Creditor Protection

Overdraft Payment Protection

Our Overdraft Payment Protection can help safeguard an overdraft facility against recall by the bank and reduce the amount owing to the bank if a customer is unable to work due to accident, sickness, disability or involuntary unemployment. Typically, this protection would pay a percentage of the customer’s outstanding overdraft limit or credit limit on a monthly basis until they return to work or up to a maximum of 12 months. In addition, life cover is incorporated to pay off the outstanding balance in the event of death.

CLIENT BENEFITS

Fulfils market needs

Current economic conditions suggest an increased risk of redundancy. Our product could therefore help if this means consumers struggle to meet their overdraft repayments in the event of sickness or involuntary unemployment.

Builds customer loyalty

The reassurance provided by Overdraft Protection will help to consolidate loyalty and provide a good opportunity for you to cross-sell other products such as Expense Protector.

Features flexibility

You can choose which customers are offered the product and whether to make the cover optional or a free benefit. You can also tailor which events are covered by the product such as accident and sickness, involuntary unemployment and death.

Guarantees repayment

By guaranteeing repayments, Overdraft Protection reduces the risk of credit delinquency while the product’s Life Cover element provides you with extra security by ensuring that outstanding balances will be cleared in the event of death.

CUSTOMER BENEFITS

Tailored to their needs

This product provides repayment cover for all kinds of unforeseen life events. The benefit can be tailored to your customers’ particular needs and budget and more than one person can be covered on the policy.

Greater confidence

Your customers can be confident that this protection provides 10% of the overdraft facility or used overdraft each month, should the unexpected happen. It is a financial safety net giving them the freedom to plan and budget for change.

Safeguards payments

Overdraft Protection reduces the need to use savings to repay the overdraft and can help maintain your customers’ normal standard of living at a time of reduced income.

Secure credit rating

By avoiding defaulting on their repayments, your customers can safeguard their credit rating even though their income has been interrupted. Doing so can help them qualify for credit they may need in the future.

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