Navy Federal Credit Union has launched a debt cancellation program provided by CUNA Mutual Group. Navy Federal has begun offering three options of what it has branded "Payment Protection Plan" to cancel loan and credit card payments and/or balances in the event of loss of life, disability, and involuntary unemployment, which includes honorable discharge from the military. The cost of the plan is based on the outstanding loan balance and is included in members' monthly loan payments.
"The Payment Protection Plan, offered through CUNA Mutual, enables us to provide our members with a broad range of options in dealing with their Navy Federal debt during periods of personal financial stress, whether due to loss of life or income," said Jack Gaffney, senior vice president, Delivery Channels.
The $22.8-billion NFCU said that during the first four weeks of offering its "Payment Protection Plan," members purchased 15,597 policies. The credit union is currently offering the product to members who apply for a new consumer loan over the phone, online or in branch offices.
