Vendor Due Diligence for Credit Unions is Critical
Many credit unions utilize outside collection agency service providers to enhance and support their in-house collection/asset recovery operations. While these vendors provide a very important function for your organization, it is important to perform due diligence with these vendors to mitigate any risks associated with the business partnership.
Due diligence of the vendor may include:
- Reviewing and assessing the vendor’s financial condition (Audited Financial Statements)
Does the vendor have the financial stability to fulfill all duties required of them?
- Vendors Operational & Internal Controls (SOC 1 & SOC 2 Certification)
Has your vendor been through a detailed testing and audit of the design and operating effectiveness of their organization’s controls?
- Reputation and Familiarity working with Credit Unions (References)
Is your vendor familiar with credit union regulations and requirements?
- Information Security Controls in Place (Data Security, Business Continuity Plan, Confidentiality Policies and Procedures)
- Do they have adequate coverage against any potential risk or liabilities (Certificate of Insurance)?
- Collection industry qualifications to work with your members (Licensing, Certifications, ACA International Membership, BBB Accreditation A+ Rating, etc).
If you would like more information regarding Integral Recoveries and the services we provide to credit unions, please reach out to us at the contact us at 800-660-8450 x 5 or cs@integralrecoveries.com.