Collection Advisor May/June 2016

USING TECHNOLOGY TO EMPOWER COLLECTIONS

Joseph I. Terkell, Esq. GUITAR COLLECTOR COLLECTION ATTORNEY

TOP COLLECTION PRODUCTS OF 2016

DIFFERENTIATE BETWEEN FAKE AND REAL SOCIAL SECURITY NUMBERS

REQUIREMENTS BASED ON THE HANNA CONSENT ORDER

COLLECTING FOR THE IRS?

MUNICIPAL COLLECTOR SERVES THE CITY

COLLECTION SOFTWARE HELPS SMALL OFFICES REMAIN COMPLIANT

UTILITY COLLECTORS MUST CHANGE WITH THE WEATHER

GOVERNMENT COLLECTIONS: GREAT WORK IF YOU CAN GET IT

DON’T TAKE THE BAIT!

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G overnment debt collection is great work if you can get it. The contracts can be difficult to obtain as is made apparent by the relatively few agencies that possess

them. This issue is dedicated to helping willing collection professionals on their way to such a contract through initial information and intermediate steps such as collecting mu-nicipal debt.

For this issue I spoke with the hog-riding, guitar-pick-ing lawyer extraordinaire, Joseph I. Terkell, Esq. of The Terkell Law Firm. Terkell talks about the winding road that brought him into collection law and his passion for motor-cycles and electric guitars.

Compliance Advisor Debra J. Ciskey warns collection professionals not to take the bait laid by litigious consumers and reveals ways to avoid costly mistakes. Agency Advisor, Sam Eidson describes the basics of government debt and highlights several of its key attributes. Skip Tracing Advisor Ron Brown discusses social security numbers further and teaches how to separate the real ones from the fakes. Tech-nology Advisor Sam Edens iterates technological steps that must be taken to increase the chances to be selected to col-lect on government accounts. Benchmark Advisor Harry A. Strausser III discusses the power of LinkedIn and why every collection professional should be making it work for them. Legal Collection Advisor Fred N. Blitt reveals the impacts of the CFPB v. Frederick J. Hanna & Associates case and what they mean for debt collection. I made 15 videos featuring technology visionaries at the DBA International convention that are featured at www.CollectionAdvisor.com. While at the convention, I caught up on new technology including email and text collections.

Next issue Collection Advisor will be taking a closer look at credit card collections. Until next time, we look forward to hearing from you.

T. Steel Rose CPA, ACS Editor

[email protected]

GOVERNMENT COLLECTIONS

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11 Government Collections: Great Work If You Can Get It JOSHUA FLUEGEL

15 Municipal Collector Serves the City JOSHUA FLUEGEL

16 Law Firm Spotlight Joseph I. Terkell, Esquire of The Terkell Law Firm

19 Utility Collectors Must Change with the Weather JOSHUA FLUEGEL

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ADVISORS

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SKIP TRACING ADVISORDifferentiate Between Fake

and Real Social Security NumbersRon Brown

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COMPLIANCE ADVISOR Don’t Take the Bait!

Debra J. Ciskey

8TECHNOLOGY ADVISOR

Collecting for the IRS?Sam Edens

10

AGENC Y ADVISOR Breaking Down

Government Collections Sam Eidson

12 LEGAL COLLECTION ADVISOR

Requirements Based on the Hanna Consent Order

Fred N. Blitt

14BENCHMARK ADVISOR

Are You LinkedIn to Your Industry?Harry A. Strausser III

May/June 2016 www.CollectionAdvisor.com Volume 16, No. 3

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Optimize the Consumer Payment ExperienceA N Y T I M E , A N Y W H E R E , A N Y D E V I C E

In order for a professional tracer to operate at a maximum level they must have a thorough understanding of the closest thing the United States has to an individual identifier. The informa-tion has been verified by its correspondence to the SSA’s Pro-gram Operations Manual System (POMS) Part 01, Chapter 001, subchapter 01, which can be found at Federal Depository Libraries. (SSA Pub. No. 68-0100201)

A social security number has the pattern, AAA-GG-SSSS, where A is the area number, G is the Group num-ber, and S is the serial number. According to the SSA, so-cial security numbers are assigned somewhat randomly, but the following situations are never used: numbers contain-ing all 0’s in any group and numbers starting with 666 or 9 are not valid. Therefore the following sample numbers are in correct format but are invalid social security numbers:000-12-2345 123-00-4567 123-45-0000666-12-3456 900-12-3456 950-12-3456

If you happen to be on the receiving end of social security numbers as a professional tracer, now you know how to spot the fake ones. As a bit of trivia, there are a few other social security numbers a tracer should be aware of which are flagged as invalid by this program. The social security numbers 987-65-4320 to 987-65-4329 are reserved for use in advertisements. The SSA used 219-09-9999 in a promotional pamphlet in 1940. In 1938, a wallet manufacturer inserted a sample Social Security card in each of its wallets as part of a marketing effort. The sample was a copy of Hilda Schrader Whitcher’s card, with the social security number 078-05-1120. Hilda was secretary to the vice president of marketing of the firm. Over 40,000 people have used this number according to the SSA.

The tracer should be aware 800-999 are not valid social se-curity numbers. Some sources have claimed numbers above 900 were used when some state programs were converted to federal control but current SSA documents claim no numbers above 799 have ever been used.

Serial Numbers Serial numbers are assigned in chronologi-cal order within each area and group number as the applica-tions are processed. Serial number 0000 is never used. Before 1965, when number assignment was transferred from field of-fices to the central office, serial numbers may have been assigned in a strange order. (Some sources claim 2000 and 7000 series numbers were assigned out of order. This no longer seems to be the case.) Currently, the serial numbers are assigned in strictly

increasing order with each area and group combination.

Group Numbers The group number is not related to geog-raphy but rather to the order in which social security numbers are issued for a particular area. Before 1965, only half the group numbers were used: odd numbers were used below 10 and even numbers were used above 9. In 1965 the system was changed so assignments continued with the low even numbers and the high odd numbers. So, group numbers for each area number are as-signed in the following order:Odd numbers, 01 to 09 Odd numbers, 11 to 99Even numbers, 02 to 08 Even numbers, 10 to 98

Group codes of 00 are not assigned. In each region, all pos-sible area numbers are assigned with each group number before using the next group number. This means the group numbers can be used to find a chronological ordering of social security numbers within a region. When new group numbers are as-signed to a state, the old numbers are usually used up first.

SSA publishes a list every month of the highest group as-signed for each SSN Area. For example, if the highest group assigned for area 999 is 72, then we know the number 999-04-1234 is an invalid number because even Groups under 9 have not yet been assigned.

I hope this in-depth exploration of the number one identi-fier a tracer utilizes in the United States will aid you in your future endeavors to track down the most elusive and dangerous animal on the face of the earth…man.

Until next time, good luck and good hunting! Ron Brown is a member of the National Association of Fraud Investi-gators and the author of “MANHUNT: The Book.” Contact him at [email protected].

IIn order for a professional tracer to operate at a maximum level IIn order for a professional tracer to operate at a maximum level they must have a thorough understanding of the closest thing Ithey must have a thorough understanding of the closest thing the United States has to an individual identifier. The informaIthe United States has to an individual identifier. The information has been verified by its correspondence to the SSA’s ProItion has been verified by its correspondence to the SSA’s Program Operations Manual System (POMS) Part 01, Chapter Igram Operations Manual System (POMS) Part 01, Chapter

Skip TracingAdvisorRon Brown

ROUTING SLIP

Initials Date

Differentiate Between Fake and Real Social Security Numbers


Differentiate Between Fake and Real Social Security Numbers

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Sometimes collectors have conversations with consumers leaving collectors feeling like someone just played them. They feel manipulated in a way difficult for them to describe. These may be instances in which the collector was baited by the consumer in an attempt to get the collector to violate the Fair Debt Collection Practices Act. Let’s look at some of the known baiting scenarios.

In a very recent case, a call between the consumer and the debt collector occurred about a week after the collection agency had sent the consumer the initial notice, including the validation notice which informs the consumer of his right to dispute the debt. The agency had spoken with the consumer a few days earlier, reaching no resolution of the debt. When the consumer called the agency a few days after the initial conversation, the consumer asked the collector, “When do I have to take care of this debt?” The collector explained the placement date and told the consumer they look to resolve the balance immediately. When asked again, the collector said they were looking for payment “as soon as possible.” The consumer asked whether the collector meant payment in full, to which she responded “correct.” When asked if they wanted it paid immediately, she responded “correct.” The consumer said he could not pay the debt and he had hired an attorney.

The consumer claimed the debt collector overshadowed his rights by demanding immediate payment, implying partial payment must be made within the validation period. After discussion of other cases in the same district related to overshadowing, the court concluded, with application of the least sophisticated consumer standard, the debt collector overshadowed the consumer’s right to dispute the debt by answering the consumer’s questions in such a way communicating payment in full was due immediately, when the consumer had several weeks remaining in the validation period. The court said, “It is unlikely that an unsophisticated consumer would understand that he could still dispute the debt despite making immediate payment arrangements as [the consumer] was encouraged to do.” (Schuller v. AllianceOne Receivables Management, Inc., Case No. 4:15 CV 298 CDP, USDC, Eastern District of MO, Eastern Division. decision filed 02/01/16, page 14.)

Indications the consumer was baiting the collector were as

follows: 1) The consumer’s approach to communicating with the collector was very different in the last call than the previous two calls; 2) The consumer consulted with someone in the room during the final call; 3) The consumer provided attorney representation information to the collector at the conclusion of the call. The collection agency argued these circumstances indicated the consumer was not a least sophisticated consumer, but the court said the standard is objective and the court applied the standard.

Other attempts to bait debt collectors seek to confuse them by changing the subject of the call. For example, the call proceeds

with this line of comment and questioning by the consumer: • How much do I owe? • I don’t think I owe this much.• Is a settlement available? • I can only pay $10 per month. • I’ll do the best I can.

In this scenario, the debt has already been furnished to credit reporting agencies. About 30 days or so after the phone call occurs the consumer checks his credit report. If the account does

not carry a status of disputed then the consumer’s attorney threatens to file a lawsuit contending the consumer verbally disputed the debt in the telephone conversation yet the debt collector did not provide a status of disputed to credit reporting agencies. The FDCPA Section 807(8) [1692e7] is generally cited: Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate a disputed debt is disputed. The consumer’s “I don’t think I owe this much” statement is the dispute, but collectors can be led to disregard the statement when discussion of the account turns to settlement and eventual payment. When collectors experience

SSometimes collectors have conversations with consumers leaving SSometimes collectors have conversations with consumers leaving collectors feeling like someone just played them. They feel Scollectors feeling like someone just played them. They feel manipulated in a way difficult for them to describe. These may Smanipulated in a way difficult for them to describe. These may be instances in which the collector was baited by the consumer in Sbe instances in which the collector was baited by the consumer in an attempt to get the collector to violate the Fair Debt Collection San attempt to get the collector to violate the Fair Debt Collection Practices Act. Let’s look at some of the known baiting scenarios.SPractices Act. Let’s look at some of the known baiting scenarios.

Don’t Take the Bait!

ComplianceAdvisorDebra J. Ciskey

ROUTING SLIP

Initials Date

“This requires solid policies and

procedures, frequent training including role playing out these scenarios,

and job aids easily accessed by collectors in the instance they recognize they are the target of a consumer who

intends to get them to violate the law.”


One vendor. All the solutions.

this line of questioning, the safest next step is to disposition the account as a disputed account to ensure credit bureau reporting meets the consumer’s expectation.

Consumers also attempt to bait consumers into FDCPA violations by asking repeated and specific questions about the credit reporting status of their account, including: • How long will this stay on my account if I pay this? • If I can’t pay it off how long will the account affect my

credit?• What do I have to do to dispute this account?• So my dispute has to be valid? • What proof do I need to dispute the account? • What do I need to do to dispute the account? • Does my dispute have to be in writing?• Do I need a reason why I am disputing the account? • Your company doesn’t think the debt is valid?

We have to rely on our front line staff to recognize baiting scenarios and respond to them properly. This requires solid policies and procedures, frequent training including role playing out these scenarios, and job aids easily accessed by collectors in the instance they recognize they are the target of a consumer

who intends to get them to violate the law. My experience is sometimes collectors feel compelled to demonstrate their perceived expertise related to credit reporting. However, in this case, to quote Alexander Pope, “a little knowledge is a dangerous thing.” Provide scripted responses your collectors must use for these questions reflecting your policies and procedures, empower them to say, “I don’t know,” and to repeat the same answer.

Collectors should inform their manager and the compliance officer when they feel they have been subject to baiting. Review the recordings and the account and treat the account accordingly to protect yourself from liability. With the right policies, training, and account management practices, you can avoid the traps others set for you. Debra Ciskey is the Compliance Officer at Wakefield & Associates. Inc. She is a member of the board of directors and a certified instruc-tor for ACA International.

CORRECTION: Ciskey’s column, “Letters - A Compliance Officer’s Nightmare,” in the March/April 2016 issue contained an error. Disclosing existing creditor/debt collector financial or managerial relationships is a state-specific letter requirement in Idaho, not Utah.

“Consumers also attempt to bait consumers into FDCPA violations by asking repeated and specific questions about the credit reporting status of their account.”


Collecting for the IRS?

LTechnologyAdvisorSam Edens

ROUTING SLIP

Initials DateLast December, the Fixing America’s Surface Transportation Act (FAST Act) was made law by the federal government. Unlike the previous ruling which only allowed the IRS the authority to place collections with private debt collection companies, this new law went a step further by requiring the IRS to use private debt collec-tion companies. The law also states that the IRS must begin enter-ing into contacts within three months after the date of enactment. That timeframe is rapidly closing but there is no language detailing when the IRS will actually start placing inactive tax receivables.

Last year, I wrote about agencies investing their time and dol-lars in preparing for a government contract, primarily for the De-partment of Education contract. Collecting for the IRS is a new opportunity for established agencies to get into the government space and for agencies already in the space to service another line of government receivables. There is plenty of work that can be done in advance to prepare for this opportunity.

Data security should be a primary concern. If your collection software is preventing your agency from achieving compliance and hitting security benchmarks you may want to evaluate other software options or work with your current software provider to implement additional security features. Make sure the backend database is fully encrypted and that data in transit is as well. If encryption is available, you may want to verify it is turned on because in some collection products the encryption feature is op-tional and turned off by default in an effort to save space. Aside from the actual software, you should review and enhance your information security policies. If you do not already have these policies documented, you should address that immediately. Poli-cies detailing available user accounts, access privileges, password policies, and how to work with sensitive data need to be covered. If you find yourself overwhelmed with implementing or updating data security policies, a great resource to start is the Federal Infor-mation Security Management Act (FISMA). It will not answer all the questions but FISMA will provide great direction and help to set things in motion.

Simply having a strong data security policy is not good enough. Awareness of the policy and to the ever-changing land-scape of compliance and data security is key as well. Awareness be-gins with a strong training program. Create an electronic training program that focuses on working with government data and the sensitivity of that data. In a test environment, stage examples for users to encounter and work with sensitive data in your collection software. Wherever possible, implement automated IT processes that promote awareness.

So far, I have touched on policy and procedure ideas with a focus on the operation and environment. There are many items you can fine-tune directly in your collection software as well. First and foremost, make every effort to eliminate manual processes by replacing them with automation. Every time a user manually kicks off a process, renames or moves a file, or manually retrieves/sends

data with an external vendor, the likelihood for user error increas-es. You may be surprised to find out that most manual processes like those mentioned can be automated within your software or with custom applications that work with your collection software. Take a step back to really understand and document all your pro-cesses. Then, review the list with your team or consultant(s), pick out areas where automation is an option, and prioritize the list be-fore beginning any design or development. Second, take the time to evaluate and enhance your workflow. Agencies should imple-ment this practice at least twice per year. The addition of new clients, the performance of your consumer representatives, and the strengths/weaknesses of your skip tracing efforts may introduce new trends or change trends that were evaluated when your exist-ing workflow was designed. Find something that works best for your agency. Third, develop your own performance reports. Do not rely solely on canned reports that were delivered with your collection software. Like enhancing the workflow, there are met-rics and key performance indicators (KPIs) meaningful for your agency. Many of the collection products have some sort of built-in mechanism for developing custom reports. If custom reporting within your software is not available, there are plenty of reporting tools with many connectors that may work with your product. Take a look at Business Objects (Crystal Reports), Cognos BI, Microsoft SSRS, or Tableau.

By refining a few of your operational policies and procedures and implementing some strategic changes in your collection soft-ware, your agency can be set up nicely for that new government contract. As with the Department of Education contract, you can bet the IRS will be gathering performance data on the agencies receiving placements and that the data will be made public via several published reports. Wouldn’t it be nice to see your agency at the top of that list?

Sam Edens has been with Emprise Technologies since 2006 and is currently serving as Vice President. Prior to his time with Emprise, Sam designed and developed performance and flow management software for UPS.


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As government debt continues to grow, governmental bodies have an increased need for private collection agencies in order to recover lost revenue. Government debt includes unpaid income tax, property taxes, parking tickets, traffic tickets, tolls and stu-dent loans all of which are not considered a service or product that has been purchased. The aforementioned government debts are not regulated by the same standard as privatized debt. What does this mean for collection agencies looking to do business for the government?

Recently politicians identified the need for auto-dialers when attempting to contact federal student loan borrowers about repayment and options to help those who are in default on their loan. This approach contradicts the Federal Communica-tions Commission’s interpretation of the Telephone Consumer Protection Act concerning unwanted robocalls to consumers’ cell phones, especially without prior consent. While this may seem like a win for the ARM industry some are asking, “How is it OK to call a cell phone using an automated telephone dialing system for government debt but not privatized debt?”

The IRS has recently been mandated to use private collec-tion agencies to collect tax debt the IRS hasn’t collected in the past due to lack of time or resources. The IRS plans to notify the consumer in writing letting him or her know that it turned the account over to a private debt collector. The debt collec-tion company will then send a separate letter to the taxpayer confirming this transfer. This too is a win for the ARM industry and consumers. The IRS last worked with private debt collection agencies to collect consumer tax debt in 2006. An independent study found collection agencies had a higher customer satisfac-tion rating than the IRS.

