Economic Impacts of a Moratorium on Consumer Credit Reporting
The coronavirus crisis precipitated a major economic crisis which has far-ranging ramifications on the financial health of millions of US consumers.
Analyst/Partner Collateral
Ensuring consumers have access to credit at a fair price has been a long-standing objective of policymakers. Credit availability is affected by the business cycle which in turn is influenced by a host of factors such as the demand and supply for credit and external drivers including macroeconomic shocks or external events such as the coronavirus pandemic. Periods of economic contraction, as witnessed during the 2008 financial crisis typically result in a reduction in the supply of credit as lenders adapt to deteriorating market conditions reflected by higher losses on loan products and a reduction in consumer demand for loans. The COVID-19 pandemic has sparked a financial crisis that so far appears to be worse than 2008 and threatens the long-term financial well-being of millions of consumers across the United States.