Getting an early bead on the Washington debt crisis, the $1.6 billion Texas Dow Employees Credit Union of Lake Jackson announced over the weekend it will be offering no interest, 30-day “Government Shutdown Loans” to Social Security recipients and others who might be impacted.
“TDECU will cover all direct deposit government checks if there is no debt-limit agreement Aug. 2,” said a statement from the 139,000-member credit union, adding that the loans are “non-qualifying to those existing TDECU accounts.”
“Many seniors on Social Security simply can’t afford to miss a check,” said TDECU, adding that the one-month term may be extended if needed.
Members with existing federal deposits “are eligible for a special signature loan equal to the amount of their deposit – with no interest for the first 30 days,” said the statement. “Our members have the commitment of TDECU to step in and make sure they have money for groceries and bills if the government does shut down.”
TDECU lauded its own loan team “for the creation of this unique product to serve members during challenging times.”
The credit union said that after the initial 30-day period, the loan will convert to the current signature loan rate with a repayment term of an additional 11 months, and that the maximum loan amount will be equal to the amount of one net paycheck,
“It is our commitment to stand ready to assist our members should we be needed,” said Stephanie Sherrodd, executive vice president/chief operating officer. “We want to give our members peace of mind that their daily lives will not be disrupted if we can help it.”