Shapiro launches PA CARE Package to protect consumers in wake of pandemic

HARRISBURG — Attorney General Josh Shapiro announced on Monday the launch of the PA CARE Package, a consumer relief initiative aimed at battling the economic effects of the COVID-19 pandemic.

The announcement, which came via a press release on Monday afternoon, says that the PA CARE Package is a plan to partner with banks and financial institutions in Pennsylvania to “ensure Pennsylvania consumers impacted by the COVID-19 pandemic are eligible for economic relief.”

The PA CARE Package, the release says, is an extension of the recently-passed CARES Act. Under the initiative, banks and other financial institutions will work directly with the Attorney General’s Bureau of Consumer Protection to begin to offer additional economic protections.

To be part of the initiative, each institution must commit to the following terms:

• Expansion of small and medium business loan availability.

• 90-day grace period for mortgages (at least).

• 90-day grace period for other consumer loans such as auto loans.

• 90-day window for relief from fees and charges such as late, overdraft fees.

• Foreclosure, eviction, or motor vehicle repossession moratorium for 60 days.

• No adverse credit reporting for accessing relief on consumer loans.

So far, PNC, the largest bank headquartered in Pennsylvania, is the first bank to commit to the initiative, with the bank’s commitment being announced alongside the project itself.

In the release, Shapiro wrote of the importance of the program.

“We are going to beat this crisis, but to do so Pennsylvanians and our small businesses need to know their rights and utilize the resources available to them during this time of need,” he said. “Pennsylvanians needs to stay focused on keeping their families safe and healthy and these efforts by banks and financial institutions will provide important relief.”

Likewise, William S. Demchak, president, chairman and CEO of PNC Financial Services Group Inc., praised the initiative.

“We are actively working with those affected, providing a variety of solutions that make the most sense for meeting their particular needs,” he wrote. “In addition, we are activating the emergency relief programs included in the recently enacted federal CARES Act. Now more than ever, it is critical that we come together to support our customers, one another and the communities we serve.”