Monday, June 22, 2009

School Supply Loans

Teachers and parents have school supply expenses that can drain the pocketbook. Our annual School Supply Loan has been a popular loan by our members. Qualified members can borrow up to $500 with a 0.00% Annual Percentage Rate. These loans are paid through payroll deduction or direct deposit over a 10-month period which would equal $50 per month. A small processing fee of $25 does apply for these loans. The net cost of these loans is well below most normal unsecured loans.

This type of loan is also well below the cost of payday lenders and other check cashing companies. If you need $500 for school supplies or any other worthwhile reason, this loan is a genuine member benefit. This is the type of loan that you will only see at a credit union. The "for profit" institutions would not make enough money on this type of loan to take the time or effort to process the loan.

As always with any loan, qualifications must be met. We are an Equal Credit Opportunity Lender. The minimum qualifications though for this School Supply Loan are less than most other credit union loans. Contact one of our Loan Officers for information. This loan is available through October 1, 2009.

Saturday, June 13, 2009

Buyers Beware - Kevin Trudeau

You have most likely seen the info-commercials of Kevin Trudeau, the self proclaimed "consumer advocate" who is now selling books on eliminating debt and obtaining free money. Anyone considering such a purchase might want to perform a little research on this "consumer advocate". What caught my eye was a common theme of people being charged for a newsletter of his that they did not want. The Federal Trade Commission (FTC) has handed down several fines and cease orders to Mr. Trudeau. Here is a FTC link on a public release posted in 2009;

If you perform a Google search on "Kevin Trudeau fraud", you will find more than enough resources to question his claim as a "consumer advocate".

Thursday, June 11, 2009

Collateral Protection on Loans

Members with collateral loans are required to maintain insurance coverage that protects North Alabama Educators Credit Union from financial loss as a result of damage or destruction of the property securing the loan. Comprehensive and collision coverage is required. The policy must also contain a loss payable clause endorsement naming North Alabama Educators Credit Union as lienholder of the collateral.

Proof of proper insurance coverage needs to be forwarded to the credit union for new loans or changes in your insurance company. Proof of insurance be received within 14 days of a new loan or a policy termination notice. If we do not receive proof of insurance in the time frame allowed, a policy protecting the credit union will be ordered with the cost of that premium being added to the outstanding loan balance. The loan payment amount would also be increased to maintain the original amortization schedule of the loan.

Forced placed collateral protection coverage is NOT traditional insurance. It provides no coverage for other vehicles involved in an accident. It does not provide coverage for the full value of a vehicle. It only provides coverage for the outstanding balance of the loan. If your loan balance was $5,000 and your $14,000 valued vehicle was totalled, only $5,000 would be paid on a claim. Forced placed collateral protection coverage is expensive because it is forced placed.

We do not want to have to add forced placed collateral protection but we must have the collateral loans protected. Members should be able to obtain traditional insurance coverage for far less cost. There are "high risk" insurance agents that can provide traditional insurance in most cases.

If you receive a notice from the credit union requesting proof of insurance, please take it seriously and provide the proof of insurance. Members can call the insurance tracking center directly at 1-866-260-6097 or update their insurance status at . Proof of insurance can also be faxed directly to 1-817-276-7860.

Tuesday, June 2, 2009

Record Month for Loans

Who said that there was a "credit crunch" going on? North Alabama Educators Credit Union just realized a record month in new loans during the month of May. The credit union disbursed over $2.9 Million in new loans during May. The bulk of these new loans were for new and used automobiles. That is good for our members and the local economy. Our loan rates are very affordable and competitive in the market. Lower loan rates translate to more money in the member's pocket at the end of the month.

I appreciate the members choosing North Alabama Educators Credit Union for their lending needs. Our lending staff should also be commended for their efforts in producing this record loan volume. The credit union stands ready to meet the lending needs of our membership in the coming months and years.