Navy Federal, Other Credit Unions Keep Members Afloat

Navy Federal Credit Union offered help in the past to members facing the potential of a lost paycheck in a government shutdown.

But the nation’s largest credit union never had to act on those programs until Monday, when it provided special, zero-interest loans to about 12,000 members who failed to receive their direct pay deposits from agencies affected by the federal government shutdown.

Navy Federal, Vienna, Va. ($95.3 billion in assets, 8.1 million members) has about 100,000 members who are affected by the shutdown that began Dec. 21. Navy Federal launched its aid program the next day, and so far 14,000 members have applied. More applications could come because members have three days from the missed direct deposit to apply for help under the program – or until Thursday in the case of Monday’s direct deposits.

The NCUA and other financial regulators issued a bulletin Jan. 11 encouraging banks and credit unions to work with consumers affected by the partial federal government shutdown, saying examiners would not criticize them for such steps.

“Affected borrowers may face a temporary hardship in making payments on debts such as mortgages, student loans, car loans, business loans, or credit cards,” the regulators’ news release said.  “As they have in prior shutdowns, the agencies encourage financial institutions to consider prudent efforts to modify terms on existing loans or extend new credit to help affected borrowers.”

Navy Federal and many other credit unions had already launched assistance programs, and in recent days others have announced programs.

On Dec. 26, Randolph-Brooks Federal Credit Union of San Antonio ($9.1 billion in assets, 792,958 members) announced it would offer eligible federal workers a no-interest government shutdown “Consumer Relief Loan” for 30 days. Existing direct deposit members can receive a 12-month loan that goes from zero interest for the first 30 days to 6% for the remainder of the term.

BECU of Seattle ($18.8 billion in assets, 1.1 million members) has a section of its website homepage labeled “assistance may be available for members impacted by the government shutdown.” The section links to the BECU’s “Member Assistance Program.”

“If you are experiencing an interruption to your income or are in need of emergency funds because of the government shutdown, services may be available to help with your financial needs,” it says. “We have options that may help you manage your BECU loan payments and we can provide access to a personal loan with up to 90 days deferred payment that can help you get through this uncertain time.”

Other credit unions offering help include:

• PenFed of Tysons, Va. ($24.1 billion in assets, 1.7 million members)
• Day Air Credit Union of Kettering, Ohio ($392.4 million in assets, 43,297 members)
• TTCU Federal Credit Union of Tulsa, Okla. ($1.9 billion in assets, 129,222 members)
• Aloha Pacific Federal Credit Union of Honolulu ($852.3 million in assets, 52,281 members).

President/CEO Vince J. Otsuka said many of Aloha Pacific’s members are federal employees who need access to extra cash during the shutdown.

“We are extremely concerned about the financial well-being of our members in this difficult and uncertain time,” Otsuka said. “We’d like to assist in any way we can to lessen their stress, and we want them to know that they can look to Aloha Pacific for help.”

Navy Federal’s program provides members who were already enrolled in its direct deposit program advances that would nearly cover the amount of past pay with no interest. Advances can be $250 to $6,000, and repayment will begin either on the day the government provides the back pay, or 60 days after the first advance.

At that point, if the shutdown has continued or the member has other hardships, they are encouraged to call Navy Federal.