DOBI Urges Regulated Entities to Assist NJ Residents Affected by Federal Shutdown

NJ Department of Banking and Insurance Commissioner Marlene Caride Thursday issued a bulletin (Bulletin No. 19-01) encouraging entities regulated by the department to work with and assist New Jersey residents affected by the federal government shutdown.

The bulletin has been issued to all insurers, banks, credit unions, mortgage lenders and brokers, consumer lenders, insurance producers, real estate brokers, and any other person or entity subject to licensure or regulation by the department.

The department is encouraging these entities to consider the difficulties residents have endured and will continue to endure until the federal shutdown ends, and those affected begin to receive regular payments and are reimbursed for monies past due.

“We are almost a month into the federal shutdown. While paychecks have stopped for many New Jerseyans, bills have not. We are calling on banks, insurance companies and other pertinent entities to work with residents who are being unfairly punished by President Trump’s shutdown. We do not know when these families will be made whole again. We have to make every effort to minimize the financial impact on our residents who still have to provide for themselves and their families,” said Gov. Phil Murphy.

“This is now the longest government shutdown in history and working people are suffering while it is ongoing. The department strongly urges banks, insurance companies and other entities that it regulates to work with New Jersey residents affected so they are able to manage their financial responsibilities during this incredibly challenging period,” said Commissioner Caride.

The Department is specifically encouraging the entities and individuals it regulates to assist those affected by the federal shutdown by taking actions such as:

  • Banking Division Regulated Entities/Individuals: Consistent with safe-and-sound banking practices, relaxing due dates for loan and mortgage payments, extending grace periods, modifying terms on existing loans, easing credit card limits, extending new credit, waiving late fees and other fees, allowing customers to defer or skip payments, and delaying the submission of delinquency notices to credit bureaus.
  • Insurance Division Regulated Entities/Individuals: Consistent with prudent insurance practices, relaxing due dates for premium payments, extending grace periods, waiving late fees and penalties, allowing forbearance with regard to the cancellation/non-renewal of policies, allowing payment plans for premium payments, and exercising judicious efforts to assist affected policyholders and work with them to make sure that their insurance policies do not lapse.