October 15, 2013
The Honorable Maxine Waters
Ranking Member
House Financial Services Committee
2221 Rayburn House Office Building
Washington, D.C. 22515
Dear Ranking Member Waters:
On behalf of the National Association of Federal Credit Unions (NAFCU), the only national trade association that exclusively represents the interests of our nation’s federal credit unions, I write in response to your October 11, 2013, letter to make you aware of the extensive assistance credit unions have provided, and are continuing to provide, to those affected by the current government shutdown.
As you know, credit unions are member-owned not-for-profit financial institutions. As such, they are completely and totally dedicated to serving the needs of their member-owners. From their inception, credit unions have, by their nature, tailored the services they provide to meet the specific needs of their membership.The ultimate goal of a credit union is the financial success of its members, not maximizing profits for outside investors.
With that in mind, in the days leading up to the shutdown, NAFCU contacted our membership and notified them of the hardship some of their members may face in the case of a government shutdown. Similar to the immediate response we saw when credit unions took the initiative to help members faced with sequester furloughs, credit unions across the nation have responded in force to assist credit union members that are being negatively impacted by the government shutdown. In preparation for a government shutdown, many credit unions announced they would fund the pay of servicemembers in the event there was an interruption in their pay. While pay issues have been resolved for servicemembers, thousands of federal employees are still being impacted.
Credit unions have offered solutions for them as well. Some will be funding pay based on direct deposits at zero percent interest. Many others have offered free financial counseling, zero or low interest loans and lines of credit, loan payment deferments, penalty free withdrawal on certificates, as well as reduced and eliminated some fees including courtesy pay programs. Additionally, credit unions are working with their members on an individual basis to craft solutions that fit each member’s specific needs.
In an effort to make this information more readily available to the public, NAFCU created a website listing credit unions that we have become aware of that are offering specific programs. The list can be found at www.nafcu.org/shutdownassistance. The list is not exhaustive, and there are certainly more credit unions offering assistance, oftentimes on a one-on-one level. We at NAFCU encourage every credit union member that has been impacted to contact their credit union to find out what assistance may be available to them.
Our nation’s credit unions consistently stand with their members in times of need, and the current government shutdown is just one more example of credit unions carrying out an industry wide motto of people helping people. If you have any questions, or my staff and I can be of any assistance, please don’t hesitate to contact me or NAFCU’s Associate Director of Legislative Affairs and Military Liaison Quincy Enoch at 703-842-2261 or qenoch@nafcu.org.
Sincerely,
B. Dan Berger
President and CEO
Enclosure: Screenshot of www.nafcu.org/shutdownassistance