AFTECH helps largest client launch debt cancellation

MALVERN, Pa. – Software developed by credit union data processor AFTECH in cooperation with CUNA Mutual Group and the United Airlines Employees Credit Union has helped United become the nation’s first credit union to offer its members a debt cancellation product. AFTECH worked with United Airlines Credit Union, its largest client, and CUNA Mutual Group, to develop software to link CUNA’s new debt cancellation product with the credit union’s core processing system. Used by banks for many years, debt cancellation is a new concept in the credit union community, resulting from the “incidental powers” changes made to NCUA Regulations in 2001. The changes gave credit unions broader ability to offer debt cancellation contracts, a financial tool that compensates a lender for the credit risk implicit in a lending transaction, and protects the borrower from credit damage during a period of financial hardship.