Summary
Collectors need the consistency of a bloodhound determined to follow a trail no matter how long, plus the persistence of a bulldog with a firm grip on the quarry. But there is some good news. The new Federal Bankruptcy Abuse and Prevention Act that takes effect Oct 17 is expected to help. Another option is outsourcing, such as that provided by Lending Solutions Inc. Credit unions simply have to be more diligent with indirect loans. Typically credit union collection managers handle some collections on their own before turning them over to a third party. In 2001, the board at $145 million Tucson Old Pueblo Credit Union noticed loan delinquency had grown to more than 3% and loan losses had risen above 4%. Today, with delinquency at about 0.5% and loan losses down to 1.5%, the situation has greatly improved.
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Extract
Be Persistent
Collectors need the consistency of a bloodhound determined to follow a trail no matter how long, plus the persistence of a bulldog with a firm grip on the quarry.
But there is some good news. The new federal Bankruptcy Abuse and Prevention Act that takes effect Oct. 17 is expected to help.Attorney William Feldman (wiviu. wrfeldmanlaw.com], who is based in Bethesda, Md., and frequently speaks to credit union groups on collections and bankruptcies, notes testimony on the bill indicated it should allow lenders to recover an additional $3...See the full content of this document
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