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On the consumer loan side, lenders are seeing increases in indirect auto lending, says Jeremy Pinard, vice president of consumer lending at $13 billion asset Alliant Credit Union in Chicago and a member of the CUNA Lending Council Executive Committee.
But he notes there has been a decrease in credit card balances, which he attributes to people not traveling during the pandemic. Even with holiday promotions and robust online shopping, Pinard believes balances will remain low.
From left: Dan Picard, Hanscom Federal Credit Union; Jeremy Pinard, Alliant Credit Union.
“Credit card balances will really struggle until people start traveling again,” he says. “That was a big expense; people going on vacation.”
Credit unions saw a spike in requests for skipped payments during the initial wave of COVID-19. When members requested second deferments, credit unions usually asked for more documentation to gather proof of hardship.
Alliant Credit Union has granted 11,000 deferments, and Pinard says 83% of these members are making regular payments. Alliant receives about 150 requests a month for deferments, but this is a substantial drop since March.
The panel also discussed the future of private student loans in the wake of COVID-19.
“The college landscape is going to change,” Pinard says. “Know why you’re getting into student loans.”