We recently sent a loan package to a customer via UPS, which is a pretty common practice at our institution. We received the UPS confirmation of delivery (confirms the correct address - but delivery was dropped off at customer's front door as no one was home at the time), however the customer is claiming they never received the package.

What actions would your institution take with regard to the customer in this scenario?

A large part of me feels that we are not to blame here, as either UPS screwed up or the customer had something stolen off of their property. Therefore, we should recommend that the customer place a fraud alert with the CRAs, but do nothing more.

The other option is to purchase a year of credit monitoring for them at the bank's expense, even though I don't believe we erred at all in this instance. Chalk it up to the cost of doing business?

Any and all thoughts welcome.

I would treat it as a case of possible ID theft. The customer should report the package missing to the local PD, as the bank, I would flag their accounts to ask for ID for OTC transactions. Also, I would tell them to get their free annual credit report as mandated by FACTA. IMHO.

I would also change my procedures to require signature on such sensitive packages.

Offering them a year's free credit monitoring is standard practice here - it isn't very expensive and shows a true concern on the bank's part. I would offer that in addition to whatever other steps you take.

I feel it is 100% your bank's fault. Having a sensitive package like that just dropped off is completely irresponsible. As Kathleen mentioned, signature for delivery should aboslutely be required.

Agree with Bob