State Banks Agree to Waive Consumer Fees in Aftermath of Sandy

Governor Cuomo: "I Call on Any State or Federal Chartered Banks That Have Not Yet Waived Fees to Follow Suit"

Several major state-chartered banks have agreed to waive a number of fees and penalties in response to the impact on consumers by Storm Sandy.

State-chartered banks that will drop the fees include M&T Bank, Apple Savings, Dime Savings Bank of Williamsburgh, Emigrant Savings Bank and New York Community Bank.

“Thousands of New Yorkers’ lives have been disrupted by the storm – including their usual financial obligations and activities,” Governor Cuomo said.

“As a result, some people may have late payments or be forced to incur other bank fees and penalties. For example, they may not be able to avoid ATM fees if they can’t find a working ATM from their own bank. To help New Yorkers, major state-chartered banks have agreed to drop fees and penalties so consumers won’t have this additional cost. I call on any state or federal chartered banks that have not yet waived fees to follow suit.”

Benjamin M. Lawsky, Superintendent of Financial Services, stated, “Many state chartered banks are community banks with close ties to the areas they serve, so it is not surprising that many are willing to support consumers and local businesses in this difficult time. This is a standard I hope all our banks will follow.”

Details may vary from bank to bank and consumers should contact their individual bank for specifics. In general, banks have agreed to temporarily waive the following fees and penalties at least until November 15, and in some cases longer:

ATM fees

Late payment charges

Penalties for checks returned because of insufficient funds

Overdraft protection transfer fees

Penalties for early withdrawal of savings in circumstances where the customer has a demonstrable need for the funds resulting from the disaster

Lawsky also urged banks to work with depositors or borrowers who have been affected by the disaster.

Banks should consider reassessing the current credit needs of communities to help meet those needs by making or participating in sound loans.

They should also consider a prudent restructuring of an affected borrower’s debt obligations, by altering or adjusting payment terms.

“Local banks can play a major role in helping our communities recover, as they have played a major role in their growth before the storm,” Superintendent Lawsky added.

Financial institutions seeking additional guidance for assisting customers affected by the impact of Storm Sandy are urged to contact the Department’s Albany office at 518-473-6160.

Student Loan Relief for New Yorkers Affected by Hurricane Sandy

Governor Andrew Cuomo today directed New York State Higher Education Services Corporation (HESC) to grant temporary student loan relief to New Yorkers who were affected by Hurricane Sandy.

If requested, New Yorkers in Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland Suffolk and Westchester counties are now eligible to receive a 90 day grace period, from October 27th, 2012 to January 25th, 2013, in order to repay their student loan payments.

All members of the military who have been called to assist in the aftermath of Hurricane Sandy will also be eligible.

“We are working to provide New Yorkers recovering from Hurricane Sandy with as much relief and support as possible,” said Cuomo.

“Those who lost homes or are still without power should not be burdened with the added worry of being late on their student loan payments. The grace period we are providing will give these New Yorkers some breathing room to focus on rebuilding and restarting their lives after the storm.”

In addition to the suspension of collections efforts, other actions to assist impacted student loan borrowers will include the suspension or reversal of delinquency or default notifications made by HESC to credit reporting agencies, the suspension of referrals for administrative wage garnishment and the suspension of collections calls to federal student loan borrowers in New York, New Jersey and Connecticut who are delinquent in their federal student loan payments.

“More than 80 percent of our borrowers with delinquent or defaulted student loans reside in and around the New York City metropolitan area,” stated Elsa Magee, Acting President of HESC.

“This is another component of the Governor’s overall effort to assist those who have been adversely impacted by Sandy.”

Borrowers should contact HESC at 1-866-991-HESC (4372) to request a temporary suspension. Email request can be made via Dept736@hesc.ny.gov. 

A specific option has been added to the toll free number for Sandy victims.