How the pandemic could trigger a surge in US credit card losses in an echo of 2008 – The National

How the pandemic could trigger a surge in US credit card losses in an echo of 2008 – The National

How the pandemic could trigger a surge in US credit card losses in an echo of 2008. I have millions of dollars worth of merchandise, but I still have to pay my landlord rent.. The banks, which are also adjusting to social distancing as most of their employees must work from home, warn customers that wait times will be longer than usual.. In 2009, when unemployment topped 10 per cent, the nation's card lenders were forced to write off a record $89 billion of soured debt.. The aid the bank provide varies in generosity depending on the bank .. Some are just allowing customers to defer payments, meaning interest is still accumulating while in these programmes.. Others have instituted forbearance programmes, where there will be no penalty for a customer who wants to hold off paying debts for 30 or 60 days.. Bank of America is allowing customers to defer payments across all of its products and is not reporting any negative activity like missed payments to the credit bureaus.. Smaller banks are also acting to help customers.. Southern Bancorp, with roughly $1.5 billion in assets headquartered in Arkansas, is modifying loans as quickly as possible or charging only interests