[NFBV-Announce] FYSA: Where to Find Financial Relief During Coronavirus (COVID-19)

Tue Mar 31 13:16:09 UTC 2020

Where to Find Financial Relief During Coronavirus (COVID-19)

 <https://www.thesimpledollar.com/author/skostaras/>

 <https://www.thesimpledollar.com/author/skostaras/> by Samantha
KostarasUpdated on Mar 30, 2020

 <https://www.thesimpledollar.com/category/banking/> Banking
<https://www.thesimpledollar.com/category/money/> Money

Americans are facing more than health concerns as a result of the spread of
novel coronavirus COVID-19, recently
<https://www.who.int/dg/speeches/detail/who-director-general-s-opening-remar
ks-at-the-mission-briefing-on-covid-19---12-march-2020> labeled a pandemic.
As events and attractions postpone operations, many workers are being laid
off until further notice. Those who can work may be faced with the choice
between showing up sick or losing income needed to pay rent.

The Federal Reserve, joined by other government agencies, has  <https://www.
federalreserve.gov/newsevents/pressreleases/bcreg20200309a.htm> called on
the financial services industry to “meet the financial needs” of people
who are affected by COVID-19. Some of the country’s largest financial
institutions have responded with measures to help their customers cope.

Which financial institutions are offering coronavirus assistance?

 <https://www.thesimpledollar.com/banking/reviews/citibank-review/> Citi

Starting March 9, 2020, the following are in place for an initial 30 days,
according to the company
<https://online.citi.com/US/JRS/pands/detail.do?ID=covid19> website:

・       “For Retail Bank Customers: Fee waivers on monthly service fees;
waived penalties for early CD withdrawal.

・       For Retail Bank Small Business Customers: Fee waivers on monthly
service fees and remote deposit capture; waived penalties for early CD
withdrawal; Bankers available after hours and on weekends for support.

・       For eligible Credit Card Customers: Credit line increases and
collection forbearance programs

・       For eligible Mortgage Customers: A range of hardship programs
through our service provider, Cenlar FSB. Please contact them at
1-800-2CENLAR (1-800-223-6527) Monday-Friday 8:30am - 8pm ET and Saturday 8:
30am - 5pm ET”

 <https://www.thesimpledollar.com/banking/reviews/wells-fargo-bank-review/>
Wells Fargo

Wells Fargo shared its
<https://www.wellsfargo.com/jump/enterprise/coronavirus-response> response
to the coronavirus disease, stating that “Wells Fargo is committed to
helping customers experiencing hardships, including from the Coronavirus
Disease (COVID-19).  If in need of assistance, we encourage customers to
call us at 1-800-219-9739 to speak with a trained specialist to discuss
options available for their consumer lending, small business and deposit
products.”

It also included its efforts to keep branches safe with sanitizing products
as well as warning customers to look out for potential scammers
impersonating government employees or charities during the crisis.

 <https://www.thesimpledollar.com/banking/reviews/u-s-bank-review/> U.S.
Bank

U.S. Bank has  <https://www.usbank.com/splash/covid-19.html> posted several
products on its website that it is offering at a discount to help those
affected by COVID-19. It is also directing customers to reach out to
888-287-7817 if in need of “additional support.”

<https://www.thesimpledollar.com/credit-cards/best-capital-one-credit-cards/
> Capital One

Capital One  <https://www.capitalone.com/coronavirus/> published an update
to its website, urging customers to take advantage of digital options
whenever possible, and sharing their
<https://www.capitalone.com/support-center/contact-us> Contact Us page as a
resource for those in need as a result of the coronavirus.

 <https://www.thesimpledollar.com/banking/reviews/pnc-bank-review/> PNC Bank

PNC posted the following statement to its
<https://www.pnc.com/en/customer-service/coronavirus-update.html> website:
“Should you, as a PNC customer, encounter hardship as a result of
coronavirus, please call us at  <tel:18887622265> 1-888-762-2265 (7:00 a.m.
to 10:00 p.m. ET Monday - Friday; 8:00 a.m. to 5:00 p.m. ET Saturday &
Sunday) to discuss your options.  PNC offers an array of hardship relief
options for which customers may be eligible depending on their product(s)
and needs.”

