Earlier this year Ent Credit Union decided to reposition their collections department as the Member Solutions Group. This team was charged with proactively reaching out to members who show early signs of potential loan payment challenges and begin a dialogue with them.
The department makes calls to members who are as little as seven days past due to try to figure out how they can assist them. In addition to the outgoing calls, Ent also opens the invitation for any member to call or email the department if they are having trouble making their loan payments. They advertise the department with a quick blurb on their website saying, "Are you having trouble making your Ent mortgage or vehicle payments? We can help". Ent has found that offering the option to talk to a representative phone or email has helped members open up about their financial worries. The hotline is receiving about 300 calls each month.
The Member Solutions Group has already made a positive impact. Since the program was implemented in March, Ent has put together workouts for 180 consumer loans and six first mortgage loans. A local newspaper featured Ent's Member Solution Group and how they were able to work with a member to keep him from foreclosing on his home. Not only is the program helping Ent's member base, but it has also kept the credit unions delinquency rate low. Only .6% of the credit unions' $1.79 billion loan portfolio is two months or more delinquent.
Such actions reinforce the member-focused approach that credit unions are taking to help build long-term relationships. For more information about how credit unions are reaching out to their members during the mortgage crisis join us on November 12 for our webinar Becoming Members' Lender of Choice During the Mortgage Crisis.