Hurricane Katrina bill payment relief

Hurricane Katrina victims worried about missing payments and running up late fees on their bills should find that banks, credit unions and other lenders will understand the situation and are ready to grant some leeway.

Regulators from a half-dozen agencies that oversee the nation's banks and credit unions have asked that institutions take all "reasonable and prudent" steps to assist hurricane-stricken customers. That, according to the Federal Deposit Insurance Corp., or FDIC, may include the following:

Many financial institutions in hurricane-affected areas are open for business but probably not up to prestorm standards, according to John Hall, spokesman for American Bankers Association.

"Some banks have no electricity. They're opening with an armed guard or police presence, and they're just letting a few customers in at a time. Some banks are limiting withdrawals to $200, and some banks have mobile facilities that they're able to use.

"Call your institution, and let them know what you need. If you need to defer payments for several months, let them know. Ask about waiving fees. If you're in a foreign location, such as Houston, tell them."

Hall says that many banks are being proactive and are flagging accounts with ZIP codes in the affected areas. For customers who are in such dire straits that they can't make a phone call, the institutions will likely make an assumption about why a payment is late and treat the account accordingly. But, if at all possible, try to contact the bank; even if it's weeks from now.

The FDIC has assembled a list of FDIC-insured institutions in Louisiana, Mississippi, and Alabama's Mobile area. The list notes whether the institution is open for business and includes a phone number for customers to call.

The Credit Union National Association, or CUNA, is posting a similar list on its Web site. The CUNA list is extremely helpful, because it also includes details about deferred payments, reduced loan rates and other pertinent information.

Credit card companies such as Visa and MasterCard leave it up to the banks that issue the cards to decide how to handle these situations, but, again, it appears that banks are prepared to be fairly lenient.

Discover Card's Web site says the company is ready to assist customers affected by the hurricane with payment relief, emergency replacement cards, emergency PINs and other special services. Customers should call 800-DISCOVER or 800-347-2683.

If you have a vehicle loan through the financing arm of the various automotive companies, check with them to see if they'll defer payments. Ford Credit has announced that it is offering customers the opportunity to defer up to three payments.

"We always try to be flexible with customers," says Ford spokeswoman Meredith Libbey. "I've been surprised. We've had thousands of phone calls, so we know the word is getting out. We know a lot of people have a lot on their mind, and it may be some time before they even get around to thinking about car payments."

GMAC says it will work closely with its auto financing, insurance and mortgage customers who are hurricane victims. Consumers who call customer service will be assisted on a "case-by-case basis." And Chrysler Financial says it will offer "special assistance, including 'special circumstance' extensions and deferrals for up to 90 days" to affected customers in portions of Louisiana, Mississippi, Alabama and Florida. Those customers should call 800-556-8172.

Paying the mortgage will probably be the most difficult issue for many storm victims, especially if the home is unlivable or no longer exists. There's a little bit of automatic breathing room built in the system, because lenders can't foreclose on homes in a declared disaster area for 90 days. But homeowners will probably find more latitude than that. Read the Bankrate article, "Paying Your Mortgage After a Natural Disaster," for more information on this topic.