DCUC Partners with CUNA Mutual to Offers Debt Cancellation to Military Members and Their Families

WASHINGTON – The Defense Credit Union Council, has teamed up with CUNA Mutual Group to develop a customized debt cancellation loan protection product to meet the needs of military members and their families. The DCUC debt cancellation offering to military credit unions includes protection for death, disability, hospitalization and honorable discharge (Involuntary unemployment). Along with available involuntary unemployment for civilian members, the new offering affords protection for covered events as a result of combat and maneuvers. Debt cancellation is not insurance but a loan protection agreement between the member and their credit union. Under the two-party agreement, the lender agrees to cancel or defer the borrower’s debt if one or more specified life-altering events occur. Because it is not insurance, there are no agent licensing requirements. “During the height of combat operations in Iraq, DCUC members identified a requirement to protect and address the special needs of our military members and their families,” said Arty Arteaga, DCUC president/CEO. “Thanks to the efforts of CUNA Mutual Group, a `straw-man’ product was designed and introduced at our `Hot Market Issues’ session in 2003. Five of our members took an immediate interest and volunteered to work with CUNA Mutual to custom-build benefits that met the unique needs of our troops – especially those in combat. As we continue to refine this debt cancellation model, DCUC will work to ensure it is specially tailored and flexible for the military members it is meant to protect.” Military credit unions wanting information on DCUC-tailored debt cancellation should contact CUNA Mutual at (800) 356-2644 ext. 7269.