SALT LAKE CITY — SunTrust Auto Loans, the nation’s largest loan forgiveness program, said Thursday that it will stop its auto payment plan and will offer a $25 credit to any lender that files a Claim on the site.
“We believe that our customers are entitled to a fair and just outcome,” SunTrust spokeswoman Lisa Bortensaid.
“We are offering the credit to all those who have not yet made a payment, but we have no plans to end this program or offer a credit in the near future.”
Suntrust said in a news release that the company’s new plan, which began in June, includes no loan forgiveness or deferment options.
Instead, customers can apply for a federal student loan deferment, a $100 loan modification or a $1,000 loan forgiveness.
SunTarget’s loan forgiveness option requires borrowers to pay their loans off within 10 years.
SunTarget customers can also apply for $1 credit toward a down payment on their next car purchase.
For more:Read the SunTrust press release here.
SunTrust’s new program will start Oct. 31.
The new payment option is different from SunTarget’s previous loan repayment program, which offered only an initial payment and a deferment option.
The new option allows SunTarget customers to apply for up to $1 in credit toward the purchase of a vehicle they own, as well as an additional $1 for each vehicle loan that they had.
In a statement to Ars, SunTrust said that it is “deeply committed to serving the needs of our customers,” and that the new program is designed to help customers pay off their loan balances.
“The current repayment plan offered by SunTrust Auto loans does not offer any options for deferment or deferments, and SunTarget Auto loans will not be available to our customers until the program is completed,” Suntrust said.
SunTrust said it is committed to the customers who have already made a purchase and have not made any payments, and that it expects them to be repaid within the time period set forth in the program.
Sun Target customers can enroll in the new credit program by visiting SunTarget.com/credit.
If you need assistance with your loan payment, call SunTrust at 801-726-2026.