33 THE NAFCU JOURNAL March–April 2022 manage exceptions help improve communication and timeliness.” Timeliness and accuracy are key in the product refund process, and they are enabled by the right technology and infrastructure. 3. Member experience The member experience is important for both direct and indirect member relationships, especially as many credit unions experience a growing volume of indirect members. Often, a member isn’t aware that product(s) they purchased at the time of the loan are refundable. Many state regulations require a 60–90-day window in which the borrower must receive their refund on a canceled VPP. Yet, dealerships can take three times longer to provide a refund to the borrower, resulting in a poor member experience and additional risk too. By taking on the responsibility to manage product refunds, credit unions have additional opportunities to interface with members to enhance the member experience, as well as deepen dealer relations. In addition to increased vehicle demand, return of repossessions, and delinquencies projected to rise, credit unions are also facing increased regulation around product refunds. To maximize the member experience, avoid delays and errors in refund remittance, and improve an auditable trail of the entire refund process, credit unions can and should implement a product refund liability solution. It is strongly recommended that credit unions work with their legal counsels and industry partners to establish a strategic and transparent process to optimize product refunds. “When considering the changing compliance concerns, ensure that you’re taking the right technology, people and timeframe into account to establish a tight refund process to better serve your members,” says Krall. For more information, check out our webinar Optimizing the Product Refund Process at nafcu.org/partnerlibrary/optimizingproduct-refund-process. “Transparency in the product refund process is key. Regulators and auditors want a clear line of sight from inception/the triggering event to the funds being placed in members’ hands.” Index to Advertisers AI Oasis Website: www.ai-oasis.com............................... 25 Allied Solutions Website: alliedsolutions.net.............................. 37 AWS Email: [email protected] FIS Website: fisglobal.com....................................... C4 Franklin Madison Website: franklin-madison.com.......................... 4 Gallagher Website: nafcu.org/Gallagher............................ 17 LendKey Website: lendkey.com/NAFCU........................... 9 Mastercard Website: ................................................................. C2 Pentegra Website: pentegra.com......................................... 7 Q2 Website: q2.com.................................................... 23 SRM Website: srmcorp.com........................................ C3 TruStage Website: cunamutual.com/auto........................19 Upstart Website: upstart.com/credit-unions...............39
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