforts to help consumers and
businesses will not be subject to examiner criticism.
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What consumers should know if they have outstanding loans or want
to borrow from payday, installment, title, or sales finance lenders
including auto loans and IDFPR guidance for the industry
1. IDFPR encourages its lenders to work with borrowers during the
COVID-19 pandemic to offer forbearance on payments without interest
and late fees and refrain from negative credit reporting by using
the specially-created disaster code.
2. If a lender closes its doors for health reasons, the lender will
provide notice soon thereafter to IDFPR and provide reasonable ways
to ensure borrowers can make payments to avoid delinquency.
3. Consumers who are experiencing financial difficulties during the
COVID-19 pandemic and are seeking loan assistance should look for
the most affordable loan options by considering the advertised APR
and other loan costs.
4. For questions or complaints about licensed consumer lenders, go
to
http://www.idfpr.com/DFI/DFI ComplaintForm.asp.
Help for renters and homeowners struggling with payments during
COVID-19 pandemic and IDFPR guidance for mortgage servicers
If you are struggling to make rent or mortgage payments, here is
some important information you should know:
Actions that have been taken:
1. Governor Pritzker issued an Executive Order on March 20, 2020
pausing all evictions from homes and rental units.
2. IDFPR is urging all mortgage servicers to defer mortgage payments
for 90 days for those who are suffering hardship as a result of the
COVID-19 pandemic.
3. Actions have been taken with regard to certain mortgages:
Single Family Home Loans Financed by Fannie Mae and Freddie Mac:
Foreclosure sales and evictions have been suspended for these loans.
The following measures may be available:
• Forbearance or reduction of mortgage payments for up to 12 months
• Suspension of late charges and penalties
• Suspension of reporting to credit bureaus of past due payments
Multifamily Home Loans Financed by Fannie Mae and Freddie Mac:
Forbearance on multifamily home loans on the condition that
borrowers suspend all evictions for renters struggling to pay rent
due to the coronavirus crisis.
FHA/HUD and Reverse Mortgages for Seniors:
Suspension of evictions and foreclosures for 60 days on FHA single
family home loans and reverse mortgages for seniors. The suspension
applies to new foreclosures and foreclosures currently in progress.
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VA loans: Guidance from VA urges mortgage servicers to:
• Ensure borrowers unable to make their payments are evaluated for
VA Loss Mitigation options
• Waive late fees of affected loans
• Suspend credit reporting to avoid damaging credit records
Other Mortgage Loans: For a list of individual bank
modification programs visit this link
https://www.aba.com/
about-us/press-room/industry-response-coronavirus. Credit
unions are also offering modifications. Check with your credit union
to see if they are participating or visit
https://www.icul.com/covid-19-best-practices-2/.
Here are specific actions you can take:
1. Contact your landlord and mortgage servicer immediately
2. Contact your mortgage servicer or lender to learn about their
most up-to-date mortgage relief programs
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3. Contact the following for additional assistance:
A HUD certified housing counselor (Go to www.HUD.com to find a
counselor near you),
A legal assistance agency for the rights of renters, or visit
https://www.carpls.org/ client-services/
If you are a veteran that has questions about their mortgage
options, please contact the St. Paul VA Regional Office at
1-877-827-3702
The Illinois Attorney General’s Mortgage Helpline at 1-866-544-7151
IDFPR at 1-888-473-4858
If you believe you are not being treated properly by your mortgage
servicer, you may either file a complaint with the Illinois Attorney
General’s office or with IDFPR.
Guidance to Illinois-licensed mortgage servicers and exempt mortgage
servicers regarding support for borrowers impacted by COVID-19 may
be viewed here
https://www.idfpr.com/COVID-19.asp.
Help for students struggling with payments during
COVID-19 pandemic and IDFPR guidance for student loan servicers
If you are struggling to make you student loan payments, here is
some important information you should know:
Actions that have been taken by Congress for federal student loans
held by the US Department of Education:
1. Interest rates on federal student loans have been reduced to 0%
until September 30, 2020.
2. Repayment on federal student loans are suspended until September
30, 2020.
