Lenders Offer Financial Relief to Borrowers After Irma
As those affected by Hurricane Irma begin recovery efforts, auto lenders are offering financial assistance and relief efforts.
Early estimates of Irma’s total economic destruction before it made landfall pinned the cost at $100 billion, AccuWeather President Joel Myers said in a statement last Sunday. It’s still unclear how much of that damage will be auto related, but lenders are taking action.
Here are seven lenders offering assistance to affected borrowers:
1. Ford Motor Credit Co.
Ford Motor Credit Co. is offering a special customer-assistance bundle — called Florida is Family — which will go toward helping customers whose vehicles were lost or damaged in the hurricane, according to a press release. The bundle, which is in effect through Oct. 2, is for purchases financed through Lincoln Automotive Financial Services and Ford Credit before Oct. 31. The bundle includes the same “no-haggle, below-invoice price Ford Motor Co. employees and their families receive; no payments until next year; and low Ford Credit APR or lease rates,” according to the release.
Existing customers of Ford Credit and Lincoln Automotive Financial Services who were affected by Irma can apply to have their payments deferred for up to two months.
Additionally, first responders in hurricane-affected areas are eligible to receive all available incentives, plus a special $1,000 discount toward purchase of any Ford or Lincoln vehicle.
Ford has 123 dealerships in Florida.
2. Santander Consumer USA
Following Hurricane Irma, Santander has activated assistance programs to help affected customers living in disaster areas. The subprime lender has also pledged a total of $100,000 to local aid relief organizations divided between the Miami Foundation, Habitat for Humanity Puerto Rico, and the American Red Cross chapter in Puerto Rico, according to a company press release. Santander is also matching employee contributions to non-profit organizations aiding in the recovery efforts.
“Once again a hurricane has turned the lives of so many people upside down,” Scott Powell, SC’s new president and chief executive, said in the release. “We want those directly impacted by Hurricane Irma to be safe and we will assist them as they work to move forward from this significant natural disaster. Things like alternative payment arrangements can make all the difference to individuals, businesses and families who need time and resources to put their lives back together after an event like this and we encourage customers with a need or a question to reach out to us.”
Santander Consumer suspended loan collection and auto repossession activities in the affected areas, and is offering temporary loan modifications and suspended late fees to affected customers. “As of Sept. 12, the 16 FEMA-designated affected areas account for approximately five percent of SC’s active retail and lease loan balance,” according to the release. “That number is subject to increase as FEMA continues to assess damage in the wake of the storm. SC’s portfolio of repossessed vehicles in the hurricane-affected area is still being assessed. At this time, SC has confirmed that vehicles at half of its auction vendors have not incurred material damage.”
3. JPMorgan Chase & Co.
JPMorgan Chase & Co. Chase will automatically waive or refund auto loan late fees through Sept. 24 for its customers, according to the company’s website.
“For our customers impacted by Hurricanes Irma and Harvey, we stand with you,” Gordon Smith, chief executive of consumer & community banking, said in a company press release. “These are unprecedented times for these states and we want to bring the resources of JPMorgan Chase to help. And to our 15,000 employees in Florida, 25,000 in Texas, and 900 in Georgia, the company and your colleagues will support you.”
4. Wells Fargo & Co.
Wells Fargo & Co. will provide payment relief for 90 days for auto loan customers and suppress any negative credit bureau reporting for Wells Fargo Dealer Services’ customers for 90 days, according to the company’s website. The bank also assists customers in the filing of a guaranteed asset protection (GAP) claim for damaged or total loss vehicles.
5. SunTrust Banks
SunTrust Banks will waive or refund late fees for auto loans for payments from now through Dec. 15. In addition, SunTrust will not provide late payment credit bureau reporting on these products for payments due during this time.
“The SunTrust Foundation has committed $500,000 to various disaster relief and recovery efforts in support of the communities and businesses impacted by Hurricane Irma,” according to its website. “The SunTrust Foundation is giving $250,000 to the American Red Cross to aid first-responders as they bring relief to those who’ve lost their homes and need food and shelter. An additional $250,000 is earmarked to assist other organizations as ongoing needs are identified.”
6. Bank of America
Bank of America announced on Monday that it is directing $1 million in funding from the Bank of America Charitable Foundation to aid the victims of Hurricane Irma, including $250,000 to the American Red Cross Disaster Relief Fund, with the remainder to be allocated when an assessment is completed regarding specific recovery needs, according to the company’s website.
“We will do all we can to continue to assist the communities and our customers experiencing the devastating effects of these hurricanes,” Brian Moynihan, chairman and chief executive, said in a company press release.
7. Oriental Bank
OFG Bancorp announced today that its Oriental Bank subsidiary will not charge late-payment fees for September loan payments — including auto — extending the grace period for a maximum of another 30 days, according to a company press release.
“We are confident Puerto Rico will have a speedy recovery,” José Rafael Fernández, president, chief executive, and vice chairman of the board, said in the release. The measure is being taken to help clients whose budgets may be affected because of Hurricane Irma in Puerto Rico.
For more content like this, check out the 17th annual Auto Finance Summit, which will take place on Oct. 25-27 at the Wynn Las Vegas. To learn more about this year’s event — or to register — visit the Summit’s homepage here.