So the question collection agencies need to ask is, “Are we an extension of the government thus giving us immunity to cer-tain laws?” Will we be held to the same federal or state con-sumer protection laws? Federal consumer protection rules and laws rarely apply to government debt. Often government debt collection costs are added to the debt as opposed to a consumer creditor who typically has to pay out of the money recovered by the collection agency. Are aggressive tactics such as excessive fees, threatening arrest warrants, garnishment, foreclosure, sus-pending drivers’ licenses OK so long as the government is able to back it up? Based on my research the answer is a firm no. Even if the government backs up what you say or do, you still could face the risk of complaints from regulators such as the Attorney

General, Federal Trade Commission, or Consumer Financial Protection Bureau, not to mention an increased risk of receiving frivolous law suits. The aggressive approach could also end up affecting your agency’s brand and future opportunities to bring on new clients not to think of the man-hours taken to respond to the regulators.

It’s encouraging to see our government realizes the benefits private collection agencies have on our economy and our politi-cians trust that the majority of licensed and insured agencies are good players with an ultimate goal of helping consumers. I truly believe this could be the start of a revolution for our industry. As we continue to get noticed for all the good we do the bad public-ity and negative perception will fade away. If you have interest in a government contract I’ve listed a few of the requirements I’ve come across below: • The proposer must have at least five years experience in debt

and credit collection services, with at least three of those with governmental experience. References will be requested.

• The proposer must provide evidence of license and bonds for collecting money in county, city or state; nationwide ca-pability is preferred.

• The proposer must have coverage including professional and general liability insurance and must provide proof they are bonded against employee dishonesty and theft.

• The firm is required to be fully compliant with all HIPPA, HITECH and PCI/DSS regulations.

• The proposer is required to provide information regarding any citations or investigations by any regulatory body.

• The firm must have current memberships with the ACA, BBB, and local state collectors association.

Sam Eidson is the Director of Compliance for Delta Outsource Group, Inc. He also serves on the Board of Directors for the Mis-souri Collectors Association.

AAs government debt continues to grow, governmental bodies AAs government debt continues to grow, governmental bodies have an increased need for private collection agencies in order to Ahave an increased need for private collection agencies in order to recover lost revenue. Government debt includes unpaid income Arecover lost revenue. Government debt includes unpaid income Atax, property taxes, parking tickets, traffic tickets, tolls and stuAtax, property taxes, parking tickets, traffic tickets, tolls and student loans all of which are not considered a service or product Adent loans all of which are not considered a service or product

Breaking Down Government Collections

ROUTING SLIP

Initials Date

AgencyAdvisorSam Eidson


CORNERSTONECSS

GOVERNMENT COLLECTIONS: GREAT WORK IF YOU CAN GET IT

BY JOSHUA FLUEGEL

Building a collection agency’s portfo-lio can be challenging, but indeed, a key component to growing an agen-

cy’s success. In no vertical is this more challenging than government collections. Not only is it difficult to land a govern-ment contract but the rules and stipula-tions of the contract are numerous. Marc Chibnik, CEO of Harvard Collection Services notes several challenges involved with not only obtaining a government contract but collecting the debt as well.

“There are quite a few substantial challeng-es specific to collecting government debt,” said Chibnik. “First of all, there are several types of governmental debt at several levels including: federal, state, county and municipal. For example, before you may even begin to consider participating on the federal level, more often than not the agency must be registered with the GSA (General Services Administration), and on SAM (System for Award Management). This entails having both a FEIN and a DUNS num-ber as well as an E-Verify number, not to mention licensing and bonding in all 50 states. Additionally, after work is secured, there is a considerable amount of admin-istrative burden such as reporting require-ments and compliance audits when col-lecting on a government debt contract. Lastly, there are fixed procurement cycles from one to five years, so a firm needs to be involved in new procurements in order to retain the work.”

Before an agency may even approach such a challenge, however, they must first meet an even larger one: becoming eligi-ble to collect government debt. It is best if this monumental task is taken in small steps all the way to capitol hill.

“This is not an easy task,” said Chibnik. “Usually in order to success-fully bid on government collection work,

an agency has to have experience in that vertical, which is a bit of a catch-22. One way around that is to hire individuals with government experience and exper-tise. A firm may try to enter the verti-cal using a local nexus: pursuing local state, county and municipal work. Also, they may try to take advantage of small, woman or disadvantaged owned busi-ness set-asides. Often times states give “in-state preference” to firms in the state or in a state that reciprocates on prefer-ence. So looking locally, starting small and, of course, writing a good proposal all definitely help.”

Collection professionals are well ac-quainted with the optimal dynamic to

maintain when working with consumers. However, as is the nature of government collections, the dynamic is different when approaching a consumer in the name of Uncle Sam. Unlike the majority of rules created in recent years to “improve” the collection industry, those particular to government collection work in the collec-tion professional’s favor.

“The handling of statute of limita-tions does come into play while perform-ing government collections, but in a posi-tive way for the agency,” said Chibnik.

Marc Chibnik

15July/August 2015 www.CollectionAdvisor.com

This article is continued on www.CollectionAdvisor.com.


Requirements Based on the Hanna Consent Order

ILegal CollectionAdvisorFred N. Blitt

ROUTING SLIP

Initials Date

In January 2016, the CFPB entered into a Consent Order with the Hanna Law Firm. This Consent Order was monumental in some respects as it provided significant details regarding the practice of law involving debt collection matters. This article will discuss some of the major impacts of the Consent Order on col-lection law firms.

Meaningful Involvement The first impact and arguable positive outcome of the Order is a bright line definition of mean-ingful involvement. Recall, it was less than two years ago when the Pressler court enshrined meaningful involvement without telling us anything more than finding a four second review was insuffi-cient. Specifically, the Order discussed the type of documentation in need of review at the time an account was placed with a law firm for collection.

Documentation Required The Order sets forth the expectation that attorneys will review documentation that, at a minimum, discloses the consumer’s name, the last four digits of the account number associated with the debt at charge off, the claimed amount, and any contractual terms and conditions ap-plicable to the debt. It mandates a signed contract or a statement showing a purchase, payment or other use of the account. Where the client is a debt buyer the attorney must see a chronological listing of all prior owners of the debt, the date of each transfer, a certified or authenticated copy of each bill of sale and such docu-mentation must contain a specific reference to the particular debt at issue. Additionally, Hanna (and by extension, all of us) is re-quired to document their review of the account level documents, the statute of limitations, bankruptcy status and verify the con-sumer’s identity and address to insure proper venue.

Moving Forward Interestingly, Hanna was partially sued for relying on their client’s affidavits. A reflexive response is it appears the CFPB was expecting Hanna to somehow audit the client’s affidavit process. However, when you read the Hanna Consent Order and that of PRA and Midland together, the CFPB was not expecting clairvoyance; their requirement for “Original Account-Level Documentation” confirms the collective intent of these Orders was to create downward and upward pressure among all the actors in the debt collection process to provide and receive documentation.

Real World Implications The Hanna Consent Order should force you to take a very close look at your placement pro-cess. It discusses requirements that must be met, in my opinion,

prior to sending out your initial demand letters. While these re-quirements may differ significantly from your state code of civil procedure, you need to determine the risk you intend to take in de-ciding how strictly you wish to adhere to the terms of the Consent Order. While we all await new rules in our industry, most people believe these rules will be very similar to the terms we see today.

In addition, it is important to talk to your clients about the Consent Order. First, you should review the manner in which documentation is sent to your office. Depending on the volume of files your office handles, this process could be debilitating. Second, it is imperative you review your contracts with your clients to deter-mine how the current terms are impacted by the Consent Orders.

Third, to engage in truly meaningful involvement, there needs to be a discussion about pre-Order client timelines for de-mand letters and suit dates. In other words, this review process will be more onerous on your staff and more time consuming. You and your client’s IT teams will have to work to set up inter-faces to assure the account level documents are received as a single placement, to assure your staff is not sifting through a 200 page document dump or clicking on many sets of suit documents to find what they need. Fourth, is staffing. Do you have the staff in place to not only upload the data but the attorneys necessary to assure a meaningful review?

Conclusions In many respects, the post-Order world is not so new; all of us were already documenting pleading approvals and placements. All of us wanted more information and documents upfront – document production pre-suit is a major factor contrib-uting to or reaching settlement of the case. However, the joke will be on anyone who thinks it’s just business as usual. A smart firm will use this opportunity to tighten processes, improve efficiency and to garner additional protections for your firm. Fred N. Blitt, Esq., is a partner with Blitt and Gaines, PC in Illinois and Couch, Conville and Blitt in Louisiana. He is past president of NARCA.


It is with profound sense of loss that we announce the passing of Mike Lim on February 21, 2016.

Mike was a pioneer and leader in the Accounts Receivable Management Industry for over 45 years.

Started in 1970, CollectOne–Tiger was among the first, if not the first, commercially available

software developed for the debt collection industry, and remains one of oldest debt collection software

companies still in business. CDS began before Microsoft, and was one of the first collection software systems to work with the Oracle database application.

Mike was known for his generosity, mentorship, and intense curiosity of all new technology. His vision and commitment to customers

and the collection industry will continue on.

We will miss you, Mike.

Mike Lim1936–2016

Founder, Collection Data Systems and CollectOne Tiger

.com May/June 2016

When I was young, my father always used to tell me, “Son, it’s not what you know in life that is important, it is who you know that will bring success.” It is a common belief in our culture that those who have reached high levels of success often have been well connected in their given industry. Education is, of course, a very critical element along the way but once you embark on a career both personally and professionally most of us have learned that surrounding yourself with the right people fosters success. There is also an old adage that says the real pathway to success is to sur-round yourself with people who are smarter than you. For some of us that is a very easy task but the concept makes a lot of sense!

