ATLANTA-Christopher Danvers acknowledged that the recession and the combined regulatory pressure won't permit CUs to run their credit card portfolios as they did "in the good times."
Credit unions need to be prepared to make courageous business decisions, the types of business decisions that will "challenge the status quo as far as how credit unions have run their portfolios," said the VP of payments and remote delivery for the $3.6-billon Delta Community CU.
DCCU switched from a fixed 9.8% APR to a 9.75% variable rate on its platinum credit card last year. The rate is Prime plus 6.5%. "We did that not so much to address the challenges at the time. We were thinking more about the challenges we face tomorrow-the increased regulation, what will happen with interchange, and inflationary pressure," Danvers explained.
Danvers shared that credit unions now must examine every aspect of their credit card program, including how they contact delinquent members. DCCU now reaches out in 10 to 15 days, as opposed to 30, and often does so with a hand-written note.
