Banks Give Hurricane Victims A Break

NEW YORK -- Several major banks said Thursday they plan to waive late fees on credit cards, defer mortgage payments and provide emergency lines of credit to people who lost homes or possessions because of Hurricane Katrina, Newsday reported.

Bank of America, Wachovia and AMSouth Bank were among a number of financial institutions that said they planned to relax payment and other requirements because of the severity of Katrina, which has killed hundreds and devastated New Orleans; Biloxi, Miss.; and Mobile, Ala.

The banks released details of their disaster-relief efforts at about the same time the Federal Deposit Insurance Corp., which insures deposits, issued a news release "encouraging" banks to ease regulations to borrowers and customers hit hard by the storm.

The FDIC recommended that banks extend repayment terms, ease terms for new loans "including the ability to skip some payments," restructure loans, offer short-term loans for living expenses until insurance proceeds are received, waive overdraft fees and waive fees for customers who must use other ATMs if their own bank's system is not available.

-- NYSSCPA.org News Staff

Posted on 9/2/05