Press Release

Contact:
Martha Willson, Director of Client Services
888-447-0324 x114
marthaw@solutionsinfinance.com

Mike Lawson, DML Communications
760-753-5943
mike@dmlcommunications.com

McCoy FCU Looks to Overhaul Collections Process with Solutions in Finance’s Collection Operations Evaluation

Los Gatos, CA – December 8, 2008 – In these uncertain economic times, McCoy Federal Credit Union ($402 million; 58,476 members; Orlando, FL) has been looking for ways to save member accounts, lower delinquency, and reduce charge-offs in an effort to better serve its membership. After searching for assistance in these areas from an outside consultant, McCoy discovered Solutions in Finance Inc., a collections and lending operations consulting firm for credit unions nationwide, to help the credit union enhance its collections operation. Subsequently, McCoy will leverage these efforts to meet its goals of improved processes based on the evaluation, increasing its overall value to members.

“Our collections area was basically in the 18th century,” admits Basil Buchanan, Vice President of Lending for McCoy Federal Credit Union. “So we needed somebody independent and experienced to properly evaluate our entire collections process and bring us up-to-date.”

After a week’s evaluation, Solutions in Finance suggested to McCoy:

• Implement a more robust collection software package. McCoy then contracted with Akcelerant (www.akcerlerant.com) to implement a new collections system.
• Revamp workflows within different areas of its collections department such as repossessions, remarketing, legal, non-clerical, etc.

“Our primary objective in hiring Solutions in Finance was to join the 21st century because our current strategies were old. Our processes hadn’t changed but the market has,” Buchanan explains. “Our collections department definitely needed improved workflows to alleviate many of the issues we were experiencing.”

For example, the credit union’s collections manager was still performing clerical tasks, which took away from the position’s primary focus – managing staff. Now the position, manages all tasks, delegating and overseeing staff instead of being over-burdened. Due to the new processes put in place, the department is working much more efficiently.

“If we’re more efficient, we can greatly reduce the number of member charge-offs and save those member accounts,” Buchanan says. For instance, members are now contacted much earlier if their payments fail to come in and the credit union is able to determine if there are possible issues with their accounts.

The key, according to Buchanan, is not to let member accounts exceed the 30-day mark to call them about any issues. “We’re able to do this today because our processes’ efficiencies have been greatly enhanced,” he says. “Our collections department is on the way to be organized now, which will allows us to do more on the lending side – and this is especially good for us at this time.”

In addition, the credit union’s collectors are now reviewed based on effectiveness of service rather than just conducting a high call volume. A staff member has also been designated to manage the accounts sent to collection agencies for evaluation instead of the collection supervisor.

“We didn’t monitor calls before,” he says. “Any issues can now go back for review, allowing us the opportunity to save the account – all of which simply adds value to our credit union. We’re very happy with the changes Solutions in Finance is helping us to implement.”

“We enjoy leveraging our experience in the field of collections to help credit unions better serve their members,” states Bill Garcia, President/CEO of Solutions in Finance. “If we can help them save member accounts through our evaluation, this result only adds value to their financial institution – which, in turn, enhances the sense of loyalty a member has to their credit union. We’re very pleased we could help McCoy FCU in this area.”

About Solutions in Finance
Solutions in Finance, Inc. is a San Jose, CA-based consulting firm that provides services for financial institutions in business lending, consumer lending, indirect lending, mortgage lending, and collection operations. The firm assists clients to create, improve, and maintain sound lending practices with overall superior credit quality. Collections operations best practices applications are introduced with new and improved strategies and processes, and a focus on decreasing delinquency, charge offs, and increasing charge off recoveries. For more information, visit www.solutionsinfinance.com.

Solutions in Finance, Inc. is a San Jose, CA-based consulting firm that provides services for financial institutions in consumer lending, indirect lending, mortgage lending, and collection operations. The firm assists clients to create, improve, and maintain sound lending practices with overall superior credit quality. Collections operations best practices applications are introduced with new and improved strategies and processes, and a focus on decreasing delinquency, charge offs, and increasing charge off recoveries.