Digital payments solutions provider Paypoint has launched a collections tool for motor finance lenders, as the UK enters the FCA’s forbearance extension period, running until 31 October.
The tool, called PayByLink, has been designed to help lenders engage with customers responsibly, collecting due or arrears payments with the required care. With the majority of finance companies granting payment freezes to customers, the tool aims to encourage rather than enforce payment terms, sending reminders about upcoming payments.
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Lenders are able to offer flexible payment terms for customers who may be struggling or looking for better ways to control their finances. Lenders can also personalise communications for different customers, providing payment links in SMS text and email messaging to increase the effectiveness of customer engagement and in turn, the likelihood of full or part payment. This is available either through PayByLink or via a finance lender’s own CRM system.
Danny Vant, client services director at PayPoint, said: “PayByLink is ideal for motor finance providers aiming to reach out responsibly to customers and begin the payment or arrears collection process.
“As government help lessens, the longer-term financial impact of the pandemic is becoming clearer and in turn, the industry needs to change how it operates and adapt to a new world of payment collection.
“Importantly, PayByLink provides customers with payment flexibility, putting them in control whilst improving arrears collection for lenders. The user-friendly payment options remove friction from the payment process whilst retaining security and peace of mind, increasing customer engagement and collections success.
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By GlobalData“By working together with customers, considering their financial challenges, and providing payment flexibility, businesses can help valued customers navigate this stressful time and may find they benefit from better customer retention and more reliable payments in future.”