PNC also left open the possibility to expand assistance programs in the
future, if needed.

Truist

The product of a
<https://media.truist.com/2019-12-09-BB-T-and-SunTrust-complete-merger-of-eq
uals-to-become-Truist> December merger between
<https://www.thesimpledollar.com/banking/reviews/suntrust-bank-review/>
SunTrust and
<https://www.thesimpledollar.com/banking/reviews/bbt-bank-review/> BB&T,
Truist  <https://www.truist.com/coronavirus-information> announced on its
website that its team is “committed to working with our clients to reduce
financial stress during this challenging and uncertain time.

・       Heritage SunTrust clients, please contact 800-SUNTRUST
(800-786-8787).

・       Heritage BB&T clients, please contact 800-226-5228.”

 <https://www.thesimpledollar.com/banking/reviews/discover-bank-review/>
Discover

Discover said in a statement that it “is extending relief to qualified
customers who are experiencing financial difficulty caused by the spread of
the Coronavirus (COVID-19). Discover customers may receive assistance that
can include support related to payment timing, fees and late payments.”

Discover is encouraging customers to reach out by phone or through its
“mobile text app, which connects a customer directly with an agent.” To
access relevant phone numbers and other questions related to COVID-19, you
can visit
<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.discov
er.com%2Fcoronavirus&data=02%7C01%7Cskostaras%40redventures.com%7C4bf624767b
b24b1b146408d7ccef409f%7C4289d6102cfd46218c9644a1518ddb0a%7C0%7C0%7C63720320
0263092593&sdata=bwW1OmiIQoaHaeYdo4LRWviCevy5hIEIiFsbwvGLy78%3D&reserved=0>
www.Discover.com/coronavirus.

Nelnet

Nelnet, a student loan servicer, announced the following
<https://www.nelnet.com/covid-19> relief effort on its website: “If you’re
affected by COVID-19 directly or indirectly and need our support, we’re
here to help you with options to reduce or postpone your payments:

・       Change your repayment plan to reduce your monthly payments

・       Apply for a deferment

・       Apply for a forbearance”

To access this relief, you can “visit  <https://www.nelnet.com/welcome>
Nelnet.com, email us at Help at Nelnet.net, or call us at 888.486.4722 from 8
a.m. to 10 p.m. (Eastern) Monday - Friday.”

Navient

Navient, another major student loan servicer,
<https://navient.com/covid-19> provided a statement on its website for those
affected: “If you’ve been impacted by the coronavirus and are having
difficulty making payments, we encourage you to call us at 888-272-5543 to
explore your options to reduce or postpone your payments.”

Great Lakes

Great Lakes  <https://mygreatlakes.org/educate/covid-19.html> released
updated information on its website, posting that if you are “affected by
COVID-19 directly or indirectly and need our support, we’re here to help
you with options to reduce or postpone your payments.”

You can reach out to Great Lakes digitally on its website, mobile app, or by
emailing  <mailto:BorrowerServices at glhec.org> BorrowerServices at glhec.org. If
you’d prefer to speak to someone over the phone, you can call (800)
236-4300 <mailto:BorrowerServices at glhec.org> .

 <https://www.thesimpledollar.com/loans/reviews/sofi-personal-loans-review/>
SoFi

SoFi  <https://www.sofi.com/faq/#alert> published an alert to its website
where you can find a list of general service-specific contacts, as well as
resources provided in response to the novel coronavirus. For support related
to student loan payments, SoFi advises that “to inquire about forbearance
and hardship relief due to COVID-19, please contact MOHELA at 877-292-7470
or send a secure message through sofi.mohela.com and they can address your
concerns.”

For support related to personal loan payments, SoFi directed customers to
call its “Hardship Relief Team to go through your options at
855-456-7634.”

Internal Revenue Service (IRS)

At a March 17th press briefing,
<https://www.whitehouse.gov/briefings-statements/remarks-president-trump-vic
e-president-pence-members-coronavirus-task-force-press-briefing-4/> Treasury
Secretary Steven Mnuchin announced: “If you owe a payment to the IRS, you
can defer up to a million dollars as an individual… interest-free and
penalty-free for 90 days.”

