For over 50 years, the organization that is now known as Nevada Federal Credit Union has brought innovative financial services to its members. Today, the organization offers an alternative to payday lending through its ADVANCpay program. This program uses our credit report as a key decisioning tool to assist with underwriting loans provided through ADVANCpay.

Nevada Federal Credit Union’s use of CoreLogic® Teletrack™ is a testament to both the viability and the demand for payday advance alternatives by credit union members. The organization uses Teletrack to assist with evaluating and approving more than 1000 loans per month. Teletrack is used on each of these transactions to ensure that the member is not over-extending his or her finances.

THE BENEFITS OF TELETRACK
Since 2006, ADVANCpay has been available to more than 85,000 through a centralized decisioning process managed by Cannon. During that time, Cannon and her staff reviewed applications for ADVANCpay submitted through the branches – issuing approvals and denials in a centralized lending environment. Decisions regarding approval for ADVANCpay focused on two key areas:

1. Are the member’s accounts in good standing?
2. Does the member have payday advance charge-offs on their Teletrack report?

“Teletrack’s report is the key for our organization. We rely heavily on Teletrack to evaluate whether the individual has open loans,” Cannon said. “Teletrack allows us to keep our decisioning criteria simple. If a member has outstanding charge-offs or collection accounts, we don’t approve the loan.”

Recently, Cannon spearheaded a decentralized rollout of ADVANCpay at her organization. In March 2008, 20 branch locations of Nevada Federal Credit Union were empowered to make decisions on most ADVANCpay applications.

HOW IT WORKS
The ADVANCpay program assesses an application fee, which is payable at the time of application. The fee is $40 for members that have at least one direct deposit associated with their account(s). For members that do not use direct deposit, the application fee is $50. The maximum amount that a member can receive from an ADVANCpay loan is $500 for a 14-day term. Nevada Federal Credit Union permits only one loan per member at a time.

The application information is submitted to Teletrack and the member’s account is reviewed before the loan is approved. Nevada Federal Credit Union approves approximately 95% of its ADVANCpay loan applications by Cannon and her team. In this way, Teletrack helps the organization manage risk efficiently. CoreLogic Teletrack assists by providing valuable information to employees that they can use to determine if a loan application needs further review. If there are excessive payday advance inquiries in the preceding six months, the loan approval process is referred to Cannon’s department for additional investigation.

To learn more about Nevada Federal Credit Union and its ADVANCpay services, visit them online at www.nevadafederal.org.