What strategies should we consider in working with members during this time?

OCU encourages credit unions to work with affected members in addressing the impact and challenges resulting from COVID-19.  Strategies to consider may include the following:

• Waiving or reducing fees (ATM, overdraft, early withdrawal penalties on time deposits, late fees on loans, etc.)

• Increasing ATM daily cash withdrawal limits

• Offering payment accommodations (deferring payments, skip-a-pay, due date extensions, etc.)

• Increasing lines of credit, credit card limits, etc. for credit-worthy borrowers

• Offering or expanding payday alternative loan programs

• Easing credit terms for members who qualify

• Easing restrictions on cashing out-of-state and non-member checks

• Waiving availability restrictions on insurance checks

• Adjusting or altering terms on existing loans where appropriate

• Easing terms for new loans where prudent

In evaluating strategies, credit unions should not assume undue risk and should be able to adequately monitor and track strategies in relation to the credit union’s overall risk profile and the net worth position.  Assistance should always be provided in a safe and sound manner to members facing short-term setbacks.  Additional information on member services and safety/soundness considerations was issued in OCU Letter 2020-CU-05.