Q&A: Can accepting payment relief from CWB National Leasing during COVID-19 affect my credit score?

Murray Derraugh, Vice-president, Credit answers your questions.

CWB National Leasing recognizes these are unprecedented times. Many customers are not able to make lease payments who otherwise would pride themselves on making their payments on time and maintaining a positive credit score. We believe, your credit score shouldn’t be punished because of COVID-19, so we sat down with our Vice-president of Credit, Murray Derraugh to answer all of your questions related to how accepting payment relief may (or may not!) affect your credit score.

What is a Payment Relief Plan?

CWB National Leasing is reviewing each request for payment relief on a case-by-case basis. If your business qualifies, we will recommend you make agreed upon interest-only payments.

How will my credit be impacted if I go onto a Payment Relief Plan?

By making interest-only payments, your risk rating with CWB National Leasing will not be impacted when you exit the Payment Relief Plan and return to making normal payments. Also, we will report to external credit agencies that all your payments are current.  Therefore, there will be no impact to your credit scores or risk rating.

Are there fees attached to accepting a Payment Relief Plan?

No, any regular fees associated with adjusting the payment schedule have been waived during this crisis.

What if the Payment Relief Plan does not work for me and we agree to another payment plan?

This would be referred to as a Payment Deferral Plan.  Payment deferrals less than 60 days would not impact your credit materially. If you only miss your April payment and then make your May payment the impact to your credit score would be very minimal.

What if I don’t agree to the Payment Relief Plan and just stop making payments?

This would impact your scores and potentially your ability to seek more credit in the future. Delinquent payments would be reported to external credit agencies and your credit score would be affected.