Most of us in business have learned that networking through various organizations helps promote our firms and services. Lo-cally we join chambers of commerce. Regionally we may be-long to medical organizations like the American Association of Healthcare Administrative Management or Healthcare Financial Management Association. We become active in our state units of ACA International and of course network nationally at ACA International conferences and other various industry association events. But, how do we keep track of those many names and faces we meet along the way? What happens when a colleague makes a career move and their email or cell number is no longer valid? This is where the power of social media comes to the rescue!

I typically find that most are very familiar with Facebook and use it pretty actively. This is a good informal tool to keep in touch with friends and family. The best resource for our pro-fessional contacts is through LinkedIn. Although virtually ev-eryone has heard about the resource, I find there are still many who have not tapped into this incredible networking platform. But the numbers are growing almost exponentially. LinkedIn was launched in California in 2003. According to Statista.com, from 2009 through the end of 2015 LinkedIn members have grown from 37 million to 414 million. Approximately 25% of members are U.S. based. It is available in over 200 countries and in 20 different languages. The average user has between 500 and 999 connections. Are you one of the businesses or professionals benefiting from this resource?

I recently had an enlightening conversation with Steven Gan, president of Stellar Risk Management Services, Inc. I’ve known Steve for many years and about 18 months ago I enlisted in his firm’s LinkedIn consulting program. In just a year and a half I have grown my contacts from several hundred to almost

2,800 through a proactive process of targeting and inviting key industry operators and professionals.

According to Steve, one of the most important ideas while you are building your pool of contacts is to participate in Linked-In discussion groups.

Just like any professional or industry association or meet-ing, a LinkedIn discussion group is a forum where people of similar professional backgrounds or common interests can dis-cuss a wide range of ideas.

Through regular and thoughtful participation in LinkedIn discussion groups:• Your name and face will become well known within your

groups – groups you joined specifically because people you want to know are members.

• Your expertise and insights will be recognized as valuable.• Your professional “brand” will become a reliable resource.• Some of the people you have new relationships with may

become new clients.

As I presently participate in a few of the LinkedIn discus-sion groups. Here is a quick guide to the types of posts I’ve found will encourage a discussion:• Request information.• Describe a problem and ask how others would solve it. • Ask a thought-provoking question…carefully! • Post an article for discussion. • Post data. • Compliment.

We encourage our readers to submit a “best practice” idea for inclusion in this column. Until next time, I’m in a collection office near you! Harry A. Strausser III is president of Remit Corporation/Inter-act Training & Development. Contact him at harry@ remitcorp.com.

WWhen I was young, my father always used to tell me, “Son, it’s WWhen I was young, my father always used to tell me, “Son, it’s not what you know in life that is important, it is who you know Wnot what you know in life that is important, it is who you know that will bring success.” It is a common belief in our culture that Wthat will bring success.” It is a common belief in our culture that those who have reached high levels of success often have been well Wthose who have reached high levels of success often have been well connected in their given industry. Education is, of course, a very Wconnected in their given industry. Education is, of course, a very critical element along the way but once you embark on a career W

critical element along the way but once you embark on a career

Are You LinkedIn to Your Industry?

Benchmark AdvisorHarry A. Strausser III

ROUTING SLIP

Initials Date


M unicipal collections can be many agencies’ first foray in collect-ing for government. This kind

of collection can have some particular attributes, some are positive while some are down right challenging. One of the positive attributes Alicia Sundstorm, president of Financial Credit Network, describes is the clients making the neces-sary documentation a priority.

“Most, if not all of our cities, have no issues at all providing back up documentation to support why someone owes them money,” said Sundstrom. “Typically, the easier to collect are the types of debt the customer signed up for or requested. The more difficult are the fines, like DUI fees, citations and tickets that don’t have something like their driver’s license tied up.”

As with every type of debt collec-tion, there are challenges depending on the type of clients with which an agency works. Sometimes this includes filling the gaps in a client’s infrastructure adjusting to their speed of processing.

“Municipal clients tend to be very limited in staffing resources as well as IT resources,” said Sundstrom. “Collection agencies typically can assist them by mak-ing their jobs easier with our IT resources and adequate staffing. Also, patience is what comes to mind. It isn’t always a very fast paced type of client but once estab-lished tends to be extremely loyal and a pleasure to work with.”

Among the unique aspects of mu-nicipal collections, many aspects are the same. Despite municipal clients gener-ally maintaining all the necessary paper-work and information, the hindrance of a lack of the information will still occasionally rear its head according to Sundstrom. The difficulty of collection is only amplified when a client does not

require indentifying information such as a social security number.

When conversing with a consumer the collection agency’s reputation is on the line. The effects of a collection call are especially important when working for a municipal client. Hurting the reputation of a city can leave some lasting damage on the city and the collection agency as well.

“I think the worst thing an agency could do is not be aware of the fact you are collecting from the citizens of any given city,” said Sundstrom. “Customer service and public relations are very important to our municipal clients. You can guarantee failure by mistreating the citizens or by not providing excellent customer service.”

The journey of a thousand miles

begins with one single step. So is the philosophy of incorporating municipal accounts into an agency’s portfolio. The key is to eliminate as many unknowns as possible by taking advantage of what the collection professionals do know; the area they are in for example.

“Start with what you know,” said Sundstrom. “Our first city client, Visalia, California, is where our headquarters is located. Beyond that, be prepared to be flexible and provide excellent customer service. It really isn’t that different than any other debt that is owed.”

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BY JOSHUA FLUEGEL


MUNICIPAL COLLECTOR SERVES THE CITY


Behind every collection call is a per-son. This person, much like the consumer, has a fascinating per-

sonality, hobbies and a story. Joseph I. Terkell, Esq. of The Terkell Law Firm is plentiful on all three counts. Terkell explains how rock and roll, Coney Island carnival games and chance encounter with a friend changed his life and made him a debt collection lawyer.

Music CaptivationEven as a very small child, I can remember always loving music. My father would lovingly place his Nat King Cole, Perry Como or Frankie Laine LP’s on the turn-table and derive great pleasure from en-joying his music with him. Later on, as I was coming of age in the late ‘60s, music was truly king and its rock icons were like gods to the Woodstock Nation. I was by no means immune to their captivation, and, as a sixteen year old kid without a car, I managed to hitchhike as far as Mon-ticello, New York, in my quest to reach the iconic music festival. I had the unique privilege of being able to see my idols, Jimi Hendrix, Eric Clapton and scores more on the stage of The Fillmore East, in the heyday of rock impresario, Bill Graham. I set the bar very high indeed in seeking to emulate those musical giants. Sadly it is highly unlikely I will ever attain the level of genius on the guitar I was so privileged to bear witness to, but I have fun trying. Until such improbable time as I achieve that enlightened plateau of

guitardom, I remain a collection attorney and a guitar collector.

Much as my love for music has al-ways drawn me from a very early age, the same cannot be said for the practice of law in the collection arena. I have known many collection attorneys in my 35 years of practice, and I do not remember even a single one of them ever having uttered the words, “I always wanted to be a col-lection attorney, and finally, my dream has come true!” The truth be told, I never even aspired to be an attorney at all and only became a member of the bar through a happenstance.

Having grown up in Coney Island, I found my-self managing a block of group games in the amuse-ment park after graduating college. Frankly, I found it to be quite invigorat-ing working outdoors in the salty ocean air with the many, many people there to have a good time. The hours were long, but we did have a very good time!

During the sunny sum-mer days throngs of beach-goers crowded the midway to go on the rides, play the games as well as eat hot-dogs and french-fries while drinking soda, beer and the ilk. When night fell, the crowds grew even more populous, and the people were wall-to-wall and elbow-to-elbow. More of the same

activities as in the afternoon, but with fireworks above the boardwalk and ro-mance below.

What, me? Law School?Between the sunny days and the sultry nights there was as sort of eerie quietude when the throngs of day trippers went home, and most everyone else was else-where having dinner. It was at this time of day that my friend Bobbie would come “down below” to walk his dog after re-turning from his job and visit my part-ner and I. Bobbie showed up one day, and asked if Louie and I would like to

Joseph I. Terkell, Esq.

BY JOSEPH I. TERKELL, ESQ.

■■■■

Agency Spotlight

Law Firm Guitar Collector Collection Attorney

Terkell jamming on his Gretsch White Falcon.


join him in taking a law school admission test preparatory course. We, in unison, told him to go away; but he did not. In-stead he came back every evening coax-ing and cajoling us with entreaties as to how much fun it would be. A week or two went by, and one day, Bobbie rolled up in his brand new convertible Corvette Stingray. He added to his otherwise per-suasive inveigling, that we could drive to the course in the Corvette, and go out cavorting afterwards. Louie never capitu-lated, but finally Bobbie wore me down, and the two of us took the law school ad-mission test preparatory course, and ulti-mately the test itself.

I have always done very well on stan-dardized tests, especially the non-subject specific logic based exams. If there was a scholarship to be won, I usually was able to take away the prize. Unfortunately, Bobbie was not similarly blessed with this natural acumen for test taking. Long story short, I did very well on the test but Bob-bie, not so much. Bobbie was devastated by this denial of his dream to become a lawyer and we did not see him too much for a while.

