Reducing Credit Card Delinquencies at U.S. Financial Institutions

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A PSCU Case Study of HEW Federal Credit Union

Like many other U.S. financial institutions that extend consumer credit through various monetary instruments, HEW Federal Credit Union (HEW) has faced a difficult collections environment since the financial crisis began in the fall of 2008. Recognizing the protracted effects of the recent recession, HEW sought a custom-fit, cost-effective solution to reduce its unacceptably high credit card delinquency rates. This free report details the strategy PSCU recommended as well as its effectiveness at overcoming HEW’s obstacles to increased productivity and collections return.

The project tackled HEW’s collection challenges from at least three distinct angles: those attributed to instability in the broader U.S. economy, technological inexperience or deficiencies, and limited availability or inadequate allocation of internal resources to accomplish stated objectives.

By leveraging the diverse functionality of CUCollect™, PSCU Financial Services was able to reduce HEW’s 3-cycle-plus credit card delinquencies by 45 percent or 350 basis points. Among other accomplishments, the partnership resulted in:

  • A 70 percent right party contact ratio
  • The option to touch member cardholders as many as 20 times per month
  • The flexibility to define targets from day 5 to 180 days of delinquency
  • Quality call monitoring systems and complete documentation of account updates

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