Collections lessons learned from the pandemic
This year has propelled credit unions to analyze everything with a new perspective. Face-to-face interactions with members, a cornerstone of the credit union business model, have been limited and may be permanently changed. Most credit unions are evaluating and refreshing policies and procedures, staffing criteria and branch maintenance.
With this openness to change, thought leaders are considering how to most effectively apply lessons learned from the COVID-19 pandemic. One area to take a close look at is potential member defaults on loans once unemployment benefits and payment forgiveness run out. Here’s what credit unions should focus on to prepare for potential spikes in delinquencies and keep the member experience front and center.
Maintaining Member Trust
In the current climate, collectors should spend more time on each member call to assess their true financial picture and develop an appropriate solution. Your members need to believe that you’re there to support them and that you’re considering their situation and challenges in your decision-making processes.
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