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Certified is not technically a credit union service organization (CUSO) but it collaborates like one, says Mark Giguere, president/founder.
CU Certified was born out of longstanding frustration. In this case, auto dealers—particularly independent dealers—were frustrated with limitations on the coverage of vehicle service contracts credit union members purchased.
Put simply, CU Certified Automotive offers a more member- and credit union-friendly service agreement—and creates valuable noninterest income.
“We created the program to mirror what was happening on the dealer side in terms of profit participation,” Giguere says. “Not only is it a better product for the member, it allows the credit union to participate in 100% of the underwriting profit.”
Credit unions have a say in the claims process for their members, and can use the underwriting profits normally enjoyed by administrators to benefit their membership.
CU Certified’s deductible-free contract pays for diagnostics, maintenance, and covered repairs. Additional benefits include national acceptance, trip interruption and “wrap” coverage (which expands manufacturers’ warranties), and 24-hour roadside assistance.
The offering can generate more than $100,000 in noninterest income each year for some credit unions, Giguere says.
Read more about CUSOs in the feature article "Collaboration Power." This article originally appeared in Credit Union Magazine.