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New Consumer Protections Are Available In Response to COVID-19

New Consumer Protections Are Available In Response to COVID-19

Federal and state authorities, along with some private businesses, are taking action to protect consumers in light of the COVID-19 pandemic.

These actions include suspensions on foreclosures, evictions and terminations of telecommunications and utility service, elimination of interest and forbearance on student loan payments, limits on debt collection and more. The National Consumer Law Center is maintaining a running list of these protections with explanations that may be found at https://library.nclc.org/major-consumer-protections-announced-response-covid-19

Key federal protections are discussed, including the availability of student loan assistance for some but not all student loans. Under the CARES Act, homeowners with federally backed mortgage loans affected by COVID-19 can request and obtain forbearance from mortgage payments for up to 180 days, and then request and obtain additional forbearance for up to another 180 days. During a period of forbearance, no fees, penalties or interest shall accrue on the borrower’s account beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract. NCLC’s list also includes state specific protections, such as new prohibitions on utility disconnections in Ohio, Pennsylvania and West Virginia; the Pennsylvania moratorium on foreclosures and evictions; and more.

Jason Causey of Bordas and Bordas has been a regular presenter at the National Consumer Law Center’s annual Consumer Rights Litigation Conference and Class Action Symposium. Bordas & Bordas has the expertise and experience to help you understand your consumer rights during this pandemic and to enforce your rights when necessary. Please contact us for a free consultation.

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