January 11, 2019
Department of Banking Encourages Financial Institutions to Work with their Customers During Federal Government Shutdown
HARTFORD — In light of the current federal government shutdown and on a day when many federal employees will miss their first paycheck, Banking Commissioner Jorge Perez encourages financial institutions to work with federal employees and other affected customers.
Commissioner Perez joins federal regulators – including the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), The Office of the Comptroller of the Currency, (OCC), The Consumer Financial Protection Bureau (CFPB), and The National Credit Union Association (NCUA) – in asking financial institutions to consider “prudent” workouts for existing loans and extending new credit to help affected borrowers. These efforts on the part of financial institutions will not be subject to examiner criticism.
“My biggest concern is for those, through no fault of their own, are now not receiving a paycheck during the shutdown,” said Commissioner Perez. “This has direct repercussions on their ability to pay their monthly bills and living expenses. In particular, those consumers that have money automatically deducted from their accounts may have an issue with meeting monthly payments on loans if that money is not available.”
Consumers affected by the shutdown should make sure to contact their financial institution as soon as possible to minimize any impact.
“Don’t wait,” stated Commissioner Perez. “My best advice is to work with your financial institution, and I am encouraging all institutions to do their best to assist their customers during this trying time.”
Matt Smith, 860.240.8105