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RPI EMPLOYEES’ FEDERAL CREDIT UNION (RPIEFCU)
LOAN DELINQUENCY POLICY & PROCEDURE
January 23, 2012
I. Philosophy
A. The RPI Employees’ Federal Credit Union must implement and maintain an effective
control process of all loans in order to safeguard the funds entrusted to it by its members.
B. The credit union philosophy of helping members to help themselves should be considered
when the causes of delinquency are determined and collection can be implemented through
adequate financial planning.
C. Every consideration should be given to retaining members when collecting loans. The credit
union shall always consider the well being of the member as part of a sound collection
policy.
D. Where responsible financial planning is exhibited by the member, satisfactory arrangements
can be made to accommodate the member.
E. As a thrift institution, the RPI Employees Federal Credit Union shall encourage regular
payments and inform its members of the additional cost of using money through periods of
neglected principal payments. This shall be conveyed to the credit union membership
verbally at the annual meeting and in writing in the April newsletter.
F. Vigorous collection action within limits of the New York State Consumer Act shall be
initiated when it is indicated that members have no intent to fulfill their obligation.
II. Collections Officer
The Collections Officer shall be responsible for:
reviewing collection procedures developed by management,
reviewing, on a monthly basis, the report of delinquent accounts prepared by the credit union
staff,
Referring problem accounts and matters of policy related to delinquent accounts to the Board
of Directors.