Insights

Auto loan defaults have nearly doubled since 2020, signaling growing financial fragility among today’s borrowers and increasing risk across credit union loan portfolios. Corrin Maier, vice president of Lending Business at TruStage, notes that while many consumers express interest in payment protection products, more than half do not recall being offered coverage — a disconnect she calls the “recall gap.”

Maier argues the issue is not a lack of conversation, but a breakdown in delivery, as borrowers often miss critical protection options during an overwhelming loan closing process. She emphasizes that digitally embedded protection can close this gap by placing coverage options directly within the online lending flow, giving members time to review information, make informed decisions and better safeguard their financial future before hardship strikes.