CHICAGO – Aiming to ease members' worries over the effect of its single sponsor's bankruptcy filing last month, United Airlines Employees' Credit Union wasted little time over the holidays to use its Web site to outline details of an "emergency loan repayment program," as well as offer an extended Q&A on the CU's financial stability. The Web site data "is designed to create awareness" of the debt relief programs the CU has available to members and also to "reinforce our stability" in the wake of the parent's Chapter 11 bankruptcy filing Dec. 9 in a Chicago court, commented Jennifer Divelbiss, marketing manager of the $4 billion CU. The Web site data, she said, is similar but more extensive to "when we had furloughs following Sept. 11." Separately, UAECU said two weeks ago that in 2003 it will consider diversifying its 165,000 membership base to add SEGs and mergers to halt any downside loan risk and as a last ditch move study a change in its single sponsor ties. The diversification proposal "is part of a business plan that we will be looking at," said Divelbiss. Meanwhile, the CU said to help those members "facing financial hardship" it is cutting in half current loan payments for a six-month period. It is also making eligible for reduction all home equity loans and will keep all credit lines open. The CU also said employees that face wage reductions will receive a corresponding lowering of payments. An employee, for example, whose salary is cut 10% can receive a 10% reduction in the loan payment for a six-month period. United Airlines Employees CU also said it will promote new insurance programs for employees covering both mortgages and home equity. On its Web site, the Chicago-based CU, the nation's sixth largest, stressed that it remains "financially solid" with $450 million in reserves, two times the level of capital required and that the CU is "financially independent from" the airline. "We have been operating successfully for nearly 67 years with United as our corporate sponsor" the Web site reads. "We value our long and supportive relationship but we remain financially independent from United." The Web site also noted that it has no "direct investments or loans with United." It stated that it has the second lowest delinquency rate among all U.S. CUs "even considering last year's furloughs." In 2001 the CU generated more than $200 million in total income with a loan loss of $2.2 million, "a very low loss by industry standards." The CU also said it has begun offering Balance, a San Francisco-based financial education and counseling service which utilizes a professional phone call-in arrangement and has been tried by number of CUs across the country. The Web site also asks a question the credit union assumes must be on many members' minds: "What happens to the credit union if it is no longer sponsored by United Airlines?" The answer: "the credit union will go on operating. Of course, we will have to make adjustments but we are committed to continue serving members with the same philosophy that makes us strong today." -

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