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Contact: William F. Burfeind
Executive Vice President
(312) 939-2242

Chicago, August 27, 2009 - New York flood victims with credit insurance or other forms of debt protection may be eligible for property, disability, or involuntary unemployment benefits, according to the Consumer Credit Industry Association (CCIA).

“We extend our sympathy to those whose lives have been disrupted and who have experienced considerable damage to their homes and loss of personal property,” said William F. Burfeind, executive vice president of the CCIA. “As they begin to put their lives back in order we remind them that they may have credit insurance or debt cancellation or suspension claims for property lost or damaged in the storms or for health, accident, involuntary unemployment or, in the very worst instance, death claims.”

The CCIA executive advised consumers to reflect on whether they purchased credit insurance or a debt protection agreement when they borrowed. “Many consumers acquire credit insurance or related debt protection coverage when arranging financing for a major purchase, Burfeind said, explaining, “and some of those policies and agreements provide benefits for flood related property damage, disability, or unemployment.” Burfeind said, “Consumers who are uncertain if they have credit insurance or debt protection agreements assuring repayment of their loans or who seek assistance in filing claims, can ask their lenders including banks, credit card issuers and consumer finance companies for guidance.”

Consumers may choose to buy credit insurance or debt protection at the time they finance their purchase to insure that loan payments will be made in the event of death, disability, unemployment, or when property is damaged or destroyed. For example, credit insurance or debt protection may be arranged in conjunction with automobile, boat, or mobile home loans; on retail store charge accounts used to purchase home appliances; or on home equity loans.

Burfeind noted that flood victims with credit property coverage may be eligible for benefits covering damage to automobiles, appliances, and other personal property; for victims who suffered debilitating injury or whose place of employment will be closed, credit disability and involuntary unemployment benefit plans make monthly loan payments.

Burfeind cautioned, however, that benefits may vary among insurers and lenders and urged flood victims to review the provisions of insurance policies and loan and credit card agreements, or simply check with the lender or retail outlet where they financed their purchase.

Based in Chicago, the 120-member CCIA is a trade association of insurance companies and other financial service providers selling or servicing consumer credit insurance, credit related lines of insurance, and other consumer credit protection products including debt cancellation and suspension contracts or agreements.