WASHINGTON–With great uncertainty surrounding the federal government shutdown, credit unions across the country have stepped up with offers of assistance to those being affected, especially federal workers.
NCUA, meanwhile, remains open and has issued a statement reassuring members that their deposit insurance remains in place.
The agency is also advising credit unions to plan to respond to members’ questions while also meeting their needs during the shutdown, including:
- Ensuring policies provide flexibility to respond to members’ financial needs.
- Preparing for service interruptions if the shutdown affects access to credit union offices located on federal property.
- Prudently working with affected members, including providing advances to individuals receiving direct deposits from the federal government.
- Developing contingency plans with respect to participation in government programs that may be affected by the federal government shutdown.
- Communicating response plans to members, staff and volunteers in a timely manner.
How CUs Are Responding
Among the responses already announced by credit unions are:
- In Merritt Island, Fla., Launch FCU said it will assist those who have been furloughed with interest-free loans of up to $3,000 with terms out to one year. “By offering a 0% loan based on their loss of pay, we hope that we can help them continue to make their bills and feed their families,” said LSFCU President and CEO Joe Mirachi.
- Navy FCU, Vienna, Va., announced a plan to cover direct deposit for eligible members. The credit union is offering assistance to Active Duty military, Coast Guard and DoD civilian members who have an established direct deposit with Navy Federal. Those members can opt in to a special program and receive coverage of their direct deposit of net pay if they’re affected. Navy Federal has more than seven-million members.
- In Washington, Congressional FCU if offering “Furlough Solutions” that include a “Relief Line of Credit” with an initial rate of 0% during the 60-day draw period, after which it reverts to 4% on the remaining 36-month term. Congressional FCU is also offering line-of-credit increases, payment deferments on existing loans, quick delivery on credit and debit cards, along with checks; the waiving of early withdraw penalties on certificates, and access to free one-on-one BALANCE financial coaching. CFCU noted that during the 2013 government shutdown, more than 600 Congressional Federal members took advantage of its Furlough Relief programs.
- In Portsmouth, N.H., Service CU said for those members with direct deposit, it will post credits to members based on the postings nearest to Jan. 1, 2018. The credit of that amount will take place on or before Feb. 1, 2018. “This will apply to all military, Government Service (GS) civilians and social security recipients. Once the government resumes posting payrolls, Service Credit Union will reverse this special one-time posting that was made,” SCU said. For members who do not receive the automatic direct deposit posting, Service Credit Union is offering a no-interest, six-month loan up to $3,000 to those who qualify.
- Hanscom FCU, which serves Hanscom Air Force base in Massachusetts, is offering qualified federal workers a “Lifeline Loan," which has a 0% APR on terms to 60 days and up to one month’s net payroll up to $5,000. It is also waiving penalties for premature withdrawals on term share certificates and allowing qualified members to skip consumer loan payments with no fee. For those needing more than 60 days to repay, the loan will convert to a 12-month term at 8.49% APR.
- Chartway FCU, which has membership concentrations in Virginia, Texas and Utah, is offering a number of programs to provide support to any members who are furloughed during the shutdown.
- In Riverdale, Utah, America First Credit Union is providing no-cost counseling services, loan extensions and other free and low-cost benefits. Its Furlough Assistance Loan offers up to $3,000 with terms up to seven months, with one month interest free. The loan has a 0% interest rate for the first 30 days and then a 4.99% interest rate that begins to accrue on day 31.
- In California, Edwards FCU is offering up to $5,000 at 2% with a one-year term as well as offering members the opportunity to skip any loan payment with no fee.