A customer has been hit by a natural disaster
Floods, fires, and storms upend lives in hours — when a customer is caught in one, the only decent first move is to take the account off their plate.
What this scenario teaches
- Recognise disaster as immediate grounds for hardship relief
- Pause activity quickly without demanding paperwork first
- Set realistic expectations as recovery unfolds
- Signpost disaster relief and financial counselling
- Plan a sensible re-engagement once the dust settles
6 min read
The scenario
A customer's home or business has been hit by a flood, bushfire, cyclone, or severe storm. They may be displaced, dealing with insurers, or simply trying to keep their family together. The overdue account is, understandably, nowhere near the top of their list — and it should not be near the top of yours either.
Disasters are sudden and total. The right response is fast, generous, and low-friction: take the pressure off now, sort the detail later.
What's really going on
A natural disaster can wipe out income, property, and routine in a single day. The person is likely juggling emergency accommodation, insurance claims, government relief, and the emotional weight of loss. Their capacity to deal with a creditor is close to zero, and may be for some time.
This is widely treated as a clear-cut hardship trigger. Lenders and businesses routinely offer disaster relief precisely because the circumstances are obvious and the need is acute. Asking such a customer to prove their hardship is both insensitive and unnecessary.
Your options
- Pause immediately. Put a hold on payments and collection activity without waiting for documentation.
- Extend the relief. Disasters have long tails; be ready to lengthen the pause as recovery drags on.
- Signpost relief. Point to disaster recovery payments, community recovery services, and insurer hardship teams.
- Refer to counselling. The National Debt Helpline (1800 007 007) supports people rebuilding after disaster.
Recommended approach
Lead with humanity: "I'm so sorry — let's put this account on hold completely while you get back on your feet." Apply a pause straight away and tell them you will not be chasing in the meantime. Set a gentle, far-off review point, and make it easy for them to reach you when they are ready, not before.
Note the file as disaster-affected so nothing automated breaks the promise. Merion's approach to recovery that respects circumstance is reflected across the Merion site.
What to avoid
Do not demand evidence of the disaster before offering relief — the news has usually told you all you need to know. Do not keep the normal cadence running, and do not set a tight re-payment deadline that assumes a fast recovery. Above all, do not let an automated reminder cycle keep firing into a crisis; check that the pause actually stops everything.
The lesson
- Disaster is clear-cut hardship — pause first, sort paperwork later.
- Be ready to extend relief; recovery has a long tail.
- Signpost disaster recovery payments and insurer hardship teams.
- Make sure automated reminders are genuinely switched off during the pause.
Frequently asked questions
Do I need proof the customer was affected?
Rarely. Disasters are public events; insisting on documentation before offering relief is insensitive and slows down help the person plainly needs.
How long should the pause last?
Longer than you might first think. Recovery from a major disaster takes months. Set a far-off, flexible review and extend it if rebuilding is still under way.
What support can I point to?
Disaster recovery payments, community recovery services, the customer's insurer hardship team, and the National Debt Helpline (1800 007 007) for the debts themselves.
Real situations, the right call
When an account goes past talking, Merion recovers it — commission-only, no upfront fee.