WASHINGTON (10/10/13)--The National Credit Union Administration on Wednesday joined its fellow financial regulators to urge credit unions and other financial institutions to work with customers affected by the federal government shutdown.
"Prudent workout arrangements that are consistent with safe-and-sound lending practices are generally in the long-term best interest of the financial institution, the borrower, and the economy," the agencies said in a release. The release also encouraged consumers impacted by the shutdown to reach out to their lenders immediately if financial hardship occurs.
The release was co-signed by NCUA, the Federal Reserve, Consumer Financial Protection Bureau, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.
The regulators noted that borrowers affected by the shutdown "may face a temporary hardship in making payments on debts such as mortgages, student loans, car loans, credit cards, and other debt."
Credit unions and other financial institutions should "consider prudent workout arrangements that increase the potential for creditworthy borrowers to meet their obligations."
Many credit unions have already heeded this call, and are helping their members work through this government impasse.
Dozens have reported to News Now
on their efforts, and others have been spotlighted in local news coverage. A few examples of the measures credit unions have taken include:
Cabrillo CU, San Diego, Calif.'s decision to roll out a 0% loan, with a line of credit equal to an employee's last full paycheck, up to $2,500;
Offering advice through the media to the general public about the best way to manage finances during the furloughs;
Hawaii State FCU, Honolulu's, offering of penalty-free term share withdrawals and one- to three-month deferment of loan payments;
Community CU, Rockledge, Fla.'s, offering of 0% loans and fee waivers on early withdrawals on share certificates; and
Coloramo FCU, Grand Junction, Colo.'s, waiving of a $30 Skip-a-Payment fee and offer of up to three months of personal loans in the amount of a member's paycheck.
Use the resource link for more coverage of credit union efforts to support furloughed members.