Page 14 - MCUL: Contact Magazine - Q4 2019

On Sept. 15, nearly 50,000 General Motors (GM) employees Burton-based ELGA Credit Union offered striking GM employ-
across the country went on strike following the expiration of ees and contractors a special “loan skip-a-pay” program in
their previous contract. To assist these employees, who went which they can sign up to skip a payment on a current auto
without their usual wages for 40 days, credit unions around or personal loan.
Michigan showed their true colors by reaching out to mem-
bers and nonmembers to offer a wide array of relief options. “They are taking advantage of the skip-a-pay offer,” ELGA
CU CEO Karen Church told the Detroit Free Press in early
This is the second time in nine months that Michigan credit October. “We’ve had a few take out small personal loans to
unions have, in recognition of a time of need for many state help them get by. The typical size is $1,000. We’re praying
residents, stepped forward to present themselves as a they’re back to work soon.”
financial safe harbor. The first time was during the federal
government shutdown from December 2018 to January 2019. In a letter to Financial Plus Credit Union members, president/
CEO Jill Reno wrote, “We sincerely care about you and your
Lansing-based LAFCU offered the LAFCU Strike Loan, which financial well-being. We understand the impact the recent
is a loan of up to $2,500 with a 6.99% APR for 24 months, UAW strike against General Motors could be placing upon
to the United Auto Workers (UAW) union members during you and your family.”
their strike against GM.
To show how much the Flint-based credit union understood
the strikers’ struggles, it offered loan payment deferment for
“We want to be our members’ favorite qualified existing loans, waiving early certificate of deposit
financial experience for all life withdrawal penalties and 0% unsecured loans up to $1,100
for 12 months with no payments for 60 days.
events, including planning for and Lake Trust Credit Union in Brighton offered a Life Impact
responding to challenges.” Loan of up to $4,000 for up to 24 months at a fixed rate
of 6.75%. The loan was only offered to workers who had a
letter proving that they were on strike against GM or were
“The Strike Loan is something we’ve had in the past, and laid off because of the strike.
something we’ve used in the past for this very purpose,”
LAFCU Chief Marketing Officer Kelli Ellsworth Etchison told The loan had no up-front fees and no penalty was charged
WILX-TV a few days after the strike began. “Our core is the if it was paid off early. With 22 Lake Trust branches across
auto industry. Oldsmobile started our credit union way back Michigan, the loan was also available to new members on
over 80 years ago. My husband actually works for GM, and so strike who qualify, so they needed to join Lake Trust as mem-
he’s actually out there on the picket line. I’m a GM girl through bers and live, work, attend school or worship in Michigan.
and through. My mother, father and brother have all retired
from GM … I’m incredibly proud to work for an organization “We want to be our members’ favorite financial experience
that is willing to help our members get by during this time.” for all life events, including planning for and responding to
challenges,” said Lake Trust Credit Union Chief Member
WILX reported that LAFCU was willing to loan more as Experience Officer Jane Kile. “We introduced our Life Impact
needed should the strike continue longer than expected, Loan after the strike began because negotiations would
which it did by analysts’ expectations. A common refrain take some time this year. Our goal is to help ease stress,
from credit unions is they’re willing to provide for their mem- get members back on track and continue to help them with
bers as needed. tools to plan for the future.”
“They still have those needs, so just like our URL says, ‘here to The credit union staff also asked striking members to contact
help,’ we’re here to help them,” said Ellsworth Etchison. “For it to see about other opportunities, such as skipping a loan
us to be able to help our UAW community is important to us.” payment and waiving fees.
Alongside the Strike Loan, LAFCU offered debt consolidation, “We put our members first and we know that some members
refinancing options and financial advice. might be experiencing financial strain,” stated a recent press
release from United Financial Credit Union located in the

14 FOURTH QUARTER 2019 I CONTACT

12/18/19 1:49 PM
143171_Contact_Q4_19_F4.indd 14
143171_Contact_Q4_19_F4.indd 14 12/18/19 1:49 PM