Skip a Loan Payment—extend your term 1 month, keep accruing interest, pay a $15–$60 setup fee.
Call this a case of two scenarios. Here’s the background: a member calls and requests to skip a payment on a loan balance. The loan term will simply extend by a month, interest continues to be collected, and there’s a fee – usually between $15 and $60 – for setting up the skipped payment.
In scenario 1 the customer service rep fields the call, talks with the member, checks to see if the member’s request complies with the institution’s guidelines, and also checks to see if there are issues that disqualify this member from skipping a payment. If all’s a go, the rep takes the request to a manager, and the request then circulates up the ladder until it lands on the CEO’s desk for final approval. That’s for, say, a $200 loan skip.
In scenario 2, an agentic AI bot talks with the member, swiftly computes the eligibility, and if it’s a go, the request is approved.
Which scenario do you like?
Know that in many credit unions scenario 1 prevails and don’t even attempt to calculate the cost of approving that skip a pay request because, often, it costs more than the amount skipped. Many institutions lose money every time they approve a skip a pay request.
Of course enabling skip a pay is a genuine credit union action. This is helping the members who really need it.
Very few banks offer skip a pay because of the costs and the hassle.
But more credit unions now are offering and one reason why – in addition to the affordability issues confronting many households – is that Maine based fintech Constant AI has rolled out an agent that already is at work in dozens of credit unions including $8.5 billion Michigan State University Federal Credit Union. And institutions as small as $100 million in assets also deploy it.
On the show is Constant AI CEO and founder Catherine York Powers, a native Mainer who, when Powers finally could, moved her company to her home state and that is why Constant AI is based there.
