How to Report COVID-19 Debt Information to the Credit Bureaus
Summary
A March 13 OCC update encouraged banks to “prudently” work with “adversely affected customers.” The agency suggested waiving fees, offering repayment accommodations, and extending payment due dates. The organization also shared specific reporting guidance for member companies who want to help consumers avoid credit problems amid the COVID-19 pandemic. “This guidance is available in the current situation to help consumers work with their banks and other creditors if they are impacted—directly or indirectly—by the virus,” said Francis Creighton, CDIA President and CEO. While we encourage you to consult the FAQ 58 documentation for full reporting instructions, here’s a summary of the guidance: When a data furnisher adds Special Comment AW to an account, the notification indicating that the consumer has been impacted by a natural disaster will appear alongside the specific tradeline. Without comprehensive coverage, consumers face ongoing harm from unflagged financial hardships beyond their control.” The NCLC recommended that data furnishers leave the AW code on reports for at least six months.
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