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American Agencies February 21, 2012

Retain Accountholders, Reduce ChargeOffs
Take Proactive and Comprehensive Steps to Maximize OD Program Performance

by L a r r y

costs of which has replacing made it so unre- solved easy to customers. avoid It is critical communicati to control on time and altogether. It G cost is not i associated difficult for a u with these customer to s collections delete t so that electronic i income messages or n gained simply avoid i through an a call a effective altogether. n overdraft Most i program is suspended , not lost to overdraft charge-offs. customers A can—and Prem should be— charge-off reinstated e accounts r back into can be your i some of program, c your a but the institution’ difficulty n in s most communicati profitable, ng with them A which g can easily makes e result in a them n charge-off worth c instead. salvaging. i It is possible Implementin e to retain g a proactive s accounts, contact and When it however the customer comes tac- tics for retention realizing the doing so approach full potential must go from a thirdof your beyond party overdraft outbound collection program, letters and organiretaining phone calls zation can customers is by bank be an paramount. personnel. optimal Contacting solution to Those customers maximize efforts can your and be resolving overdraft past due ineffective program due to the performance balances prior to proliferation . phone charge- off of tech- nology can be (i.e., Caller expensive, Copyright 2012, and American as can the ID subsequent voicemail),

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Suc cess ful prechar geoff coll ecti ons sho uld: Initiate collection effort just after suspensio n of overdraft privilege using diplomatic and efficient efforts to move precharge- off customers toward resolution; • Allow your institution to maintain control and ownershi p of the accounts; • Include

negative which has reporting kept our action, as charge-offs to well as a bare specific minimum. We instructio have ns to maintained satisfy the complete outstandingcontrol of our obligation; program Cost less customers than 5% without of the re-alienating covered them and can prereinstate charge-offcustomers dollars, that bring making it their accounts an to a positive economical balance at choice for our any discretion,” institution said Raul seeking Oseguera, superior senior vice customer president of retention City National and non- Bank, inter- est Newark, New fee income Jersey. results; “The service Provide a utilizes an no-cost interface automated and secure with your to institution’sprocess easily existing overdraft transmit accounts daily program the software into collection files. system,” systemati “Since added c changing ourOseguera. policy to“Their written allow systematic prompts courtesy that notify overdrafts, approach ultimately gets

W hy Pr eC ha rg eof f C oll ec tio ns ?
U si n g a th ir dp ar

accounthol we began ders of util- izing a their collection overdrawn firm’s status and customer any pending retention solution,

ty co lle cti on pa rt ne r to ret ai n pr ech ar ge of f cu st o m er s ca n co st L E SS T H A N FI V E P E R C E

N T of t h e r e c o v e r e d p re c h a r g e of f d ol la rs .

the agencies.co message m across to the L a rr y G iu s tin ia n i customer and allows P h o n e : 9 1 4 - 7 7 1 us to 7 8 9 6 E m a il: maximize collections lg iu s tin ia n i@ a m e ric a n a g e n c ie s .c without designating o m personnel Progra to those ms for efforts.” Improvi
ng Your Bottom Line

For over 30 years American Agencies has been a leader in the collections industry and offers multiple overdraft collection programs for financial institutions nationwide. For more information , contact Larry Giustiniani at 914-7717896 lgiustiniani @american