51
Journal
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SERVICERS
PREPARE
FOR COVID-19
AFTERMATH
When COVID-19 hijacked the headlines
in March in the United States, economic
activity throughout the country was paralyzed.
First-time unemployment claims poured
in at an unprecedented pace, according to
eFinancialbrand.com.
In order to negotiate the crisis on
the brink of barreling in, the government
and financial institutions hit the ground
running, installing economic measures,
including stimulus checks, additional weekly
unemployment benefits, and the Paycheck
Protection Program. Banks and credit
unions kicked in as well, offering payment
suspensions in the form of deferrals and
forbearances.
While these protective measures have
salved the most extreme of consumer
delinquencies, what lurks around the corner
once these protective measures run their
course?
With the volume of delinquencies
squarely in mind, numerous lenders have
been prepping their collection groups in
the shadow of the pandemic. is will pay
dividends once things bounce back to normal,
during such times when collections groups
follow up with customers who've not made
their contractual payments. e economics
and integrity of lending would be severely
undermined without these services, which
would wreak havoc on consumers, leaving
many with the inability to access credit.
e table's now set in terms of corporate
resources, including budget, IT capacity,
project management personnel to prepare for
the flood of delinquencies.
