Credit union loan zone: Collections emails

Why Reach FCU sends virtual notices in addition to traditional collection letters

Reach Federal Credit Union has had great success emailing members regarding loan collection issues. We think the reason these emails have been effective is largely that they are different from the collection letters members get in the mail.

If we were to email the member the collection letter we send in regular mail, or if we gave up mailing collections letters and sent them only through email, we might not find email so effective. A benefit of sending collection letters via regular mail in addition to emailing collections notices that are different from what comes in the mail is that we have an additional chance to establish contact with our member.

We have automated collection letters that our system sends to members via email in addition to the formal “final demand” letters that go out via regular and or certified mail when applicable. The collections emails we send to members address late payments, delinquent payments, and collateral protection insurance issues.

An example of a letter we are sending via email is:

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