Credit Union National Association (CUNA) today sent members of the Senate Banking Committee information on furlough relief programs that credit unions are providing their members who have been impacted by the government shutdown. The trade association advocating on behalf of America’s 115 million credit unions reached out to Senators Robert Menendez (D-N.J.), Brian Schatz (D-Hawaii), Chris Van Hollen (D-Mary.), Catherine Cortez Masto (D-Nev.) and Kyrsten Sinema (D-Ariz.) after they requested more details from financial institutions on how federal workers are getting assistance.
“Every day, credit unions help their members afford life and, in times of financial crisis, they help them survive. Many have a long history of providing assistance to their members affected by federal or state government shutdowns, plant closures, company furloughs, mergers, and failures. It is what we do,” wrote CUNA President/CEO Jim Nussle. “During times of financial crisis, a credit union’s support of its members helps to keep food on the table, gasoline in the car, children in daycare, and families in homes. This government shutdown is no different.”
America’s credit unions, without having to be prompted, are embodying their philosophy of “people helping people” by ensuring that all credit union members have access to low- or no- interest loans with generous repayment terms.
CUNA estimates that there are at least 500 credit unions that serve a field of membership that includes federal, state or local government employees. The number of credit unions that serve one or more government employees is likely significantly higher.
“Credit unions are honored to stand with their members affected by this shutdown, and proud that, unlike other financial services providers, no one had to ask us to do so,” Nussle added.
Furlough relief programs are being offered by credit unions across the country, including assistance and solutions such as:
- Offering zero interest personal loans;
- Extending existing loans;
- Providing free financial counseling, debt management and financial education;
- Waiving early withdrawal penalties on certificates of deposit;
- Allowing members to skip a payment on current loans;
- Offering loan modification programs;
- Providing credit protection services;
- Offering loans matched to pre-existing direct deposit;
- Providing mortgage loan forbearance;
- Increasing credit lines temporarily;
- Supporting community efforts to provide assistance; and
- Offering individual financial solutions.
CUNA is currently aggregating a list of hundreds of credit unions that are providing assistance to their members, updating the list daily as responses are received. CUNA has also armed Members of Congress with information on credit unions in every state, congressional district and community that are stepping up to serve those in need.