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updated 08/11/14 03:01 PM
AB 2293 Would Protect Consumers
California and Nevada Credit Union Leagues President and CEO Diana Dykstra called on credit unions last week to encourage their staff to take immediate action on Assembly Bill 2293, which seeks to protect consumers by requiring Transportation Network Companies (TNCs) to provide physical damage coverage.

To take action, click here! Select the take action option under Transportation Network Companies: Uber and Lyft, and follow the steps to submit a letter to your state senator urging support for AB 2293.

The rise of Transportation Network Companies (TNCs), such as Uber and Lyft, has resulted in unintended consequences for credit unions. Although credit unions require insurance for all vehicles they provide loans for, that insurance does not cover all instances when drivers enter their vehicle into TNC services such as Uber and Lyft. When accidents occur while these cars are “in service,” there is no financial backstop to cover vehicle damages.

Ultimately, a credit union can be left with a significant reduction in collateral value.

Currently, Assembly Bill 2293 is pending in the California State Senate. “We need to make sure credit unions are protected by ensuring that damage coverage is also required for vehicles used to provide TNC services,” Dykstra said.

You can also forward the www.ConnectForTheCause.com web link to your credit union colleagues, asking them to take action.

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