Page 14 - MCUL: 2020 CU Impact Report
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14 CREDIT UNION IMPACT REPORT SPRING 2020
ERASING MEDICAL DEBT
Late in 2019, the Southern Michigan vicious financial cycle that also burdens the
Chapter of Credit Unions (SoMi Chapter) emotional health of those underneath its
announced a $25,500 gift to RIP Medical weight. Through collaborative giving, we
Debt, a 501(c)(3) non-profit organization. are creating a new virtuous cycle for more
The gift, a collaborative effort by nine than 3,000 individuals and families.”
Michigan credit unions and the Michigan
Credit Union Foundation, helped abolish The individuals selected for debt
$2.5 million in medical debt for 3,182 people abolishment are truly in need, according
in Jackson, Lenawee, Hillsdale, Calhoun and to RIP Medical Debt co-founder Jerry
Washtenaw Counties in Michigan. Ashton, “We find people who earn less
than two times the federal poverty level
RIP Medical Debt uses donations to or are in hardship by paying 5% of their
purchase medical collection accounts at a annual income out of pocket for medical
greatly reduced cost and pays off the debt expenses, or who face insolvency due to
for the neediest people. More than 3,000 their medical debt being greater than
local recipients of the credit unions’ joint their assets. I cannot tell you how thrilled
act of kindness were subsequently notified RIP Medical Debt is to partner with this
by RIP Medical Debt via letter. amazing collection of Southern Michigan
credit unions that do not simply talk about
“Each of our credit unions recognizes that community involvement but live it daily.”
medical debt doesn’t happen by choice.
We don’t view medical collections as an Fuerstenau expressed the hope that the
indicator of financial irresponsibility,” shared gift of debt abolishment will serve as a
American 1 Credit Union CEO Martha step toward restored financial wellness
Fuerstenau. “However, because loan rates for the recipients. The credit unions
are based on credit scores, the impact of a involved in this project provide financial
medical collection reaches into the wallet counseling in various forms for anyone in
of our neighbors month after month. It’s a their communities.
