ALEXANDRIA, Va.—Hardship loans and skip-a-pays are just some of the actions the $1-billion US Senate FCU is undertaking to help its members through “uncertain times,” as other credit unions announce additional programs of their own, including appointment times reserved for older members.
At US Senate FCU, “Our hardship loan requires no documentation,” said CEO Timothy L. Anderson. “The loan is open to anyone who would like to apply. There is a balloon payment at the end of 90 days.”
For skip-a-pay, members select “skip-a-pay” from the CU’s online banking platform, but must call-in and request a refund of the fee. USFCU is also waiving early withdrawal penalties on regular certificates of deposit. Loan extensions are being granted. Real estate loan modifications, “when economics make sense,” are being done, said Anderson, who noted the CU is also waiving late fees, NSF fees and ATM fees.
“As we continue to respond to our new norm, we are making decisions to ensure we serve our members, while protecting the health and safety of credit union staff, volunteers and stakeholders,” said Anderson. “To do that, we are moving to a work from home environment for our employees. We activated our telework plan, where we can run all aspects of the credit union remotely. These are unusual times. In a crisis such as this, employees don’t care about organizational profits, strategic plans, etc. Maslow’s Hierarchy of Needs become paramount. We all fall back on the number one need, physiological—safety, self-preservation. Ensuring staff and members are healthy and safe is one of my highest priorities as a CEO.”
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Other Actions Being Taken
MDDCUA Highlights Variety of Efforts
In Columbia, Md., the Maryland and DC Credit Union Association (MDDCCUA) issued a statement saying its 140 member credit unions are offering a variety of financial assistance programs, including low- and no-interest loans, offering fee-free loan deferrals, and finding other individualized solutions to help ensure consumers facing financial hardship due to COVID-19 have the resources they need.
“We’ve provided guidance to our lending and collections areas that they need to be listening for members who have been financially impacted by the pandemic,” said Jim Whipp, president/CEO of Catsonville, Md.-based Five Star FCU.
This may include offering no-cost skip-a-payments, waiving fees, or re-writing a loan with new more flexible or affordable terms. We’re focused on getting our members through this.”
Added John Bratsakis, president/CEO of the MDDCCUA, “Credit unions are stepping up to help consumers as they did during government shutdowns, natural disasters, and the 2008 financial crisis. Providing accessibility and maintaining a high-level of confidence in the financial system is a top priority for credit unions, along with protecting the health and safety of credit union staff and the consumers they serve.”
ACULE Sharing Best Practices, Collecting Stories
Brad Miller, president of the Association of Credit Union League Executives (ACULE), said the organization has gathered 260 responses from credit unions related to what credit unions are doing in response to the coronavirus to help members. Some of those responses are being shared with Congress, while best practices, such as in social media and other messaging, are being shared with other credit unions.
Appointments Reserved for Older Members
In Oklahoma, Tinker FCU said it is opening its offices exclusively for appointments by members 60 and older from 8 a.m. to 9 a.m. each morning.
Connecticut’s CUs Issue Statement
In Meriden, Conn., the Credit Union League of Connecticut (CULCT) has issued a statement reminding its members and all consumers of financial services that their deposits are safe and they remain accessible.
“Our message today to everyone who has an account with a credit union or a bank is a simple one: Your money is safe and insured, and we will get through this together,” CULCT CEO Bruce Adams said. “Credit unions understand the link between personal health and financial stability. People need to know that their credit union is here for them; as the original community financial partners in Connecticut, we stand with you every step of the way.
“The tone has been set by Governor Lamont for all us—calm with vigilance,” Adams continued. “His leadership and responsiveness have been invaluable in helping Connecticut work through this crisis, and the state’s credit unions are right there with him.”
The CULCT further reminded members that the NCUSIF insures deposits up to $250,000 and that there is no need to rush to remove deposits.
Adams said credit unions across the Nutmeg State are already stepping up to help members during the COVID-19 outbreak, including providing low-interest emergency relief loans, skip-a-payment programs and fee waivers. For those who may find themselves in a higher health-risk population and need to limit social contact, he emphasized the convenience and safety of the online and mobile services that can complete most financial transactions.