CHICAGO – TransUnion’s latest Financial Services Monthly Industry Snapshot Report finds that approximately 2.87% of accounts in the auto, credit card, mortgage or unsecured personal loan industries remained in some form of financial hardship status at the end of December 2020.
The percentage of accounts in financial hardship continue to decline from a peak of 4.77% observed in May 2020.
TransUnion’s financial hardship data includes all accommodations on file at month’s end, and includes any accounts that were in accommodation before the COVID-19 pandemic. While the percentage of accounts in this status has decreased, the declines have slowed in recent months, according to a news release.
Furthermore, TransUnion consumer research has found that repayment preferences vary among surveyed consumers with loan accommodations. For instance, approximately 25% of consumers want to resume regular payments and work with the lender to extend the length of the loan; 19% of consumers want to extend the accommodation; and 17% of consumers would like to create a repayment plan to catch up while making larger payments.
To better assist the lender-borrower dynamic, TransUnion has introduced the CreditVision Acute Relief Suite. The Suite enhances support for consumers with accommodations, allowing lenders to develop effective customer management strategies across the account lifecycle. It also affords consumers more opportunities to work with their lenders to ensure they can repay their loans when coming out of accommodation.
The CreditVision Acute Relief Suite features trended credit attributes that identify credit relationships and payment behaviors for consumers previously or currently in relief status during acute economic conditions.
The Suite provides lenders and insurers with greater access to critical insights that improve their ability to understand how consumers and their accounts have been impacted. It includes details broken out by different credit products, the timing of when the accounts were reported in these statuses and the balances of those accounts.