The Trust Card
Due to aggressive marketing, predatory practices, and economic necessity millions of working Americans are in a cycle of debt they have little hope of digging out of without an innovative product designed to help accelerate repayment and address their cash flow. To help combat this, the Trust Card, a debt management program pioneered by Neighborhood Trust Federal Credit Union and Neighborhood Trust Financial Partners, was created.
Its key features are designed to quickly eliminate unhealthy debt that is consolidated onto the Trust Card at fair, socially responsible rates, as well as provide a reasonable amount of credit that the member can access as needed. The program incorporates financial counseling, which creates a dialogue with members, encouraging them to assess their current situation, understand their choices, and leaving them empowered to take control of their financial future. The counselor works with the member to determine their ability to pay, establishing a Rapid Repayment, a fixed monthly amount that fits within the member’s budget and saves them thousands of dollars in interest. They secure a Commitment Contract in which the member pledges to close their current lines of credit, not open new lines and agrees to ongoing monitoring of their credit utilization.
Contact Andrew Downin, managing director of innovation, to learn more, watch the Trust Card recorded webinar.
During the incubator's 30-month reporting period, two credit unions opened 29 cards with just under $200,000 of consolidation balances. Recruiting credit unions took longer with this program than it did with some of the other programs causing a delay in gathering data. Based on this, Filene extended the original pilot period in hopes of generating more interest from credit unions and consumers. Even with this extension, there was not a substantial amount of interest that was generated.
For more details please see the Trust Card Insights Report found in the Resources section.