Win-Win Situation for Credit Union and Member

“We have partnered with Frost Financial Services to offer GAP to our members. This is definitely a win-win situation for the credit union as well as for our members. The credit union receives fee income from the GAP program and we have a member who is great example of how GAP protects our members. A long-time credit union member purchased GAP on his 1999 Chevy truck, based on his Member Service Representative’s recommendation. When his truck was totaled, the member was “up-side-down” on his loan and would have been forced to pay $5,921 out-of-pocket after his auto insurance settlement. Frost’s VisualGAP program is the best we’ve found. Once we have a chance to explain to members the benefits and low cost of GAP they are typically eager to purchase the program.” Kenneth Strand CEO Ohio Operating Engineers Federal Credit Union Cleveland, Ohio

Frost Financial News

2007.. Another Record Year

2007 was another record year of growth and profitability for the Frost GAP program. With the addition of more than 100 new Lender clients in 2007, Frost now serves more than 1,000 Lenders nationwide and processes more than 10,000 GAP waivers per month.

GAP programs have become an important source of fee income for Lenders and Frost clients realized more than $15,000,000 in fee income in 2007 from their GAP programs. Lenders and their borrowers also benefited greatly from GAP coverage. In 2007, Frost processed more than $4,000,000 in GAP waiver benefits for its clients and many consumers now recognize the value of electing GAP waivers on their loans.

During the past several years, most Lenders have begun offering GAP coverage for their borrowers and most of Frost's new clients are now switching to Frost from other GAP program providers. The Frost GAP program has become known as the market leader in providing broad benefits and quality client service. Due to these market leading features, Frost proudly continued its year-over-year GAP client retention rate of more than 96%.