Collections the Credit Union Way Addressed in New Best Practices Report

May 29, 2008

FOR IMMEDIATE RELEASE
Contact: Katye Long
CUNA Communications; (608) 231-4038
klong@cuna.coop

MADISON, Wis. - When it comes to credit union collections, experts agree that the best strategies focus on the process – establishing a strong rapport with members, nurturing trust, communicating with respect, and working toward a repayment solution – rather than the numbers. Specific process-focused collections strategies are offered in a new best practices report from CUNA.

As the economy struggles and delinquencies rise, Credit Union Magazine Best Practices: Collections the Credit Union Way describes the successful strategies of eight credit unions for weathering the economic storm. These credit unions – ranging from $23 million in assets to $3 billion in assets – collectively recovered nearly $2.7 million in charge-offs and average a 25.7 percent recovery rate.

Collectors who treat members with compassion and who help craft real solutions to payment problems are the ones who will be paid first when members’ finances improve, said Craig Sacia, manager of credit services at the $542 million asset Altra FCU in LaCrosse, Wis.

“If we’re the ones showing them we’re concerned for their well-being, we’re going to make a friend for life if we turn their situation around. We want to be the one creditor they hold on to after the storm passes,” said Sacia. “And if they think we’re nasty to work with, what are our chances of being the last creditor standing?”

Best practices reports on succession planning, serving members of modest means, growing youth membership, business services providers, consumer lending, credit counseling, disaster recovery, risk-based lending, and more also available.

The report may be purchased in print or PDF downloadable format. To purchase, go to buy.cuna.org; enter stock number 28299 in the product finder box. For assistance with downloading this report, call (800) 356-8010, press 3, and use the stock number as a reference.

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With its network of affiliated state credit union leagues, Credit Union National Association (CUNA) serves 90 percent of America's 8,500 credit unions, which are owned by more than 90 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information, visit www.cuna.org.

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