Member Assistance Program
Your Board of Directors at Safe 1 realize economic conditions may result in layoffs, reduced hours, and even work furloughs. Obviously, these actions can have a devastating effect on your ability to repay your debts. Therefore, Safe 1 has developed programs to help members cope with periods of reduced pay. Below are some basic guidelines and commonly asked questions regarding our loan payment assistance programs.
Consumer Loans
If you have been laid off or have experienced a reduction in pay, you may qualify for loan extensions (payment skips) or monthly payment reductions for consumer loans you currently have with Safe 1.
Mortgage Loans
Generally, due to regulatory requirements, we are unable to offer assistance with most mortgage loans. However, if you have a mortgage with us and suffered a reduction in pay that may affect your ability to repay us, contact our Collection Department staff for assistance.
Request for Assistance
If you need assistance, you must contact us in a timely manner. To qualify, your subject loan must be paid up to date and cannot be delinquent. We strongly suggest you contact us immediately if you are laid off, furloughed, or have a reduction or significant change in your earnings or disposable income.
Questions & Answers
Question: Who qualifies for the consumer loan payment reduction program?
Answer: Members directly affected by a furlough, layoff or reduction in pay and have a consumer loan(s) with Safe 1 that is paid up-to-date.
Question: What if I have been laid off or furloughed?
Answer: If you have been laid off, you may be allowed to skip up to two monthly payments on your auto loans, recreational vehicle loans, or signature loans. If you are employed by a government agency that has implemented furloughs, we may allow you to skip monthly payments on your consumer loans. The number of payments will be determined on a case-by-case basis.
Question: What if I have a reduction in hours or pay?
Answer: If you have had a reduction in pay, you may be able to reduce your monthly consumer loan payments with Safe 1. This includes auto loans, recreational vehicle loans, signature loans and personal computer loans.
Question: Do I have to apply for the program?
Answer: Yes. Lending laws and regulations require we obtain signed documents, since this program changes the terms of your loan. Regulations also require we obtain proof of your ability to pay the debt in question in addition to your other monthly obligations. We suggest you contact us by telephone to apply for assistance. All requests are handled by our Collections Department and subject to approval, and you will be advised when your payment amount changes.
Question: How much will my payments be reduced?
Answer: The amount of your payment reduction will vary based on your ability to repay the debt, the loan type, interest rate, and remaining balance. Some payment reductions will be permanent, while others may be temporary, depending on your specific circumstances.
Question: How will this affect my loan and my credit record?
Answer: In many cases, your loan term will be extended in order to lower your monthly payments. That means it will take longer to payoff your loan and you will pay more in total finance charges. However, our loan modification programs will not impact your credit history or credit score, which ensures that your borrowing power will remain unchanged.
Question: Are there any fees to take part in these programs?
Answer: There will be a nominal fee for loan extensions on consumer loans. You may contact us for current fee schedules or obtain online at safe1.org.
Question: If I obtain a short-term, zero percent-interest loan, will it be reported to the credit bureaus?
Answer: Yes, we will obtain a credit report as part of the qualification process and your loan, if granted, will be reported to the credit bureaus just like any other credit facility you have which may impact your credit score. Additionally, if your loan is not paid back in full, it may be sent to a collection agency.
Question: How do I apply?
Answer: To apply, you may stop by any conveniently located Safe 1 branch location, through the Safe 1 website, safe1.org, or via digital banking.
Member Assistance Programs offered by Safe 1 Credit Union are subject to change at any time without prior notice.
If you have more questions or want to learn more about our Member Assistance Programs, contact our Call Center at (877) 723-3128.