June melted into July, and Bobbie reappeared one evening, inquiring as to which law schools I had applied. I replied I had not applied anywhere at all. Bobbie went ballistic! He could not believe that I was being granted the singular opportu-nity he so craved and I was throwing it all away. He was not going to have any part of that scenario. A day or two later Bobbie once again appeared, but this time armed with an admission application to New York Law School. He was quite agitated that all of the other New York law schools had already closed admissions, and this was the only school left with rolling ad-missions. Not to be denied a small part in the process of his fading dream, Bobbie had me fill out that admission form right there on the counter of Sid’s All Night You Deal Electronic Poker Game. Mak-ing it clear I was not to be trusted with the

task, he took the completed application and promised to mail it in the morning.

The summer idyllically sweltered along, with scant little more thought af-forded Bobbie’s vision until I received a call down at the games from my mother who advised me I had been accepted to law school. Talk about culture shock! Al-most overnight, I went from carousing on the Bowery, to cramming in the law li-brary. Somehow, I turned my life around overnight, and reinvented myself. There can be no denying I loved the free-wheel-ing life in Coney Island, but my odds at longevity greatly increased that fateful day Bobbie shared his dream with me. I decided if I was going to do this thing, I was going to go whole hog. I went to both summer school sessions between the regular school years, and graduated in two and a half years.

While all of this was transpiring, my sister’s best friend married a prominent collection attorney in Manhattan. He gave me my first clerking job in a law firm. As time progressed, my sister’s husband (also an attorney) and her friend’s hus-band became fast friends and ultimately partners in a legal collection practice. As I was racing through law school and clerk-ing at the firm the partners offered me my first job as an attorney. Partners came and went, and eventually I became a part-ner myself. Now, 35 years later, I stand before you with my own collection law firm. This is what I know how to do, and I would like to think that I do it well. I could still shill at Coney Island along with the best, but that is ancient history now.

Legal Collections PracticeChanging gears just a bit now, to address the actual collection practices and the challenges faced in an increasingly hostile environment, I have become somewhat disheartened with the level of animus with which we in the industry are treated and perceived. It is not news to anyone the collection industry is the unloved

stepchild of the greater business and le-gal community. That is, of course, until someone needs our help in collecting their hard-earned receivables. Even then, we sometimes get no respect. Clients keep pressuring forwarders for lower and lower rates, and forwarders, in turn, have to pass the pain along to the collection attorneys.

Some time ago I was commencing a trial in a very hard and long fought col-lection litigation when my client whis-pered to me in court they had continued

“Creditors and the collection community are overwhelmingly comprised of honest and generally nice people.”

If you were trapped on a deserted island,

which albums would you take?

■■■■

Joseph I. Terkell would take:

Bluesbreakers with Eric Clapton John Mayall & the Bluesbreakers

Led Zeppelin Led Zeppelin

Revolver The Beatles

Music for All Occasions The Mavericks

Johnny Winter Johnny Winter

Sticky Fingers The Rolling Stones

Europe '72 Grateful Dead


to do business with the debtor/defendant through the entire course of the case and wished to discontinue the action as well as exchange release without any recovery whatsoever. Dumbfounded, I inquired why would they even consider such a proposition after such a hard fought battle. The response I received was pro-found, and I have never forgotten it:

“Sales is the tail that wags the dog!”

Honorable and WorthwhileWe operate within the space afforded us by our clients, and our collective job is to keep them happy and to try to make a living in the process. Although we may be held in low regard by the gen-eral public, I believe creditors and the collection community are overwhelm-ingly comprised of honest and generally nice people. Creditors do not simply invent debt that does not exist for the diabolical purpose of pursuing inno-cent strangers. Likewise, no collection attorney I know would ever pursue liti-gation against someone whom they felt was not a legitimate debtor. There are a few bad apples in every barrel, but I find that, overwhelmingly, the collec-tion professionals I deal and associate with are decent, nice people with true moral compasses. These are hardwork-ing souls trying to do the right thing without trampling upon others’ dignity. I count myself amongst that lot, and for that reason I can proudly profess to be a collection attorney. Beauty is in the eye of the beholder, but I know we are part of an honorable and worthwhile under-taking that, in the end, champions the rights of the righteous whom have been taken advantage of many times by those of far weaker moral fabric. Even when it is abundantly clear that such is the case in a particular instance, I do my utmost to treat these people with dignity and re-spect, even when they have proven they are not worthy of it.

Although much of the day-to-day

operation of a collection practice oc-curs almost on automatic pilot, that is certainly not always the case. I am cur-rently handling a case in which one brother is suing the other for hundreds of thousands of dollars, which are be-ing shielded through layer upon layer of corporations and limited liability com-panies. Selecting the proper avenue for convincing the court it is appropriate to disregard these legal entities and pierce the corporate veil, is by no means a routine affair. Likewise, obtaining tem-porary restraining orders against these companies without exposing the client (and my firm) to liability in the process can be a delicate maneuver.

The need for a practicing collection attorney to continue his or her ongoing legal education cannot be overstated. Al-though I personally feel NARCA and the Commercial Law League of America have in large part abandoned their core values of servicing the small to mid-sized collec-tion firm, they continue to remain a good source for obtaining necessary continuing legal education, and staying abreast of leg-islation and seminal court rulings which affect our day-to-day practice.

Likewise, it is important that the collection practice is bolstered by an

appropriate modicum of technology, bal-ancing cost with return on investment. My firm has found that Simplicity Soft-ware makes good sense for us in manag-ing our files. We turn to Tracers, TLO and LexisNexis for assistance in locating debtors and their assets, and to the later for legal citation support as well.

Motorcycle FlyingAlthough the collection practice could easily consume every wakeful minute of my life (and some sleeping minutes as well), when I am finished working hard, I try to find a little time to play hard as well. David Crosby (Crosby, Stills, Nash and The Byrds) has stated that one cannot be at home on the guitar until they have played a minimum of 20,000 hours. I do not believe I have achieved that threshold yet, but I keep plugging (and plucking) away. When I finally have ‘got blisters on my fingers, I find freedom in riding my motorcycle. It is more like flying than ac-tual flying because you are right out there amongst the elements and rapidly chang-ing scenery. The wind in your face, tinged with the element of fear and danger is to-tally exhilarating. You are out there alone achieving a Zen-like experience without staying still in a seated lotus position. My quadruple spinal fusion keeps me from go-ing as far and as long as I might otherwise like to but I do manage to find country roads that take me right through Norman Rockwell’s America. I am blessed to live rather close to Harriman State Park, which is always a lovely venue for a day trip. You could go on the same route in your car, but so much of the sights, sounds, smells and feel are overlooked when you are in your climate controlled stereophonic bub-ble. My regular riding buddy keeps try-ing to convince me to go to the Laconia Motorcycle Rally in New Hampshire. My spinal issues have prevented me from go-ing in the past. Perhaps it will happen this spring; but for right now, it is back to the practice of collection law!

“These are hardworking souls trying to do the right thing without trampling upon others’ dignity. I count myself amongst that lot, and for that reason

I can proudly profess to be a collection attorney. “

Terkell on his Kawasaki Vulcan Classic.


• Contact Bob Ingold for a confidential consultation

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Karen Jonas

UTILITY COLLECTORS MUST CHANGE WITH THE WEATHER

BY JOSHUA FLUEGEL

The debt collection process is influ-enced by multiple factors such as regulation and consumer trends.

Utility debt collection is further compli-cated by regional rules due to weather patterns and other factors unique to the field. Such volatility means day-to-day processes must possess the ability to adapt at the drop of a thermometer.

“There are heating and cooling moratori-ums during which time a consumer cannot be dis-connected for non-pay-ment,” said Karen Jonas, vice president national accounts – Utilities at I.C. System. “Generally, it is the utility’s responsibility to monitor, but collection agencies have to understand the impact and accommodate these. You really have to be able to change as fast as the weather. A good collection agency partner will be adaptable in tough or unforeseen situa-tions by stopping the collection process to those affected areas, of course always in collaboration with their utility client.

“Profitability is a genuine challenge with utilities portfolios that are impacted by weather events. An agency with di-rect, relevant experience dealing with these events can make a difference in maintaining a long, mutually beneficial partnership between the utility and a col-lection agency.”

Other challenges specific to utility collections are no more predictable than the weather but slightly closer to the norm of collection challenges.

“Utilities collection projects bring unique challenges - including managing inconsistent placement volume due to cli-ent moratoriums, communicating recon-nect requirements, linking new charges to existing accounts, and data sharing inconsistencies,” said Jonas. “While not all of these elements are specific to utility

collections, in aggregate, they increase the complexity of utility portfolios.”

Given the number of moving parts in utility collections, special tools must be used. Not only does it seem these new tools are being implemented on the col-lection agency’s end but recently have been implemented on the utility client’s end as well.

“We are seeing a trend of utility cli-ents implementing new structures and processes to manage their collection agen-cy partners,” said Jonas. “Many are utiliz-ing middleware vendors to help meet the needs of increasingly complex projects. Some examples include requirements for more organized and granular debt segmentation (primes, seconds, tertiary, etc.), submission strategies and require-ments for champion/challenger competi-tion among their vendors.”

There are several lynch pin items that if not properly addressed could guar-antee failure in utility collections. Lack-ing an understanding of how to handle grace periods, government assistance and moratoriums can cause considerable damage to collection efforts according to Jonas. Relationships with clients and proper handling of their brand are also worth great consideration.

“Failure could also be guaranteed if the agency does not pay heed to brand sensitivity,” said Jonas. “A zero-complaint policy is critical to maintaining a great re-lationship with your utility client. Most recently, this includes understanding how to be compliant with TCPA legislation.”

