Originally published on CUInsight.com
A lot can happen when the economy takes a downturn, especially layoffs. Even with the Great Resignation of 2022, companies – especially tech companies – still made headlines by what seemed like a revolving door of layoffs. Unlike a resignation, layoffs are typically unplanned (by the employee) and often come as a surprise. These life-altering occurrences can instantly leave employees and their families scrambling to pay their bills and make ends meet. Leaving them to make the difficult choice of who gets paid and who doesn’t.
No creditor or lender is immune when it comes to these decisions. Fortunately, debt protection products are available to help protect you and your members during these and other difficult times – with the added benefit of additional revenue generation for your institution.
What is Debt Protection?
Debt protection, not to be confused with credit insurance, is a contractual arrangement where the institution agrees to cancel all, or part of, the member’s responsibility to repay on the occurrence of a specified event, such as death, disability, or involuntary unemployment.
If your credit union isn’t currently… Read the full blog here