Regulatory Alerts2025-11-05
Secretary's Letter Regarding Government Shutdown and Budget Impasse
Pennsylvania Secretary of Banking and Securities Wendy Spicher issued a letter urging state-chartered and licensed financial institutions to exercise discretion in assisting borrowers affected by the federal government shutdown and state budget impasse. The Department encourages lenders to consider prudent measures such as providing payment flexibility, extending new credit, or waiving fees to mitigate consumer hardship while maintaining safe-and-sound lending practices. Affected consumers are advised to contact their financial service providers immediately if they encounter financial strain resulting from these fiscal disruptions.
COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF BANKING AND SECURITIES WENDY SPICHER – SECRETARY Market Square Plaza | 17 N. Second Street, Suite 1300 | Harrisburg, PA 17101-2290 | 717.787.5783 | F 717.214.0808 | pa.gov/dobs November 4, 2025 To: ALL PENNSYLVANIA STATE-CHARTERED AND LICENSED FINANCIAL SERVICES INSTITUTIONS AND COMPANIES While the effects of the federal government shutdown and state budget impasse on individuals are likely temporary, some borrowers may face hardships in making payments on debts such as mortgages, car loans, business and personal loans. The Department encourages state-chartered and licensed financial services institutions and companies to consider prudent efforts to provide flexibility on existing loans, extend new credit, or waive fees to help affected consumers. Prudent workout arrangements that are consistent with safe-and-sound lending practices can contribute to the health of the borrower and local community and serve the long-term interests of the lender. Consumers affected by the federal government shutdown and state budget impasse are encouraged to contact their financial services institutions and companies immediately should they encounter financial strain. Sincerely, /s/ Wendy S. Spicher Secretary of Banking and Securities