Facing rising delinquencies but not wanting to increase costs by hiring more collections staff, Northwest Federal Credit Union came up with a high-tech solution.
The Chantilly, Va.-based $1.8 billion credit union teamed up with digital communications provider, DigitalMailer, to develop a system that would replace some collection phone calls and late notices with e-mails. Northwest's collection's staff was making phone calls to members that had delinquent accounts at the 15-day past due mark. With the DigitalMailer system, the credit union started sending e-mails to members at the five-day mark.
"Our collection efforts needed to increase. We knew it would be better if we could make contact earlier, but we needed to do it in a way that was cost effective," said Cindy Cherry, Northwest's collection manager.
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