As the COVID-19 situation continues to unfold daily, many of our members will be faced with unprecedented financial hardships over the next few weeks and months – chief among them is the ability to make their credit card payments on time. We have before us an opportunity to ease the burden on America’s working families and increase member loyalty through real, empathetic and impactful programs that will help members navigate this crisis.
Three Solutions to Relieve Cardholders
For cardholders who are temporarily out of work or stretched thin with their finances, the ability to skip a payment or get relief from interest and/or fees can help give them time to get back on their feet in a way that demonstrates the cooperative spirit of the credit union movement.
This is why we are pleased to offer three cardholder payment relief solutions at the portfolio level that are available today for CO-OP Full Service Credit clients to take advantage of to step in to assist their credit card holders in this time of need. And, please know that we are working on additional solutions across our product sets and client base, and we will share more on that in the coming days.
1. Skip a Payment
How does it work? The Skip Payment service allows the cardholder to “skip” making the Minimum Payment Due (MPD) on their credit card account. When activated, the MPD amount will show No Payment Amount Due on the applicable cardholder statement(s).
2. Interest and Fee Relief
How does it work? The Interest and Fee Relief service allows your cardholder to forgo any new interest and fees while this program is in effect. The Normal Minimum Payment Due (MPD) will continue to calculate based on the current process but no new interest or fees will be assessed on the cardholder statement(s).
3. Fee-Only Relief
How does it work? The Fee-Only Relief service allows your cardholder to forgo any new Cash Advance or Late and Returned Check Fees while this program is in effect. Normal Minimum Payment Due (MPD) will continue to calculate based on the current process but no new Fees as listed above will be assessed on the cardholder statement(s).
CO-OP can implement any of these three solutions on your behalf to ease the work for you, while you attend to your members’ needs. If you would like to take advantage of these programs, please notify your Client Service Executive you by April 10, 2020, in order to implement them for the May statement cycle of your cardholders.
Low-Stress, Fast Relief: Additional Self-Service Options Available Through Springboard
Did you know that there are options in Springboard that your credit union can turn on today for your cardholders to provide relief? In addition to the three programs above, there are a number of cardholder settings that your credit union can put into action immediately via the Springboard application on an individual cardholder basis, including:
- Deferred Payment – delay the Minimum Payment Due by one month
- Temporary Credit Line Changes – increase a cardholder’s credit line for a specific timeframe
- Stop Interest Accrual – prohibit fees and finance charges from posting to an account
- Update Minimum Payment Due – quickly update Minimum Payment Due for an account
- Hold Correspondence – temporarily stop the delivery of statements
- Update Miscellaneous Fields – making it easier to track impacted accounts
- Credit Bureau Reporting – update an individual cardholder’s credit bureau reporting
Providing Essential Services: We Are All in This Together
Today we have also made available a microsite with all COVID-19 related information including client communications, resources and FAQs. Please visit www.co-opfs.org/covid19 anytime for the latest updates.
CO-OP is doubling down and thinking outside of the box to support our credit unions and their members during these challenging times. In addition to the special programs above, CO-OP will continue to provide our credit unions with solutions that ensure business continuity, such as: comprehensive mobile banking solutions that help to limit in-branch visits; Contact Center services that ensure credit unions are available to their members 24/7, safely, via phone; and the largest network of Shared Branches and surcharge-free ATMs that ensure that members have ongoing, widespread, reliable access to much-needed funds. Our infrastructure and internal resources remain well-equipped to continue providing the highest level of service for our clients. We continue to be in this with you and for you.
The original article Leading with Compassion: Options to Support your Cardholders through COVID-19 can be found on Insight Vault.