Page 9 - MCUL: 2020 CU Impact Report

SPRING 2020 CREDIT UNION IMPACT REPORT 9

Senator Debbie Stabenow joins the 2019 GM employee strike.
Photo Courtesy: Local UAW 652

bills, gifts and parties, travel fees, new clothes, or “While we actually offer this member perk all year
unforeseeable ones like a sudden car or furnace repair. long, we promote it around the holidays when
household funds can get a little tight,” said Honor
Just as with the GM strike, Michigan credit unions VP of Lending Dustin Nehls, regarding their
were quick to notify their membership and skip-a-pay program. “We want to give our members
communities (via press releases, emails and social the grace and flexibility to have a tight month due to
media) that financial relief was available — that they whatever circumstance they have going on without
were standing ready to help meet their specific the added mental stress of a late loan payment. The
needs and ease their burdens. The most popular skip-a-pay program gives members a solution with
assistance option in times like these is a pre-approved, no questions asked to skip a loan payment and use
low APR loan ranging from $1,000-$3,000, with their money where they feel it’s best needed at that
6–24-month payback plans. Other products and point in time. We understand that life happens, even
services include a skip-a-pay option, which allows a around the holidays.”
member to skip a month’s payment without penalty,
as well as one-on-one financial coaching sessions. Honor sees nearly 4,000 payments skipped per year
Some credit unions also encouraged members to using the program. Allowing members to skip an
reach out to discuss other case-by-case solutions. auto payment lets them free up hundreds of dollars
to use on seasonal necessities without promoting
The emergency loan program is another one of the the debt of a credit card purchase or high APR loan.
ways Michigan credit unions are offering members
much-needed healthy alternatives to predatory When credit unions reach out during times of
payday lenders. During these times of financial stress trouble and offer affordable products and services
and uncertainty, when consumers are increasingly that are built to help members, they prove to their
vulnerable, they are more likely to turn to quick communities that they recognize them and care
solutions from payday lenders and others that have about their financial wellbeing. It sends the message,
unfair credit practices built to put borrowers in a cycle “We’re in this together.”
of debt. These credit union loans, however, aren’t
designed to build profits — only to assist those in need.