Debt Protection for Borrowers and Loan Portfolios
- Credit Unions
- Auto Dealers
- Banks
- Finance Companies
- Mortgage Servicers
- Community
Protect Borrowers and Outstanding Debt When Life Disrupts Repayment
A death, disability, or involuntary job loss can quickly disrupt a borrower's ability to make payments. Allied Solutions' Debt Protection helps financial institutions respond by canceling all or part of eligible debt when a protected event occurs. Depending on the event and program terms, the benefit may be applied as a lump sum or through monthly payment cancellation.
Allied's approach is designed for flexibility. Financial institutions can customize coverage to fit consumer needs and apply it across consumer loans, home equity loans, credit cards, and direct or indirect auto loans. Involuntary unemployment protection may also be included. This gives institutions a practical way to support borrowers through covered hardships while protecting the financial wellbeing connected to their lending relationships.
Who Needs Debt Protection:
Debt Protection may be a fit for financial institutions that want to help borrowers prepare for specific events that can interrupt repayment. It is especially relevant for institutions that are:
- Offering consumer, home equity, credit card, or auto lending products
- Seeking customizable protection that reflects borrower and portfolio needs
- Helping borrowers prepare for death, disability, or involuntary unemployment
- Looking to address covered debt through lump-sum or monthly payment cancellation
- Strengthening borrower support without relying on a one-size-fits-all program
Why Allied for Debt Protection?
Customizable Coverage
Allied's debt protection solutions can be configured around the needs of an institution's consumers, allowing the program to support a more relevant mix of protected events and lending products.
Protection for Multiple Lending Products
Coverage options extend across consumer loans, home equity loans, credit card payments, and both direct and indirect auto loans, helping institutions apply debt protection across a broader lending portfolio.
Flexible Benefit Application
Depending on the protected event and program terms, eligible debt can be canceled as a lump sum or through monthly payment cancellation, aligning the benefit with different borrower circumstances.
Support for Major Life Disruptions
Programs can address protected events such as death, disability, and involuntary unemployment, giving borrowers and financial institutions a defined response when repayment is affected by a covered hardship.
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Learn MoreFrequently Asked Questions
Debt Protection is a financial institution program that cancels all or part of a borrower's eligible debt when a protected event occurs. Covered events may include death, disability, or involuntary unemployment. Depending on the event and program terms, the benefit may be applied as a lump sum or through monthly payment cancellation.
Debt Protection can cover specified events such as death, disability, and involuntary unemployment. The events included, eligibility requirements, benefit limits, exclusions, and duration of protection depend on the selected program and agreement. Financial institutions can work with Allied to determine which coverage options align with their consumers and lending portfolio.
When an eligible protected event occurs and the program requirements are met, all or part of the borrower's covered debt may be canceled. Depending on the event and agreement, cancellation may occur as a lump sum or on a monthly payment basis. The applicable program terms determine the amount and method of cancellation.
Allied's Debt Protection solutions can support consumer loans, home equity loans, credit card payments, and direct or indirect auto loans. Available protection varies by product and program design. This range gives financial institutions flexibility to consider debt protection across multiple lending relationships instead of limiting the offering to a single loan category.
Yes. Allied's Debt Protection solutions can be customized to meet the needs of an institution's consumers. Program design may account for the lending products covered and the protected events offered, including options such as involuntary unemployment protection. Final coverage, eligibility, limits, exclusions, and benefit application are defined in the applicable agreement.
Banks, credit unions, and finance companies that offer consumer, home equity, credit card, or vehicle loans may consider Debt Protection. It may be especially relevant for institutions seeking a customizable way to support borrowers when a covered life event disrupts repayment while also protecting the financial wellbeing associated with outstanding debt relationships.