You will learn how Indiana Members Credit Union uses Depreciation Protection Waiver as an alternative when Guaranteed Asset Protection is not appropriate for positive-equity, low-LTV auto loans. The case study explains the credit union’s compliance considerations, staff and member education, technology integration and results, including production growth, annual non-interest income and average member benefits paid.

This white paper is designed for credit union and bank leaders responsible for auto lending, retail delivery, compliance, product strategy, non-interest income or point-of-sale protection products. It is particularly relevant to institutions evaluating how DPW can complement GAP, protect positive-equity borrowers and give lending staff an appropriate total-loss solution across different loan-to-value scenarios.

This topic is important because GAP may provide little or no value to borrowers with positive equity, and regulatory requirements can restrict GAP sales on lower-LTV loans. The case study shows how a credit union used DPW to address that protection gap, support compliance, create member value and generate additional non-interest income without reducing its existing GAP production.

Yes. The case study provides practical implementation lessons from Indiana Members Credit Union. These include educating front-end employees and members, integrating DPW into the existing iQQ sales system, using loan-to-value calculations to automate product selection and positioning GAP and DPW together as Total Loss Protection for borrowers with different equity positions.

The resource addresses regulatory limits on offering GAP for low-LTV loans, the lack of an appropriate total-loss product for positive-equity borrowers and the need to generate non-interest income without reducing GAP sales. It also covers staff and member education, product integration, automated eligibility decisions and compliance support for front-end lending teams.