DALLAS – Neighborhood CU is giving members six months to walk away from their auto loan should unforeseen circumstances cause loss of income.
The credit union said it will let borrowers off the hook if they lose their job or have a major medical situation. Neighborhood CU has launched what it said is an innovative bundle of supplemental insurance options on auto loans, most notably the “walkaway” clause allowing borrowers to escape their obligation without penalty should they be unable to pay within the first six months.
Dubbed the MPower Vehicle Protection Plan, the package includes the following four components, all complimentary:
* Vehicle Return Program – Members can walk away from their loan obligation if uncontrollable circumstances cause loss of income within six months following the purchase. Available for all vehicles.
* Paintless Dent Protection – For the first three months following the purchase, consumers can keep their car looking new with coverage for minor dings, dents and scratches (basically cosmetic fixes that do not require a new coat of paint). Limited to vehicles with less than 36,000 miles.
* Powertrain Coverage – three-month limited powertrain coverage covers engine and transmission repairs. Limited to vehicles with less than 36,000 miles.
* Tire & Wheel Coverage – For the first six months, tires can be replaced or repaired if damaged by road hazards. Limited to vehicles with less than 36,000 miles.