Weekly Wrap: second-quarter earnings season kicks off

This week Bank of America, Chase Auto, PNC Financial, U.S. Bank and Wells Fargo Auto all reported increases in allowances for credit losses despite a dip in delinquencies and charge-off rates, a trend the banks are largely attributing to robust deferral programs aimed to slow the economic damage wrought by COVID-19. In fact, many auto lenders have now transitioned to case-by-case deferral programs to help consumers with payments. Still, there is concern that the repossession industry may not be equipped to handle an expected increase in attempted recoveries due to the coronavirus pandemic.