This article was originally published on CU Insight
CPI is a vital risk management program that involves member service interruption and has negative consumer connotation within the Credit Union community. Due to the economic and market conditions over the last 30 months, many lenders are questioning the value of CPI compared to the noise and disruption it creates for members. The borrower-benefitting economic lull of lower interest rates, increased consumer savings, diminished delinquencies, and inflated automobile values ---- are coming to a close. Market conditions are shifting. Rising interest rates, supply chain challenges, inflation and increasing need for repossession are putting loss mitigation and management once again into the focus for Credit Unions. These conditions make insurance tracking essential for protecting your portfolio.
The noise and censure surrounding collateral protection services is most often attributed to notices that are mailed due to lienholder issues and the false placement of CPI. It is critical that your CPI program reduce false placement and avoid as much noise as possible from consumers. There are several best practices to keep in mind when it comes to managing member communication and notification effectively and intentionally with your CPI program.
Stay Informed on Resources from Allied Solutions: Join our e-newsletter!