Credit Union Policy on Interest Free Loans To: "A - Division Chief and Staff", "B - Branch Chiefs and Offices", "DC - All District Chiefs", furlough@qvarsx.er.usgs.GOV Subject: Credit Union Policy on Interest Free Loans Date: Fri, 29 Dec 1995 13:20:49 -0500 From: "Gail E Kalen, Computer Specialist, Reston, VA" Good Afternoon, The following is a policy statement from our Credit Union regarding loans to members affected by the government shutdown. Of course, this statement has no bearing on operations by any other Credit Union but may be helpful in exploring interest free loans during this difficult period. Please feel free to use it if you think there may be the possibility of assisting our employees. If there are any further questions, please contact Cathy Hill at 703-648-5031 or via email (clhill). Thank you. Gail Kalen =============================================================== Furlough Policy =============================================================== If a government shutdown effects Department of the Interior employees receiving their pay checks in a timely manner or inhibits an employee's access to the Credit Union offices, the following assistance will be provided: (1) An interest free loan in the amount of a member's net paycheck will be granted until the member receives his/her paycheck or 30 days whichever comes first. This loan will have a balloon payment and the members must qualify for the loan under the Credit Union's normal underwriting standards. If the loan is not paid as agreed, the loan will revert to an unsecured loan with an interest rate corresponding to the overdraft protection rate. (2) At any member's request, if that member has not received an interest free loan, the Credit Union is permitted to extend the due date of any loan that the member has until the member receives his/her pay for the furloughed time. (3) VISA will be notified that any member may skip a payment without incurring a late penalty or be reported to the Credit Bureau as delinquent. (4) All ATM fees will be waived beginning after the first week of the furlough. (5) Withdrawal from Christmas Club accounts will be permitted without penalty or closure of the account. Approved 12/12/95 ============================================================