Financial Protection Products Preserve Financial Strength, Provide Peace of Mind

ATLANTA–(BUSINESS WIRE)–#CCIA–When Helen Agnew bought debt protection that would cancel her car
payments if she lost her job, she had no idea how valuable the
protection would be.

Debt protection is a suite of products available to consumers through
creditors. Creditors offer the products to help borrowers cover their
payments when unforeseen events occur such as job loss, disability,
property damage or death. Protection is generally available for auto
purchases or loans, secured or unsecured loans, credit cards and home
equity loans. A consumer’s decision to undertake a new indebtedness
changes the consumer’s financial exposure. Debt protection products not
only help consumers protect that new risk, they foster financial
well-being and peace of mind.

“My credit union offered debt protection to me when I financed my car
and my daughter’s car there,” Helen says. “It seemed like the smart,
responsible thing to do. Purchasing that debt protection turned about to
be the best decision I’ve ever made.”

Helen had moved recently to Missouri with her college-age daughter after
a divorce left Helen single after more than 20 years. She was ready for
a new life. And then it happened, a bolt from the blue. Helen suffered a
debilitating stroke.

As she relearned how to walk and talk, something else unexpected
happened. After 31 years in the workforce, Helen became unemployed. But
Helen didn’t panic.

“I knew I had safety net,” Helen says. “The debt protection I bought
from my credit union was a small fraction of my loan amount. But when I
lost my job, I didn’t have to decide if I had to make my house payment
or stay current with my car loan.”

These financial protection products are most often obtained at the time
of purchase or through a financial institution like a bank or credit

“Without debt protection on my car loans, we would have had to put our
lives on hold,” Helen says. “I wouldn’t have had a car I could use to
get to my new job. My daughter wouldn’t have had the transportation she
need to continue her college studies. I am so thankful I took advantage
of debt protection when it was offered to me. It was integral part of
the toolbox that carried through the most difficult time in my life.”

“The use of debt protection ensures that both assets like cars and the
financial well-being of the consumer are protected,” said Tom Keepers,
executive director and executive vice president of the Consumer Credit
Industry Association (CCIA), whose members provide financial protection
products to approximately 20 percent of U.S. adults. “The chief goal of
CCIA’s members is to provide insurance and assurance products that
contribute to a thoughtful, balanced approach by consumers to protect
their personal financial well-being. As consumers make their major
expenditures during 2017, we encourage them to learn more about and use
our members’ financial protection products, which provide them and their
families with significant benefits.”


Consumer Credit Industry Association
Tom Keepers
Vice President
Rod Hise & Co. Ltd. for
Consumer Credit Industry Association
Rod Hise