CRED IT UNIO N JO UR NA L - Experian · front, it gives them positive collection ability. That...
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July 18, 2011 ATLANTA–Delta Community Credit Union here has cut in half its consum- er loan delinquencies since October, 2010, when collectors began using a debt-recovery solution that places the most collectible accounts at the top of their queue. “e very month we deployed Collec- tion Advantage, we went from a 1.25% delinquency rate to 1.06% and have continued the down- ward trend to .63% now,” said Lynn Hayhurst, VP-recovery services at the $4-billion CU. e industry average is 1.29%, and Delta Community hovered at 1.25% for the first three quarters last year, she said. Collection Advantage, offered by Experian, uses credit-based scoring, consumer contact data and analytics to help Delta Community identify which accounts have the greatest and least recovery potential. “I think if you start a collector’s day with the highly collectible accounts up- front, it gives them positive collection ability. at helps the collector build enough momentum to collect those harder accounts during the remainder of the day,” said Hayhurst. To identify accounts as low or high propensity to pay, Experian de- veloped RecoveryScore. The scoring model takes credit bureau variables and applies regression analysis to “maximize the difference between low and highly collectable accounts,” explained David Ingram, director of collections with Experian. Collectors now access higher quality information when they call a member, Hayhurst said. “ey see credit scores, bankruptcy tendency scores and trade lines. It’s almost a mini- credit report at their fingertips.” e Collection Advantage “mini-credit report” is more efficient than directly pulling a credit bureau re- port, she added. “With our volume of delinquencies, doing a credit bu- reau on a member would not be feasible.” Better information has helped the seven DCCU collectors nearly double their call capacity to about 100 calls per day. Collection Advantage is smoothly in- terfaced with Delta Community’s exist- Solution Helps DCCU To Cut Delinquencies In Half CRED IT UNIO N JO URNAL THE NEWSWEEKLY FOR GROWTH-ORIENTED CREDIT UNIONS Solution helps Delta Community CU to identify and better address delinquencies. By Kevin Jepson, Technology Correspondent TECHNOLOGY Lynn Hayhurst Delta Community CU
Transcript of CRED IT UNIO N JO UR NA L - Experian · front, it gives them positive collection ability. That...
July 18, 2011
ATLANTA–Delta Community Credit Union here has cut in half its consum-er loan delinquencies since October, 2010, when collectors began using a debt-recovery solution that places the most collectible accounts at the top of their queue.
“The very month we deployed Collec-tion Advantage, we went from a 1.25% delinquency rate to 1.06% and have continued the down-ward trend to .63% now,” said Lynn
Hayhurst, VP-recovery services at the $4-billion CU.
The industry average is 1.29%, and Delta Community hovered at 1.25% for the first three quarters last year, she said.
Collection Advantage, offered by Experian, uses credit-based scoring, consumer contact data and analytics to help Delta Community identify which accounts have the greatest and least recovery potential.
“I think if you start a collector’s day with the highly collectible accounts up-front, it gives them positive collection ability. That helps the collector build enough momentum to collect those harder accounts during the remainder
of the day,” said Hayhurst.To identify accounts as low or
high propensity to pay, Experian de-veloped RecoveryScore. The scoring model takes credit bureau variables and applies regression analysis to “maximize the difference between low and highly collectable accounts,” explained David Ingram, director of c o l l e c t i o n s with Experian.
Collectors now access higher quality information when they call a member, Hayhurst said. “They see credit scores, bankruptcy tendency scores and trade lines. It’s almost a mini-credit report at their fingertips.”
The Collection Advantage “mini-credit report” is more efficient than directly pulling a credit bureau re-port, she added. “With our volume of delinquencies, doing a credit bu-reau on a member
would not be feasible.”Better information has helped the
seven DCCU collectors nearly double their call capacity to about 100 calls per day.
Collection Advantage is smoothly in-terfaced with Delta Community’s exist-
Solution Helps DCCU To Cut Delinquencies In Half
CRED IT UNIO N JO UR NA L T H E N E W S W E E K L Y F O R G R O W T H - O R I E N T E D C R E D I T U N I O N S
Solution helps Delta Community CU to identify and better address delinquencies.
By Kevin Jepson, Technology Correspondent
TECHNOLOGY
Lynn Hayhurst Delta Community CU
ing collection technology, Akcelerant Framework SOLUTION.COLLEC-TION, Hayhurst said. “The collector doesn’t even know that Collection Ad-vantage is working to set up the queue in Akcelerant.”
Customization AvailableDelta Community can customize
the interaction between Collection Advantage and Akcelerant, she con-tinued. For example, DCCU sends a monthly file to Experian requesting that Collection Advantage flag all delinquent loans with a recovery score of less than 600. “Those are the accounts with a low propensity to pay. We can try to assist them.” Experian returns the data to Delta Community to load into Akceler-ant, and queues are automatically set to use the data.
CUs can access Collection Advantage via various accounts receivables platforms in
fixed-field batch file, XML and web brows-er-based formats.
Delta Community holds a $2.5-billion con-sumer loan portfolio, including home equi-ties, with about $3.6-million in the 60-day delinquency bucket and $6.7-million out 30 days. Consumer loans are up 1.13% since September.
When Experian suggested that DCCU place highly collectible accounts atop the queue, Hayhurst was skeptical. “I thought we should put those with less propensity to pay first. So I did that, but collectors who had the greatest propensity to pay at the top always col-lected more. I’ve done collections for a long time, and this surprised me.”
Hayhurst has promised “dinner and drinks” for the collections team when delinquencies drop to .5%. “With current consumer confidence and desire to pay off debt and Col-lection Advantage working for us, I think it’s very possible for us to get under .5%.”
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$565MM
Total Consumer Loans
$560MM
$555MM
$550MM
$545MM
$540MM
$535MM
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
1.13% Growth
Source: Delta Community CU
Total Consumer Loans At DCCU
