Released: July 02, 2020

Consumers in COVID payment modification plans find credit files tarnished

Source: Herb Weisbaum, Consumers' Checkbook

To help their customers stay financially afloat during the COVID-19 crisis, many lenders offered payment modification programs that allowed them to make reduced payments or skip payments altogether, without damaging their credit histories. But, in many cases, companies haven’t held up their end of the deal.

Since March, more than 650 consumers have complained to the Consumer Financial Protection Bureau (CFPB) that their lender granted them payment accommodations, but still reported their accounts as delinquent. As a result, their credit scores have tanked.

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