Effective Collections Require Listening Skills
One of the first things many credit unions may need to do when collecting on delinquent credit card accounts might be to resolve to simply start doing it.
“You would be surprised how many credit unions really don't apply concerted efforts to collecting on cards,” said Karin Brown, vice president for collections at the Lending Solutions Consulting Inc., an Elgin, Ill.-based firm that specializes in helping credit unions streamline their loan programs.
Member stress can be seen through more frequent use of card cash advances, changes in credit scores, an increase in credit balances and a shift in payment patterns. Members who used to always pay their credit card bill ahead of schedule but have started making later payments are also red flags.
In these scenarios, an automated call will go out two or three days after the payment due date. Members will hear a payment reminder and resource for assistance.