Led by the advocacy efforts of credit union leagues nationwide with support from CUNA, legislation was passed in 13 states in 2016 to protect credit unions’ interests when their members partner with transportation network companies (TNCs), such as Uber and Lyft.
Drivers who work for TNCs generally use personal vehicles to perform their duties, which can result in lapses in coverages that can leave drivers uninsured. In addition, the functions of the job can entail increased risky activities by drivers, including transporting strangers, making more stops and dealing with distractions that come with having additional people in a car.
In 2015 CUNA said it would serve as clearinghouse for expertise, guidance and information regarding TNCs. CUNA and state leagues have worked to together to secure legislation that would contain requirements that would protect credit unions. Credit unions, as institutions that make car loans, can be vulnerable as lienholders on the vehicles whose owners participate in TNCs. Some of the protections include: notification to lienholders that the vehicles are being uses for TNC purposes and notification to drivers that their personal policies may not cover TNC-related collisions.
Without the oversight provided by legislation, both credit unions and borrowers could unknowingly be at risk as adequate coverage may not be maintained on vehicles. A TNC-related collision could result in damage to the borrower’s mode of transportation and the credit union’s collateral interest.
States in which legislation was passed include: