Bringing credit union shutdown stories to key policymaker
Credit unions’ guiding principle of increasing the financial stability of members is active through the government shutdown. America’s Credit Unions President/CEO Jim Nussle shared how the association is leading credit unions in this focus with House Financial Services Committee Ranking Member Maxine Waters, D-Calif., in a letter sent Tuesday.
Last week, Waters requested information from over 15 financial services industry leaders on how they are assisting consumers affected by the government shutdown. America’s Credit Unions was the only credit union association recognized her official request.
“One thing almost all of our member credit unions tell us is that they will work with individual members on a case-by-case basis to meet their unique needs during the shutdown. This personalized service fits in with the credit union focus on serving the financial needs of the member,” Nussle wrote. “As these efforts could lead to credit unions offering non-standardized products, we would encourage you in your oversight role to urge financial regulators such as the NCUA not to penalize institutions during future examinations for these efforts, and are pleased that you have been in touch with financial regulators as well.”
Credit union efforts include:
- Direct financial counseling with members to develop a plan that fits their needs, from budgeting and debt consolidation to adjusting loans and accessing emergency funds;
- Reduced or no interest payroll advances, 0% APR loans, deferred payments, and other emergency options;
- Options designed to help without incurring additional fees, whether it is skip-a-payment, reduced interest on loans, loan modifications, or more; and
- Encouraging potential members who are eligible to join and access services and financial guidance during this challenging time.
America’s credit unions has been leading efforts to inform lawmakers of the work of credit unions, with Nussle writing to all members of Congress last week with similar information on products and services credit unions are offering to members.
Tuesday’s letter also shared examples from credit unions in Waters’s home state of California that are offering 0% APR payroll assistance loans, loan deferrals, fee waivers, loan skip-a-payments, and more.
America’s Credit Unions is collecting stories showing how credit unions around the country are stepping up during the shutdown for members. Credit unions are encouraged to fill out the survey on the Government Shutdown Assistance page to help show the collective impact of the overall movement.
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