Paying the Bills on Strike

Credit due to Vendors

1. Where possible, you should make at least a minimum payment. If you are unable to make the minimum payment, be sure to contact your creditor immediately to work out a repayment plan. Some of the options include reduced payments or deferred payments.
2. If you are not able to make any payments, the vendor may report the incident to credit rating agencies. Such reports will note that the individual is on strike.

Utility Companies

Most utility companies will allow you to make special arrangements on payment. This is done on an individual basis and it is very important that you contact the utility company if you are unable to make payments.

The following are contact numbers for the various utility companies on Oahu:

HECO: (808) 548-7311
Hawaiian Telcom: (808) 643-3456
Spectrum Cable: (833) 949-0036
Hawaii Gas: (808) 535-5933

Banks

First Hawaiian Bank (808) 844-4444 (Customer Service will direct you to the appropriate department)

Hotel & Travel Industry Federal Credit Union (808) 942-5115 Chanda at ext. 223 or Normita at ext. 228

Bank of Hawaii  (808) 643-3888

Bill Payment Information

Individuals who will be unable to make payment on any bill during the strike period should immediately contact their creditors.

It is best to contact them in writing so that there is a physical record of contact in your files. A written record may be important if legal problems emerge later. Inform creditors that you are member of UNITE HERE! Local 5 and are on strike and would like to discuss a repayment plan. A sample letter that you can follow is attached for your reference. If you do not hear back from the creditor within two weeks, you may need to follow up by phone.

It is best to notify your creditors before you get behind. Creditors are usually easier to work with when you let them know about your situation before a severe problem arises.

It is important that you pay what you can. Even if you cannot pay the creditors the amount they want, make your best effort to pay something regularly. This holds arrears as low as possible and lets the creditor know that you are doing all you can. Continuous partial payment may keep your account from being turned over to a collection agency.

It is also important to stay in touch with your creditors. After the initial contact, continue to contact them every two weeks. This reassures the creditor, shows a responsible attitude toward your obligation, and may keep the creditor from hounding you.

Most creditors will generally be able to work out a solution to deal with late payments, providing that the striking customer has both an acceptable credit rating and was not in arrears when the strike commenced. More detailed information is listed below.

Mortgage Loans

1. Mortgage loans are usually tied to other national organizations or sold to other national lending companies over which the original lending company has no control. Thus, even if the mortgage loan was originally made with a local financial institution, the terms on such mortgage loans cannot be modified at the discretion of the local financial institution. The national organizations are not likely to make special arrangements for our local members on strike.

2. The mortgage companies, however, will generally NOT foreclose on a striking individual if the individual has a good repayment record and was not in arrears when the strike commenced.

3. Strikes are generally regarded much like a natural disaster, both are temporary and not indicative of a person’s willingness or ability to make payments.

4. Should payments not be made after approximately sixty days, lending companies are obligated to report the problem to the state credit bureau. Such reports, however, will be footnoted to indicate that the individual is on strike.

5. Mortgage loans cannot be extended or deferred. You will be required to make up payments after a strike. Be sure to contact your loan company to set up a repayment plan.

All Other Loans Through Banks and or Credit Unions

1. Most financial institutions indicated that if an individual is unable to make payment, a solution could be worked out. Options available include loan extension and refinancing. Solutions will vary depending on your financial history and the particular company you are dealing with.

2. Loan extension – You can ask your lender for an extension of your loan repayment beyond the original contract deadline. If an extension is granted, you will be required to pay interest on your outstanding loan balance while you are on strike, with interest charges added to your total repayment amount, payable during the extension period.

3. Refinancing – It may be to your benefit to ask to have your loan refinanced, in effect paying off your old loan with a new one – with the payment period extended. Whether the new loan has a higher or lower interest rate will depend on the terms of your existing loan and the current interest rates prevailing at the time of refinancing.

4. In general, the financial institutions agree that a customer who has a good payment record, and who contacts the lending company in advance to discuss strike-related problems, will find lenders to be flexible and understanding of the unique situation caused by a strike.