COVID-19 & Consumer Protections

The COVID-19 pandemic created upheaval in people’s lives, especially the most vulnerable, and NCLC worked with allies, government officials, and businesses, to help. This list of resources, updated as new information is available, is a guide to help families navigate their financial lives during turbulent times.

General Consumer Protections

• Autos
• Banks and Prepaid Card Accounts
• Bankruptcy
• Credit and Debt
• Credit Reporting
• Criminal Justice
• Housing
  • Homeowner Assistance Fund
• Older Consumers
• Racial and Immigrant Equity
• Robocalls & Telemarketing
• Student Loans
• Utilities and Bridging the Digital Divide

Training & Conferences

Additional Resources

Archived Letters, Statements, Briefs, etc.

Stimulus Payments

• Joint Consumer and Banking Group Letter to Congress urging them to protect economic impact payments from garnishment, Mar. 8, 2021
• Joint Consumer and Banking Organization Letter to Congressional Leadership Urging Protection of New Stimulus Payments Against Garnishment, Feb. 23, 2021
• The EIP Stimulus Payment Prepaid Card: Not a Scam; How to Avoid Fees (sample card and mailer), January 2021
• NCLC FAQs on Stimulus Payments

General Consumer Protections

• NCLC Welcomes CFPB Director Chopra and Describes Priorities, Oct. 5, 2021
• Share your COVID-19 Financial Complaint
• NCLC Major Consumer Protections Announced in Response to COVID-19 (Federal and State), August 2020
• Group letter to President Biden re: Consumer Protection Priorities for Next Covid Economic Recovery Package, February 1, 2021

Autos

• State Protections Against Repossession
• Auto Finance and the Coronavirus Crisis: What States Should Do to Help, March 2020

Bank and Prepaid Card Accounts, Bank Fees

• States, including New York, have ordered or encouraged relief affecting overdraft, ATM and credit card late fees.
• Banks and credit unions that offer safe checkless checking accounts that meet the Bank On National Account Standards (including no overdraft or NSF fees)  can be opened online, and are available to people with blemished account screening histories, can be found at JoinBankOn.org. 

Bankruptcy

• Summary of Covid-19 Bankruptcy Relief Provisions, March 31, 2021
• Group letter urging Congress to adopt amendments to the Bankruptcy Code in response to the COVID-19 pandemic, March 24, 2020

Credit and Debt 

Federal Relief

• Feed Families, Not Debt Collectors: Protect New Stimulus Payments and Child Tax Credits from Garnishment, March 2021
• A Free Stimulus to Support Struggling Families and the Economy: First Suspend, then Reform, Wage and Bank Account Garnishment, January 2021
• The federal banking agencies have issued guidance encouraging institutions to work with affected customers.
• Support debt collection provisions of HEROES Act to give small businesses, nonprofits and consumers a path to recovery
• The CFPB Must Issue Emergency Guidance on Debt Collection during the Pandemic, December 2020
• Wage Garnishment for Consumer Debts: Reforms Needed in the Current Crisis and Beyond, November 2020
• Remote Court Appearances in the Covid-19 Era: Protecting Consumers in Collection Lawsuits, June 2020

State & Local Relief

NCLC is tracking state and local government responses to the coronavirus that are relevant to the collection of non-mortgage consumer debts, including:

