A Guide for Credit Union Collections: Payment Reminders, Abusive Conduct, and More!
Attorney Stefanie Kempfer Collier and national manager of credit unions Dawn Pagon recently attended and exhibited at the National Credit Union Collections Alliance (NCUCA) 2023 Annual Conference in Las Vegas, NV. This conference gave attendees the opportunity to learn from credit union experts regarding various industry topics while networking with peers.
Now, Stefanie is sharing her top three takeaways from this informative event!
1. Credit unions are expanding the use of texting for marketing, payment reminders, and collection efforts
a. Credit unions are finding texting to be more effective and efficient to engage members
b. Make sure your credit union is following best practices and guidelines for texting
i. Add into a membership agreement and have consent to text
ii. Review the Telephone Consumer Protection Act (TCPA) guidelines and Fair Debt Collection Practices Act (FDCPA)
2. The Consumer Financial Protection Bureau (CFPB) issues guidance to address abusive conduct in consumer financial markets
a. An abusive act or practice:
i. Materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service; or
ii. Takes unreasonable advantage of:
1. A lack of understanding on the part of the consumer of the material risks, costs, or conditions of the product or service;
2. The inability of the consumer to protect the interests of the consumer in selecting or using a consumer financial product or service; or
3. The reasonable reliance by the consumer on a covered person to act in the interests of the consumer
3. The reasonable reliance by the consumer on a covered person to act in the interests of the consumer
b. The scope of abusive acts or practice remains broad
c. Conduct compliance audits
i. Review your vendor’s communications to debtors for compliance
ii. Make sure your disclosures match the fees you are actually charging
iii. Curtesy pay fees – watch for non-sufficient funds (NSF) deposit fees
3. National Association of Federally-Insured Credit Unions (NAFCU) proposes membership reform to expand membership eligibility to a deceased member’s immediate family and household members
ii. Make sure your disclosures match the fees you are actually charging
iii. Curtesy pay fees – watch for non-sufficient funds (NSF) deposit fees
a. Keep accounts with the credit union
b. Cultivate membership to a younger membership base
c. Streamline means of maintaining long-held member relationship
b. Cultivate membership to a younger membership base
c. Streamline means of maintaining long-held member relationship
If you have any questions about our Credit Union Representation Group, contact Stefanie and/or Dawn at any time. If you are interested in viewing some of Weltman's educational webinars, visit our library here.
This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way
