CO-OP Financial Services has announced a series of programs for its Full-Service Credit clients to help them address the financial stress their members may be experiencing as a result of the COVID-19 outbreak.
The cardholder payment relief solutions enable Full-Service Credit clients – those credit unions using CO-OP to fully outsource the processing of member credit transactions – to adopt one or more plans to ease payment schedules for cardholders.
“As a partner to our clients, CO-OP is taking swift and meaningful action to help them support their members in this unprecedented time,” said Todd Clark, President/CEO, for CO-OP. “As payments is one of the primary ways members are engaging with their finances right now, this is one way we could provide relief. We are here to lift the cooperative spirit of the credit union movement by supporting our clients and their members.”
Full-Service Credit clients acting on the opportunity by April 10, 2020, will be able to implement the cardholder payment relief solutions in time for the May statement cycle.
Three Cardholder Payment Relief Solutions
The following solutions can be implemented by CO-OP on behalf its clients, allowing them to remain concentrated on their members’ needs:
1. Skip Payment. Skip Payment 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. This service allows cardholders to forgo any new interest and fees while this program is in effect. Normal 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 Relief. This service allows cardholders to forgo any new Cash Advance, Late and Returned Check Fees while this program is in effect. Normal MPD will continue to calculate based on the current process but no new fees as stated above will be assessed on the cardholder statement(s).
Self-Service Solutions through Springboard
In addition to the three solutions, there are a number of cardholder settings that Full-Service Credit client credit unions can put into action immediately on an individual cardholder basis, via CO-OP’s Springboard app. Springboard is a simple-to-use application that gives credit unions real-time access to cardholder account information – all in one place. The self-service actions credit unions can take to bring payment relief to cardholders include:
- 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.
“We’re in This Together”
CO-OP has also made available a microsite with all COVID-19 related information, including client communications, resources and FAQs. Visit www.co-opfs.org/covid19 for the latest updates.
“We’re in this together with our clients,” said Clark. “We are working on additional solutions across our product sets and client base, and we will be communicating those initiatives promptly. CO-OP maintains a highly dispersed workforce, in which working remotely is business as usual – so we are moving full speed ahead to help our clients in these very unique circumstances.”
About CO-OP Financial Services
CO-OP Financial Services is a payments and financial technology company whose mission is ensuring the success of the credit union movement. CO-OP payments solutions, engagement services and strategic counsel help credit unions optimize member experiences to consistently provide seamless, personalized multi-channel offerings, while delivering secure, sophisticated fraud mitigation service. For more information, visit www.co-opfs.org.
