Unless Congress acts quickly the $600 unemployment benefit will expire, and some are worried that these consumers will have trouble paying their bills.
CFO of consumer lending for LendingUSA Ron Oertell says while it’s natural to assume that decrease in government support will cause increased delinquent payments and defaults, that may not be the case.
“A single outside event, Covid-19, is the cause of high unemployment. The resulting downturn will subside once a vaccine or other solution is available. It’s likely that lenders will continue to have robust deferment programs and work with their borrowers during this relatively shorter-term.
Ron Oertell is Chief Financial Officer at LendingUSA, LLC, a consumer lending company focused on physical point-of-sale locations. He has more than 25 years of experience as an attorney, investment banker, investment fund manager and CFO, and has completed over $9 billion in capital transactions.