Sen. Kyrsten Sinema asks lenders to work with furloughed workers
Jan 24, 2019, 1:40 PM
PHOENIX – With the government shutdown eclipsing the one-month mark, U.S. Sen. Kyrsten Sinema of Arizona is urging financial institutions to accommodate federal workers whose paychecks remain in limbo.
Sinema was one of five Democratic members of the Senate Committee on Banking, Housing, and Urban Affairs to sign a letter to banks, credit unions, consumer lenders and consumer loan servicers.
The senators want creditors to make exceptions for furloughed workers who are in danger of falling behind on payments because of the shutdown, which started Dec. 22.
Lenders were asked to make the following accommodations instead of expecting workers to make up any missed payments as soon their paychecks resume:
- Allow customers to defer or modify payments.
- Extend no or very low interest credit.
- Waive fees and penalties.
- Waive high interest rates on credit card debt.
- Modify the terms of existing loans.
- Immediately suspend reporting missed or late payments to consumer reporting agencies.
- Inform applicable borrowers of the availability of homeownership and credit counseling.
“Ultimately, we hope your financial institutions not only comply with what is legally required to help distressed borrowers, but will go above and beyond to provide relief for customers impacted by the shutdown,” the letter read.
The letter is Sinema’s latest missive in response to the shutdown, which has stretched on while President Donald Trump and Congress remain at a standstill over the $5 billion-plus in border wall funding that Trump demands as a term of reopening the government.
She’s also written to the heads of the following federal agencies about the shutdown’s impact on Arizonans:
- Department of the Interior about national park maintenance.
- Forest Service about wildfire preparedness.
- Office of Management and Budget about roads in tribal communities.
- The Department of Agriculture about food assistance programs.
- Food and Drug Administration about food and drug safety.