• For state advocates working with their state legislators to protect people impacted by income losses due to COVID-19, NCLC’s report may be of help. No Fresh Start in 2019: How States Still Let Debt Collectors Push Families into Poverty surveys all 50 states and has a number of charts and maps assessing the extent to which state laws protect basic income and assets needed for survival: wages, home, car, bank account, household goods.
• Issue Brief: Coronavirus Emergency: Consumer Debt Collection Lawsuits – How States Can Help, March 2020
• Covid-19 Related State Protections for Wages and Cash in Bank Accounts
• Sample letters urging a halt to bank account garnishments and/or debt collection from advocates in California (includes sample order), Ohio, Texas
• Prohibition of Certain Collection Practices –  Entries track practices in the collection of civil, non-mortgage debts by debt collectors or creditors that have been temporarily prohibited due to the coronavirus.
• Can Debt Collectors Work from Home? –   Entries track orders and guidance related to whether debt collectors can work from home. Only highlights guidance that has been issued in relation to the coronavirus. Some jurisdictions may have had prior guidance.
• Bar on Collection of Debts Owed to State/Local Government  –  Entries track state and city temporary orders that have been enacted to bar the collection of debt owed to the government.
• Suspension of Certain Court Proceedings Related to Debt Collection  –  Entries include a non-comprehensive list of courts that have suspended certain judicial proceedings or activities related to the collection of civil, non-mortgage debts. For more about state court closures see the National Center for State Courts website.
• Calls to Action – Entries track calls to action from legislators, attorneys general, businesses, and advocates to state governments and industry leaders calling for collection moratoriums and other debt collection related consumer protections.
• Legislative Responses – Entries track legislation introduced at state and municipality level that includes prohibitions on certain debt collection practices. Entries track status of bills.
• Other Debt Collection Responses – Entries include responses by states that do not fall into one of the other categories, such as new legislation relating to debt collection during the coronavirus pandemic and recommendations for collection practices from state agencies.

Credit Reporting

• The Credit Score Pandemic Paradox and Credit Invisibility, February 2021
• 2021 Credit & Consumer Reporting Priorities to Promote Economic Recovery, December 2020
• Salt in the Wound: How Eviction Records and Back Rent Haunt Tenant Screening Reports and Credit Scores, August 2020
• Enforcing the CARES Act Credit Reporting Protections, May 2020
• Protecting Credit Reports During the Covid-19 Crisis, April 2020
• Credit Reports and the Covid-19 Crisis: What States Should Do to Help Consumers, March 2020

Criminal Justice 

• Coronavirus Emergency: Criminal Justice Debt – How States Can Help, March 2020
• Fines and Fees Justice Center’s COVID-19 Policy Recommendations urging state and local governments to make immediate changes to their criminal, traffic and municipal ordinance fines and fees policies to protect public health and ensure that fines and fees are not a barrier to people’s basic needs throughout this emergency.

