While suppression of adverse information in credit reports during the coronavirus disease (COVID-19) outbreak is well intended, it could undermine safety and soundness, CUNA and other financial trade organizations wrote to Congressional leaders. Since the start of the crisis, lenders have been applying certain existing credit codes to ensure delinquent or missed payments resulting from the economic impact of Coronavirus do not adversely impact individuals’ credit.
“Encouraging lenders to continue allowing complete credit reporting information to reflect loans where
payments are deferred or in forbearance due to an ongoing natural disaster is a better solution,” the organizations wrote. “This would quickly and efficiently ensure that coronavirus-related incidents do not negatively affect a consumer’s credit score.”
The organizations also note “lenders are already deploying the multiple tools at their disposal to shield customers from financial harm and negative credit reporting due to a situation that is not of their making and will continue to do so until this crisis subsides.”