White Papers

Our vision is to revolutionize and automate the loan servicing workflow of the global financial community.

Disaster Relief Recommendations

By Colin Dougherty

The following outlines a recommended playbook for financial service organizations on how to service customers and account holders that have been affected by a hurricane or other natural disaster.

Disaster Relief Recommendations:

1. Get Federal Disaster Zip codes from FEMA
  • Create a table that will house all zip codes affected.
  • Compare disaster zip codes to customer and collateral addresses
  • Primary Address
  • Vehicle Address
  • Other Address as desired
  • Create a stored procedure or other processes that will update the account to designate it has been affected:
  • Fields to be updated:
  • Disaster Affected Area: Y/N
  • Disaster Type: (Hurricane, Earthquake, etc.)
  • Disaster Name: (If applicable, “Irma”, “Harvey”, etc.)
  • Disaster Expiration: Date servicing relief will be discontinued
  • Update fields via workflow during customer contact
  • Relief Provided: Y/N
  • Type of Relief: (See examples below, “Extension”, etc.)
  • Right Party Contacted Regarding Disaster Relief: Y/N

2. Suspend Collections
  • No Collection Calls
  • No Collection Letters
  • No Collection Texts
  • Wizard / Pilot for incoming Calls
  • Add to DR Queue / List

3. Repossession
  • Stop New Assignments
  • Avoid putting agents at Risk during recovery
  • Pause Existing Assignments – Manually determine case by case
  • Prior to a storm, move vehicles in possession to a safe harbor location avoiding damage to existing collateral assets.

4. Payment Relief Plans
  • Charge-Off Accounts
  • Offer reduced settlement options
  • Offer additional workout options – “Workout Calculator Rules”
  • Extension Eligibility for affected areas – For customers that call in, offer an extension as appropriate.
  • Deferment / Skip Payment for affected areas – For customers that call in, offer an deferment or allow them to skip 1 or 2 payments.
  • Reduced Payments for defined timeframe
  • New Payment Schedule Inserted
  • Term Extended
  • Temporary Interest rate reduction – SCRA model or SAC for LOC
  • Remove Late Charges from being assessed for X time frame

5. Customer Communication – Send disaster relief communication around available disaster relief assistance programs. Let them know Payment Relief Options are available:
  • Text
  • E-mail
  • Letter
  • For customers that haven’t been contacted or haven’t called in (RPC) in relief areas within the first week, resend communication indicating payment relief options are available should they be needed.
  • Update customer facing web-site to indicated relief options are available for affected customers
  • IVR – Route customers that have been affected to specific team members covering the operation support of the disaster relief.

6. Work with Dealers offering possible Car Exchange Program
  • Communicate with Dealers if you are offering a disaster relief finance relief program for new vehicle loans / originations
  • Substitution of Collateral

7. Credit Bureau Reporting – Disaster Related Accounts
  • Special Comment Code – ‘AW’ needs to be set
  • Remove reporting per organization’s rules

8. Customer Demographics – Capture information for customers temporarily displaced.
  • Related Party / Alternate Address
  • Phone Number
  • Spectrum: Expiration Date of Demo Changes

9. Vendor Relations – identify and contact vendors that could be affected. Validate they are still functioning and have disaster relief processes in place. Plan mitigation steps and other options should service be disrupted.

10. Insurance Claim Process – Prep for more claims

11. Bankruptcy – Contact Trustees for specific accounts in disaster relief area as appropriate

If you would like more product specific detailed information, or if you have questions, please call us at 804.272.3800 or submit a JIRA.