“Skip-A-Pay” promotions are a popular and growing member service. The concept is as simple as it sounds: eligible members with qualifying loan balances can elect to skip-a-payment at a frequency set by your credit union’s policies; usually once or twice a year.
Skipped payments are added to the end of the loan term, interest accrues during the skipped period, and a “skip fee” set by the credit union is assessed. Members find this service helpful when faced with unexpected expenses and around the holidays.
Money One FCU saw their “Skip-A-Pay” program as a way to help both their members and Foundation programs.
“It’s a simple concept,” said Money One FCU CEO Beverly Zook. “At the end of the year we calculate the number of times members elected to skip-a-pay, multiply that by $2 and donate the resulting funds to support Foundation programs.
“We then promote the donation program to our members when discussing “Skip-A-Pay” so they know they’re helping to generate support for a great cause,” she added.
If your credit union offers a “Skip-A-Pay” program, consider sharing a portion of the program’s fee income with the Foundation. Your gift will be used to strengthen financial literacy offerings, training grants, scholarships, and other programs.
If you’re not already offering “Skip-A-Pay,” click here for a sample policy that may help you get started.