The first step in successfully managing your collection agency vendors is to ensure you’re partnering with the right vendors. With more than 6,000 collection agencies in the United States, it’s important that credit unions work with an agency that understands their brand and their member’s needs.

The Challenge

If your institution is currently partnering with collection agencies, it’s essential to annually review your recovery process. We have found that financial institutions typically engage with around five (5) vendors to manage their collections. Unfortunately, that portfolio approach often leads to a lower return on your investment.

Did you know that over 60 million¹ Americans have a debt in collections? As a result, the need for debt collection services continues to grow year-over-year. To understand the institutional needs in this ever-changing industry, we annually engage the top financial institutions across the United States to answer a few key questions.

As the Chief Information Officer at ConServe, my role is to deliver an IT environment and organization that positions ConServe to meet its strategic goals for future growth and success by leveraging technology and delivering expert IT service that supports ConServe’s operational needs. 

When looking to invest in a debt collection partner, a few of the first things that often come to mind are experience and recovery performance.  However, it’s essential to not overlook the significance of information security, privacy and operational compliance, which should also be top priorities when selecting a collection agency partner.

As data breaches continue to rise in sophistication, credit unions face increasing concerns about data security. In such a dynamic and uncertain environment, credit unions must be vigilant, particularly when it comes to safeguarding their members' data.

Participating in the right conference can be a game-changer for your professional and personal growth. However, discovering the perfect event in the credit union community can sometimes seem like searching for a needle in a haystack.

According to Vericast's Consumer Report, 54% of consumers say they are more likely to be loyal to a company that has ethical business practices or is environmentally responsible. We refer to these individuals as socially conscious consumers. While these types of consumers have been around for years, the socially conscious consumer has accelerated as a result of the COVID-19 pandemic, and now represents more of what mainstream consumers are expecting from companies.

The past few years have been filled with unusual economic challenges – leaving many in dire straits. Especially hard hit, were those whose fiscal houses were not in order. With compounding debt and little cash safety nets, many lack the knowledge to know how to right the ship or where to turn for help.

Attracting and retaining top talent has always been a challenge for many employers, and recent economic factors has only added to the complexity. Due to the priorities and needs of employees shifting, it’s going to take more than a post on a job board to find the people you need to manage your critical business functions.

The right conference can offer tremendous growth opportunities – both personally and professionally. As you begin to put your 2023 conference plan and schedule together, be sure to choose the most impactful and educational conference experiences.

As consumers’ habits change, the methods in which they bank, including how and where, continues to evolve. As a result, delivering stand-out customer service is more important than ever.

With more than 28% of Americans having at least one debt in collections, the need for debt collection services is undeniable and continues to grow year-over-year. In order to understand the institutional needs in this ever-changing industry, we annually engage the top financial institutions across the United States to answer a few key questions.

As millennials and Gen Z continue to increase in influence, credit unions need to recognize the tendencies and habits of these younger generations, as they’re quickly becoming the nation’s most powerful consumer group. This presents a major opportunity for credit unions to grow their memberships, and a component of that value proposition necessarily includes collections strategies. It is critical that credit unions ensure they are attracting, engaging, and satisfying this growing market.

The economics of the relationships you have with your collection agencies can go a long way toward getting the best possible recovery results. Here are three factors you should consider.

Collections is inevitable for any credit union, no matter how conservative an institution’s lending standards may be. According to Experian, consumer debt continues to be on the rise, increasing by 5.4% in 2021 – more than double the 2.7% increase in 2020. And while delinquencies have remained low, they haven’t diminished. With inflation weighing heavy on us, combined with on-going pandemic concerns, consumer confidence is low.

Streamline your agencies

If you are already working with collection agencies, now is the time to re-examine your processes. We have found that credit unions typically award around 5 vendors. Unfortunately, that portfolio approach often leads to wasted money and a lower return on your investment.

Lean on collection experts

Rather than hire and train staff, many institutions turn to collection agencies to help them recover debts from their consumers more quickly. There are a few reasons they make this choice to leverage trained professionals.

