Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Collections in post-recession topic of CUNA Council paper
MADISON, Wis. (12/30/11)--The economic fallout from the Great Recession continues to impact credit union member households and add urgency to the work of credit union collections departments, according to a new CUNA Lending Council white paper.

"Collections in a Post-Recession Environment" is based on information gathered from lending and collections leaders at six credit unions as well as two experts from companies that provide outsourced collections services for financial institutions.

The white paper explores how credit unions can update procedures, use technology, engage members early in the collections process, design loan modifications and take other steps to refine collections.

Credit unions also report that a segment of members who have delinquent loans in the post-recession environment are from formerly affluent households and may still have relatively high credit scores. These households were able to use their assets to cope with financial demands as they adjusted to being unemployed or underemployed. But as assets are exhausted and members are unable to find jobs, they fall behind on payments, their loans enter collection and they may file for bankruptcy.

SchoolsFirst FCU, an $8.3 billion asset credit union in Santa Ana, Calif., takes advantage of technology and call center tools to increase productivity, the paper said. An automated dialer boosts the number of outbound calls made by collections specialists, while phone system metrics measure their productivity. Workflow management software guides staffing to ensure employees are available to handle members' inbound calls. Collections' ability to meet member needs is measured through member satisfaction surveys.

The challenging post-recession environment offers an opportunity for collections to prove its worth to the credit union, according to Jessica Anderson, collections manager at $400 million 121 Financial CU Jacksonville, Fla.

"Collections has always been on the back burner," Anderson added. "We know it makes a difference, but we've never seen the true impact of collections' successes or losses until we've reached these economic times."
Other Resources

RSS





print
News Now LiveWire
Cornerstone CU Union Foundation says it's prepared to assist #CUs & their employees affected by severe storms in Arkansas and Oklahoma.
9 hours ago
In 2014,use of remote deposit capture experienced 13% increase to 51%. But checking a balance continued to B the most common mobile activity
10 hours ago
'Fixing Your Finances' part of @PCUA's #iBelong campaign http://t.co/7j6HO1njog @fox43 @Bellco_CU @Members1stFCU
13 hours ago
Home prices outpacing income growth in 3/4 of U.S. markets @RealtyTrac http://t.co/BQR1w4k822
15 hours ago
Refinance #MarchMadness: Refis drive up mid-March mortgage apps: MBA http://t.co/rTUnlJB516
19 hours ago