Written by: Eric Bank
Edited by: Lillian Guevara-Castro
Reviewed by: Adam West
Key Takeaways
Credit unions have a new partner in recovering late-stage delinquencies and charge-offs — without sacrificing their members.
Remynt, a California-based debt recovery and credit-rebuilding fintech company, secured strategic funding and rolled out a credit union service organizatin (CUSO) that will help credit unions recover delinquencies on a more member-friendly basis.
The firm’s solution is built on the premise that debt collection does not necessarily imply relationship loss.
Through its platform, Remynt collects on delinquent accounts from credit unions (and other financial institutions) and gives borrowers the chance to repay debt over time with self-service payment plans, rebuild credit, and take advantage of financial management tools.
What makes Remynt unique is that it enables reporting payments to the credit bureaus as positive activity for those opting into a credit builder at no additional cost — something that doesn’t exist with any collection agencies.
“We don’t simply want to collect the debt and close the book,” Gwyneth Borden, Remynt Founder & CEO said. “We want to help the borrower in restoring their credit and create the pathway for credit unions to recover these customers (members) in the future.”
Outsourcing Collections Without Sacrificing the Relationship
With the new CUSO model, Remynt becomes a partner to credit unions that wish to shed the administrative hassle of collection work but preserve the long-term value of their membership relationships.
By assuming the operational burden of recovering past-due accounts, Remynt allows financial institutions to focus on their primary purpose.
Smaller organizations often lack the infrastructure or staffing to manage collections in-house.
Borden indicated that Remynt perceived a void in this area that could be addressed with a technology-based recovery model that benefits both sides of the equation.
Institutions gain a method for monetizing late-stage delinquencies and charges off, and borrowers have a path to rebuilding their credit.
Rebuilding Credit Through Repayment
That two-pronged emphasis is one reason why the strategic investment, which includes partnering on delinquencies as a larger financial wellness strategy, is a major milestone.
It prepares Remynt to expand its efforts as consumer delinquencies are rising and many credit unions seek ways to increase membership engagement without thinning resources.
“It’s about converting loss to opportunity,” Borden explained. “If an individual had a $1,000 charge-off and they’re better off today, why not help them in correcting that and allow the credit union the opportunity to reconnect with them?”
Remynt’s platform enables consumers the opportunity to design their own repayment schedules and even settle their debt online, with automation and digital communication integrated into the process.
Remynt is financial literacy first in its communications, offering not only credit building, but personal financial management tools and a community to support their journey, focusing on financial resilience rather than the hard-charging methods common with traditional collection agencies.
A Relationship-Centered Model for an Evolving Industry
From an institutional viewpoint, the model demonstrates a paradigm change in the way that financial institutions approach engagement after defaults. Instead of viewing charge-offs as a write-down, those institutions partnered with Remynt can position the interaction as an opportunity for credit rehabilitation.
Not only does that enhance the prospect of future borrowing on the part of the borrower, but it adds to the lifetime value of the member for the institution.
Borden stressed that the CUSO charter creates greater avenues for working together with credit unions, particularly those with financial wellness-focused missions. “We want to support credit unions in doing what they do best — serving members with empathy and consistency,” she stated.
“Our partnership with Remynt aligns with our mission to create meaningful community impact by providing access to equitable and innovative financial solutions,” said Scott Daukas, Principal at One Washington Financial (WSECU).
Daukas continued, “by including Remynt as part of WSECU’s financial wellness strategy, we directly contribute to our members’ financial stability, growth, and development.”
Why It Matters to Credit Unions
With economic pressures escalating and financial health a rising issue among borrower segments, products that provide second chances have become increasingly popular.
If small financial institutions don’t have the volume to develop their own recovery infrastructure, Remynt’s collection-credit building hybrid may provide an alternative direction.
By maintaining the membership relationship and providing a road to better credit, credit unions are able to recover long-term value from accounts that have already been written off.
When trust and consistency become so crucial in a competitive market, that kind of retention strategy isn’t merely desirable — it’s necessary.