Advances in technology, while gen-erally good, do slowly give way to gaps between various clients and agencies de-pending on the age of the tools they use.



T he compliance demands of regula-tors continue to grow in today’s collection environment. Unfortu-

nately the number of accounts and aver-age amount of each is not increasing at an equal rate. This disproportion creates a great deal of strain on small collection offices. The leveraging of collection soft-ware can help reduce staff size, improve organization and keep collection efforts safe from violation.

The alphabet soup of compliance creates quite a list of requirements for collection software. Fortunately, today’s software solutions can be altered ac-cordingly. According to CDS Software, today’s software can alert collectors that it is too early, or too late, in the day to contact a consumer to perform collec-tion activity and automatically generate a validation notice within five days of verbal contact.

As valuable as the human element is to col-lections, the propensity for error must be limited by an agency’s software solution. “With high de-mand for strict compli-ance in today’s regulato-ry environment, software companies must strive to create an ARM and collections platform that engenders virtually 100% compliance by leveraging technology that limits the human factor of compli-ance failure,” said Carl Briganti, CEO of Collection Solution Software. “By imple-menting point-in-time compliance work-flow technology can mitigate a breach in compliance by evaluating current ac-count conditions at point of interaction, i.e. attorney on file, existing bankruptcy, statute of limitations or state compliance contacts being met.”

Software not only helps reduce error it can also act as extra helping hands to assure work flows smoothly through the day. “Collection agencies can use the new technologies to as-sist their compliance efforts because the software can be set so that state-of-the-art processes are automated and become part of the agency’s regular workflow,” said Fritz Schulze, founder and owner of Comtech Systems. “Taking the time to create effective contact plans and other automations allows operators to work confidently, with the knowledge that the software system is safeguarding their company’s compliance.”

A symbiotic rela-tionship must be devel-oped between an agency and the software vendor as the two are legally bound to one another in the eyes of regulators. “Software providers who are continually reviewing new regulatory requirements, performing self-audits, and implementing changes to their solutions will help keep the small office agencies in a competitive position,” said R. Fred Houston, president and CEO of Colum-bia Ultimate. “These smaller offices typi-cally don’t have a lot of resources, so it is critical that their chosen software plat-form follow best practices and support them in staying current.”

Unfortunately compliance cannot be achieved with the mere flick of a switch. Every aspect of the collection process must be inspected by both the collection professional and the vendor for outlying details. “The current regulatory environ-

ment is a strong force in our industry,” said Lex Patterson, president of DAKCS. “The ques-tion becomes ‘How do businesses with limited budgets and resources minimize the risk of non-compliance?’ For us, the devil is in the details. To that end, we believe in building partnerships with various com-pliance solutions, and creating open inte-gration paths.”

The tracking of complaints, another im-portant aspect of compli-ance, can also be made more manageable by col-lection software. “Fea-tures such as complaint management and track-ing allow small offices to track, analyze and resolve concerns without additional prod-ucts or interfaces,” said Tony LaMagna,

SMALL OFFICE SOFTWARE PRODUCTS

BeyondBloodhound

Collect! Collection Partner

CollectOneCollector ExpressDebt$Net PowerIMPACT! HD™ 2.0

WebAR

Carl Briganti

COLLECTION SOFTWARE HELPS SMALL OFFICES REMAIN COMPLIANT BY JOSHUA FLUEGEL

Fritz Schulze

R. Fred Houston

Lex Patterson

Tony LaMagna

Continued on page 25


GENERAL FUNCTIONALITY

DAKCS Software Roydan

Comtech Systems

Hubbard Systems

CDS Software

Columbia Ultimate

The Computer Manager

CSSImpact InterProse

Customized formatting of statements Yes Yes Yes Yes Yes Yes Yes Yes Yes

Recommends goals and scripts for collection calls Yes Yes Yes No Yes Yes Partial Yes No

Automated faxing No Yes Yes No No No No Yes No

Designs custom reports on operator level Yes Yes Yes Yes Yes Yes Yes Yes Yes

Online, real-time coaching Yes Yes Yes No No No No Yes No

Accesses vendor services automatically Yes Yes Yes Yes Yes Yes Yes Yes Yes

Goals feedback in real-time Yes Yes Yes No Yes Yes Yes Yes Yes

CHUI environment No No No Yes N/A Yes No Yes No

Secure and customizable remote Web access for debtors Yes Yes Yes No Yes Yes - Optional Yes Yes Yes

Champion-challenger tools Yes Yes Yes No Yes Yes - Optional Yes Yes Yes

Application development studio Yes No Yes No No No No Yes Yes

Integration with Crystal Reports Yes Yes Yes Yes Yes Yes with ODBC Yes Yes No

User-defined balance buckets Yes Yes Yes No Yes Yes Yes Yes Yes

User-defined payment types Yes Yes Yes Yes Yes Yes Yes Yes Yes

AGENCY FUNCTIONALITY Beyond Bloodhound Collect!

Collection Partner CollectOne

Collector Express

Debt$Net Power

IMPACT! HD™ 2.0 WebAR

Trust accounting Yes Yes Yes Yes Yes Yes Yes Yes Yes

User-defined collection tasks Yes Yes Yes Yes Yes Yes Yes Yes Yes

RECOVERY FUNCTIONALITY Beyond Bloodhound Collect!


Collector Express

Debt$Net Power


Asset sales No Yes Yes Yes No Yes Yes Yes No

Metro2 reporting on post-charge-off Yes Yes Yes Yes Yes Yes Yes Yes Yes

Recovery management statistics and reports Yes Yes Yes Yes Yes Yes Yes Yes Yes

Repossession tracking Yes Yes Yes Yes Yes Yes Yes Yes No

Bankruptcy/deceased management Yes Yes Yes Yes Yes Yes Yes Yes Yes

Work by accounts or people (person vs. account-centric) Yes Both Yes Yes No Yes Both Yes Both

PRE-CHARGE-OFF FUNCTIONALITY Beyond Bloodhound Collect!


Collector Express

Debt$Net Power


Assigns disputes/deduction codes Yes Yes Yes No Yes Yes Yes Yes No

Identifies and tracks problem invoices No Yes Yes No Yes Yes Yes Yes No

Coded problems separate from other receivables No Yes Yes No Yes Yes Yes Yes No

Customer and invoice-level Yes Yes Yes No Yes Yes Yes Yes Yes

Electronically reproduces/transmits invoices Yes Yes Yes No Yes Yes Yes Yes Yes

Information on this table is derived from information posted on the Internet and direct questions. The company is the ultimate source and should be contacted directly.

All vendors listed also feature: GENERAL FUNCTIONALITY: Work grouped by time zone and collection stage; Sub-clients for a master client; Sub-clients consolidated with the master client to produce a consolidated statement; Related accounts across clients (or sub-clients); Related accounts viewed simultaneously; Individual clients be set up as either gross or net remittance clients; Tracks multiple internal & external contact names/numbers; Integrates with e-mail; Offers automated phone dialing; Monitors individual collector performance, multiple location and database functionality; Ability to generate an individual status report for an account (or linked accounts); Collector alerts, User-definable collector/user interface; User-definable client access interfaces; Built-in collection agency templates; and User-defined account matching criteria.

RECOVERY FUNCTIONALITY: Pre charge-off collections and recovery; Agency/attorney management; system of record or non-system of record functionality; Standard host interface formats; and Standard agency/attorney/buyer formats.

SMALL OFFICE COLLECTION COMPARISON CHART

21

Payment Processing Solutions APS Powered by Payscout

800-482-4561 | apsofga.comAPS has offered merchant payment processing solutions to the receivables management industry for over 10 years, serving more than 700 partners and

businesses. Services include credit, debit, and Health Savings Account card acceptance, ACH and check conversion. Web payment options range from a standalone portal to secure Reg. E compliance solutions.

PayStream Applied Innovation, Inc.

800-589-5651 | appliedinnovationinc.comPayStream offers two consumer payment portals and live collector portal. Advanced algorithms ensure maximum collections. PIF, SIF, recurring and single

payments. Compliance is never an issue with identity authentication, customized legal language and notifications. Administrative tools include transactional reporting, calendar of payments and more. PayStreamZ is a consumer-funded payment portal.

PaymentVision Autoscribe Corporation

800-345-7243 | paymentvision.comPaymentVision offers a PCI-certified payment gateway that helps businesses accept electronic payments via their own call center, automated phone systems, web,

or integrated software payment API. The system is settlement agnostic meaning it can settle with almost any acquirer.

Payrazr Marketplace BillingTree

877-424-5587 | payrazr.comPayrazr Marketplace offers customers a simplification of the billing and receivables process. It delivers integration and point-and-click simplicity. Solutions include

payment portals, IVR payment solutions, virtual terminals, secure payment gateways to reduce time-outs, virtual agents, online billing, and mobile solutions. The product is also able to process medical savings accounts for medical accounts.

Castel Connects Castel Communications, LLC

716-932-3040 | castel.comCastel Connects’® Predictive Dialer features a patented algorithm supporting low wait times and abandon rates, the ability to switch to manual or predictive

immediately as restrictions dictate and move agents within campaigns and queues to automatically distribute workload across campaigns and queues. When compliance auditors arrive, an agency is able to show how a collector deals with a situation.

