Payment Protection and GAP
Whether taking a loan to renovate your home or buy a vehicle, it can be a financial gamble because life happens and can cause financial hardship, making it difficult to pay bills. Delinquent payments and defaulted loans can cause the loss of assets, negatively impact a credit rating, or cause financial distress to a family.
Adding Payment Protection will give you peace of mind. And adding on GAP will provide with total vehicle loss coverage in the event your insurance doesn’t provide enough to cover your loan. Achieve peace of mind with a FMFCU loan!
Payment Protection Worry-Free Advantages
- Added into monthly loan payment – no extra bill to worry about.
- As loan gets paid down, the monthly cost of Payment Protection is also reduced.
For more information, visit a branch location or call a Member Relationship Advisor at 610-325-5100 (Outside PA: 1-800-220-3193)
* The purchase of Payment Protection is optional and does not affect any application for credit or terms of any credit agreement required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Contact a Member Relationship Advisor or refer to Payment Protection contract for full explanation of terms. Payment Protection can be cancelled at any time. If cancelled within first 30 days, a full refund of any fee paid will be issued. DPGAP-0913-4A41
Guaranteed Asset Protection (GAP)
GAP offers peace of mind when buying a vehicle by offering protection in case of an accident. Our GAP policy will pay the difference between what is owed and what the insurance company reimburses, in the event of a total loss to a vehicle.
Original Purchase Price $25,000 Loan balance after one year $21,000 Vehicle's current value as determined by your insurance company $16,000 GAP pays the following toward the financing or leasing of a replacement vehicle $5,000 GAP pays the difference $5,000 (Including your deductible, up to $1,000)** $5,000 Total GAP Benefit $5,000
- Covers up to 150% of the loan-to-value (policies issued prior to November 1, 2020 cover up to 125% loan-to-value)
- Eliminates risk of a financial loss
- Covers auto insurance deductible up to $1000
- Protects personal credit rating
- Low cost – one time fee that can be financed into the loan or paid up front
- Can be added to new or existing loans
- GAP Advantage provides an additional $1,000 credit when financing your next vehicle with FMFCU within 95 days of claim settlement