FRANKFORT, Ky. – The Kentucky Credit Union League has released a “Thank You” video aimed at credit union employees, whom the league is calling “financial first responders.”
During this time of crisis, the league said Kentucky’s credit unions continue to assist members and communities through the economic uncertainty, including deferring loan payments, providing low interest short-term loan options and offering financial counseling, Kentucky credit unions are providing real solutions and essential services to those in need, the KCUL said.
“We are so proud and extremely grateful for our credit unions,” said Debbie Painter, Kentucky Credit Union League president. “ We want all of our ‘financial first responders’ to know that we appreciate their sacrifice and their service to their members.”
To watch the video, click here.
P&S FCU Provides Relief Loans, Supports Medical Workers
In New York, Polish & Slavic FCU said it continues to offer all of its products and services without any interruption during the pandemic, and has been providing assistance through loan modifications to members who are in difficult financial situation and are experiencing problems paying back their loans. As of April 22, 388 members asked for such relief: 191 mortgage loans and 181 consumer loans were approved for a postponements or reduced payments.
“One of the first decisions taken at the beginning of the COVID-19 crisis was the waiver of a majority of fees and penalties associated with maintaining an account at our credit union. We are aware that, in the current situation, even small amounts can mean a lot,” said PSFCU CEO/President Bogdan Chmielewski.
PSFCU said it has pledged not to garnish the members’ Economic Impact Payment, if and when such members overdraw their accounts.
PSFCU is participating in the SBA’s PPP, saying through April 22 it had assisted 179 in applying for the loans.
In addition, to honor the medical community, PSFCU sent out special food parcels to doctors, nurses, hospital workers and nursing home attendants.
Financial Counselors at Heartland CU Assn. CUs Offer Advice
In Kansas and Missouri, the Heartland Credit Union Association has surveyed financial counselors among its member CUs for their advice as hundreds of thousands of people in the state are thrown out of work by the coronavirus pandemic.
Among the advice collected by the association:
- Budgeting with less income. “Allocate the funds that you do have to your most important expenses, such as housing, utilities, food and transportation,” advised Jennifer Remes, marketing analyst and certified educator in personal finance at Arsenal Credit Union in Arnold, Mo. Remes further urged consumers to keep spending low and save as much as possible in case of unexpected expenses.
- Make the most of resources. Davine Conover, a business development specialist with Ozark FCU in Popular Bluff, Mo., said households should make the most of every resource by meal planning, conserving electricity and so on. “Everyone does their part to ensure that nothing is wasted. They should also reduce entertainment expenses—bored is not an excuse for spending money.”
- Temporary tactics for challenging times Davine further noted short-term changes in financial habits can also help, especially if one is anticipating returning to work as soon as shelter-in-place orders are lifted. Davine notes that this may be a good time to reevaluate your spending habits.
- Contact Your CU. Kyle Hudson, VP-marketing with Edison Credit Union in Kansas City, Mo., urged consumers to reach out to the financial institutions with which they have loans to “see if they can be extended or some agreement of payment made. This will keep you somewhat on track without falling far behind.”
- Review automatic payments. The HCUA said several of the counselors suggested reviewing auto-pay and subscription-based expenses.
“Review the expenses you have set up for auto-pay,” said Chris Wolgamott, director of financial education for Meritrust Credit Union in Wichita. “In an emergency, you want to remove auto-pay from as many things as possible so you can choose when things get paid."
In Springfield, Mo., Lori Johnson, chief experience officer with TelComm Credit Union, recommends cutting down on subscription-based bills like the gym, cable, magazines, cell phones, Internet and meal delivery kits, and keeping only the most essential services. She added that people should also consider stopping contributions to Christmas club or travel accounts.
“Do not raid your retirement accounts or take out a 401K loan,” warned Johnson.
- Budgeting Tool. Several of the counselors urged consumers to use budgeting tools to manage expenses, such as Mint, which offers an online calculator.
Stimulus payments. The credit union counselors urged consumers remember their budgets before spending any of their checks from the government. “Prioritize where those funds need to go before doing anything with them,” says Johnson. “Shelter, food and medicine should be the top priorities right now.”
Jack Henry Says Client FIs Processed 38,000 PPP Loans
In Monett, Mo.,Jack Henry & Associates said its 280 financial institution clients have partnered with Jack Henry Lending to digitally capture and conditionally approve Paycheck Protection Program (PPP) loans. During the first round of the PPP, Jack Henry said it has processed more than 38,000 PPP loan applications, totaling more than $4 billion in potential funding. Its bank and credit union clients received an average of 134 applications each, and completion rates are very strong, averaging 80%, the company said.
Jack Henry Lending said it expanded its commercial lending suite of solutions in a matter of days to offer the capabilities banks and credit unions need to efficiently support these loans and manage the high volume of loan applications generated by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The fully brandable solution enables financial institutions to immediately deploy online applications for PPP loans and render quick conditional decisions based on Small Business Administration (SBA) requirements, the company said.