Alliant Cuts Car Loan Payments 30% for United Employees Hurting From Company's Financial Woes

CHICAGO – Alliant Credit Union is reaching out to hard-pressed United Airlines employees this month with a loan plan that cuts payments by 30% for qualified members impacted by job loss or pay cuts. Under its new “Member Assistance Program” introduced in mid-February, the CU is extending terms on new/used cars, recreational vehicles, boats, motorcycles, and airplanes, as well as certain unsecured loans and stock loans. “Alliant has provided several assistance programs since 9/11,” explained Alliant President and CEO David Mooney in a statement. “Unlike big banks, our philosophy is to tailor service to meet the specific needs of our member groups. As United’s credit union we are uniquely positioned to offer this kind of assistance to this important member segment.” The program handled electronically with a dedicated e-mail address is being offered to Alliant members with loans in good standing “who have been involuntarily displaced from their jobs, or have taken involuntary pay cuts.” Qualifying members who use the program can make payments beyond their minimums without penalty, said Alliant noting that loans not covered by MAP include mortgages, credit cards, home equity loans and lines of credit. The Chicago CU explained that mortgages and equity loans are not covered by MAP because both feature extended terms (up to 30 years for mortgages, and 15 years for equity lines of credit). In addition, Alliant said its credit cards currently feature a low 2% minimum payment adding those who enroll in MAP will be considered for new Alliant loans, but these new loans won’t be covered by the program. Alliant noted that because the monthly loan payments are reduced, the term of the loan is extended, which will result in additional interest over the term of the loan but those who sign up for MAP are responsible for additional finance charges. Over the years, Alliant has offered several financial relief programs to its members, including a Temporary Payment Reduction Plan as well as a Loan Repayment Assistance Plan. Stressing its “once a member always a member philosophy,” Alliant said that those United employees losing their job or seeing their pay cut “will always be part of the Alliant family no matter their final employment outcome.” Alliant with more than 178,000 members and $4.5 billion in assets is the state’s largest CU. [email protected]