Banking and Finance Law Daily Wrap Up, COMMUNITY DEVELOPMENT—Waters urges banking industry to protect consumers during shutdown, (Oct 9, 2025)

By Nora Macaluso

The legislator said banks and reporting agencies should make sure workers aren’t punished while they’re not being paid.

Representative Maxine Waters (D-Calif.), ranking member of the House of Representatives Financial Services Committee, has sent a letter urging the heads of banking industry associations and financial industry groups to encourage their members to take steps to mitigate harm to consumers who depend on government paychecks to meet their financial obligations and don’t get paid while the government is shut.

Waters sent the letter to the heads of the American Bankers Association, American Fintech Council, America’s Credit Unions, Bank Policy Institute, CDFI Coalition, Community Development Bankers Association, Consumer Bankers Association, Consumer Data Industry Association, Electronic Transactions Association, Financial Technology Association, Financial Services Forum, Inclusiv, Independent Community Bankers of America, Mid-Size Bank Coalition of America, Mortgage Bankers Association, National Bankers Association, and Opportunity Finance Network

“Through no fault of their own, hundreds of thousands of Federal workers, servicemembers, and Federal contractors have been adversely impacted and may find it difficult to meet their credit obligations while they are not being paid,” Waters wrote. “Moreover, any missed payments caused by the government shutdown could have undue, lasting impacts on their reported creditworthiness, making it difficult for them to obtain future credit or increasing their borrowing costs.”

Waters said the companies should take steps that “mirror” those taken in previous shutdowns, such as agreeing to adjust payment terms on loans.

“I recognize that in some situations, institutions will not be able to offer workout arrangements for some of their customers,” Waters said. “In these instances, I encourage institutions to consider the appropriateness and fairness of reporting adverse information about their customer to consumer reporting agencies, given the unique circumstances of the shutdown.”

She asked each of the groups to respond by October 15 with details on what they and their members are doing to help consumers and how many affected consumers have been helped to date. “Please also share any observations and anecdotes you may be hearing from your members about how the shutdown is affecting the communities and consumers they serve,” she wrote.

“President Trump’s shutdown of the federal government is inflicting tremendous harm to millions of Americans,” Waters wrote in the letter. “Affected employees, contractors, and other individuals did not cause the shutdown and should not suffer any adverse consequences from these circumstances. It is in no one’s interest to punish those who may be enduring financial stress through no fault of their own.”

Waters has also previously sent a letter to the heads of federal financial regulatory agencies, calling on them to issue immediate, coordinated guidance, similar to actions taken during previous shutdowns, to ensure that affected families, individuals, and small businesses are protected from lasting financial harm (see Banking and Finance Law Daily, Oct. 8, 2025).

Waters encouraged the agency heads to “take every measure within your statutory authorities to serve as a resource to the individuals and families who may find themselves in great need of assistance as the ramifications of the shutdown take hold.”

Companies: American Bankers Association; American Fintech Council; America’s Credit Unions; Bank Policy Institute; CDFI Coalition; Community Development Bankers Association; Consumer Bankers Association; Consumer Data Industry Association; Electronic Transactions Association; Financial Technology Association; Financial Services Forum; Inclusiv; Independent Community Bankers of America; Mid-Size Bank Coalition of America; Mortgage Bankers Association; National Bankers Association; Opportunity Finance Network.

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