Shareholder Milos Gvozdenovic
recently attended the Ohio Credit Union League (OCUL) InVest48 Conference
with national manager of credit unions Dawn Pagon
and shareholders Scott Fink
and Al Reis
. This event brings together more than 300 of the sharpest credit union minds in Ohio allowing them to connect, share ideas, and learn from each other for the betterment of their credit union and the entire credit union movement.
Now, Milos is sharing his top three takeaways from this interactive event!
First off, it was amazing to see everyone in person at this year’s inVest48 conference. It felt great to connect (and re-connect) with everyone during the four-day event. I had the chance to get some one-on-one time with so many and discuss the various issues encountered in the credit union space as of late. The one thing that caught my attention and resurfaced during many conversations was the noticeable rise in delinquencies. Oddly enough, the last few years seemed to be very low on delinquencies for most lenders. Unfortunately, with all good things, they must come to an end. So that got me thinking… how should you as a credit union prepare yourself to weather the upcoming storm?
1. Staff Up
An underlying theme in a lot of the discussions I had was that people are seeing a lot of staffing issues. Inability to fill open positions or find people qualified to handle those positions. This is probably a pretty obvious tip, but get those positions filled with qualified individuals as soon as you can. In the event you can’t, there is nothing wrong with outsourcing work from a collection agency.
2. Get Your Procedures in Place
Make sure to audit your processes and procedures for handling accounts for bankrupt members. If you have a member who files for bankruptcy, you don’t want to let that slip through the cracks. Missing bankruptcy court deadlines can impact your ability to get paid and recover your secured collateral. Furthermore, when you get a bankruptcy notice, make sure to abide by the automatic stay immediately. Attempting to collect a debt on a member in bankruptcy is a stay violation and can have serious consequences.
3. Issue Spotting
Make sure you familiarize yourself with the basic documents and pleadings. No need to be an expert, but understand enough to know when you need to take action. As always, we are here to answer any questions you may have, so feel free to reach out if you don’t understand a pleading or would simply like a second set of eyes on the paperwork.
I believe that by strengthening these three areas over the coming year, you will be in a strong position to weather any increase in loan delinquencies.
Our team is constantly monitoring the current credit union trends. If you have additional questions, please feel free to connect with Milos
at any time.
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.