The Illinois Department of Financial and Professional Regulation (IDFPR) has issued guidance to its regulated entities (including state banks) concerning their lending, servicing and collection activities during the COVID-19 pandemic. To assist impacted borrowers, the IDFPR strongly urges banks to consider offering loan payment accommodations, providing new loans on favorable terms, waiving certain fees, increasing ATM daily cash withdrawal limits, increasing credit card limits for creditworthy borrowers, easing check cashing restrictions for non-customers, and ensuring that customers don’t experience a disruption of services if a bank closes its offices, among other suggestions.
Banks also are encouraged to communicate the assistance being offered to customers, to use their liquidity buffers to lend in a safe and sound manner and to refer to the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus and FDIC FIL-20-2020. The IDFPR also has confirmed that prudent efforts to assist customers will not be subject to examiner criticism. Additionally, the guidance addresses reporting consumer credit information in a way that mitigates damage to borrowers’ credit during the COVID-19 crisis.
Read the Guidance