Banks, Credit Cards and National Disasters

by MarketProSecure

In 2007 and 2008, the United States was overwhelmed by cyclones, tornadoes, hurricanes, wildfires and floods. In many of these natural disasters people were injured or killed and there were significant property losses. After a disaster families can be left emotionally shattered. Once the water subsides, the wind calms or the wildfire cools, reality starts to set in. Victims are left reeling. They were briefly touched by the dark eye of an emotional hurricane and will forever remember those fleeting moments. Soon, families may realize they are also financially devastated. Everything they owned may have been destroyed by just a few moments of nature's uncontrollable fury. In some cases, they may not be able to return to jobs, because those jobs no longer exist. Most victims have property insurance, though frequently it is not enough, nor is it available when most needed. Victims must survive until insurance checks begin to arrive.

Southern Tornadoes in February 2008

One such disaster happened on February 05, 2008 when Alabama, Arkansas, Kentucky, Mississippi and Tennessee were devastated by 30 to 40 tornadoes. By the time the disastrous winds quieted, 57 people were dead. The killer tornadoes also destroyed hundreds of millions of dollars in property. When homes are destroyed credit cards, checks and cash are unlikely to survive. Many victims were left with few if any financial assets. In large scale disasters emergency personnel are besieged and emergency resources are strained. This may slow the recovery process until emergency personnel from other areas converge on the site.

California Wildfires 2007

Many thousands of people were forced to flee their homes after California wildfires rapidly engulfed a vast developed area. Often, homeowners have very little advance notice to evacuate, because the fires can quickly change direction and surge in intensity. Stranded victims were forced to stay wherever they could find sanctuary, which may have been many miles from home. Though evacuees continued to have expenses, they may not have been able to take their credit cards with them. Possibly worse, the cards may have been maxed out. Many displaced victims returned to find their homes and possessions were simply gone… vanished. They discovered smoldering, charred ruins were their homes once stood. In some areas, entire neighborhoods were leveled as if they had never been.

Banks Offer Hope

Most of us cling to the belief that, yes, disasters happen, but they do not happen to us. After a flood, tornado or wildfire, victims' assumptions of personal safety are shattered. They must attempt to live with uncertainty and doubt. Any kindness helps victims restore their sense of community and belonging. A helping hand gently offers a respite from trepidation. Credit cards companies have lent a steadying hand to disaster victims.

Thousands of cardholders were affected by natural disasters in 2007 and so far in 2008. The Office of the Comptroller of the Currency (OCC) suggested ways that banks could rally round their struggling customers. Cardholders cannot pay debts with cash and paychecks they no longer have. When homes and jobs are destroyed it takes time to rebuild financial security. Also, victims may very well have additional expenses for temporary housing, medical needs, clothing and food. The OCC understands the plight of families battered by disaster. The OCC encouraged national banks to vary their usual payment conditions. The OCC suggested that banks help their customers by extending terms of repayment, restructuring debts, and/or easing credit terms for new loans.

Citi, Chase, American Express and Bank of America stepped forward to support their customers. They advised victims to call the number on the back of their credit cards for assistance. Just in case customers no longer had their credit card, other emergency phone numbers were made available. Bank officials expressed their sympathy for the tragic circumstances in which victims found themselves. The banks also encouraged their customers to contact them. Meg Stinson, the Chase spokesperson, assured customers Chase would help in the best ways they could. Samuel Wang, vice president of Citi said, 'We are always available to assist Citi customers with a number of options to help meet their specific needs.' Customers will long remember these kindnesses.

What You Can Do in a Case of National Disaster

If you have been affected by a national disaster and your bank has not issued a statement call the number on the back of your card. If you no longer have your card and you carry a Citi card call 800-950-5114, or 800-432-3117 for Chase and 800-528-4800 for American Express. Many banks will attempt to help you after a disaster.

Published: February 17, 2008

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