Payment Protection reduces your credit union’s risk by protecting members’ loans from delinquency, default, or foreclosure – and providing you with another source of non-interest income. Payment Protection for consumer and home equity loans is an agreement between a member and a credit union that if the member dies, becomes disabled, becomes involuntarily unemployed, or takes unpaid family leave, the policy may cancel, postpone or suspend the principle and interest (or interest only) portion of the debt up to the benefit maximum.
Due to the extensive coverage this product offers- it requires a number of Payment Protection codes. Let CU*Answers create the codes and provide your staff guidance in implementing this coverage.
Schedule of Tasks
- A parameter notice is submitted to CU*Answers by either the credit union or by the vendor
- If the new rates/parameters conform to existing programming specifications, a project will be opened and the number of Payment Protection codes will be determined. If a new calculation is necessary, it may be subject to a custom quote.
- CUA will configure the codes by using Tool #465 based on the Parameter Notice (up to 24 codes included).
Phone and video meeting to ensure comfort with the product and calculation programmed.