NU Online News Service, Sept. 10, 12:30 p.m. – Computer Sciences Corp., El Segundo, Calif., is introducing a service to help banks and other financial institutions to add debt protection programs to consumer loans.
Traditionally, many lenders have recommended that consumers buy credit life insurance or credit disability insurance to protect themselves and their estates against the effects of unexpected personal disasters. But consumer activists have attacked the credit life and credit disability insurance programs, arguing that they are a bad deal for consumers.
The U.S. Office of the Comptroller of the Currency has recently given OCC-regulated financial institutions permission to sell debt protection programs of their own, without the participation of credit insurers.
The CSC service offers the actuarial, administration and back-office support services banks need to set up the debt protection programs, CSC says in a statement announcing its service.