Offering payment accommodations, such as allowing borrowers to defer or skip some payments or extending the payment due date, which would avoid delinquencies and negative credit bureau reporting caused by COVID-19-related disruptions.Increasing credit card limits for creditworthy borrowers and.Easing restrictions on cashing out-of-state and non-customer checks.Increasing ATM daily cash withdrawal limits.Early withdrawal penalties on time deposits.Late payment fees on credit cards and other loans, and.Automated teller machine (ATM) fees for customers and non-customers,.Practices Related to Borrowers Facing COVID-19 Related HardshipĬlosely mirroring guidance from Federal bank regulators, the Guidance then stated that the DBO encourages financial institutions to adopt the following practices:
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The Guidance first notes that Governor Newsom’s Executive Order N-28-20 requested that commercial and residential mortgage lenders and servicers place a moratorium on foreclosures and evictions when the foreclosure or related eviction arises out of a substantial decrease in household or business income, or substantial out-of-pocket medical expenses, which were caused by the COVID-19 pandemic or by any government response to COVID-19. On the evening of March 23, the California Department of Business Oversight (DBO) issued Guidance to Financial Institutions During the Covid-19 Pandemic. The Guidance discusses a number of issues facing financial institutions whose customers may be suffering from loss of income or other financial hardship as a result of the COVID-19 pandemic. The Guidance can be found HERE.