Payment Waiver is a relatively simple concept. It is a promise from a firm to their customer, enshrined within the customer contract, which provides that if a specified event occurs to the customer that their payment will be cancelled forever, not deferred to a later date, not added to the customer’s account, but waived as if the customer had made the payment themselves.
As to what the waiver event is and how long the firm will continue to waive payments is entirely a decision for the firm having reviewed their target market and customer demographic. Payment Waiver features can be incorporated within any lending agreement such as a mortgage, personal loan or credit card, or can be contained within a services agreement such as a mobile phone contract, energy supply agreement or a gym membership.
In short, a Payment Waiver can be included wherever there exists an obligation for a customer to make a regular payment. The Payment Waiver promise creates a balance sheet liability for which a firm must either make an actuarially robust provision, or simply take out a commercial B2B insurance policy to remove that balance sheet liability.
Our Team work with firms across multiple channels to design and implement Payment Waiver provisions tailored to an identified target market and facilitate both the waiver B2B insurance and B2C waiver administration platform to provide a complete end to end Payment Waiver solution. For more information please contact us today!
