If you cancelled your Life and/or Disability insurance or paid out your loan early at the CU between 1 October, 2010 to 1 March 2016 you can expect an Insurance Refund in your account.
In October 2010, the Ontario government under a regulation called “Cost of Borrowing and Disclosure to Borrowers” changed the way refunds for early cancellations of group creditor insurance policies are calculated.
In a recent audit performed on our insurance provider of their refund calculator, it was brought to their attention that the loan insurance system which they provide to the Credit Union used to calculate refunds was not updated to reflect the new refund method. Any insurance cancellations or early payouts that occurred during the time period October 1, 2010 to March 1, 2016, were refunded using the wrong formula. This resulted in a lower refund than what should have been provided.
How Much Did You Get Back? If you have an existing loan at the Credit Union, your refund was applied against your loan as an additional payment as per our normal process and to assist you in reducing your debt faster. If you have no existing loans, the refund was posted to your chequing or savings account.
Great News…Invest in our Additional Shares with your Refund and you can earn annual dividends that will keep your money growing. If you have any questions or concerns or to purchase your additional shares, please contact our office at 416-238-5606.
