In a letter issued by Pennsylvania Department of Banking and Securities (DoBS) Secretary Wendy Spicher, the agency encouraged state-chartered and licensed financial institutions it regulates to provide flexibility to affected consumers by offering short-term loan modifications, extending new credit, or waiving fees where possible.

Harrisburg, PA - With many Pennsylvanians experiencing financial strain due to missed paychecks or delayed funding, the Shapiro Administration is urging state-chartered banks, credit unions, and other financial institutions it regulates to work with consumers who may have trouble making payments on their loans due to the federal government shutdown and state budget impasse.

In a letter issued by Pennsylvania Department of Banking and Securities (DoBS) Secretary Wendy Spicher, the agency encouraged the state-chartered and licensed financial institutions it regulates to provide flexibility to affected consumers by offering short-term loan modifications, extending new credit, or waiving fees where possible. The letter was sent to more than 11,600 Pennsylvania licensed non-bank financial institutions, as well as state-chartered banks, credit unions, and trust companies.

"While the effects of the shutdown and impasse on individuals are likely temporary, impacted borrowers may face hardships in making payments on debts such as mortgages, car loans, and business and personal loans," said Secretary Spicher. "The Department encourages state-chartered financial institutions and licensees to consider prudent efforts to provide flexibility on existing loans, extend new credit, or waive fees to help affected consumers."

DoBS guidance to financial institutions underscores that reasonable workout arrangements - consistent with safe and sound lending practices - can help borrowers stay on track while serving the long-term interests of lenders and their communities.

Consumers affected by missed paychecks or delayed funding are encouraged to contact their financial institutions immediately if they experience financial strain.

Consumers with any questions or concerns may also call 1-866-PACOMPLAINT, visit pa.gov/consumer, or email [email protected] to access help from the Commonwealth.

Learn more about DoBS at pa.gov/dobs or follow us on Facebook, X, or LinkedIn.

MEDIA CONTACT: Joan Z. Nissley, [email protected]

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