Lawmakers’ resolution asks financial institutions to aid federal workers
BY MARCIA DAVIS
Democratic lawmakers are calling on financial institutions to give federal workers a break on their bills.
Lawmakers didn’t reach a deal that would reopen the government this weekend or raise the debt ceiling, but 30 House Democrats are signed on to a resolution urging banks and other financial institutions to be flexible with customers who are government employees and may be experiencing financial hardship because of the partial shutdown of the U.S. government.
The resolution calls for organizations to identify federal workers in their customer base and take initiatives such as temporarily waiving or reducing late payment penalties, a move that lawmakers hope will help workers protect their credit standings.
The effort is led by California’s Rep. Maxine Waters and Maryland’s Reps. Steny Hoyer and Chris Van Hollen.
“The shutdown of the Federal Government has forced thousands of people into financial distress through no fault of their own,” said Waters, ranking member of the House Financial Services Committee. “Financial institutions should not penalize – or profit from – those affected by these difficult circumstances.”
The resolution follows five financial organizations that last Wednesday urged financial institutions to work with federal employees affected by the shutdown.
“Prudent workout arrangements that are consistent with safe-and-sound lending practices are generally in the long-term best interest of the financial institution, the borrower, and the economy,” the groups said in an Oct. 9 news release.continue reading »