VSI or CPI: Which is Best for Your Financial Institution?

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Editor’s Note: Vendor’s Single Interest and Collateral Protection Insurance are both really long terms. For brevity, we’ll be referring to them as VSI and CPI throughout the article, except in certain headers. Plus, VSI is also known as Lender’s Single Interest, or LSI. We’ll use them interchangeably. So many acronyms,…

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Collateral Protection Insurance Comparison: Traditional vs. Monthly Payment

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Collateral Protection Insurance (CPI) is a valuable tool for financial institutions, protecting them against loss of a borrower’s collateral. “But Joe, the borrower has insurance for that situation. What’s CPI do, then?” Great question. While the loan terms require the borrower purchase and maintain physical damage insurance, do they always…

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What is Collateral Protection Insurance (CPI)?

Umbrella Protecting Money

Uninsured collateral? You’ve got options. Hey, you booked an auto loan! That’s wonderful. I bet your financial institution requires insurance on this asset. And your loan agreement states it must be secured and maintained for the life of the loan, right? Why? Because the car is also the collateral. So…

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