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Only 4 percent of respondents were aware of credit accommodations

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

The COVID-19 pandemic has had a widespread impact on people’s health, sense of security and financial situations. In response to the economic strife, the government, financial institutions and lenders tried to offer relief programs that would help people.

The CARES Act provided stimulus payments to people, and subsequent bills were passed that offered other benefits. Many benefits were automatically given to people, such as the stimulus payments and the deferment of student loan payments. But some forms of assistance required people to expressly ask for them, such as credit accommodations.

We asked 1,500 respondents which pandemic provisions they were aware of. Some of the results were surprising and offered insights into how messaging can be improved for future situations.

Key takeaways

Stimulus payments were the most well-known benefit.
Only 4 percent of respondents were aware of credit accommodations.
Pandemic unemployment assistance was the second most well-known form of aid.
Women were more informed about forms of federal pandemic aid than men.

51 percent of respondents indicated they knew about stimulus checks

In another survey we conducted, respondents said that, by and large, stimulus payments were the most supportive form of aid they received during the pandemic. This isn’t too surprising as the stimulus checks came straight to people at a time when they needed money the most.

The New York Times reported on a poll that showed both Democrats and Republicans supported the stimulus checks. In August 2020, both parties were calling for a third round of stimulus checks. And both parties agreed the checks should be sent out to the same income ranges as before.

The only thing the parties didn’t agree on was the amount. The Republicans were supporting a $500 check, while the Democrats were calling for a $1,200 payout. In the end, a third stimulus check of $1,400 went to eligible people.

Unfortunately, many people faced some challenges with their checks. Either they didn’t receive a stimulus check at all or they received less than they expected. Individuals who didn’t receive a stimulus check and believed they should have also had the option of claiming that amount when they filed their 2020 taxes.

Only 4 percent of respondents knew about credit accommodations

On March 27, 2020, the government enacted The Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act looked to provide Americans with financial relief throughout the pandemic in various forms. One part of the CARES Act was new guidance for creditors on collecting debt and reporting unpaid debts. Thanks to this guidance, many creditors responded with credit accommodations. These accommodations included:

Waived late fees
Extended due dates
Deferred payments
Lowered monthly payments
Delayed foreclosures, repossessions, evictions and service terminations

An additional benefit was the impact of these credit accommodations on consumer credit scores. When an individual arranged accommodation with a creditor, the creditor had to report their accounts as “current or paid” under the CARES Act.

However, it’s important to note that in many cases consumers have to request a credit accommodation; it wasn’t automatically offered to them. A consumer then has to hope that their creditor/lender agrees to give them one, because the creditor is not legally required to do so. Unfortunately, our survey results indicate that the vast majority of people were unaware of these credit accommodations. This indicates that more widespread messaging around credit accommodations would have been helpful.

In the midst of the pandemic, the average FICO score in the United States reached an all-time high, rising from 703 pre-pandemic to 711. This is likely due to various forms of pandemic aid and credit accommodations that people received ending. As pandemic aid ends there might be a downturn in people’s credit scores, making now a good time for consumers to evaluate their credit situation and consider a solution, such as credit repair services.

Additionally, tough times may be ahead for the people who took advantage of credit accommodations. The accommodations portion of the CARES Act will only remain active for 120 days after the pandemic is declared finished. After this period, some creditors may be able to demand all missed or deferred payments in full. Individuals who might be affected by this should talk to their creditors about their specific circumstances.

Almost 1 in 3 reported knowing about pandemic unemployment assistance

Our survey found that 33 percent of respondents reported knowing about federal unemployment benefits. Moreover, across all age brackets, pandemic unemployment assistance (PUA) was the second most well-known form of pandemic aid after stimulus payments.

Unemployment rates hit an all-time high, of 14.8 percent, during the height of the pandemic. The Congressional Research Service reports this is “the highest rate observed since data collection began in 1948.” As of August 2021, those numbers are still in the process of declining.

Women reported knowing about more forms of federal pandemic assistance than men

The Lexington Law study found that more women than men reported knowing about stimulus payments, PUA, tax filing deductions and student loan forbearance. However, more men reported knowing about mortgage loan forbearance and credit accommodations than women.

The pandemic has disproportionately affected women. The National Women’s Law Center reported that women saw 5.4 million jobs disappear between the start of the pandemic and January 2021. In addition to female roles being cut, many women are choosing to leave the workforce to care for their families, rather than their partners doing so.

As a result of these dramatic impacts, more women might be researching and staying aware of pandemic benefits, compared to men. Additionally, as women tend to be the primary caregivers for children, they might be looking out for dependent payouts as well. This could explain why women reported knowing about more forms of federal pandemic assistance.

Resources for post-pandemic aid

If you’re looking for assistance and want to stay informed on what pandemic aid is available to you, you can check these websites:

Methodology

This study was conducted using Google Surveys. The sample consists of no less than 1,500 completed answers. Post-stratification weighting has been applied to ensure an accurate and reliable representation of the total U.S. population ages 18 and older. The survey ran online in April 2021.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

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