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Retail Banks Aiding Consumers Impacted by Shutdown CBA Member Banks are Waving Fees, Deferring Payments, and Extending Credit
Washington, D.C. (October 16, 2013) – Retail banks across the country are working with consumers impacted by the U.S. Government shutdown. A number of members of the Consumer Bankers Association (CBA) have setup programs for furloughed workers including: deferred loan payments, waved fees on certain services, and interest free payroll advance loans.
“Banks know this is a time of hardship for many of their customers. A number of our member institutions are proactively waiving fees and offering special services to ensure their customers are not punished by the Government’s fiscal impasse,” said Richard Hunt, CBA president and CEO.
A number of banks who do not have assistance programs directly related to the shutdown have announced they will work with customers on an individual basis to help them through this difficult time. In addition, many banks already have hardship programs in place which customers may utilize. Customers are encouraged to call their banks directly.
A few of the assistance programs offered by CBA member banks to customers impacted by the shutdown:
Bank of the West
Bank of the West is granting furloughed customers one-month deferrals on consumer loan payments and one-month forbearance on mortgage payments. Qualifying obligations include auto, recreational vehicle and boat loans; credit cards; and home equity loans and lines of credit.
Capital One has a financial hardship program specifically for government employees. Capital One will work with each customer individually to waive fees on out-of-network ATMs or late payments. It will also allow some customers to defer payments.
Citi is working with impacted customers to help find solutions based on their unique and specific circumstances. Citi has a range of assistance programs for which customers who are U.S. federal government employees, and any customers facing hardship, may be eligible. Assistance for those eligible includes temporary fee waivers related to monthly servicing, overdrafts, early CD withdrawals and wire transfers, as well as low-interest loans for eligible federally-employed Citibank banking customers, among others.
Citizens Bank and Charter One Bank
These banks are offering furloughed government employees assistance by allowing early access to CDs without penalty, waiving/rebating checking account and credit card fees, and personalized help with loan payments.
Chase encourages its customers who are employees of a U.S. federal agency and whose income has been affected by the shutdown to call the company to discuss certain hardship programs Chase offers and can activate based on individual circumstances. In addition, for employees of affected federal agencies whose paycheck was direct-deposited to their Chase accounts in September 2013, Chase will automatically waive fees on their checking and savings accounts that could be incurred as a result of a lower than expected account balance. For these direct deposit customers, Chase will also not charge any fees for late payments on credit cards, auto loans, mortgages, or home-equity loans.
Firs Niagara is closely monitoring the events in Washington and is committed to assisting all First Niagara customers who may be experiencing difficulties as a result of the partial shutdown of the Federal Government. They have established a dedicated Customer Service team to assist impacted customers with questions regarding bank fees, loan payment deferrals or other related issues. They can be reached at 1-855-275-3634.
Key Bank has a borrower's assistance program in place to help customers encountering financial problems. This includes federal employees hurt by the shutdown.
At SunTrust, our purpose of Lighting the Way to Financial Well-Being means helping our clients find solutions in difficult times. Various options are available to help clients facing financial difficulty as a result of the government shutdown. These include early access to CDs without penalty, as well as, monthly maintenance fee refunds on checking accounts. Options are available for clients having difficulty making their consumer loan payments that include late fee waivers and payment assistance; and for clients experiencing difficulty making their mortgage loan payments, all are assessed and provided on a case-by-case basis.
TD Bank has created a program to allow eligible customers access to funds in the amount of their total monthly paycheck (up to $1,000) from their account with no overdraft fees charged during the duration of the program. In addition, the bank is waving fees on: overdraft- Paid or Return (non-sufficient funds), sustained OD, monthly maintenance, non-TD ATMs, ATM balance inquiries, Savings Overdraft Protection, and Moneyline transfer fees.
In the event of a debt ceiling impasse that threatens military pay, USAA Bank is prepared to offer a zero-interest, 0% APR payroll advance loan to members of the active-duty military, including the National Guard and Reserves, plus military retirees and VA and Social Security recipients who have existing direct deposit of government payments at USAA Bank. The loan would be approximately equal to their expected direct deposit or half of their expected direct deposit if they are paid monthly.
USAA has several other options available to those members who receive a government paycheck including: special payment arrangements, refunds of certain fees for credit cards and other USAA Bank products, early withdrawal of funds from certificates of deposit without penalties, and billing arrangements for insurance products.
The Consumer Bankers Association (CBA) is the trade association for today's leaders in retail banking - banking services geared toward consumers and small businesses. The nation's largest financial institutions, as well as many regional banks, are CBA corporate members, collectively holding two-thirds of the industry's total assets. CBA’s mission is to preserve and promote the retail banking industry as it strives to fulfill the financial needs of the American consumer and small business.