Comptroller urges Marylanders to request 90-day break from bills

By Mecca Evans
Baltimore Watchdog Staff Writer

State Comptroller Peter Franchot is calling for a 90-day voluntary payment holiday from monthly bills, estimating a $6 billion savings in cash for small businesses just in the areas of mortgages and auto loans.

Franchot pushed his proposal during a virtual meeting of the Maryland Board of Public Works. With Lt. Gov. Boyd K. Rutherford chairing, Treasurer Nancy Kopp and Franchot met for their second virtual meeting in response to the COVID-19 pandemic.

 “I have indicated that I believe that it is time for a 90-day voluntary payment holiday from monthly bills to help families and businesses keep their limited cash in their checking and savings accounts so that they can manage the crisis, pay employees, suppliers and [have] financial security,” Franchot said.

“If we enter into the payment holiday immediately, as I speak, we could save $6 billion in cash,” he continued, stressing that the savings comes mainly with mortgages and auto loans.

Franchot stressed that financial institutions, large and small businesses and consumers must work together as the coronavirus continues to infect and kill thousands of Americans. He said asking for forbearance from creditors can help those whose jobs have cut hours or who aren’t working altogether have the chance to stay afloat financially.

The comptroller said that although the federal government has little to do with a payment holiday, 90% of those who request the payment holiday will be met with a favorable response. He said that 42,000 people have filed unemployment claims and that the state unemployment rate may reach 20 percent, along with a 20 percent reduction in state revenue. Still, he insisted that the private sector understands the gravity of the crisis and is motivated to work with Marylanders.

“I am basically urging every individual and every business owner to get on the phone and call every single creditor and say, ‘Could I please get a 90-day payment holiday,’ ” he said. “You’ll be stunned at the positive response from the private sector.”

Franchot speculated that over a minimum of three months, the savings could run from $18 billion to $20 billion.

“Why do I like that idea so much?” he asked. “It doesn’t cost the taxpayers a penny; it involves the goodwill of the private sector and empowers individual Marylanders to take some of this financial destiny into their own hands.”