Listerhill Credit Union

Prior to the 2016-2017 holiday season, Listerhill has never offered the option to skip a loan payment; we have only offered extensions to members who are behind on their payments. Through research on other credit unions offering a “Skip-A-Pay” option, we have found that at-choice revenue products help to increase fee revenue while also allowing credit unions to do something for the greater good, like making charitable donations with the proceeds. With Skip-A-Pay, we also give our members in good standing on their loans an option to skip a payment during the holidays, when some do not necessarily want to take out loans but need extra cash.

Our target audience was about 9,700 members with eligible loans (excluding all real estate loans, loans less than six months old, lines of credit, credit cards, business loans, bad address accounts, overdraft protection loans, Christmas loans, loans in bankruptcy, charged-off loans, loans currently past due more than 10 days, loans that have received extensions – maximum of six skip pays and/or extensions allowed during the term of the loan – workout loans or troubled debt, loans on accounts with a negative checking or savings balance, and single payment loans).