Banks extend the breaks of payments

Des banques prolongent les pauses de paiements

In order to continue to support their customers, several banks in Canada have decided to extend the measures to get a break from payments for personal loans or mortgage as well as credit cards. The National Bank chooses, however, to go in the opposite direction and shows no longer taking new applications from 1st July.

“That said, if customers are still experiencing financial hardship as a result of the pandemic, our teams will assess their situation on a case-by-case basis and will try to find with them solutions that will meet their needs,” responds to the Newspaper the spokesman of the National Bank Marie-Pierre Jodoin.

On the side of the Laurentian Bank, customers now have until 30 September to apply for a deferral of mortgage payments or for a credit card.

“The deferral is for a period of 3 months with a possibility of requesting an extension of 3 additional months for a maximum of 6 months,” says the head of communications, Hélène Soulard.

Same sound of bell on the side of the Royal Bank of Canada (RBC). The relief measures have been extended until the end of September and if a client has already received a postponement of a month or two, he may request an additional delay of up to a total of six months, said spokesman Denis Dubé.

The Globe and Mail recently reported that the CIBC and the TD Bank had also chosen to continue with their relief measures. CIBC will accept only new applications.

The Desjardins group, the management has not yet decided on a date for the end of the program. We speak of “a few weeks”. Last week, the cooperative announced that it would entrust$ 100 Million to its holders of an auto insurance premium.

“Desjardins wants to continue to support its members and clients hardest hit by the COVID-19”, responds to the Newspaper the spokesman Jean-Benoît Turcotti. “In the circumstances, Desjardins group continues to closely follow the evolution of the situation,” he continued.

He underlines that in may –this is the most recent numbers that may be provided by the co– operative, Desjardins had received more than 616 000 applications for relief measures. At RBC, approximately 370 000 customers have delayed their payments for 450 000 financial products.

The Bank of Montreal did not respond to our interview request.

Several bankruptcies

According to the trustee, Jean Fortin & Associés, a number of households, whose incomes have shrunk or disappeared in recent months, may still be tempted to use these reliefs.

President Pierre Fortin is concerned that when the banks will put an end to these measures, many people do bankruptcy.

“For those who are in a difficult financial situation, the reports are not a magic solution. The people who had difficulties before the pandemic, this will continue. The key will be case-by-case basis,” he says.

Remember that some of the relief measures offered by the financial institutions does not provide leave for the interests. They continue to accumulate during the period of respite, and they will add to the debt.

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