The right conference can offer tremendous growth opportunities – both personally and professionally. But finding the right event in the credit union community can often feel like finding a needle in the haystack.

What You Need to Know About Regulation F

The Consumer Financial Protection Bureau (CFPB) Debt Collection Practices issued final rule “Regulation F”, 12 CFR part 1006 effective on November 30, 2021.  In order for collection agencies to comply with the validation information required under 12 CFR §1006.34, “Regulation F”, creditors will be required to include additional information on their placement files.

Increase Your Recoveries

The most effective recovery teams take advantage of all the tools and technologies at their disposal in order to locate debtors, recoup monies owed, and drive performance. The right tools that are highly specialized to the collection industry can improve efficiencies, and most importantly, increase your recoveries.

Now more than ever, it is critical that credit unions, and other institutional lenders do everything they can to maximize recoveries and reduce unnecessary charge offs.  Building a strategic, data-driven approach is the key first step for internal collection teams to optimize their debt recovery process.  There are three critical activities to take to begin building your approach.

The year 2020 was a year of unusual challenges – challenges that revealed a great deal about ourselves and about the institutions we rely on. Our financial wellness was no exception. The health crisis led to economic upheaval, leaving many in dire straits. Especially hard hit, were those whose fiscal houses were not in order.

Delivering excellent customer service to your members is more important than ever. Competition is fierce and new technologies are constantly shifting the landscape. At the same time, your members’ expectations have only increased across all facets of their lives. To succeed, great customer service is imperative.

Working from home has become top of mind and essential as a result of the COVID-19 pandemic. There are a variety of benefits and challenges.   Work from home (WFH) arrangements can offer employees advantages such as work/life balance, eliminate commute times, and it allows employees to focus on projects at hand without office interruption. At the same time, employers can reduce office-related costs while attracting workers who are seeking more flexible conditions.

Social media is the most cost-effective and immediate way to reach your credit union members. To help you boost your social media efforts, we’ve developed quick tips for you to better connect with your members.

Social media is a cost-effective and instantaneous way to connect with credit union members, journalists, thought-leaders, influencers, and business partners. With 70% of Americans now actively using social media networks, your posts have the ability to garner a huge reach with relatively little spend.

As 2019 approaches, how do credit unions leverage new, emergent technologies and advancements to their benefit? How do credit unions improve memberships, debt collection, and overall business vitality by anticipating consumer behavior in today’s digitally-connected marketplace? Learn more!

We’ve all heard it said before: “Attitude is everything.” But how does one master that all-important first step and establish a good attitude and then successfully translate that positive mindset into measurable results?

Credit unions looking to increase the overall effectiveness of their collection services and the recovery of debt should look to training – a pivotal factor that can align the functions of performance and compliance. 

Credit unions have traditionally been proactive in providing financial education to their members. These efforts not only help improve financial literacy in the fundamental sense, but can also help change behavior – driving positive, real-world outcomes for those who participate.

However, the financial landscape is growing more complex and challenging. Financial wellness programs now need to consider issues like data security, mobile accessibility, online banking, etc.

Today, there are nearly 71 million millennials in the US. Officially they have surpassed baby boomers as the largest consumer segment. Learn how your credit union can create effective collections strategies that will engage this generation.

The topic of data security has risen to the top of the priority list for credit unions and their members alike. Learn how to determine if data security is a priority to the third-party collection agencies you're evaluating.

With the frequency of widespread data breaches increasing at an alarming rate, data security has become a huge concern for credit unions. Read how credit unions can become more diligent in addressing their data security needs.

Compliance is a critical component in debt management and collections systems. Learn more about how compliance impacts debt collection management and how credit unions can stay in control.

Who is the CFPB and how do they effect compliance regulations for banks, credit unions, lender, and other financial companies? Learn more about CFPB regulations and how you can help ensure your organization stays compliant in 2018.

When it comes to debt collection, credit unions are presently faced with unique challenges. With concerns regarding data security and compliance higher than ever, it's crucial to stay informed and up-to-date when it comes to federal regulations and general best practices - in this way we help credit unions stay compliant and secure. At ConServe these elements are the foundation of our performance standards and our credit union collection services.