The premise of the letter is to notify the member that if they do not act quickly to bring their past due accounts current, their creditor may refer the accounts to a third party for full collection. Some members are motivated to take action in order to avoid full collection. PCL's are a cost effective way to motivate a percentage of your members to bring the delinquent accounts current.
How it Works
CU Recovery will send out a series of three letters to the delinquent members identified. Each letter includes language instructing the delinquent member to bring their obligation current or to contact the credit union in order to avoid further collection activity. Each letter in the series communicates an increasing sense of urgency than the previous letter sent.
Should the member contact you at any time during the pre-collection period and present a repayment plan that meets your expectations, you must immediately notify Client Service in our office and the account will be closed at no further cost to you.
If, after sending the final letter in the series, we have not been notified by your office that the member has made satisfactory repayment arrangements, CU Recovery will send you an account acknowledgement informing you that the account has been moved to full collection in our offices and we will immediately institute our full collection effort (skip tracing, notices and phone calls to home and workplace). If you do not want CU Recovery to institute our full collection effort you must call Client Service within two days of receiving your accounts acknowledgement and notify us that you want the account closed in our offices.