Banks give breaks to furloughed workers

  @blakeellis3 October 3, 2013: 4:23 PM ET
furlough banks

Banks are giving breaks to federal workers impacted by the government shutdown.


As hundreds of thousands of federal workers remain furloughed and are uncertain how long they'll have to go without pay, some banks are stepping up to offer financial help.

TD Bank (TD) announced Thursday that customers impacted by the government shutdown can get a loan for the amount of their monthly paycheck (up to $1,000) without paying interest or fees. They will also be reimbursed for credit card late fees and can qualify for special mortgage payment plans.

The assistance program will last between Oct. 10 and Nov. 2 (if the shutdown doesn't end before then) and is available for those with accounts in good standing. Customers just need to show their furlough papers, government ID and previous two pay stubs.

"Uncertainty surrounding the government shutdown has our customers concerned," said Nandita Bakhshi, head of Retail Distribution and Products at TD Bank. "[O]ur hope is that we can make it easier for our customers to cover their bills and make ends meet if they're not receiving their pay."

Related: Don't miss these shutdown freebies

Capital One (COF, Fortune 500) has a financial hardship program that is now being advertised for government employees. The bank will work with each customer individually to waive fees out-of-network ATMs or late payments. It will also allow some customers to defer payments.

Other banks, including Chase (JPM, Fortune 500), Wells Fargo (WFC ), Bank of America (BAC, Fortune 500), Citi (C, Fortune 500), Discover (DFS, Fortune 500) and U.S. Bank (USB, Fortune 500) said they will work with impacted workers on a case-by-case basis and encourage customers to call them directly.

"We are monitoring the situation closely and are prepared to help any customer facing financial difficulty as a result of the government shutdown," Bank of America said in a statement. "Every situation is different, so if customers are having difficulty, we ask that they contact us so we can work with them on a solution."

The government shutdown began Tuesday, and an estimated 800,000 workers have been furloughed without pay. To top of page

Join the Conversation
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.32%4.26%
15 yr fixed3.36%3.27%
5/1 ARM3.37%3.27%
30 yr refi4.31%4.24%
15 yr refi3.34%3.25%
View rates in your area
Find personalized rates:
Rate data provided
CNNMoney Sponsors
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.