Military credit unions appear to be stepping up to the plate quickly in extending low-cost interest loans to personnel and their families facing no paychecks in the face of a government shutdown but "haven't seen much from the banks," the chairman of the Defense Credit Union Council, Frank Padak, said today.
At scores of other CUs both military and otherwise across the U.S., Padak said, the industry is doing its job in "in providing relief in case of real hardships" to government workers and military families. Padak is president/CEO of the $694 million Scott CU in Collinsville, Ill.
He noted a prominent article in the Wall Street Journal today citing $44 billion Navy Federal's offer to cover the April 15 direct-deposit paychecks of military customers if a shutdown occurs tonight.
"By covering the mid-month pay, come April 15 our active duty members will not see a difference in their direct deposit amount, as if there were no shutdown," Cutler Dawson, president/CEO of Navy, is quoted in the WSJ piece.
Padak said his CU is also offering the six-month free interest loan covering the pay period with renewable features should the impasse linger.
Dawson said DCUC began alerting its members earlier this week on the prospect of a shutdown and programs that might be offered with updated emails going out yesterday.
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