Even though it might seem contradictory, credit unions seekingto reduce credit card delinquency are advised to considertightening their card deadlines.
|CU card consultant Ondine Irving said credit unions sometimesincrease their card delinquency by leaving their fees fordelinquent card payments too low and applying those fees too longafter the due date to mean anything.
|Irving stressed that credit unions do not have to and should notcharge the same sorts of high late fees that have characterized bigbank card issuers, but she added that credit unions do not have tocharge only a nominal amount either. Likewise, credit unions shouldnot start assessing the late fee the day after the payment data,but should leave it until ten days or two weeks later either.
|"Those credit unions which have updated their late fees to the$20-$25 average using a five-day grace period (versus 10-15 days)tend to have lower delinquency," Irving said. "When cardholders arestruggling to make payments, they realize which creditors have themore generous grace periods and lower fees. Don't position yourcredit union to be last on the list to be paid," she added.
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