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NAFCU President and CEO Dan Berger addressed the leaders of the House and Senate in a letter Thursday urging them to act to prevent the country defaulting as the statutory federal debt limit Oct. 17 deadline approaches.

Berger emphasized that the ongoing partial government shutdown and the approaching debt limit deadline show that "there has never been a more important time for Congress and the Administration to come together." The letter was also sent to President Obama with a similar request for action.

"Treasury securities influence the cost of financing not just for companies but more importantly for mortgages, auto loans, credit cards and student debt," Berger wrote. "While we understand and recognize efforts by members on both sides of the aisle to review spending and put forward recommendations to improve our country's fiscal situation, default would risk disarray in the markets and would come with a host of unintended consequences."

Berger highlighted the importance of the debt limit issue for NAFCU members. He said even the perception that the debt limit may not be addressed could be dangerous for the economy.

Also yesterday, Senate Banking Committee Chairman Tim Johnson, D-S.D., announced plans for an Oct. 10 hearing on the dangers of defaulting on the national debt. Witnesses are from the banking industry and other financial market participants.