Page 7 - Michigan Credit Union League: CU Impact Report
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FALL 2020 CREDIT UNION IMPACT REPORT 7
COMMUNITY ASSISTANCE
QUICK, CREATIVE SOLUTIONS About 10,000 emergency cash loans were reported,
which covered more than $23 million for members.
FOR MILLIONS HIT BY COVID-19 These loans usually carried a 0% loan rate and
provided an average of $2,300 per borrower —
The first order of business for Michigan credit unions essential funds for paying rent or just putting food
following the news of Gov. Whitmer’s “Stay Home, on the table.
Stay Safe” Executive Order, was making sure they
could provide for members while remaining within Moreover, members were issued more than 260,000
the health guidelines provided by the state and skipped payments, resulting in more than $1 billion
Centers for Disease Control and Prevention. in payment delays to help offset income loss-related
financial hardship.
Suddenly, Michigan’s unemployment rate went
from less than 5% to nearly 25% in April. Hundreds of Nearly all of the credit unions polled reported
thousands of residents needed financial assistance offering fee waivers, ranging from waiving fees for
immediately, and the Michigan credit union late payments, skip-a-pays, early CD withdrawals,
movement was there for them. Insufficient funds, negative balance fees, ATM
overdrafts and more. Together, more than 600,000
Credit unions around the state found creative ways waivers saved members $12.7 million.
to offer assistance to members, whether they were
consumers struggling with monthly payments or In addition to these relief options, 80% of credit
small business owners uncertain of the short-term unions provided member safety and security services,
future of their business. such as financial counseling, debt consolidation,
paused repossessions and others.
While some credit unions focused on formal, time-
tested relief options — fee waivers, skip-a-pays, “These numbers are very powerful and speak to the
deferral options and emergency relief loans, to name overwhelming impact our not-for-profit movement
a few — others worked with individual members to has on the lives of millions of Michiganders,” said
see what worked for them. Alongside products, the MCUL CEO Dave Adams. “Once again, we showed
movement across the board took this opportunity that when a crisis hits, you can always turn to your
to educate members in need, offering budget local credit union.”
assistance or, for some business owners, sitting down
with them to look at reopening plans.
According to the Filene Research Institute, 90% of $1 billion
U.S. adults say their trust has grown for financial
institutions offering these types of assistance during in skip-a-pays
the pandemic.
“These are the times when credit unions should be $800 million
shining and stepping up to help members and the
community,” said United Federal Credit Union VP in auto loan relief
of Commercial Lending Tony Mandarino. “As credit
unions, we should be an educational professional
that they can count on to point them towards the
best resources for their specific situation.” $23 million
Member Loan Modifications in emergency loans
Of the credit unions polled by MCUL, nearly 80,000
auto and other consumer loans have had payment
terms modified to provide financial relief. That $12.7 million
equates to $800 million, collectively, that was freed
up for consumers to purchase essential needs. in fee waivers
