Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Better debt management terms sought for borrowers
WASHINGTON (10/6/08)—The National Foundation of Credit Counselors (NFCC) has launched a call to action for the development of affordable debt management plans (DMPs) asking 10 major card issuers to join the effort. The highly regarded NFCC is the nation's oldest association of credit counseling agencies, and the Credit Union National Association (CUNA) is a member of its Advisory Council. The NFCC is asking all card issuers to act by March 31 to use a universal, two-tiered DMP, which would offer either a maximum monthly fixed payment of 2% or a hardship payment of 1.75% of a balance. The development could be important for credit unions and their members, according to Mike McLain, CUNA's assistant general counsel, senior compliance counsel, and NFCC representative. “As a general rule, credit unions will experience higher losses if their members file bankruptcy rather than complete an acceptable debt payment plan. The NFCC is proposing somewhat more reasonable limits for debt payment plans that should enable more CU members—and borrowers in general--to repay their debts through debt payment plans rather than resorting to bankruptcy,” McLain explained. According to NFCC, about 25% of the clients its 108 credit counseling agencies see would benefit from a DMP. However, without modification to DMP terms, the option will be unaffordable by at least a third of those.


RSS print
News Now LiveWire
St. Louis treasurer taps #creditunion to serve unbanked #NewsNow http://t.co/lWtcezJOej
22 hours ago
.@CUNAMutualGroup has committed $35K to @trustdotcoop over the next year to suppor the future of #creditunions.
1 Day ago
.@madison_mag gets the cooperative scoop from @SummitDoMore's @kimsponem http://t.co/RxSCeSegie
1 Day ago
.@VantageWestCU emeritus chairman Whittaker inducted into @DCUC_HQ Hall of Fame http://t.co/dpeP4ME49U
1 Day ago
Australian newspaper covers Gen Y tips from @ServusCU at @WOCCU conference http://t.co/xqmLfZVwaI
1 Day ago