Bonuses For Blizzards: Lender Offers Bonuses for Repossessions Amid Southern Snowstorms

It’s not abnormal for lenders to place repossession activities on hold during hurricanes and other natural disasters, but there is no snow day for borrowers in the sunbelt. At least not from one subprime lender who’s working on bonuses for those agents who are willing to work through the unprecedented walloping of snow that’s hit the southern states.

Shared with me is an email from Westlake Financial Services through the Recovery Database Network (RDN).

Storm

We are going to be shifting volume to agents that are going to continue working despite the weather conditions, effective immediately. Additionally, we are working on bonuses paid at month end for agents that continue to work through difficult weather conditions.

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Automated email sent from Westlake Services utilizing RDN

While the message doesn’t specifically define what storm or where, considering the historic levels of snow recently experienced across the southern states over the last couple of days, it seems safe to assume that this is the area of consideration.

Don’t get me wrong, I’m not criticizing this offer. It’s not a bad deal for any agency in these areas willing and capable of operating in these conditions. I’m sure that every agency in these areas is considering the obvious risks before sending their trucks on the road. It’s a business decision.

But the odd thing is, these are risks that agencies in the northern states deal with on great frequency, and without a bonus. On the other hand, the southern states hold the highest levels of delinquency and corresponding repossession volume, providing bonuses to these areas is not a bad consideration on Westlake’s part.

Add to that the seasonal peak rise in delinquency that lenders experience in December and it’s pretty easy to see the impact that even a few days of cessation in recoveries could have on them.

No one in the northern states gets a hall pass on repossessions during a snowstorm, so why should they in the south? There’s a huge difference between a few inches of snow and ice and a hurricane, tornado or flood.

I don’t recall hearing this offered before and hope this also applies to agencies in the north, But this won’t last long, so for every agency out there taking that risk, rock on and good luck. You may never have this opportunity again.

Kevin Armstrong

Publisher