Anyone who bought credit disability insurance when taking out a loan from a credit union.
What’s Going On?
Attorneys working with ClassAction.org are investigating whether a major credit disability insurer CMFG (formerly known as CUNA) is switching credit union members to more expensive policies without their knowledge or consent.
How Could a Class Action Lawsuit Help?
A class action lawsuit may be able to help credit union members recover money paid out in increased premiums.
Attorneys working with ClassAction.org would like to speak to anyone who took out a loan from a credit union and, during the process, elected to purchase credit disability insurance.
What’s Going On?
It is believed that the company that sells credit disability insurance to 95% of the credit unions in the country – CMFG (formerly CUNA) – swapped out borrowers’ policies without them knowing. Attorneys suspect that these policies are far more expensive, but fail to provide any real additional benefits despite the premium increase.
How Would I Know If My Policy May Have Been Swapped?
Unfortunately, attorneys suspect that these changes were made without any real notice to borrowers. One lawsuit against CUNA, for instance, alleges that the credit union named in the case published an incomplete, hidden and misleading notice of these changes on the inside page of its monthly newsletter – even though it was unlikely that borrowers would read or even open the newsletter. It is believed that borrowers may have, for years, paid increased premiums without ever knowing.
What Can I Do Now?
If you took out credit disability insurance from a credit union, an attorney can look at your original loan application, insurance contract and billing statements to determine whether your policy may have unlawfully changed.
I’m Not Even Sure if CMFG/CUNA Is My Insurance Provider…
That’s OK! A majority of people who took out loans from credit unions may not be sure which company provides their credit disability policies.
CMFG (formerly CUNA), however, is reported to sell its group credit disability insurance to 95% of the credit unions in the United States. So, if you took out a loan from a credit union and signed up for credit disability insurance in the process, there’s a good chance that CMFG/CUNA is your provider.