Student Loan CRM Compliance

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Student Loan CRM Compliance

• Here at OnSite CRM we have implemented a solution
  that not only resolves the fears of regulation
  but also facilitates growth by leveraging
  automation and reducing the cost barrier for
  our student loan customers. This is an exciting
  and revolutionary platform that will change the
  way you do business. We are offering more
  opportunities and forward thinking to reduce
  issues with coming regulation in the student loan
  consolidation industry.   
• The Fear of Regulation
• As you may or may not know, student loan
  consolidation falls under the guidelines and
  regulations of the debt industry, which was set
  forth by the CFPB. The Debt Industry falls under
  what is called a performance model. This model
  outlines that a customer cannot or will not pay
  for services until the services are rendered.
  Therefore, applying this concept to student loan
  consolidation, it would state that a customer
  should not be charged until their student loans
  have been consolidated. Due to the infancy of the
  industry, the cost and resources required to
  consolidate student loans, in conjunction with
  the high default rate within the industry, all of
  this would lead to tremendous losses to a student
  loan company and therefore making the industry
  unprofitable. These are the very real fears that
  are sweeping the industry today since regulation
  is on the horizon and approaching the industry at
  a rapid pace.

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The Solution Here at OnSite CRM we have created
a Student Loan CRM that not only enables growth
through a streamlined process, automation,
reporting, etc. our CRM also has full performance
model compliance configured into the
platform. Allow us to explain... We have learned
that the performance model states that fees
cannot be charged to the client prior to
services. Through diligent research we have found
that funds can in fact be suspended from the
client into a savings or escrow account of which
are still by definition the clients monies and
therefore this suspending of funds secures
payment for our customers and thus justifies
rendering services. Fast forward a few days and
now we see that services are rendered and proof
of the completed consolidation is visible within
the CRM. The escrow account currently holding the
customers funds is now triggered by the CRM to
release the funds to the student loan
consolidation company. The customer is notified
that services have been rendered and payment
received. The industry now stays profitable, the
customer is protected from fraudulent servicing
companies, and we capture tremendous market share.
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Added Benefits An added value with the OnSite
CRM Student Loan Platform is we have financing
built into the platform. We are the one and only
CRM with built in financing. This presents
incredible value to the student loan company
using our solution since now rather than charging
high fees to the customer looking to reduce
their student loans of which are already in
financial hardship. They now can offer their
customer a low monthly payment (2 year term) of
which the first payment is not due until after
their student loans are consolidated. Therefore,
the customer is never out of pocket for more than
what they are paying for their student loans for
any given month and the student loan company
received their payout within 48hrs of the
customer signing the agreements. This financing
model is also compliant since the customer is
never out of pocket before the services are
rendered and yet, the student loan company gets
paid immediately. Article Resource-
http//www.onsitecrm.com/blog/student-loan-crm-com
pliance