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Navy Federal, CUNA Mutual Team Up for Payment Protection

VIENNA, Va. - Navy Federal Credit Union has partnered with CUNA Mutual to design, implement and support a debt cancellation program. The over $22.8 billion credit union has begun offering three options of what it has branded "Payment Protection Plan" to cancel loan and credit card payments and/or balances in...

By Staff Writer | Updated on January 18, 2005

VIENNA, Va. – Navy Federal Credit Union has partnered with CUNA Mutual to design, implement and support a debt cancellation program. The over $22.8 billion credit union has begun offering three options of what it has branded “Payment Protection Plan” to cancel loan and credit card payments and/or balances in the event of loss of life, disability, and involuntary unemployment, which includes honorable discharge from the military. The cost of the plan is based on the outstanding loan balance and is included in members’ monthly loan payments. Debt cancellation is a two-party contract between the borrower and the credit union, stating the borrower will pay a fee in exchange for the credit union agreeing to cancel, defer or suspend the borrower’s debt when a specified event occurs. According to CUNA Mutual Account Vice President John Slusher, Navy Federal CU’s need for a flexible, easily expandable, compliant solution, combined with CUNA Mutual’s ability to train and support credit union staff on a worldwide basis made the CU CHOICE Lending Protection program a perfect match. Slusher says the program generates non-interest income for credit unions and reduces risk, while enhancing member relationships resulting in a win-win for everyone. Navy Federal CU is currently offering debt cancellation to members who apply for new consumer loans and in just the first four weeks members have purchased more than 15,597 of the loan product.

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