When a Skip-A-Payment request is accepted for an eligible loan, the terms and conditions of that loan will change in that the maturity date on the eligible loan will be extended and may cause an increase in the final payment amount. Skipping a loan payment will not affect the payment record of the account. The Interest will continue to accrue on all affected loans and the first payment after the skipped period may be all or in part applied to interest that has accrued on the eligible loan. Extension of the note may not be covered by Insurance products such as Payment Protection Credit Insurance and Guaranteed Asset Protection.
The Credit Union may terminate this program at any time. If approved, the Skip-A-Payment request will amend the loan agreement and the regular monthly payment schedule will resume immediately following the month in which payment has been skipped. The following loan types do not qualify for skip payments: Real Estate, Home Equity, Home Improvement, Share and Share Certificate Secured Loans, Auto loans with Collateral Protection Insurance added, Mobile Home, Credit Cards, Line Of Credit, Single Payment & Balloon, Commercial and Business Secured loans, Members Business loans and Employee Brand Attire.
A minimum of six (6) months of payments are required before the first Skip-A-Payment can be approved. Eligible loans can have no more than two (2) monthly payments skipped per 12 month rolling period (Loan Extensions included). In addition, there must be six (6) months between Skip-A-Payment requests.
There will be a $10 processing fee for each skipped loan payment.