Crescent Credit Union
Crescent Credit Union is a 301 Million Dollar Massachusetts Based Provider of Banking and Financial Services to Over 50,000 Members.
http://www.crescentcredit.org/
Crescent Credit Union offers Indirect Loan Services to local Automotive Dealers. Despite a strong in-house Collections Department, they were challenged with non-performing accounts and were reluctant to work with an outsourced collection agency. They did not want to compromise their relationships with the dealers or future customers. Before working with SMA's sub-brand Avert, Crescent sent their accounts directly to repossession after 45 days.
Avert devised a No Net Cost, No Risk, Pre-Repo Collection Strategy. The goal - to cut Crescent’s repossessions by 50% and bring as many accounts current as possible. Initially, Crescent submitted 8 accounts at 45 days past due to secure the validity of Avert’s program. Within 2 weeks, Avert returned 7 accounts back to Crescent in good standing. Since April 2006, Crescent has submitted all its Pre-Repo accounts to Avert; and as of January 2007, Avert has helped 360 accounts avoid repossession; yielding a 95% recovery rate.
Condition of Revenue Returned to Crescent CU
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The Gross Majority of Revenue |
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95% Recovery + $345,749 Paid to Crescent CU
| Between April 15th 2006 and January 1st 2007 Avert’s Recovery Rate was 95%. Avert Returned $345,749 in Revenue to Crescent CU. |  |
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$2,200,000 in Cost Savings & 360 Accounts Avoid Repossession
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On average, once an auto is repossessed, 93% of the deficiency balance is uncollectible. The average light vehicle deficiency balance in the US is $7,000. Crescent would have lost approximately $2.2 million by repossessing 360 vehicles over the last 14 months; this includes the cost of the repossession, transport, storage and processing. |
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© Stephens & Michaels Associates, Inc. | 