Software Aids CU In Delinquencies, Collection Efforts

Register now

Delinquent-account index cards at Telephone Workers CU have been tossed-and replaced with online collections software, according to Dan Picard, senior collections representative.

The $500-million TWCU upgraded this Fall to the Windows-based, 32-bit Collections and Asset Recovery Management (CARM-Pro), provided by New London, N.H.-based Intelligent Banking Solutions (IBS). Telephone Workers CU, with 28,000 members, previously ran the 16-bit system, CARM, for two years.

Daily collections efforts on the CU's 150 delinquent accounts have been relieved by more efficient coordination, said Picard.

"I can type in a name or a member number and the system can provide me with the data I may need," Picard explained. "Moving from the old paper trail to an automated system has greatly reduced the need for us to struggle with locating notes, prior history on an account and reference information."

CARM-Pro also automates collections letters in line with statutory requirements, such as the 21-day notice for defaulting debtors and mortgage and repossession letters.

Because the product standardizes account representatives' notes and abbreviations, Telephone Workers' collections team of two no longer guesses at handwritten collection history.

Complete with three account queue modes and customizable program screens, Picard labels CARM-Pro "a user- defined collections system for financial institutions." The application is a bundled product, consisting of Collection Management System (CMS) and Asset Recovery Manager (ARM).

IBS, in business since 1989, began developing the online version in 2000. "Standardizing on the 32-bit structure will allow our development team to more rapidly respond to customer demands for enhancements without impacting speed or use," said IBS President Rob Daley.

Features help to increase calls and letters per debtor, while reducing delinquency rates and monthly charged offs, according to IBS. Picard concurs that most of the gains in the collection department are a result of the product.

With the promise of doubling collector productivity, CARM-Pro comes at a cost of about $7,500 per license. Annual support is $1,500 and installation and training fees apply.

"CARM-Pro is our newest and most powerful 32-bit automated debt management and control software, encompassing over 10,000 hours worth of coding, development and testing", said Joe Sherwood, Director of Development for IBS.

IBS recently announced its latest interface to financial services leader Equifax, adding to its library of more than 25 core-processing interfaces. The automated collections and recovery software is in use at more than 225 banks and CUs in the U.S. with more than 1,000 distinct users.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER