Creditor Resources, Inc.

Creditor Resources, Inc. (CRI) now offers an alternative to the highly regulated credit insurance products most credit unions rely upon for fee-based income.

CRI’s new Debt Cancellation products help safeguard credit union members' loans when such events as death, disability, involuntary unemployment, family leave, hospitalization, impact the member's ability to repay loan obligations. Unlike credit insurance products, however, Debt Cancellation products are simple, fee-based products which are not regulated by the state insurance departments with respect to rates, benefits, policy forms, disclosures, and licensing.

Debt Cancellation products give credit unions a competitive marketing advantage by delivering the flexibility to promote additional types of coverage. Credit unions can use these products either as a complement or an alternative to credit insurance to cover a wider range of events. Additionally, loan officers do not have to be licensed to sell Debt Cancellation products, as may be required to sell credit insurance.

With Debt Cancellation, the agreement to waive debt is between the credit union and the member. The credit union can then buy an insurance policy with an insurance company to take the risk. Members benefit by dealing directly with their credit union..

Available to all federally chartered credit unions and most state chartered credit unions in parity states, Debt Cancellation products deliver a number of other benefits. Having a higher number of protected loans reduces a credit union’s delinquencies, charge-offs, and collection costs. It also enhances member satisfaction. Additionally, credit unions can provide incentives to their loan officers for promoting the products without having to satisfy extensive insurance licensing requirements.

Debt Cancellation products give credit unions the flexibility to design their programs to help differentiate them from other financial service providers in the marketplace. These products can offer a significant competitive advantage.