Agencies Encourage
Insured Depository Institutions to Assist Displaced Customers
The Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the National Credit
Union Administration, the Office of the Comptroller of the Currency, and the Office
of Thrift Supervision (the agencies), and the Conference of State Bank
Supervisors are asking insured depository
institutions to consider all reasonable and prudent steps to assist customers
and credit union members cash and financial needs in areas affected by
Hurricane Katrina. The agencies are
working with state regulatory agencies, financial industry trade groups, and
affected financial institutions to identify customer needs and monitor
institutions' restoration of services.
The
agencies remind the public that deposit insurance is in full force and that
money in FDIC- or NCUA-insured accounts is protected by federal deposit
insurance. The agencies also note that a priority is to provide customer access
to deposit accounts and other financial assets. Many financial institutions are implementing contingency
plans, including procedures for consumers to have access to ATMs and use of
their debit cards.
The
financial services community through its various trade associations is working
together to assist affected institutions.
The agencies encourage
financial institutions to assist affected institutions and consider all reasonable and prudent
actions that could help meet the critical financial needs of their customers
and their communities. To the
extent consistent with safe and sound banking practices, such actions may
include:
·
Waiving ATM fees for customers and non-customers
·
Increasing ATM daily cash withdrawal limits
·
Easing restrictions on cashing out-of-state and
non-customer checks
·
Waiving overdraft fees as a result of paycheck
interruption
·
Waiving early withdrawal penalties on time deposits
·
Waiving availability restrictions on insurance checks
·
Allowing loan customers to defer or skip some payments
ยท
Waiving late fees for credit card and other loan
balances due to interruption of mail and/or billing statements or the
customer's inability to access funds
·
Easing credit card limits and credit terms for new
loans
·
Delaying delinquency notices to the credit bureaus
The agencies,
in consultation with FinCEN, also encourage depository institutions to be
reasonable in their approach to verifying the identity of individuals
temporarily displaced by Hurricane Katrina. Under the Customer Identification
Program requirement of the Bank Secrecy Act, depository institutions must
obtain, at a minimum, an individual's name, address, date of birth and taxpayer
identification number or other acceptable identification number before opening
an account. The Customer Identification Program requirement provides
depository institutions with flexibility to design a program that uses
documents, non-documentary methods, or a combination to verify a customer's
identity. Moreover, the regulation
provides that verification of identity may be completed within a reasonable
time after the account is opened.
Recognizing the urgency of this situation, the agencies encourage
depository institutions to use non-documentary verification methods for
affected customers that may not be able to provide standard identification
documents, as permitted under the regulation.
A depository institution in the affected area, or dealing with new
customers from the affected area, may amend its Customer Identification Program
immediately and obtain required board approval for program changes as soon as
practicable.
The
agencies note that these measures could help customers recover their financial
strength and contribute to the health of the local community and the long-term
interest of financial institutions and their customers when undertaken in a
prudent manner. The agencies recognize that the needs and situation of each
financial institution and its community and customers are unique. The actions
above may not be feasible or desirable for all institutions and many
institutions may provide additional services from those identified.
The
agencies will continue to monitor closely the situation and needs of insured
depository institutions and their customers and will provide additional guidance,
as required, to help address those needs.
Institutions in need of assistance in dealing with customers affected by
the hurricane should contact their primary supervisors.
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Media Contacts:
Federal Reserve David
Skidmore (202) 452-2955
CSBS Mary White (202) 728-5715
FDIC David
Barr (202) 898-6992
NCUA email: pacamail@ncua.gov
or call (703) 518-6330
OCC Kevin
Mukri (202) 874-5770
OTS Chris
Smith (202) 906-6677