FOR IMMEDIATE RELEASE
WYOMING, MN; February 20, 2019 – CU Recovery and The Loan Service Center have been in an active growth pattern for the last 8 years, including double digit growth for the past 2. Since the company’s acquisition by PSCU in late February 2018, there has been a 23% increase in revenue, exceeding over 100,000 collection files from credit unions around the nation.
CUR/TLSC staff increased by 25% in 2018 along with additional investments in training, technology and compliance monitoring. The expansion is in response to the added demand for services with current growth in the economy, within credit unions and the sheer volume of delinquent loans.
The significant increase in delinquent files being processed and need for additional staff has been impacted by the automotive industry, where more than 7 million Americans were 90 or more days behind on their car loans at the end of last year, 1 million more than eight years ago, according to the Federal Reserve Bank of New York. The report also sites that the 90-day delinquency rate at the end of 2018 was 2.4 percent, up from a low of 1.5 percent in 2012, with delinquencies by people under 30 rising sharply. Add to this a report from the Federal Reserve stating that 3Q 2018 was the 17th consecutive quarter with an increase in average household debt, now $837 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008. The quarterly increase included 1.6 percent on mortgages, 2.2 percent on auto loans, 1.8 percent on credit cards, and 2.6 percent on student loans.
While collection forecasters indicate that delinquency levels are rising, they feel the levels will settle at or near the ‘normal’ level by year’s end. CU Recovery recognizes that while the delinquency ratios may stay the same, the actual number of loans and delinquency files will have grown significantly, taxing collection departments.
Wendy Elieff, Senior Vice President of Sales & Service for both companies commented on their growth. “Our expansion is aligned with the growth in the economy and in our credit union clients. So, what is coming next? That can only be a prediction, but we feel confident that we have the staff, facility and expertise to handle credit union delinquencies at any stage.”
About CU Recovery & the Loan Service Center, A PSCU Company
CU Recovery, Inc. is a full service collection agency, working exclusively for credit unions, dedicated to maximizing recoveries on charged off loans. The Loan Service Center, Inc. provides staffing solutions for credit union collection departments to minimize losses on their delinquent active loan portfolio. The CU Recovery Collection Academy is held in October of each year and is a resource for continuing education to assure the success of Credit Union collection departments in meeting their member service and delinquency reduction goals. For more information: https://www.curecovery.com/cur/index.asp
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