Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by the California Wildfires and Straight-Line Winds
January 14, 2025
Washington, D.C. – The Federal Reserve Board (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), the California Department of Financial Protection and Innovation (DFPI), and the California Department of Insurance (CDI) today issued an interagency statement on supervisory practices regarding financial institutions affected by the recent wildfires and straight-line winds in California.
The interagency statement provides guidance to financial institutions on how to address the needs of their customers and communities during this challenging time. The statement also encourages financial institutions to work closely with state and federal agencies to ensure that affected individuals and businesses have access to the resources they need.
“Federal and state financial regulatory agencies are committed to working together to ensure that financial institutions are able to meet the needs of their customers and communities during this difficult time,” said FRB Chairman Jerome Powell. “This interagency statement provides guidance to financial institutions on how to address the needs of those affected by the wildfires and straight-line winds in California.”
The interagency statement encourages financial institutions to:
- Work with affected customers to develop repayment plans and other assistance. Financial institutions should be flexible and understanding in working with customers who have been affected by the wildfires and straight-line winds. This may include offering payment extensions, waiving fees, and providing other forms of assistance.
- Provide access to financial services in affected areas. Financial institutions should work to ensure that affected individuals and businesses have access to essential financial services, such as cash, loans, and insurance. This may include opening temporary branches or mobile banking units in affected areas.
- Coordinate with state and federal agencies. Financial institutions should work closely with state and federal agencies to ensure that affected individuals and businesses have access to the resources they need. This may include providing information to state and federal agencies about the availability of financial assistance programs.
The interagency statement also reminds financial institutions of their obligations under the Fair Credit Reporting Act (FCRA). The FCRA prohibits financial institutions from taking adverse action against consumers based on inaccurate or incomplete information in their credit reports. This includes denying credit, increasing interest rates, or closing accounts. Financial institutions should be aware of the special rules that apply to consumers affected by disasters, such as the wildfires and straight-line winds in California.
“The California wildfires and straight-line winds have had a devastating impact on many Californians,” said DFPI Commissioner Manuel P. Alvarez. “This interagency statement provides guidance to financial institutions on how to help affected individuals and businesses rebuild their lives.”
“CDI is committed to working with financial institutions to ensure that insurance claims are processed quickly and efficiently,” said CDI Commissioner Ricardo Lara. “This interagency statement will help to ensure that affected Californians have access to the resources they need to recover from these devastating events.”
The interagency statement is available on the websites of the FRB, the FDIC, the NCUA, the OCC, the DFPI, and the CDI.
Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by the California wildfires and straight-line winds
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