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The number of COVID-19 car repossessions will likely rise soon.
Auto repossessions are expected to surge in the coming months as financial hardship programs begin to peter out and temporary consumer protections expire. Due to the economic turmoil brought on by the coronavirus pandemic and record levels of unemployment, more and more consumers are expected to fall behind on car payments.
“We’ve certainly seen an uptick in defaults and delinquencies,” said John Van Alst of the National Consumer Law Center. “I think that’s going to translate into a really large increase in repossessions.”
According to the credit reporting agency TransUnion, the number of auto loan accounts that are 30 days past due moved to 3.1% in August, compared to 3.0% in July.
“I’m almost certain the number of repossessions are going to increase,” said Les McCook, executive director for the American Recovery Association.
You can help your readers/listeners/viewers who fall behind on their car payments by sharing some advice from the Federal Trade Commission.
First, don’t “do nothing.” Contact