3. Involuntary collection activity on federal student loans
including wage garnishments and offsets will be suspended until
September 30, 2020. Further, it will refund $1.8 billion to 830,000
borrowers in money that has been previously subject to offset.
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4. Credit reporting will take place as if the borrower were making
timely payments.
Here are specific actions you can take for both private and federal
student loans:
1. Contact your student loan servicer as quickly as possible if you
are having trouble making your payments. Servicers can assist you to
select the repayment option that best fits your financial
circumstances, including income-based repayment options.
2. Borrowers experiencing trouble with their student loan servicers
are encouraged to contact the following:
Contact the IDPFR Division of Banking 217-785-2900 for information
or to file a complaint with IDFPR.
Contact the Attorney General’s Student Loan Helpline at
1-800-455-2456 or file a complaint with the Office of the Illinois
Attorney General.
To find out if you have a federal student loan, visit the Department
of Education’s National Student Loan Data System (NSLDS) at
nslds.ed.gov or call the Department of Education’s Federal
Student Aid Information Center at 1-800-433-3243 or 1-800-730-8913 (TDD).
Guidance to Illinois-licensed student loan servicers regarding
support for borrowers impacted by COVID-19 may be viewed here
https://www.idfpr.com/COVID-19.asp..
Guidance for debt collection agencies and information for
consumers about debt collection during COVID-19 pandemic
Information you should know:
1. Debt collection is not listed as essential businesses under
Governor Pritzker’s Order of March 20, 2020. However, debt
collectors may continue to operate remotely.
2. The Department is encouraging debt collectors and debt buyers to
work with consumers to accommodate hardships due to the COVID-19
crisis, including to suspend collection activity for a period of at
least 60 days.
3. Consumers should be aware of their rights, including:
Debt collectors cannot call you at places and times known to be
inconvenient
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Debt collectors must tell you the truth about the amount of your
debt
Debt collectors cannot use deceptive methods to collect a debt from
you
IDFPR will send regulatory guidance to these licensees that they
must continue to follow consumer protection and debt collection laws
and will be monitoring their compliance.
Anyone who is experiencing a problem with a collection agency or
debt buyer can file a complaint with IDFPR or with the Illinois
Attorney General’s Office.
Help to protect consumers’ credit history due to hardships caused
by the COVID-19 pandemic
Information you should know:
1. IDFPR issued guidance to its financial licensees about steps they
can take to mitigate damage to borrowers’ credit during the COVID-19
crisis.
2. If creditors report consumers’ credit information, they should
use the disaster code in conjunction with a deferment, which will
have neutral impact on a borrower’s credit.
3. If consumers have trouble making their payments, they should
contact their creditors to explore potential deferments or payment
plans.
4. Consumers should regularly monitor their credit and contact their
creditors and consumer reporting agencies if they find any errors.
Steps you can take:
1. Consumers should regularly check their credit and dispute any
incorrect information the consumer reporting agencies.
2. Under federal law, everyone is entitled to one free credit report
from each of the three agencies annually. You can request and review
your free report through one of the following ways:
Online: Visit AnnualCreditReport.com
Phone: Call (877) 322-8228
3. For information about your rights visit:
The CFPB at
https://www.consumer finance.
gov/consumer-tools/credit-reports-and-scores/
The FTC at
https://www.consumer.ftc.gov/ articles/ 0155-free-credit-reports
Governor Pritzker Issues Executive Order 14 Addressing the
Repossession of Vehicles
The Executive Order states:
Section 1. Beginning March 27, 2020 and continuing for the duration
of the Gubernatorial Disaster Proclamation, the provisions of the
Uniform Commercial Code, 810 ILCS 5/9-609, regarding the possession
or usability of a vehicle, and the provisions of the Illinois
Vehicle Code, 625 ILCS 5/3-114, regarding the repossession of
vehicles, are suspended. No provision contained in this Executive
Order shall be construed as relieving any individual of the
obligation to make payments or comply with any other obligation that
an individual may have pursuant to a loan agreement or otherwise.
[Illinois Office of Communication and
Information] |