Lending is central to the mission of every credit union which is why effective collections are so important. This new print course will show you how to apply your skills and knowledge in collection practices. Learn about best practices in protecting your credit union and members’ assets. You will also discover how technology innovations are reforming existing collection practices.

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Following are the learning objectives for each course:

Credit and Collections:

• Discuss the history and development of consumer credit in the United States
• Identify four characteristics of successful collections professionals
• Define installment and noninstallment credit, open-end and closed-end credit, and secured and unsecured loans
• Explain the most common methods used by credit unions to control delinquencies
• Outline four major regulatory provisions that impact the credit and collection professional

Credit and Collections Policies:

• Outline the importance of clear credit policies, and the three steps necessary to ensure appropriate account set up
• Identify three steps used in following up on delinquent accounts
• Explain the board and coworker’s responsibilities for creating and maintaining credit union collections policies and philosophy
• Describe three qualifications of an effective collector and their ongoing accounts receivable responsibilities

Developing a Collections System:

• Describe and explain collections systems and identify delinquent accounts
• Define the five collections classifications
• Develop a culture of paying by conveying and enforcing loan terms clearly to members
• Exercise a consistent system of note taking and recordkeeping
• List the five steps involved in establishing good loan policies, delinquency recognition, and follow up collections procedures

Early Warnings and Final Actions:

• Recognize the early warning signs of delinquency and member trouble
• Understand Maslow's hierarchy of human needs and how they relate to the collection function
• Describe collections procedures credit unions typically use to reach members and bring loan accounts current
• Highlight the eight steps of the collections call and strategize the inherent challenges and advantages
• Discuss the alternatives available to credit unions instead of legal collections measures
• Create an information base to use in skip tracing members who relocate to avoid confronting their responsibilities

Legal Action and Outsourcing Alternatives:

• Identify when attorneys should be retained and how they may be compensated for their legal services in collections activities
• Describe and explain various legal actions, including replevin, money judgments, deficiency judgments, and garnishment
• Review the steps required when choosing an agency, and the advantages of outsourcing to a third-party firm
• Determine if the sale of charged-off loans may be beneficial to your credit union
• Explain the purposes of federal bankruptcy laws, the differences between Chapter 7 and Chapter 13 bankruptcy cases, and the changes offered in the 2005 amendments

Best Practices:

• Explain the differences between poor collection practices and productive ones
• Outline four strategic methods to leverage maximum recovery in the collection process
• List six best-in-class practices to optimize operations
• Describe the importance of measuring net delinquency
• Review the pros and cons of four online tools available to today's collection professional