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Credit Associations Many different credit associations exist to help credit industry personnel obtain information about their customers. Services may include trade and consumer credit reporting, trade group administration, collections, asset liquidations and bankruptcy administration, and educational seminars. Most of these organizations are non-profit and function as a central clearinghouse for credit related information. These associations usually require membership as a prerequisite for use of their services and products, and they collect credit history data from their members. Industry Credit Groups Industry credit groups are comprised of a variety of commercial creditors selling to a common customer base.* Trade Associations Trade associations are comprised of vendors in a particular industry, such as furniture, lumber, or auto parts, selling to a common customer base. Trade associations usually meet periodically to share factual, historical information about common customers. Many trade credit groups are organized and managed by a local Affiliate Occurs when 50% or less of an entity's stock is held by the parent company. of the National Association of Credit Managers. Group meetings are overseen my a representative of the Association that acts as a moderator to ensure that members do not engage in any inappropriate conduct - in particular the Association's representative makes certain that no discussions of collusion among creditors is permitted during the credit group meeting. Banking Groups Like industry credit groups, banking groups also provide a forum for bank creditors to exchange factual information and experiences with other members who share a common customer base. These groups meet with varying frequency, set their own bylaws to avoid legal problems, and may share information verbally or in writing. Educational activities, such as presentations by outside speakers, are often featured at meetings. Educational Groups Like industry credit groups, educational groups provide an opportunity for credit professionals at all levels of experience to meet and to learn about the credit and collections process through speakers and round-table discussions. These groups may have a broad focus or may specialize in certain subject areas or levels within the credit and collections profession. *Source: Credit Management: Principles and Practices, 2nd Ed., by Dr. Charles L. Gahala Edited by Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore. |
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