CollectOne CDS Software

888-816-3333 | collectone.comCollectOne is designed for the ARM industry handling first and third party debt and features a Legal Module for judgments. CollectOne offers standard functionality

necessary for collections, such as credit reporting and credit report requesting capability and interfaces with various third party dialers, skip tracing and real-time payment processing services.

Selecting the top col-lection products this year

was harder than any other year. Therefore, this is indeed a stellar group. Several compa-

nies were nominated. Those nominated had to pass several hurdles.

The criteria focused on who is seriously com-

mitted to providing quality collection services. Over 15 years I have seen hundreds of companies come and go. Therefore, anyone nominated had to have experi-ence in serving collectors and have reference accounts. Nominees also needed to be responsive, first by email and then by phone call.

An important hurdle is: who is dedicated to qual-ity? For example, when I am having quality issues with my critical service providers, I would rather my cur-rent vendor fix the issues rather than change vendors. If they cannot, I raise the issue to a higher level in hopes of finding someone who can solve my problems.

Sometimes that is the VP of operations, sometimes it is the president.

Solving problems for collectors is more critical. If a compliance issue exists, who ya gonna call? If you cannot process credit card payments, who ya gonna call? If the data you are provided or the ana-lytics or the mail provider is not really providing the promised 40% more right-party contacts, who ya gonna call?

More importantly, are they going to call you back? After personally calling most of the Top Product ven-dors listed here, I experienced what collection profes-sionals may experience if they have problems and need to talk to someone about quality. It is therefore best to know with whom you are dealing and the actual person ultimately responsible.

Being selected for the Top Products of 2016 also tells a great deal about the companies who were not selected. Collections does not have the luxury of exist-ing in a shadowy world. Full disclosure and transpar-ency creates a strong collection company. A collec-tion company vendor should adhere to the same level of responsibility.

Who Ya Gonna’ Call?

22

IMPACT! HD 2.0 CSS, Inc.

818-593-4830 | cssimpact.comThe IMPACT! HD™ 2.0 Collections & Compliance Platform offers cloud-based & on premise solutions for enterprise organizations within 15+ markets including collections,

debt purchasing, portfolio + vendor management, healthcare, finance, education, manufacturing, retail, hospitality industries, military, state, and local government.

Ajility Columbia Ultimate

800-488-4420 | columbiaultimate.comAjility has real-time workflows and built-in business analytics. In addition to agency solutions it has several different modules for first party including banks,

retailers, government, public sector and student loans. Product options include UltimateContacts, UltimateAnalytics, UltimateFind and CollectorPlus (for up to 25 seats).

Document Locator ColumbiaSoft

800-298-1172 | documentlocator.comDocument Locator is document management software for collection agencies that reduces risk in compliance and makes possible paperless operations throughout the

organization. It combines Windows-integration Web and Mobile access. Workflow, eForms, full-text search and versioning are included. Every document is managed according to policies of the agency. The audit log records every action.

Collect! Comtech Systems

800-661-6722 | collect.orgCollect! combines ease of use with total integration of functions. Accounts are efficiently tracked from the time you received until activity is concluded and they are

closed. Collect! keeps track of critical information automatically. Total integration provides for seamless and accurate month end statements with full account histories.

Debtmaster Comtronic Systems

800-414-2814 | debtmaster.comComtronic Systems specializes in developing collection technology that integrates software, telephony and web access. Debtmaster allows increased compliance

control with an added compliance analytics tool to investigate problem areas for the acting compliance officer.

State Licensing Cornerstone Support, Inc.

888-445-8660 | cornerstonesupport.comCornerstone Support has provided strategic licensing services, commercial insurance and expertise to the ARM industry for nearly two decades. Available services

include state registration, initial licensing, ongoing renewals, registered agents, resident managers, surety bonds, E&O, and other commercial insurance solutions.

Beyond ARM DAKCS Software

800-873-2527 | dakcs.comBeyond Accounts Receivable Management (ARM) Software is DAKCS’ flexible integrated cloud or on-premise based collection software solution that

empowers collections with the necessary tools to perform various business functions, leverage AR/consumer and client communication, and effectively manage collection and ARM needs.

TxtaCheck EFT Network, Inc.

800-492-2794 | txtacheck.comEFT Network provides TxtaCheck, a real-time electronic check processing solution. Obtaining actual digital signatures from consumers, along with authentication

and authorization; TxtaCheck is an effective way to reduce un-authorized returns. Merchants can accept checks with TxtaCheck to create a virtual check acceptance process, with no underwriting.

FICO Debt Manager | Solution FICO

408-535-1500 | fico.comFICO® Debt Manager™ is an ARM solution for first and third party government collections designed to address today’s complex economic and regulatory challenges.

The solution is configurable to a variety of business requirements, including collections, recovery, debt sale, vendor management, bankruptcy, repossession and asset remarketing.

Collection Partner Hubbard Systems, Inc.

800-933-7995 | hubbardsystems.comCollection Partner® is a debt collection software with an industry specific accounting solution. Hundreds of customizable interfaces are offered ranging from simple

spreadsheet imports/exports to full-blown collection network management. Collection Partner® has complete audit trails if a forwarder wants to know where their dollars are going.

idiCORE IDI, Inc.

561-757-4000 | ididata.comidiCORE for Collections represents a next generation skip tracing solution. Designed to provide industry leading right party contact information, idiCORE delivers

otherwise unattainable insight into consumers through better data analytics and advanced linking technology.

Lariat Collections Platform Lariat Software

877-268-6667 | lariatsoftware.comLariat Collections Platform is a solution for collection on a web-based collection platform that services all stages of collections. The database handles multiple debts,

items to meet HIPAA requirements. Collectors can send one letter with each debt enumerated in a grid rather than several letters or worse, all debts accumulated in one letter. Continued on page 24


Accurint for Collections LexisNexis

888-332-8244 | lexisnexis.comAccurint® for Collections: Contact and Locate workflow delivers search

tools that streamline skip trace efforts to pinpoint right-party contacts. Accurint® features searches

and links to critical consumer details by helping to quickly find people and businesses. It is also able to separate contact, locate and decisioning data.

LocateSmarter Madison Wyatt

888-254-5501 | locatesmarter.comLocateSmarter offers data products such as phone append and cell/VoIP identification. Consumer data is obtained by providing customizable waterfalls and

scrubs for cell numbers or litigious consumers.

Suite of Collection Tools MicroBilt Corporation

800-884-4747 | microbilt.comMicroBilt has an extensive selection of skip tracing tools that include banking and employment data, address, phone and bankruptcy, neighbors, relatives and

associates. Uniquely positioned as the country’s largest alternative credit bureau, MicroBilt also offers asset searches and verified POE and Bank products.

Pamar Collection Systems Pamar Systems, Inc.

800-727-2627 | pamarsystems.comPamar Systems has provided collection software since 1980. The receivable industry products are server based, or hosted reports to all credit bureaus. Clients may use a

SSH and install the software from a remote location, even on a laptop.

Electronic Payment Processing Payment Savvy LLC

866-303-2558 | mypaymentsavvy.comPayment Savvy is a payment processing company that specializes in collections with automated payments and regulation compliance. The convenience fee and loan

product provide distinctive features.

PCI Collection Letters PCI Group

803-578-7700 | pcigroup.comPCI Group’s collection letter services includes TrakPCI which can track letters from PCI’s facility to the debtor’s door, discover when remit payment is on its way,

monitor letter volume and return mail records. Also provided is notification of PDF letter delivery.

Payment Processing & Digital Signatures PDCflow

877-732-4814 | pdcflow.comPDCflow is an online Payment portal and eSignature Software designed to provide consumers a secure and easy method to pay their bills. PDCflow treats electronic

signatures with the same security as credit cards. It is also able to accept payment and a recurring payment using the eSignature product in compliance with regulation E.

PDJ Services 1st Source Investigations, Inc.

800-298-1153 | pdjservices.comPDJ Services offers 100% verified accurate information for unlisted phones, cellular phone, people locates and bank & employment locates.

Multi-Channel Communication Solutions RevSpring

248-567-7300 | revspringinc.comRevSpring delivers consumer-centric, multi-channel communications including email, text messaging, inbound IVR, self-service portal and electronic

signatures in addition to mail services. RevSpring recently invested in additional state-of-the-art dynamic color printers. This additional technology and capacity provides dynamic color documents in RevSpring’s East, Midwest and West regional production facilities.

Bloodhound Software ROYDAN Enterprises, Ltd.

800-236-6906 | roydan.comBloodhound® Software is designed to automate collection workflow with integrated dialing services and web access. All data in one place and updated in

real-time prevents compliance issues. Format for skip trace data can work with any system. Advanced Payment Systems, EFT Network and PDCflow are built in for immediate payment verification.

Platform 3 TCN, Inc.

866-745-1900 | tcnp3.comTCN’s blended IVR capabilities allow for simple or sophisticated design to handle each call using call recordings, menu selection or pass through methods;

routing calls to the appropriate blended agent. This is accomplished using intuitive templates and call flows. This cloud-based IVR supports sub-second voice response, screen pop and answering machine detection.

Debt$Net Collection Software The Computer Manager, Inc.

800-552-8397 | debtnet5.comSince 1987, Debt$Net® has provided Collection Software for collection agencies, law firms and in-house collection departments. The software which satisfies the collection

requirements for companies specializing in retail, commercial, medical, check and receivables management collections. An imported CFPB complaint file identifies types of consumer complaints.

