USAA and Pentagon Federal Credit Union Ready to Support Members if Default Happens

USAA and Pentagon Federal Credit Union Ready to Support Members if Default Happens

Many banks and credit unions that support military personnel and their families are announcing that they will continue to honor direct deposits and other cash advances if there is a government default.

Many banks and credit unions that support military personnel and their families are announcing that they will continue to honor direct deposits and other cash advances in the case of a government default.

Pentagon Federal Credit Union has announced that military or civilian employees and retirees of the federal government, as well as Social Security recipients will receive their regularly scheduled payments in August even if the government defaults. Members will have to repay these advances within 90 days of when the advance was made.

Navy Federal Credit Union is offering a similar program to all of its members. Navy will also have counselors available to work out loan payments should its members have trouble.

Although not a credit union, USAA is providing the following support:

  • A one-time payroll advance for payroll scheduled to be deposited on August 15 for active duty military personnel, including activated Guard and Reserves.
  • Waive property and casualty insurance policy late fees or bank nonsufficient fund fees and suspend nonpayment cancellations for members who are on active duty, including those actively serving the Guard and Reserve, for 30 days where legally permitted.
  • For non-active members, USAA will offer special payment arrangements on loans, waiver of credit card late fees, refunds for non-sufficient funds and overdrafts, lines of credit increases.

If you are a government employee who thinks your pay check might be in jeapordy, check with your agency credit union to see if they will advance funds or be flexible with your payments.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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