Credit Union Collection Agency: Recover Unpaid Loan & Fee

• Are you interested in hiring an easy to use collection agency with extensive experience in recovering dues for credit unions of all sizes?

• A collection agency that adheres to the same stringent data security standards required by banks and credit unions (GLBA compliance), ensuring your customer data remains secure and your organization stays compliant with all federal and state laws.

• Have you implemented a consistent and effective collection process? We understand how to maximize recovery, and in case you are short staffed we can perform low cost fixed fee service by sending low-cost reminder notices to your customers on your behalf.

Credit unions now manage trillions in assets and a large, diverse loan book: auto, cards, HELOCs, personal loans, indirect paper, and small-business credit. With that growth has come:

More loans rolling into 60/90+ days past due
Higher net charge-off ratios than in the low-rate years
Rising delinquencies in auto and unsecured portfolios
Heavier exam focus on credit risk and third-party oversight

Inside many credit unions, a small team is juggling early-stage calls, repossessions, charge-offs, legal files, bankruptcies, and member service. It’s easy for late-stage, lower-priority accounts to fall through the cracks simply because there aren’t enough hours in the day.

AR Pain Points Credit Unions Struggle With

A few issues come up again and again when we talk to credit unions:

Thin internal collections staff – A handful of collectors handling everything from reminder calls to legal files.
Complex relationships – Co-borrowers, cross-collateralized loans, indirect portfolios, and members with multiple products.
Overdrafts and fee-driven balances – Small but noisy accounts that can generate complaints and bad reviews.
Reputation risk – One harsh collection experience can undo years of member goodwill and word-of-mouth.
Compliance pressure – Examiners expect documented processes, secure data handling, and controlled use of third-party vendors.

These are the reasons many credit unions decide to keep early-stage work in-house, and push tougher, late-stage or charged-off accounts to a specialized agency that understands their environment.

What a Good Credit Union Collection Partner Looks Like

When you send accounts to an outside firm, you’re not just outsourcing phone calls—you’re trusting them with member relationships. You should expect:

Bank-level security and privacy (GLBA mindset, secure file exchange, access controls).
Strong regulatory alignment with FDCPA, FCRA, Reg F, TCPA, and state rules.
Member-friendly tone – firm but respectful, aligned with your brand and culture.
Omnichannel outreach – letters, calls, email, text (where allowed), with proper consent.
Actionable reporting – recovery by product, delinquency bucket, and campaign, so you can show results to leadership and examiners.

A good partner feels like an extension of your AR team, not a black box you hope is doing the right thing.

Serving Credit Unions Nationwide

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High Recovery rate. Referrals of existing Credit Union clients can be provided if requested.

Internal Moves That Lower Delinquencies

External collections work best on top of solid internal practices. High-performing credit unions usually:

Monitor portfolios frequently, not just at month-end
Reach out early at 15–29 days past due
Offer realistic, time-bound workout options for short-term hardship
Educate members about autopay, due dates, and the impact of missed payments
Segment high-risk groups (indirect auto, higher-risk tiers, repeat delinquents) and decide earlier when to move them to third-party collections

Your collection partner can help refine these strategies so you’re not relying on manual lists, scattered notes, and overloaded staff.

How a Specialized Agency Works With Your Credit Union

For late-stage and charged-off accounts, a credit-union-savvy agency can:

Take over outbound campaigns on older auto, card, and unsecured loans
Handle repossession deficiencies, judgments, and post-charge-off recovery
Use skip-tracing and other tools within legal limits to locate harder-to-reach members
Recommend legal action only when it makes economic sense and fits your risk appetite

The tone matters: the goal is to recover what’s owed, explore realistic arrangements where possible, and avoid burning bridges with members you may want to keep in the long run.

Credit Union Collection Services

Collection Letters Service

Upfront cost for 5 Collection Letters is about $15 per account.
Members pay you directly; there are no additional collection fees on these accounts.
Works best for newer delinquencies (typically under 120 days past due) where a formal third-party letter often gets attention and cures the balance.

Collection Calls Service

Contingency fee only – you pay a percentage of what’s collected.
If there’s no recovery, there are no collection fees.
Best for accounts over 120 days past due, broken promises, repeat delinquents, and charged-off balances that your team doesn’t have time to chase.
When the balance and circumstances justify it, legal action can be considered through a network attorney, with your approval.

This combination of low-cost letter campaigns plus contingency-based calling helps many credit unions:

Increase recovery on older loans and overdraft balances
Lower net charge-offs
Reduce internal workload on “slow-pay” and skipped accounts
Protect their community reputation while still enforcing the credit agreement

The Bottom Line

Credit unions are facing more credit stress, more scrutiny, and higher expectations from members—all at the same time. You can’t afford to ignore delinquent loans, but you also can’t afford to handle them in a way that damages trust.

A well-chosen, compliant collection partner that understands the credit union world helps you protect your loan portfolio, present stronger numbers to your board and examiners, and preserve the human, member-first culture that makes your credit union different in the first place.