Think of the year-end holiday time when consumer spending is at its peak. Available cash becomes an issue for consumers and many already have outstanding loan payments to make.
That’s where your financial institution can offer help to your loan customers.
SKIP A LOAN PAYMENT
The friendly, personalized Skip-A-Payment letter offers loan customers the chance to skip one a predetermined upcoming loan payment. Using data from your loan files, WordCom can show the variable loan payment information in the letter—helping customers see the added cash they can free up when they need it most.
The best time to run the program is at year-end, when the biggest bills come due. A second Skip-A-Payment offer can be made before summer, when people are in the market for new vehicles and vacations, or before back-to-school shopping begins.
FOR A FEE
For the opportunity to Skip-A-Payment, the customer returns the personalized reply form that’s attached to the letter along with a handling fee ranging from $25 to $50 (depending on state laws). Most common fees are $30 or $35.
EXTEND THE LOAN’S LIFE
The letter tells the customer who wishes to skip the loan payment that the loan will automatically be extended one month. For the financial institution, this means a longer life for each loan, as well as additional interest on the loan balance.
CUSTOMERS APPRECIATE THE OFFER
Skip-A-Payment is a popular program across the nation. Response to each offer typically ranges from 10% to 20%, and can generate considerable fee income with each mail drop.
WordCom’s Skip-A-Payment program benefits your financial institution in many ways, including a boost to customer loyalty. Consider scheduling one or two Skip-A-Payment mailings in your marketing calendar now.