Debt Protection covers participating customers up to $50,000 in total payments and up to $1,000 in monthly payments for up to 6 months. Customers can file for multiple occurrences of involuntary job loss after a 6 month waiting period after a prior occurrence.
As an example, say a customer has $50,000 of balances outstanding at a 12% APR at the time of a qualifying job loss event. Their minimum monthly payment is $1,000 consisting of $500 in principal and $500 in accrued interest. Under the Debt Protection program, this customer would be eligible to cancel up to 6 months of minimum monthly payments and stay current on their account. This customer would also be able to file another claim in the event of a subsequent job loss event. If the customer becomes involuntarily unemployed again within 6 months of returning to full-time work, this will be a continuation of the first event. But if the customer becomes involuntarily unemployed again more than 6 months after they return to full-time work, this will be a new event. In this scenario, they would have $9,000 in eligible coverage remaining.
Please note, the $1,000 monthly limit may not be sufficient to cover your minimum monthly payment to keep you current. In this event, a customer would have to pay the difference between their minimum monthly payment and the $1,000 to stay current.