John Zasada, Compliance Consulting Director, Financial Institutions Group

The National Credit Union Administration (NCUA) issued NCUA Letter to Credit Union 20-CU-02 to assist credit unions in providing relief to members coping with the coronavirus. The letter encourages credit unions to work with members by providing a measure of relief during this difficult time, such as the following:

  • Waiving automated teller machine (ATM) fees
  • Increasing ATM daily cash withdrawal limits
  • Waiving overdraft fees
  • Waiving early withdrawal penalties on time deposits
  • Waiving availability restrictions on insurance checks
  • Easing restrictions on cashing out-of-state and non-member checks
  • Easing credit terms for new loans for members who qualify
  • Offering or expanding payday alternative loan programs
  • Increasing credit card limits for creditworthy borrowers
  • Waiving late fees for credit card and other loan balances
  • Offering payment accommodations, such as allowing borrowers to defer or skip some payments, or extending the payment due dates, which would avoid delinquencies and negative credit bureau reporting caused by any COVID-19-related disruptions

NCUA stated credit unions taking these measures will not be subject to examiner criticism.