Continued from page 23


CollectBOOST US Tracers

800-360-5601 | ustracers.comCollectBOOST provides proprietary Place of Employment, banking, address, wireless and landline phone, associates, email, and vehicle information. Used

for garnishments, levies, skip tracing, collections, pre-litigation due diligence, scoring, and portfolio valuation by banks, debt buyers, collection agencies, and finance companies.

Payroll Promise VeriFacts, Inc.

800-542-7434 | verifactsinc.comPayroll Promise is designed to support a legal strategy by locating verified full time places of employment. The information returned is 100% guaranteed to be

accurate.

DirectDrop Voicemail VoApps

855-737-1596 | voapps.comVoApps provides patented voicemail solutions to reach mobile voicemail boxes. DirectDrop Voicemail delivers a voice message directly to a consumer’s voicemail

server – without dialing or calling the phone in question – allowing call centers to respond to inbound follow-up calls based on the message delivered. Over 100 million messages have been successfully delivered to mobile users.

Honorable Mention

Outbound Engagement Center Genesys

Artiva RM Ontario Systems

CLEAR Thomson Reuters

CollectMax JST

First Search Equifax

AdvantEdge Accelerated Data Systems

PaidSuite PaidSuite

Virtual Agent Collector The InterProse Corporation

RMEx (Receivables Management Expert) Quantrax Corporation

Print and Mail Processing Renkim Corporation

partner at Debt$Net Collection Software. “Software can import description of the type of complaint from the CFPB website and identify if the customer has filed a complaint.”

The battle for compliance never seems to end as some collection professionals op-tion to add on to or customize their software to meet changing needs. “Collection software takes on both proactive and responsive mea-sures to meet the laws and regulations,” said Margaret Hubbard, president of Hubbard Sys-tems. “Companies are client-driven, in order to compete in this evolving environment focused on compliance with all of the consumer financial protection laws. There are six of these laws related to debt collections, and each has in some way impacted the functionality of collections software. There are always add-ons available, such as repositories for call monitoring and complaints.”

As compliance is something that must be practiced and trained, software has adapted as well and helps collection professionals in this endeavor. “Compliance is a real day-to-day concern,” said Matthew Hill, president and CEO of The

InterProse Corporation. “Developers can be instrumental in creating a working environ-ment for their collection team that keeps them safe. Our customers typically invest thousands of dollars in training their collection team members about compliance and best practic-es. It would only be logical for the software, that is at core of their enterprise, to support that training and help keep the collection team members from stepping on a compliance ‘landmine’ by making sure compli-ance rules are an integral part of the application.”

The compliance demands of regulators have come a long way and, accordingly, so has collection software. It is part of a never-ending cycle of adjustment to which collection profession-als must adhere to with the help of technology. “Remember the days when we sent the first notice on a post card,” asked Dan Hornung, president of ROYDAN? “Even though regulations are intended to improve and protect the consumer’s position, in the collection business we all know the letter of the law often has unintended consequences. The challenge for software providers is to find creative strategies that solve these regulatory challenges in a cost effective manner, one that allows the customer to com-pete effectively in an ever-changing business environment.”

Matthew Hill

Margaret Hubbard

Continued from page 20Collection Software Helps Small Offices

“Compliance is a real day-to-day concern.”



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Collection Software continued

CollectOne is an award winning suite of debt collection solutions that provides a feature-rich set of automated business processes designed to minimize costs and maximize results.

Collection Solutions

Software, Inc.

CSS IMPACT! HD™ 2.0 cssimpact.com [email protected] 877-277-4621 CSS IMPACT! HD™ 2.0 (Enterprise), the industry’s leading ARM | Collections & Compliance Platform delivering decades of deep rooted industry acumen for the ARM, Collections & Compliance sectors. IXP (Lite) also available.

Comtech Systems Collect!

Credit and Debt Collection Software collect.org [email protected] 800-661-6722 Collect! combines ease of use with total integration of functions. Accounts are efficiently tracked from the time you receive them until activity is concluded and they are closed. Collect! keeps track of critical information automatically. Total integration provides for seamless and accurate month end invoices and statements with full account histories.

Comtronic Systems®Debtmaster debtmaster.com [email protected] For 35 years, Comtronic Systems® has delivered the industry’s most complete collections solution, from collector workflow management with Debtmaster to integrated collections telephone with CallThru®.

Collection Software continued

DAKCS Software Systems Beyond ARM dakcs.com [email protected] 800-873-2527 For over 35 years, DAKCS Software has remained an industry leader in simplifying the process of accounts receivable management and debt collection software by creating integrated, innovative cloud and on-premise solutions. By leveraging our powerful Beyond ARM and QwikSolve | Enterprise Suite software ap-plications, DAKCS provides the necessary tools designed for success in the ARM industry.

ComplianceLexisNexis® Risk

SolutionsLexisNexis ® Accurint ® for Collectionslexisnexis.com/risk/receivables-management866-528-0780LexisNexis collections solutions assist debt recovery pro-fessionals with increasing workflow efficiencies, greater insight into debt portfolios, collecting more in less time and achieving greater profitability.

Continued on page 28

Agency AcquisitionsThe Commercial

Collection

Corp. of NY, Inc. commercialcollection.com [email protected] 800-873-5212 Successful and trusted in transitioning commercial agencies under our umbrella for 53 years. Agency revenues from $300,000. Nationwide acquisitions.

Collection SoftwareApplied

Innovation Inc. Client Access Webappliedinnovationinc.com [email protected] 800-589-5651 Applied Innovation, Inc has redefined collection agency workflow with revolutionary client portal technology, document management system, and a unique “virtual collector” for online payments.

CDS Software

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May/June 2016 Volume 16, No. 3

Editor T. Steel Rose, CPA, ACG

[email protected]

Managing Editor Joshua Fluegel

[email protected]

Copy Editor Myrna Nelson

Advisory Board/Columnists Fred N. Blitt Ron Brown

Debra Ciskey Sam Edens Sam Eidson

Harry A. Strausser III

Publisher Angie Rose

[email protected]

Advertising Marie Kemins

[email protected]

Production Andrea Bergeron Paul

[email protected]

Subscription Changes Joshua Fluegel

[email protected]

The opinions given by contributing authors are their own and not necessarily the opinion of our staff andownership. All trademarks used are the

property of their respective owner.

Collection Advisor (ISSN# 1556-0813) is produced six times a year by Abide Media, P.O. Box 92342,

Southlake, TX 76092, 888-610-1144. Standard Mail postage paid at

Sussex, WI 53089. ©2016 All Rights Reserved

Magazine Publishing Group, Inc. Printed in the U.S.A.

Collection Support ServicesCornerstone Support State Licensing and E&O Insurance cornerstonesupport.com [email protected] 888-445-8660 Cornerstone Support is the premier licensing and insur-ance provider to the collection industry; professionally trained to assist you with all of your state licensing needs.

VoApps

DirectDrop Voicemail voapps.com [email protected] 855-737-1596 VoApp’s patented DirectDrop Voicemail service delivers a voice message directly to a consumer’s voicemail server – without calling the phone in question.

Electronic PaymentsAdvanced Payment

Systems Credit Card & Check Processing Merchant Services apsofga.com [email protected] 800-482-4561 APS provides a full range of electronic payment solutions, including credit, debit & HSA cards, check, and ACH transactions, along with multiple software integration options, web payment portals, and the IKEY Product Suite with the attorney endorsed Reg E compliance solution.

EFT Network, Inc.

TxtaCheck eftnetwork.com 800-492-2794 EFT Network has launched the industry’s first electronic payment strategy that does not require underwriting or risk. Contact for more information about TxtaCheck.

Mail ServicesRevSpring

Receivables, Communications & Payments revspringinc.com 248-567-7300 RevSpring’s communication and online payment technology tools include secure document creation, analytics, text messaging, mobile, and more. RevSpring maintains rigorous compliance programs and security certifications.

Skip TracingIDI, Inc.

[email protected] for over a decade by collection agencies and collection attorneys. IDI provides fast, accurate and cost-effective consumer verification and skip-tracing solutions via online, API, and batch processing.Reduce Cost, Not Quality.

LexisNexis® Risk

SolutionsLexisNexis® Accurint ® for Collectionslexisnexis.com/risk/receivables-management866-528-0780 LexisNexis collections solutions assist debt recovery professionals with increasing workflow efficiencies, greater insight into debt portfolios, collecting more in less time and achieving greater profitability.

LocateSmarter

Batch & Online Skip Tracing Platformlocatesmarter.cominfo@locatesmarter.com888-254-5501LocateSmarter is data provider focused on innovation and data quality. LocateSmarter offers skiptracing products such as phone append, bankruptcy, deceased, cell phone scrubs and more.

MicroBilt MicroBilt Collections Suite microbilt.com800-884-4747 MicroBilt is the leading data provider for collections, skip tracing and provides multiple alternative and collections-specific credit reports, as well as bank account data.

PDJ Services Covert Record Retrieval pdjservices.com | [email protected] We specialize in Telephone, Cellular, Nationwide Bank & Verified Current Employment Locates. When you want 100% verified accurate information for unlisted & cellular phones, people locates, bank & employment locates...you’ll call us!!

VeriFacts

locates...you’ll call us!!

Payroll Promiseverifactsinc.comsclark@verifactsinc.com800-542-7434Payroll Promise is designed to support a legal strategy by locating verified full time places of employment. The information returned is 100% guaranteed to be accurate.

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Collection Advisor May/June 2016