02-07-2014 11:50 AM
America is facing another debt ceiling debate.
To end the government shutdown in October, the debt ceiling was temporarily suspended until Feb. 7. Now that the debt limit has been reinstated, Congress and the president must raise the debt ceiling for the U.S. to continue making its payments. The Treasury Department will use its so-called “extraordinary measures” to extend the actual deadline, likely until late February. Our nation’s leaders will have to act before the extraordinary measures expire, to avoid a U.S. default.
Although leaders in our nation’s capital expect to reach a deal, USAA is once again preparing solutions to help members if a debt ceiling impasse disrupts federal payments.
As with last year’s government shutdown, USAA Bank is prepared to offer a no-interest, 0% APR payroll advance loan to eligible members for payments that are direct deposited at USAA Bank. Eligible members are military personnel, including those currently serving in the National Guard and Reserve, military retirees and other uniformed service personnel serving in the U.S. Public Health Service and the NOAA Corps. Social Security and VA benefit payments will also be covered if those payments are interrupted. If a loan offer becomes necessary, USAA Bank will email those eligible members and provide information in the "My Offers" section of usaa.com.
Additionally, USAA is prepared to offer special accommodations, such as special payment arrangements, to members affected by a disruption in federal payments.
“All indications suggest that lawmakers and the president will act to avoid debt ceiling disruptions,” said Dan Brouillette, senior vice president of government and industry relations at USAA. “But USAA stands ready to help our members in the unlikely event that no agreement can be reached.”
If you're a federal employee or depend on government payouts, read 5 Tips to Prepare for Disruption in Federal Pay.
Solutions From USAA: How the Payroll Advance Loan Works
Potential Payroll Advance Loan
In the unlikely event of a debt ceiling impasse that threatens federal payments, USAA Bank is prepared to offer a zero-interest, 0% APR payroll advance loan to military personnel, including those currently serving in the National Guard and Reserve, military retirees and other uniformed service personnel serving in the U.S. Public Health Service and the NOAA Corps. Social Security and VA benefit payments will also be covered if those payments are interrupted.1 The loan would be available for payments that are direct deposited at USAA Bank and the amount would be approximately equal to your expected direct deposit. Those who are paid monthly would receive a loan equal to about half of their expected direct deposit.
Other Solutions for Members
USAA has several solutions to help members who receive government paychecks and find themselves in financial distress because of federal budget issues.
These temporary arrangements include:
- Special payment arrangements, which could include payment deferral, on some bank products.2
- Refunds of certain fees for credit cards and other USAA Bank products.
- Early withdrawal of funds from certificates of deposit without penalties.
- Billing arrangements for insurance products.
Members whose finances are affected by federal budget issues should call us at 1-800-531-USAA (8722).
1 Must have current direct deposit of government payments with USAA Bank and at least two consecutive direct deposits in the past 60 days. Loan amount is based upon two weeks of normal direct deposit, and loan maximum is $6,000. Must be in good standing with USAA. The loan amount deposited into USAA Bank account will be automatically debited at the next scheduled direct deposit. Loan will not be funded if your payment is not interrupted or may be funded for a lesser amount in the event only a portion of your qualifying direct deposits are interrupted.
2 Interest continues to accrue during any deferment periods.
Use of the term “member” or “membership” does not convey any eligibility rights for auto and property insurance products, or legal or ownership rights in USAA. Ownership rights are limited to eligible policyholders of United Services Automobile Association.
Bank products provided by USAA Federal Savings Bank, Member FDIC.
No Department of Defense or government agency endorsement.
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