WASHINGTON—Among the issues for which 2016 may not be remembered—but that is important to credit unions–is protecting CUs in their relationships with transportation network companies (TNCs), which are better known as Uber and Lyft.
CUNA noted that TNC-related legislation was passed in 13 states during 2015. It credited state leagues for their advocacy work in getting the bills passed.
Drivers who work for TNCs generally use personal vehicles to perform their duties, which can result in lapses in coverages that can leave drivers uninsured on vehicles on which they may have loans, CUNA said.
“In addition, the functions of the job can entail increased risky activities by drivers, including transporting strangers, making more stops and dealing with distractions that come with having additional people in a car,” CUNA explained.
In 2015 CUNA said it would serve as clearinghouse for expertise, guidance and information regarding TNCs. CUNA and state leagues have worked to together to secure legislation that would contain requirements that would protect credit unions, the trade association stated.
“Credit unions, as institutions that make car loans, can be vulnerable as lienholders on the vehicles whose owners participate in TNCs. Some of the protections include: notification to lienholders that the vehicles are being uses for TNC purposes and notification to drivers that their personal policies may not cover TNC-related collisions,” CUNA said.
Without the oversight provided by legislation, both credit unions and borrowers could unknowingly be at risk as adequate coverage may not be maintained on vehicles. A TNC-related collision could result in damage to the borrower’s mode of transportation and the credit union’s collateral interest, CUNA explained.
States in which legislation was passed include:
- Alabama
- Delaware
- Hawaii
- Iowa
- New Hampshire
- Massachusetts
- Mississippi
- Missouri
- Pennsylvania
- Rhode Island
- South Dakota
- Utah
- West Virginia