FORT WORTH, Texas — First Command Financial Services, Inc. will extend direct deposit pay to its Coast Guard clients as part of a comprehensive plan to address potential financial hardships during the government shutdown.
“The latest news reports on the government shutdown indicate that about 42,000 Coast Guard members won’t see their next paycheck until mid-January, and First Command is committed to doing all we can to ensure that our Coast Guard clients are not financially harmed by government actions or inactions that are beyond their control,” said Scott Spiker, chairman/CEO of First Command. “During the government shutdown in October 2013 we stepped up to help our clients with payroll advances and other financial offerings. As we face another government shutdown, we again commit to help our clients and ensure their family finances are squared away.”
First Command will be offering assistance to all clients who are impacted by the shutdown. However, the need is particularly noteworthy in the case of the Coast Guard, according to Charles “Skip” W. Bowen III, a member of the First Command Military Advisory Board who served as the 10th Master Chief Petty Officer of the Coast Guard.
“The Coast Guard is a military service of the United States at all times,” Bowen said. “However, since the Coast Guard is not a part of the Department of Defense, and it resides as a military service in the Department of Homeland Security, members of the Coast Guard will not be paid during the government shutdown. This is not right. Just like the rest of the military Coast Guard personnel deploy for long periods of time including overseas with thousands away from home at sea on Coast Guard cutters right now. You only need to glance at the military pay tables to see that these Coast Guardsmen do not make a great deal of money and many live paycheck to paycheck. Bottom line, Coast Guard families cannot go for long without pay. Many banks and financial services firms connected with the military such as First Command are trying to help. In addition, most of the military service organizations are taking a strong stand politically on behalf of Coast Guard members. I hope and pray that a resolution is found quickly. Our Coast Guard families deserve it.”
First Command Financial Services is ready to address the possible financial difficulties that may arise during the government shutdown in various ways. Through its subsidiary First Command Bank, affected clients will be offered:
* Zero-interest payroll advances. First Command Bank is committed to making sure that clients who have existing direct deposit arrangements for their government paychecks will continue to have money in the bank. The program is designed to ensure that payroll advances will be transparent to clients, who will see the usual direct deposit amount credited to their account.
* Loan Assistance. Understanding that a government shutdown may strain family budgets, First Command Bank is prepared to work with clients on any First Command Bank loan payments.
* Penalty-free early C.D. withdrawals. First Command Bank will waive any early withdrawal penalties for clients who need to redeem a First Command Bank Certificate of Deposit prior to its maturity.
* Secured Lines of Credit. First Command Bank is ready to help clients use their non-tax qualified mutual fund as collateral for a low interest rate line of credit.
* Special handling of credit card accounts. First Command Bank’s Visa cardholders will be offered priority processing for increases to credit limits and deferments of monthly payments. The bank will also waive cash advance fees during a shutdown.
Meanwhile, First Command Financial Advisors are prepared to offer guidance on dealing with federal allotments for investments and insurance as well as other issues affecting family finances.
“While we remain optimistic that lawmakers will ultimately find a path forward that keeps the government operating, our knowledgeable Financial Advisors are available now to discuss possible ramifications for the finances of our clients,” Spiker said. “We have helped thousands of military and federal employees and their families plan for their financial futures, supporting them through times both good and bad. We are committed to make good on our Mission of coaching those who serve in their pursuit of financial security.”