The insurer was providing interest-free loans to military members whose paychecks were impacted by the government shutdown.
Military members whose paycheck depends on the government staying open had a bit of help from the USAA insurance company. The insurer offered military members interest-free loans to help them to fill the gap until they start getting paid again.
USAA members in the armed services were essentially offered interest-free payday loans.
The money wasn’t being handed out for free, but the USAA insurance company did provide armed services who wouldn’t be paid on time with a bit of a loan. Those servicemen and servicewomen would not need to pay interest on those loans. That said, they would need to pay the money back once their paychecks started being issued again.
Some federal employees – including certain armed services members – were required to keep working following the government shutdown, despite the fact that they weren’t being paid on time. The USAA financial assistance offer was there as a form of stopgap.
The USAA insurance company hoped to help make it easier for military service members and their families.
The government shut down at midnight on Saturday when Congress was unable to come to an agreement on a spending bill.
“We are prepared to offer a no-interest payroll advance loan to our military members in the event of a protracted shutdown that disrupts military pay on Feb. 1,” said the financial services and insurance company. The firm, based in Texas, made the offer nearly as soon as it was certain that the U.S. government shutdown would be occurring.
This interest free payday loan offer was being made exclusively to military members whose pay was delayed by the U.S. federal government shutdown. That said, it was not being made to other USAA members who are employed by the federal government and who were facing the same delay – only service members. Furthermore, international regulations also state that it’s possible that many service men and women stationed overseas would not be able to take advantage of this loan opportunity.
Last Thursday, active-duty military members received a Defense Department memo telling them that they will need to keep working but that they would not be paid for their work until Congress appropriates the funds. Essential civilian employees were also required to work and wouldn’t be paid until that time. On the other hand, non-essential civilian employees were required to take a leave of absence until the government opened once more.
The USAA insurance company was be able to make the offer available to members in the United States as well as those deployed in Canada, Germany, the United Kingdom, Ireland, Belgium, Spain, China, Philippines and South Korea.