Hawaii banks,
credit unions help
picketing teachers

The institutions are deferring
payments, waiving penalties
and offering low-interest loans

By Rick Daysog
Star-Bulletin

Local banks and credit unions are showing their support for customers on the picket lines.

Lenders such as First Hawaiian Bank, Bank of Hawaii and City Bank are offering payment deferrals on consumer loans and have agreed to waive early withdrawal penalties on certificates of deposits.

Credit unions are taking a more aggressive route, providing special low-interest personal loans and special refinancing programs for existing loans.

"We would hope the strikes don't go on forever but we're telling them we'll be here for them," said Scott Kaulukukui, vice president of marketing at HawaiiUSA Federal Credit Union, one of the state's largest credit unions. "We're trying to support them as best as we can."

HawaiiUSA, formerly known as the Oahu Educational Employees Federal Credit Union, began offering a package two months ago for members of the Hawaii State Teachers Association in anticipation of the strike. The plan includes a 30-day payment deferral on consumer loans and a low-interest personal loan for up to $20,000 for daily expenses such as food and utilities.

A competitor, Hawaii Schools Federal Credit Union, is offering a similar plan for teachers that includes a 90-day deferral on interest payments for consumer loans and a special strike loan of up to $3,000 at a 6 percent interest rate.

The $50 million-in-assets credit union also is offering to waive payments to striking teachers who want to refinance existing consumer loans issued by other local lending institutions, according to Blane Asao, vice president for business development at the Hawaii Schools Federal Credit Union.

"We're trying to do whatever we can do to help teachers out," Asao said.

Kaulukukui and Asao said they have received a number of inquiries during the past week from teachers who are concerned about the status of their existing loans or want to know more about the credit unions' strike programs.

But few have signed up for the programs given that the strike in still in its first week.

Members of the University of Hawaii Professional Assembly are already taking advantage of special deals offered by their credit union.

Ariel Chun, chief executive officer of the $180 million-in-assets University of Hawaii Federal Credit Union, said about 20 customers have signed up for a new plan to defer interest payments on consumer loans until the end of the strike.

Chun said her staff has received about 60 inquiries from UH faculty members about the deferral plan.

She said she expects the number of inquiries to increase significantly after Thursday, which is the first pay day that faculty members are expected to miss as a result of the strike. Chun and other lenders said they are also getting many calls from striking workers concerned about making mortgage payments.

In those instances, the lenders stressed that customers meet with their loan officers so they can work out a financial plan.

"If anybody has problems or foresees problems, we're encouraging them to come talk to us," said Gerry Keir, a spokesman for First Hawaiian Bank.

"We want to help teachers during a tough time for them."

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