Member Credit Protection Tips, Info & FAQs
Asset protection in the event of a total vehicle loss or death
Buying a vehicle is exciting, but getting a loan can cause some anxiety. Purchase peace of mind, and security for your loved ones, with Member Credit Protection. For a one-time fee, we will cover your loan (plus an additional $1,000) in the case of these events:
- Your vehicle is totaled, resulting in a shortfall
- You die during the term of the loan
3 Ways to Stay Ahead of the Dealership
Buying a car can be a headache-inducing experience. It’s hard enough to make a big financial decision, but even more difficult when it often seems like the dealership is working against you. Here are three ways you can come prepared and get the best deal possible:
1. Research first
You don’t want to take an infinite number of test drives. Before you set foot on the lot, narrow your choices down to around five. You can conduct most of your research online beforehand—looking at possible prices, features, etc. and eliminating options from there.
2. Finance first
Most of the pushiest salespeople at the dealership work in the financing office, where they’ll be eager to talk you into higher interest rates. Get financing before you go instead, so you have the leverage to pay for the car in cash.
3. Double-check your trade-in
Don’t forget to not only research your new car choices but also your trade-in options. You should know how much your old car is worth. If the dealership won’t give you a good deal on it, you can always sell it somewhere else instead of trading it in.
From the Blog
Does Member Credit Protection (MCP) replace my auto insurance?
No, it does not. MCP supplements, but does not replace, your primary auto insurance coverage.
What do you mean by deficit balance?
This is equal to the value of the vehicle minus the loan balance. If your vehicle value is less than the balance on your loan, you are in a shortfall position and will need to pay the difference to us to pay off your loan.
MCP protects you from this situation by paying any shortfall balance if you total the vehicle in an accident or the borrower passes away during the term of the loan. Effective January 1, 2017, MCP will pay you an additional $1,000 to help you purchase another vehicle.
What happens if I suffer a loss and I don't have a deficit balance?
If you elected MCP coverage for your auto loan, you will still receive a $1,000 payment if you do not have a deficit loan balance at the time of your loss.
Am I covered if my auto insurance lapsed at my time of loss?
Unfortunately, no. You must have insurance on your vehicle (not CPI) to be eligible for MCP benefits in the event of a loss.
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Member Credit Protection Why United Texas
Member Credit Protection
- One-time fee for a future debt waiver
- We pay the shortfall balance
- .25% discount to your rate
- Includes an additional $1,000 to help purchase a new vehicle
- Conveniently include the cost in your loan payment
I absolutely love United Texas. They are professional and beyond courteous.Amy G., member since 1998
Let me start by saying, Lisa is fantastic! I purchased a new vehicle and got talked into purchasing all kinds of things I didn’t need which caused my payment to go up tremendously. The dealer refused to cancel all the extras even though it was an option per the paperwork. Lisa at United Texas CU was able to assist me in getting everything canceled and money returned. I refinanced with UTCU and was very satisfied with how easy the process was. They were able to accommodate virtually and have local offices to work with. Thank you Lisa Rakus for the fantastic work and time you took to help me.
Hi Christina - Thanks so much for letting us know about your recent experience with Lisa at our Medical Center Branch. We appreciate your choice to finance your auto with us and we're happy we were able to help you get your money back on the extras. Thanks again for being a member and enjoy your new ride! -Karla :)
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Member Credit Protection How it Works
How Member Credit Protection Works
To receive this convenient, economical service, all you need to do is let us know you’d like to add Member Credit Protection (MCP) to your loan. You’ll enjoy the added protection, as well as a discount to your rate.
In the event your vehicle is stolen or totaled, MCP will pay any difference between your current outstanding loan balance and the payout from your insurance company. Effective January 1, 2017, United Texas will pay an additional $1,000, to assist you in replacing your vehicle.
In the event that you die during the term of your auto loan, your MCP coverage will allow United Texas to cancel the outstanding loan balance and your estate receives the title, free of any liens or encumbrances from the credit union.
MCP gives you the comfort of knowing that your assets are protected in a time of loss.
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Need a Hand?
The purchase of Member Credit Protection is voluntary and cannot be required as a condition of loan approval. Member Credit Protection is a payoff shortfall and debt cancellation waiver. This represents a summary of coverage and is not a contract or part of the MCP agreement. Please consult the United Texas MCP Addendum and Disclosure for a complete explanation of the benefits and rules. The coverage offered is not a deposit, and is not federally insured, or guaranteed by United Texas Credit Union.