We realize it takes a lot of courage to approach a collector about a
past due payment. Many people have an image of a collector as a rigid
individual who employs heavy-handed tactics to collect on bad accounts.
At Tri-Lakes Federal Credit Union we are constantly working to disprove
that stereotype. Your loan accounts are important to us and repayment
difficulties are most often the result of hardship and unforeseen
circumstances. The best remedy during these times is open and honest
communication between the collector and the member.
Our collectors will send out notices to remind you of payment due.
We may also make a phone call to you to see if there's something the
Credit Union can do to help get your payment program back on track.
The department handles the legal end of foreclosures, repossessions,
garnishments, etc. But, rest assured, many alternatives are offered
before any of the legal routes are chosen.
What Can You do to Preserve Your Credit?
Talk. Communicate. Be honest.
Good communications between the member and the collections
department is a must. If you lose your job, or perhaps there's sickness
in the family that prevents someone from working, give your collections
department a call.
Don't wait until the loan is 60 days past due - make a plan early.
Let us know what the situation is. By all means, if you make a plan
with the collector keep your promise. The same honesty our members
expect of the Credit Union is expected from our members.
What are Some of the Things the Collection Department Can Offer?
- Interest - Only
- Notes to the File (communications of expectations)
Knowledgeable collectors can make suggestions and communicate the
What if I Just Wait and See What Happens?
It's best if you let your collector know what is going on. Each time
you phone the Collector a message can be added to your file, noting
what the problem is and what your plan is. Having good communication
lets the Collector know you're working on the problem and have a plan.
This being the case, you will still receive the notices as reminders,
however, the Collector will not phone unless the plan is not carried
Waiting more than just a couple of weeks can jeopardize your credit
- 8 days late - just a friendly reminder from the Credit
Union and restriction of valuable Credit Union products and services.
- 30 days late - second reminder letter and continued
restriction of valuable Credit Union products and services. Credit
Bureau reporting takes place.
- 60 days late - Final notice from Credit Union and
continued restriction of valuable Credit Union products and services.
Credit Bureau reporting takes place and legal action could start.
What Happens if My Collateral is Repossessed?
Your vehicle is not repossessed without the collections department
working diligently to make arrangements for payment, communicating by
phone and mail (sometimes email), and making every effort to work with
a member to make a plan to get payment.
If communication has broken down and promises broken, it can lead to