US President Donald Trump gestures as CEO of Bank of America Brian Moynihan (L) speaks during a meeting with banking leaders to discuss how the financial services industry can meet the needs of customers affected by COVID-19 at the White House in Washington, DC on March 11, 2020.
Brendan Smialowski | AFP | Getty Images
Bank of America said some customers can request to defer payments on financial products such as mortgage loans and credit cards as part of the bank’s assistance program for consumers and small business impacted by the coronavirus.
The bank said it will deal with giving relief in each situation on a ‘case-by-case’ basis for the following products:
- Mortgages and home equity
- Deposit accounts (overdraft fees, etc)
- Credit cards
- Small business loans
- Auto loans
The bank also said it has paused foreclosure sales, evictions and repossessions.
America’s financial sector is in much better shape than during the last major crisis, which originated with banks’ risky mortgage lending. This time around, banks have fortified balance sheets and have already shown they want to help their customers through the coming hardships the coranovirus, and the business shutdowns because of it, will cause.
A group of the banks including Bank of America declared this week that they would be suspending stock buybacks through at least June to show they were committed to providing the “maximum” financial support to clients during the pandemic.
Bank of America, which has 66 million customers, is directing people toward its client resources website for help.
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—With reporting by Hugh Son.