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FDIC letter encourages ATM fee, cash limit waivers for hurricane victims

September 18, 2018

The FDIC has circulated a letter encouraging depository institutions to consider "all reasonable and prudent steps" to assist customers in communities affected by Hurricane Florence.

According to the letter, such efforts by depository institutions to meet customers' cash and financial needs "generally will not be subject to examiner criticism."

These efforts may include:

• Waiving ATM fees for customers and noncustomers
• Increasing ATM daily cash withdrawal limits
• Waiving overdraft fees
• Waiving early withdrawal penalties on time deposits
• Waiving availability restrictions on insurance checks
• Easing restrictions on cashing out-of-state and noncustomer checks
• Easing credit card limits and credit terms for new loans
• Allowing loan customers to defer or skip some payments
• Waiving late fees for credit card and other loan balances
• Delaying the submission of delinquency notices to the credit bureaus

The FDIC said that the measures detailed above could help customers recover financial strength and contribute to the health of the local community and the long-term interests of depository institutions and their customers when undertaken in a prudent manner.

"The FDIC recognizes that the needs and situation of each financial institution and its community and customers are unique," the letter said. "The actions above may not be feasible or desirable for all depository institutions and many institutions may provide additional services from those identified."