Ideas for improved collections efforts

The COVID-19 Pandemic has had a profound effect on us all in so many ways. For many credit unions the pandemic has translated into staffing shortages and increased collections efforts.  Increasing the allowance for loan loss doesn’t help the equation.  However, outsourcing collections is a great strategy to combat increasing delinquencies without hiring and training new staff or asking employees to step up in these distressing times.

Trained professionals who specialize in collecting and recovering potential losses have a better chance of recovering loans fast.  Managing the everchanging regulations in collections is a full-time job, and the collections professionals at United Solutions Company complete extensive training annually. By outsourcing collections, there’s no need to worry about turnover or training costs, allowing your employees to focus on member service, creating new revenue opportunities, and other more important matters.

There is greater focus now than ever before on compliance. This is typically the highest risk area for a lawsuit due to stringent rules. A typo on a collections letter or not defusing a situation properly over the telephone can lead to legal fee for the credit union.  By outsourcing you will alleviate some of the risks associated with inexperienced collectors and liability for non-compliance.

 

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