Data shows alarming surge in requests for financial aid in Canada and the US

LendingArch completes US launch amid explosive rise in demand for debt relief CALGARY, AB, July 29, 2020 /PRNewswire/ – A…

LendingArch completes US launch amid explosive rise in demand for debt relief

CALGARY, AB, July 29, 2020 /PRNewswire/ – A 1000 per cent increase in demand for debt relief and loan refinancing among Canadians has accelerated plans for online lending platform LendingArch to move up its US launch. In less than four weeks since opening its doors south of the border, the company has blown past projections, already signing 30 providers and facilitating loans and services for more than 15,000 customers. The expansion comes amid increased demand by US consumers looking for loans, refinancing and financial aid and related services.

Since the shutdown began in mid-March, Canadian demand for assistance via LendingArch has exploded: The platform has seen a 200 per cent surge in visitors to the site, a 10-fold increase in demand for debt relief, and a 10-fold increase in demand for bankruptcy service leads. Realizing the need was equally acute in the US, the platform accelerated its expansion plans and opened its doors mid-June.

«COVID-19 has been a significant financial strain on many American families, putting many in a precarious financial position with no defined timeline for when it will end,» said Paul Hadzoglou, president of LendingArch. «We’re in a unique position to help them through this difficult time and are happy to be able to alleviate some of their financial stress while we all navigate this challenging global pandemic.»

Now in its fifth year of operations in Canada, LendingArch offers various categories to US consumers, including  auto loans , home security services and bankruptcy services. These are largely needed as the natural market conditions created by COVID-19 continue to affect Americans. As cases increase, unemployment soars, and millions require financial assistance, restructuring, new loans or advice on how to handle their debt loads.

Within Canada, the numbers are equally alarming:

  • Credit card inquiries have increased by 200%
  • Bankruptcy inquiries have increased by 1000%, however many seeking bankruptcy protection can not afford the trustee fees and therefore do not qualify
  • Similarly, debt relief inquiries have gone up tenfold, but many do not currently have sufficient income to qualify for the monthly payment structure
  • Loan Refinancing requests in all categories – from auto to small business – are up 500%
  • Personal loan inquiries have increased 2000%
  • With most people getting their health insurance through their employers, health insurance inquiries are up 800% amid high unemployment

In the US, LendingArch has already signed more than 30 agreements with auto dealership groups, debt relief counsellors, bankruptcy attorneys and lenders to provide an array of services within both the financial and non-financial sectors. The company is focused on educating Americans and helping them to obtain the loan or credit products they need during this period of uncertainty.

As a digital provider, the platform is also helping customers maintain social distancing by offering its contact-free service to apply for loans or debt relief services without leaving the comfort and safety of their homes. Those applying for auto loans can even have the vehicle delivered directly to their homes in certain States.

About LendingArch

LendingArch is an online platform that helps North Americans find and compare rates for everything from personal loans to credit cards to auto loans. LendingArch combines expert advice and the best financial tools, empowering its customers to make the smartest financial decisions. LendingArch was recently named 2019 Fintech of the year by AI Global and is one of the fastest growing financial platforms for consumers in North America.

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SOURCE LendingArch Financial Inc.