The new service is now available to plan sponsors currently using a paperless loan process for phone-based loan requests.
American Express’ Web-based loan processing had previously been limited to modeling and requests for paperwork to be sent to the participant. The new function will allow participants to model various loan scenarios, and initiate a request directly from the “My Retirement Account” area of the Web site, without requiring paperwork or communication with a service representative.
After determining the specifics of the loan request, the participant is asked to verify:
- Loan amount
- Interest rate
The participant can then request the loan with the click of a button and receive an online confirmation. American Express will mail the loan check and loan note to the participant within three business days following final internal approval.
“Processing a loan traditionally has been complicated for the participant and inefficient for plan sponsors and the service provider,” according to Sharon Solfest, director of e-commerce for American Express Retirement Services. “Coupling the efficiency of a paperless process with the visual interface and quickness of the Web makes sense for all concerned.”
– Nevin Adams email@example.com