Bank of America defers ‘tens of thousands’ of auto loans
Bank of America’s auto division has deferred “tens of thousands” of auto loans since first implementing its consumer relief measures March 20, a company spokesperson confirmed with Auto Finance News, but could not provide a more concrete figure. Customers can choose to defer their payments for 30-, 60- or 90-day periods to help avoid delinquencies.
Bank of America boasts a $51 billion auto portfolio, the company noted in its fourth-quarter earnings call, but did not disclose its 30- or 60-day delinquency numbers.
Chief Executive Brian Moynihan previously said the bank has already assisted more than 500,000 customers across all types of loans with deferred loan payments as a result of the financial fallout of the coronavirus pandemic.
The Charlotte, N.C.-based bank’s consumer relief program covers auto loans, mortgages, home equity, credit cards and small business loans. It has also put a moratorium on auto repossession and negative credit reporting, and all deferred payments are tacked onto the end of the loan.
Wells Fargo, too, has halted repossessions and implemented deferred payment options across all its loan types for customers impacted by coronavirus.
While Wells Fargo did not break out numbers by loan type, the San Francisco-based bank has deferred more than 700,000 payments, representing almost $1.8 billion, and provided more than 750,000 fee waivers, exceeding $28 million, for customers impacted by the pandemic, a company spokesperson told AFN. For perspective, Wells Fargo Auto’s book of business clocks in at $47.9 billion, according to the bank’s fourth-quarter earnings.
Chase Auto, on the other hand, declined to disclose how many deferred loan payments the lender has assisted since implementing its relief options.
On the consumer side, the New York-based big bank is waiving fees, extending payment due dates, and offering lease-end extensions for consumers who call with financial challenges related to COVID-19. The bank has also stopped all repossessions. Chase Auto has a total auto portfolio of $83.5 billion as of fourth-quarter 2019, according to the company’s earnings report.
