The 25,000 members of UMassFive College Federal Credit Union can now pay loans in real time through their credit union's new arrangement with ACH Federal's pay-by-phone services, the company and credit union said.
The phone payment option is expected to help the $311 million credit union improve its collections process while also providing members immediate payment options for all types of loans, the company and credit union said.
"In addition to being an immediate collections tool, this service is a preventative measure to keep our members out of the collections process by setting up a regular payment schedule. In today's difficult economic climate, this is a very important service for our members," said Jon Reske, the 25,000-member credit union's vice president of marketing.
UMassFive College FCU is ACH Federal's first credit union customer, the company said. It serves employees, students and family members of the University of Massachusetts and the Five College systems as well as several smaller local educational and service organizations.
ACH Federal is based in Chattanooga, Tenn., and was formed in 2007 by three accredited ACH professionals, the company said. It provides Web-based and pay-by-phone real-time processing services to financial institutions and other businesses.