Sen. Warren Probes Wells Fargo, BofA on Shutdown Assistance Plans

These problems, she said, “are now critical, with workers missing paychecks on January 11, 2019, and each day bringing new financial strains.”

As it stands now, Warren stated, the banks have committed to do the following:

• Chase is “encourag[ing] customers affected by the U.S. government shutdown to call if they need help with their Chase mortgages, credit card accounts or car loans,” and “[s]ince December 24, … has been automatically waiving or refunding overdraft and monthly service fees on Chase checking and savings accounts if an employee’s salary from an affected federal agency was direct-deposited into the account.”
• Wells Fargo announced that “[t]he bank will work with individuals and business banking customers whose income is disrupted as a result of the shutdown,” and that “customers may qualify for forbearance or other payment assistance programs based on their individual circumstances.”
• Bank of America announced that “[o]ur Client Assistance Program is available to individuals affected by the shutdown for personalized financial assistance, tailored to their specific situation and financial needs.”
• Citi announced that “customers [affected by the shutdown] may be able to get fee and interest adjustments, as well as short-term forbearance and repayment plans or loan modifications.”

Warren stated that while she’s “glad” the banks are taking steps, the announcements “do not provide full details about the services that are actually available to affected workers and businesses.”

She asked the bank CEOs to tell her by Jan. 21 the services the banks are offering to federal employees affected by the shutdown; the types of assistance to federal contractors or contractors’ employees affected by the shutdown; assistance to other private businesses or their workers affected by the shutdown; the number of individuals or businesses that have taken advantage of this assistance; and any additional plans the banks have to provide assistance if the shutdown continues.

— Check out How the Shutdown Hurts the US Bond Market on ThinkAdvisor.