As of March 20th, this move now also applies to Tax Day.
<https://twitter.com/stevenmnuchin1/status/1241002750483324930> Mnuchin
announced via Twitter that the deadline to file your taxes will be postponed
“from April 15 to July 15″ for “all taxpayers and businesses.”

Be aware that this move only applies to your federal taxes. You’ll need to
check with your state to find out if it is offering any similar measures.

Community resources that can help right now

Free financial planning

Financial advisors across the country are offering pro bono advice to people
whose wallets are impacted by the outbreak. The XY Planning Network offers a
<https://www.xyplanningnetwork.com/?_advisor_search=%22coronavirus%20relief%
22> search tool on its site that helps pinpoint financial advisors (more
than 50 listed) who are willing to provide free advice on coronavirus
relief.

Internet companies providing relief

Due to the coronavirus pandemic, over 100 companies have pledged not to
terminate services to any residential or small business customers who cannot
pay their bills, waive any late fees and open its WiFi hotspots to any
American who needs them.

In a promise to “keep American connected,” the Federal Communications
Commission’s site offers a
<https://www.fcc.gov/keep-americans-connected#pledges> full list of
companies and associations that are participating.

Unemployment benefits

Unemployment numbers will likely continue to rise as more businesses close
shop during the coronavirus pandemic.

The U.S. Department of Labor has
<https://www.dol.gov/newsroom/releases/eta/eta20200312-0> issued guidance
giving states flexibility to amend their laws to extend unemployment
benefits to workers impacted by COVID-19. Use this
<https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemploym
ent-benefits.aspx?newsearch=true> unemployment benefits finder tool to find
specific details on your state’s unemployment insurance program, including
additional help due to coronavirus. Many states allow you to file for
unemployment benefits online, while other states provide toll-free numbers
and alternative ways to file.

Some states are finding innovative ways to combat unemployment during this
period of uncertainty. New York, for example, is
<https://www.ny.gov/services/get-unemployment-assistance> waiving the
waiting period for unemployment benefits for people affected by the virus,
which may lead other states to follow suit. Typically, most states will pay
benefits for up to 26 weeks. In general, benefits are based on a percentage
of an individual’s earnings over a recent 52-week period, up to a state
maximum amount.

As of March 27th, unemployment benefits have been
<http://nytimes.com/article/coronavirus-stimulus-package-questions-answers.h
tml> expanded to include self-employed people, gig workers, freelancers, and
part-time workers. Check out
<https://www.thesimpledollar.com/financial-wellness/unemployment-insurance-c
oronavirus-how-to-apply> this page for more general information on state
unemployment insurance benefits, how to apply, and who qualifies.

What President Trump’s student loan relief means

President Donald Trump announced he is waiving interest on student loans
held by the federal government until September 30, 2020. The waiver doesn’t
apply to three types of student loans: state, private and the majority of
Federal Family Education Loans (including Sallie Mae student loans).
Borrowers will still be required to pay their monthly bill, but the payments
will go towards a principal balance instead of interest.

On March 27th, the CARES Act, a $2 trillion coronavirus stimulus package,
was signed into law, allowing you to
<https://www.forbes.com/sites/zackfriedman/2020/03/28/student-loans-payments
-suspended/#49e63fcd1b10> waive all federal student loan payments until
September 30. Unlike the
<https://www.thesimpledollar.com/loans/trump-student-loan-interest-waiver-co
ronavirus> automatic interest waiver, however, you will need to request this
administrative forbearance from your student loan servicer in order to
receive it.

The office of Federal Student Aid recommends contacting your loan servicer
as soon as possible if you’re struggling to make payments.

If you’re concerned about your studies or loan repayment during the
outbreak, the Federal Student Aid’s site answers
<https://studentaid.gov/announcements-events/coronavirus> several important
questions for students, borrowers and parents. The site will be adding
information for students, borrowers, and parents on its page on a regular
basis.

Is a stimulus check coming in the mail soon?

For most Americans, yes. On March 27th, a $2 trillion coronavirus stimulus
package called the CARE Act was signed into law by President Trump, which
will grant a
<https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answ
ers.html> one-time payment of $1,200 to single adults with Social Security
Numbers who have an adjusted gross income of $75,000 or less. Married
couples with no children who earned $150,000 or less would receive a payment
of $2,400. Families with children will receive an additional payment of $500
for every child age 16 or under.