Housing

Federal Relief

• Joint Letter to HUD Requesting an Extension for Comments on FHA Defect Taxonomy for Servicing Loans, November 19, 2021
• Press Release: Important Investments in Homeownership and Families in Build Back Better, November 19, 2021
• Joint Letter to HUD Advocating for Clarity in the Foreclosure Timelines, November 5, 2021
• Group Letter to HUD re: Covid-19 Waterfall Drafting Table Comments, November 4, 2021
• Coalition Letter Urging CFPB to Extend Pre-Foreclosure Protections Into 2022, October 13, 2021
• Group Letter Urging HUD, VA, and USDA to Extend the Deadline for Borrowers to Start COVID-related Forbearance Plans, September 23, 2021
• Group Letter to FHFA Urging Requirement for GSEs to Immediately Address Post-forbearance Escrow Shortages, August 27, 2021
• Group Comments to FHA re: Comments to Mortgagee Letter 2021-18, August 20, 2021
• Group Letter Supporting H.R. 4791, the Protecting Renters from Evictions Act of 2021, July 30, 2021
• Sample Request for Information on Escrow Accounts (PDF)
• Letter to Federal Agencies Regarding Supervision and Enforcement Over Mortgage Servicers, June 8, 2021
• Group Letter to FHFA, Fannie Mae, and Freddie Mac on Reducing Modification Interest Rates for Borrowers with Equity, June 3, 2021
• Press release: Advocates Applaud HUD’s Actions to Protect Vulnerable Widows and Widowers and Prevent Avoidable Foreclosures, May 12, 2021
• Comments on the CFPB’s Proposed Rule to Protect Homeowners Impacted by the Covid-19 Emergency, May 10, 2021
• Press release: CFPB Will Hold Debt Collectors Accountable to Tenants for Illegal Evictions, April 19, 2021
• Using the Homeowner Assistance Fund to Prevent Reverse Mortgage Foreclosures: What Treasury and the States Can Do, April 2021
• Group Letter to HUD re: Mortgagee Letter 2021-05, March 18, 2021
• Homeowner Assistance Fund Overview and FAQs, March 17, 2021
• Americans for Financial Reform Coalition Recommendations on Housing Assistance Fund Implementation, March 17, 2021
• Joint Letter to CFPB Proposing a Framework for Streamlined Modifications, March 12, 2021. Exhibit A. Exhibit B.
• Coalition letter to FTC and CFPB Urging Action on Eviction and Foreclosure Moratorium, March 3, 2021
• Civil Rights, Consumer and Industry Coalition Letter to Congressional Leadership Supporting Inclusion of Homeowner Relief in the Covid-19 Stimulus Relief Package, February 8, 2021
• Group Letter to CFPB Urging Prevention of Covid-19 Related Foreclosures, January 28, 2021
• Homeowners Need a Homeowner Assistance Fund and Additional Relief to Prevent a Coming Foreclosure Crisis, January 2021
• Group Letter to President-Elect Biden Asking for Expansion of Homeowner Relief in Covid Stimulus Package, January 16, 2021
• How to Get Help with Your Mortgage During COVID-19, July 9, 2020  Spanish, Korean, Chinese, Vietnamese, and Bangla
• NCLC issue brief: A Looming Crisis: Black Communities at Greatest Risk of Covid-19 Foreclosure, July 2020
• NCLC sponsored a series of free webinars for advocates in May 2020. Listen to archived webinars and access materials:
  COVID-19 and Mortgage Relief for Homeowners: CARES Act Protections, May 7, 2020. Webinar recording and materials.   This webinar will provide an overview of the forbearance and post-forbearance options for federally-backed mortgages, including an explanation of what the CARES Act requires and a discussion of the servicing policies of Fannie Mae, Freddie Mac, FHA, VA, and USDA (Andrea Bopp Stark- NCLC, Sarah Bolling Mancini-NCLC)
  Forbearance Options and CARES Act Requirements, May 14, 2020. Webinar recording and materials.  In this session, we will go into more depth about the language of the CARES Act and the ways different government entities are implementing its requirements. We will also touch on how servicers are handling forbearance requests, and strategies to deal with servicer noncompliance. (Tara Twomey-NCLC, Steve Sharpe-NCLC, John Rao-NCLC).
  Reverse Mortgage Foreclosure Issues in the Covid-19 Pandemic, May 21, 2020. Webinar recording and materials.  This webinar will discuss the home-saving options for reverse mortgage borrowers and non-borrowing spouses, including specific updates about Covid-19 related protections. (Sarah Bolling Mancini-NCLC, Odette Williamson, NCLC)
  An Introduction to CARES Post-Forbearance Options, May 28, 2020. Webinar recording and materials. This session will provide an introduction to post-forbearance options for borrowers obtaining mortgage relief under the CARES Act.  The program will review options available through FHA and the GSEs based on the most recent guidance and information available. (Tara Twomey – NCLC, Andrea Bopp Stark – NCLC, Geoff Walsh – NCLC).
• Video Explainer: Coronavirus Crisis: What Consumers Need to Know About Mortgage Relief, April 29, 2020
• Mortgage Relief for Homeowners Affected by COVID-19, April 27, 2020; related chart.
• Coronavirus Pandemic Prompts Temporary Relief in Reverse Mortgage Foreclosures, April 27, 2020
• Appraisal Changes for Government-Backed Mortgages:
  • Fannie Mae, Freddie Mac, FHA, and VA to allow appraisals without interior inspections
  • The Appraisal Institute and the Appraisal Foundation have extensive information on how COVID-19 is affecting appraisers
  • The USDA has waived or relaxed certain parts of the application process for Single-Family Housing Direct Loans, including site assessments, and has extended the time period that certificates of eligibility are valid
• For mortgage borrowers facing difficulties as a result of the pandemic, Fannie Mae, Freddie Mac, FHA, FHFA, and the VA have issued guidance for borrowers and reminders to loan servicers about options available for borrowers in hardship.
• HUD issued a foreclosure and eviction moratorium for all FHA-insured Single Family mortgages for 60 days, effective March 18, 2020.