The National Highway Traffic Safety Administration has announced that it will forgive more than $1 billion in auto loans, including a loan that was given to the PNC auto loan company.
The agency, which regulates the auto industry, announced the new rule in a press release on Thursday, adding that the loan was loaned to PNC and the borrowers are all eligible for the forgiven loan.
“The Department of Transportation has taken action to help people who are in need of loan forgiveness to obtain a loan and is encouraging all auto lenders to help these borrowers obtain loans,” NHTSA Administrator Brian McCarthy said in the release.
“These actions will make it easier for people who have been struggling to repay their auto loans to receive the forgiveness they deserve.”
NHTSA also said that it is making changes to its existing loan forgiveness program, which had previously offered loans for the purchase of used vehicles.
Previously, the agency would forgive the loans of borrowers who had used the vehicle for five years or less.
However, the program would not allow borrowers to get loans for vehicles that had been in service for less than five years, including the Nissan Leaf, Ford Fusion and Chevrolet Volt.
To get the loan, borrowers would have to show they paid back at least $5,000 in loans and pay the loan back within 10 years, as well as paying back the loan in full within 30 years.
In a press statement, NHTS said that the new policy was a significant improvement over its previous guidelines.
“We are pleased that the Department of Justice and the Federal Trade Commission have concluded that the current guidance is in the best interest of consumers and borrowers,” the agency said.
Nissan’s car was recently used in a high-profile incident when a woman was injured by the vehicle.
On Thursday, Nissan CEO Carlos Ghosn said the company would be taking steps to address the issue, including reducing the number of recalls.
“In light of this incident, we have removed our dealer network in the U.S. and we will be conducting additional review of all vehicles,” GhosNas statement said.