The Illinois Credit Union League Service Corp. is launching a program to help state credit unions hunt down car loans that got away.
By matching a list of credit union customers against a list of all state title registrations, the corporation can find customers who didn't finance their car with their credit union.
Then they can call them and offer them the credit union's rate.
"I'm excited to get this started," said George W. Fiegle, executive vice president of the corporation, which is subsidiary of the league. "I'm chomping at the bit."
The service will be open to any credit union in the league, and within the year about 50 might join, Mr. Fiegle said.
Mr. Fiegle said he couldn't predict how many loans the program will bring in, "but it should be a lot," he said.
Although some large credit unions already track down loans they missed, the service makes it affordable for smaller credit unions to do this, Mr. Fiegle said.
The goal is to help Illinois credit unions better their loan-to-deposit ratios, Mr. Fiegle said.
Cost Is $2,000 a Year
According to the Washington-based consulting firm Callahan & Associates, the average loan-to-deposit ratio for Illinois credit unions at the end of 1993 stood at 53.2% - below the national average of 61.7%.
The service would cost $2,000 a year, he said. The corporation, which is a subsidiary of the league, is considering an optional plan by which a credit union pays a fee per application.