ELGIN, Ill. – Lending Solutions, Inc. said it is marking the fifth anniversary of its Payment Reminder Program (PRP), which the company says helps credit unions lower delinquencies by proactively contacting early stage accounts.
The service is an enhancement to LSI’s full service collections outsourcing program, which was started in 1997. The PRP was started in early 2010 as an accommodation to client requests, and now 60% of LSI collections clients also utilize payment reminder, the company said.
“Historically, the high volatility of early stage delinquencies has prevented credit unions from providing consistent, persistent attention to these accounts,” stated Dave Brooke, executive vice president at LSI. “Our Payment Reminder Program was crafted in response to this need to curb very early stage delinquent accounts, and it has been a very effective tool for our clients to that end.”
Vicente Espinoza, collections analyst for LSI, said it has seen clients using the PRP and collections services to alleviate staffing concerns and to keep already low delinquencies in check.
The Payment Reminder Program is designed to proactively contact members that are less than 25 to 30 days delinquent, but clients can customize the day-range according to their needs. The objective is to keep early stage delinquencies from escalating into major “problem accounts,” while educating members about the importance of on-time payments. LSI said credit unions of all sizes and demographics are utilizing the program, with client assets ranging from $19 million up to $3.9 billion.