Credit Behavior Shifts of Consumers in Hardship Programs

More than a year since the outbreak of COVID-19, the outlook for economic recovery and vaccination distribution rates are positive. However, lingering effects from mitigation efforts the government and lenders implemented, such as hardship and mortgage forbearance programs, will take time to expire. Given the spectrum of financial impacts to the US consumer, a careful evaluation of those who accessed hardship programs during the pandemic is required. Even more necessary for effectively managing risk is an understanding of consumer credit behavior shifts to differentiate between consumers who temporarily needed assistance but are now back to normal, and others more severely impacted who continue to struggle. 

In this session, we’ll study consumers who accessed hardship programs during the crisis, and identify credit behavior shifts that separate low to high-risk segments which can be considered in your acquisition and account management treatments and strategies.