The income calculation will come from your 2019 federal tax return; if you
haven’t filed yet, you can use your 2018 return. The payment, which is
expected to
<https://www.nytimes.com/2020/03/25/world/coronavirus-news-live.html#link-6b
422738> arrive within three weeks for most people, will be distributed to
the bank account you’ve set up with IRS via direct deposit. Otherwise, you
would receive a check.

Military, veterans, and unemployed people are eligible for these stimulus
checks, as well as people who receive Social Security and disability
payments.

What can you do if you’re not a customer of a company currently advertising
assistance?

1. Talk with your employer

Some companies have also been responding to this pandemic by expanding sick
leave policies and creating safety nets for affected employees. Before
resigning to falling behind on your bills, try communicating with your
employer to see if they can offer any other options.

<https://blog.aboutamazon.com/working-at-amazon/covid-19-update-more-ways-am
azon-is-supporting-employees-and-contractors> Amazon announced a new policy
on Wednesday in response to the pandemic, offering part-time and full-time
employees additional time off for illness or quarantine related to COVID-19.

2. Reach out to your credit card company

Even if your credit card issuer has not formally released a statement of
support, if you are at risk of missing a payment it is worthwhile to contact
the company to discuss your options. The FDIC advises on its
<https://www.fdic.gov/consumers/consumer/news/cnsum11/disasterrecovery.html>
website: “Your creditors will likely work with you on a solution, but it’s
important to contact them as soon as possible and explain your situation.”

Late payments can hurt your
<https://www.thesimpledollar.com/credit/credit-score/> credit score and pile
on extra charges and fees so getting ahead of the issue will save you down
the road.

3. Consider a balance transfer

If you’re concerned you will only be able to make minimum payments on your
debt with a high interest rate, a credit card that offers balance transfer
could be a helpful tool.
<https://www.thesimpledollar.com/credit-cards/blog/utilizing-balance-transfe
r-credit-card-offers/> Transferring your credit card balance from another
card has pros and cons, but if you are a good candidate for the move, it
could save you money on interest and buy you some time to repay your debt
within the introductory rate period.

How can U.S. financial institutions better support consumers?

These measures are an important start to getting people the help they need,
but the financial impact of the crisis is spreading along with the virus.

We asked experts what more could be done to protect consumers, as well as
the economy:

Raise awareness of scams

Chane Steiner, CEO of  <https://www.crediful.com/> Crediful, urges leaders
to educate consumers on the dangers of investment fraud in this time of
panic. He told us that these scams “will become a major issue as fraudsters
try and trick people into making unsound investments out of desperation.
Oftentimes they may claim that their proposal is the only ‘safe’ place to
put money.”

Take cues from other countries

“In Europe in particular, several large banks are allowing homeowners to
delay mortgage payments during the crisis. This is an extremely important
gesture, since it allows people to keep up with daily expenses while they
are out of work. Since most people do not work from home, a drop in income
while quarantined can be devastating.” Steiner also recommends that the
U.S. follow suit.

Support small businesses

Dennis Shirshikov, a Financial Analyst at  <http://fitsmallbusiness.com/>
FitSmallBusiness.com, suggests that banks should support the owners of small
businesses “by moving services out of the branch and getting them on the
ground.”

“While most national banks are not well-positioned to address this issue,
local banks and credit unions can organize small business owners around
these initiatives. By picking up deposits, exchanging money, and moving more
transactions out of the bank, small business owners can continue to work and
operate for the community,” Shirshikov says.

Experts cited

Chane Steiner

Chane Steiner is the CEO of  <https://www.crediful.com/> Crediful, a
personal finance website dedicated to helping people make educated financial
decisions. Follow Crediful on  <https://twitter.com/crediful> Twitter.

  _____

Dennis Shirshikov

Dennis Shirshikov is an expert in small business financing for
<https://fitsmallbusiness.com/> Fit Small Business whose work has appeared
in publications like USA Today, the Wall Street Journal, and Bloomberg.
Follow Fit Small Business on  <https://twitter.com/FitSmallBiz> Twitter.

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