A Message from David: COVID-19 Loan Relief

Announcing Automatic 60-Day Deferment for All Consumer Loans

March 28, 2020

Hello, everyone.

In my last note, I promised you that this credit union would be here for you, our valued members, during this unprecedented time of crisis. 121 Financial Credit Union remains open for business and at the ready to help you in any way we can.

I’m writing to inform you that we have decided to, effective Monday, March 30, 2020, place an automatic 60-day deferment on all of our consumer loans, including vehicle loans, personal loans and credit cards. For mortgages, our partner TruHome is offering 90-day forbearance for members who qualify, but you must request assistance at: https://www.truhome.com/covid-19/.

For our consumer loan relief program, here’s what you need to know:

• There is no need to reach out to us to take advantage of this program, this program will be automatic, so no further action is needed on your part.
• There is no fee for this service.
• We will skip two months of payments.
• Your due date will automatically advance 60 days from your current due date (unless your loan is already paid ahead 60 days or more).
• This program will include all loans in good standing you have with 121 Financial Credit Union excluding commercial loans and mortgage loans.
• This program will not include loans that are more than 90 days’ delinquent or that are the subjects of current litigation or bankruptcy.

Please note that loan payments made before April 1, 2020, will not be reversed. If you have a 121 Financial Credit Union loan that is excluded from this program or you are more than 60 days delinquent on your loan, please contact our Member Resolutions Team at 904-723-6300, ext. 3300 or 800-342-2352, ext. 3300 if you want information about possible payment assistance.

If you want to continue making your scheduled loan payments, you are welcome to do so through online banking, any drive through location, or by calling the Contact Center at 904-723-6300 or 800-342-2352. If you have automatic loan payments established through Easy Pay, you will need to go into Easy Pay  to suspend those payments.  Any loan payments (whether automatic or manual) received by 121 Financial Credit Union during this skip-payment program will be applied to your loan balance as usual.  

Please be aware of the following important terms of this program:

• Interest will accrue on your loan balance during the skip-payment period at the then-current normal interest rate for your loan.
• Following the skip-payment period, you must continue to make loan payments in the regularly scheduled amounts on each due date.
• For closed-end loans: All amounts then due and owing under the applicable loan agreement will be due and payable on the final maturity date set forth in the loan agreement.  A larger balloon amount will be due on the final maturity date or payoff as a result of the skipped payments.
• For open-end loans: The term of your loan will be extended such that you will be required to make additional periodic payments in accordance with the loan agreement until your loan balance is paid in full.
• Negative amortization will occur during the skip-payment period. Negative amortization will increase the amount you owe under the loan agreement and reduce your equity in any property or collateral which secures the loan.
• This skip-payment program is not a novation of the debt represented by the loan agreement.
• This skip-payment program does not entitle you to any future waiver of loan payments.
• If you have GAP Insurance associated with your loan, your GAP insurance coverage only includes up to 2 skips and/or delinquent payments.
• Except as modified by this program, all loan terms and conditions remain in full force and effect.

For more information, we've created a webpage with answers to other common questions. 

121 Financial has been a solid, reliable institution in Jacksonville for more than 85 years, and we are proud to be an essential part of our members’ lives and this community. Our credit union was born in the Great Depression, after many of the banks failed. We’ve weathered the Oil Crisis, the 80s downturn, the Great Recession and other crises – always with the mission to help our members stay in their homes, keep their cars, and make ends meet.  We will weather this storm, too, together.

Again, if you are experiencing a hardship related to the COVID-19 outbreak, please call us at 904-723-6300 or email us at ask121@121fcu.org today so we can work through it together. Don’t wait to reach out to us. We are here to help.

Thank you again for being a member of this credit union.

Warm regards,

David Marovich
Chief Executive Officer
121 Financial Credit Union

P.S. For general operational updates, please continue to monitor our COVID-19 Information Center.