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Butterfield Bank goes the extra mile in payment deferrals

Local News 03 Jun, 2020 Follow News

Butterfield Bank

Butterfield Bank has got some great news for customers with mortgages or personal loans – they will be providing an option to defer loan payments by another three months, in addition to the three months already offered, for clients in good standing (that is, current, or less than 30 days delinquent).

Butterfield introduced a three-month automatic payment deferral programme on all residential mortgages and personal loans in good standing in March, meaning customers were not required to make principal and interest payments between 1 April and 30 June 2020 (inclusive), with all penalties waived. But the new move means that the bank is extending the deferral period by another three months, to 30 September. Customers who wish to avail themselves of the new offer should notify Butterfield, as deferrals will no longer be automatic, according to a Butterfield representative.

“Clients already participating in the programme will be contacted directly by Butterfield with instructions on how to opt-in. If, for any reason, participating clients do not receive a communication from Butterfield by 4 June 2020, they can e-mail the Bank on personallending.cayman@butterfieldgroup.com. Clients who wish to continue or resume their regular payments on personal loans and mortgages do not need to take any action,” a statement read.

It is always good to be on the lookout for scams, and Butterfield reminded their customers that authentic emails from them will “Will never ask clients to login to click on embedded links, visit a website or open an attachment to update, unlock or verify online banking or personal financial information.”

For clients who decide to opt in, interest on the outstanding loan balance at the contractual interest rate, payable during the payment deferral period (where no loan or interest payments are being made) will be added to the outstanding principal and may result in extension of loan terms. Therefore, the total amount of interest paid over the lifetime of the loan will increase as a result of any payment deferrals.

Automatic payment deferrals on credit cards, which have been similarly in place for the period 1 April through 30 June 2020, will be discontinued effective 1 July 2020. “This means late payments on cards after 1 July will incur penalties as outlined in the applicable cardholder agreements. Any clients who are facing difficulty meeting their card payment obligations should contact the Bank Directly,” a statement said.

Banks and other financial lending institutions have been praised by Premier, Alden McLaughlin, for helping their customers out during this difficult and unprecedented time surrounding Covid-19, by facilitating loan repayment deferral schemes, such as the one that has been offered by Butterfield.

“As the situation evolves, Butterfield continues to review and adjust its COVID-19 response. Details regarding the Bank’s current health, safety and operational measures are available on the Bank’s website, www.butterfieldgroup.com, as well as the Bank’s social media channels,” a spokesperson said.

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