Frontline Workers and Military Feel Brunt of Recent Repos
Marketwatch has an in-depth story on the financial toll the COVID-19 pandemic is taking on essential workers. This includes the fear of losing transportation due to an involuntary repossession.
Even the hint of COVID-19 exposure can spell financial ruin. That’s partially because anyone suspected of exposure to the novel strain of coronavirus faces a two-week quarantine, which will restart if anyone else in a household has a similar scare on the job. Test results also have been known to take about 14 days, he said, which adds up to some workers going a month or longer before collecting any back pay.
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There were $250 billion of outstanding subprime auto loans that Wall Street packaged into bond deals and sold to investors at the end of 2019, or about 18.8% of all U.S. auto loans, according to the Federal Reserve Bank of Richmond. Proceeds from bond sales help lenders keep making new loans. Already this year, $21.6 billion of subprime auto bonds have been issued, according to Finsight data, which roughly is in line with annual issuance over recent years, despite it being the worst U.S. economic downturn since World War II.
In another story, the U.S. Department of Justice has filed a lawsuit in Dallas for violations of the Servicemembers Civil Relief Act:
A lawsuit filed Monday by the U.S. Department of Justice says United Tows unlawfully auctioned five vehicles owned by service members, including an airman who had told the business he was in basic training before his car was sold. Under the Servicemembers Civil Relief Act, tow companies must obtain a court order to sell vehicles owned by military members.
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United Tows is accused of towing the car in September 2017. After learning through a friend that his car was towed, the airman called the company to explain he was unable to collect the vehicle during basic training, but the owner didn’t believe he was in the military, the lawsuit says.
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