Your borrowers expect a wide range of valuable services that are timely and relevant in today’s economy.
For example, Guaranteed Asset Protection (GAP) coverage gives them a safety net if their vehicles are ever totaled or stolen and not recovered—helping cover the difference between the insurance company settlement and the balance of the loan. Vehicle purchases have always been huge decisions, but with the price of vehicles and interest rates on the rise, your borrowers need to protect their vehicle investment now more than ever.
That’s why many lenders offer their borrowers GAP at the time of their vehicle loan and up to one year afterward. This protection gives some additional security that they can afford to replace their vehicle quickly if it is ever declared a total loss. GAP benefits help reduce consumers’ debt stress, a condition that creates psychological anxiety for people inundated with personal debt.
When was the last time you assessed your GAP program?
As non-interest income takes on an increased focus within most financial institutions due to the current economic market, it’s vital to assess your GAP program to ensure you are offering the latest products and benefits while generating profits.
continue reading »