Dems ask banks to go easy on furloughed federal workers

Thirty House Democrats are asking banks to waive or reduce penalties that federal workers might face as a result of having their paychecks shut off under the government shutdown.

Rep. Maxine Waters (D-Calif.) proposed a nonbinding resolution over the weekend, H.Con.Res. 60, that also asks banks to not ding the credit scores of federal workers who are furloughed.

The resolution says banks “should consider temporarily waiving or reducing penalty, late payment, and similar fees in order to provide quick relief to their affected customers.”

{mosads}”[A]ffected employees of the Federal Government may be experiencing financial stress through no fault of their own and their creditworthiness should not be impaired because of the shutdown,” it adds.

The resolution suggests that “prudent workout arrangements” between banks and furloughed workers are “generally in the long-term best interest of the financial institution, the borrower, and the economy.” It also says these workout arrangements “should not be subject to examiner criticism or negative examinations.”

The resolution was introduced as the government is about to enter the third week of the partial shutdown, with no clear way forward for ending it. 

The House passed legislation last week that would ensure furloughed federal workers get their full back pay when the shutdown ends. 


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