Locate-Connect-Verify: High-Tech Solutions in Collections Lynn Heinemann, Vice President of Sales - Account Control Technology, Inc. Doug Hendrickson,

Locate-Connect-Verify:High-Tech Solutions in

Collections

Lynn Heinemann, Vice President of Sales - Account Control Technology, Inc.

Doug Hendrickson, Director of Educational Services – VeriFacts, Inc.

Chris McMillan, Director of Sales - LiveVoxDave Pauken, CEO - Convoke Systems

Skip Tracing

Doug HendricksonDirector of Educational

Services – VeriFacts, Inc.

Why is Skip Tracing Important?

Whether you use locate information to drive contact efforts or for asset identification, skip-trace information is a critical component that can help drive collection and recovery dollars.

2013 Knowledge Symposium November 5-

7, 2013 ● St. Pete, Florida

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Why is Skip Tracing Important?

The first, and most critical, step to any successful default prevention/default collection effort is the ability to contact (locate) the borrower. If you are unable to contact (locate) the borrower, you are unable to communicate with that borrower regarding the status of their student loan(s).



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Building Your Skip Trace Waterfall

More isn’t always better.Make sure your skip trace

waterfall meets your needs and isn’t duplicating internal processes.

How does using a dialer or not using a dialer impact your skip trace waterfall needs?



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Make sure your skip trace waterfall levels complement each other.

Top level raw data scrubs of a portfolio are cost effective and can cover a high volume at a cheaper rate. However, the data is not verified in these data scrubs.



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As you mine down into your portfolio, manual skip tracing is more effective. Although manual skip tracing is more expensive, the data is verified.



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Social Media

Social media search is more prevalent today than ever before.

Automated screen scraping violates most site user policies. However, the info is publicly viewable.2013 Knowledge

Symposium November 5-7, 2013 ● St. Pete,

Florida

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Social Media

Manual search acceptable, no adding as a friend.

There is really no legal precedent to date regarding using social media as a skip tracing tool.2013 Knowledge


Florida

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Vendor Outsourcing

ALWAYS vet your skip trace vendors adequately.

With the CFPB’s focus on creditors today, creditors are now starting to look at 4th party vendors as an area of risk.2013 Knowledge


Florida

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Vendor Outsourcing

Creditors need to make sure their vendors are certified/compliant with all applicable state and federal laws, including but not limited to:– Gramm-Leach-Bliley Act

(GLBA)– Fair Debt Collections

Practices ACT (FDCPA)– Fair Credit Reporting Act

(FCRA)– Federal Information

Security Management Act (FISMA)



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Vendor Outsourcing

Creditors need to make sure their vendors are certified/compliant with all applicable state and federal laws, including but not limited to:– National Institute of

Standards and Technology (NIST)

– Health Insurance Portability and Accountability Act (HIPAA)

– Telephone Consumer Protection Act (TCPA)



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Vendor Outsourcing

Creditors also need to make sure their vendors are certified/compliant in the following areas:

– PCI DSS 2.0 (coming out with 3.0)

– SSAE 16 (not as in depth as PCI, but deals with management standards)



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Vendor Outsourcing

Other areas creditors need to review:– On site business validation

and security assessment.– Surveys need to be

completed particularly for newer companies that may not have audits completed yet.2013 Knowledge


Florida

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TCPA Challenges to the Collection Industry

The most frustrating and confusing issue facing creditors today is the degree to which telephony equipment may be used to call mobile phones. This topic continues to be a huge debate regarding “preview” dialing vs. manual dialing.



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The TCPA has increasingly become a target for consumers and their attorneys for suits aimed at collection agencies. 2013 year-to-date TCPA suits are up 70 percent from 2012. (insideARM.com October 22, 2013)



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Source: insideARM.com

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The Third Circuit Court of Appeals held that the Telephone Consumer Protection Act (47 U.S.C. § 227) allows a consumer to revoke her prior express consent to be called using an auto dialer or prerecorded voice.



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In its decision, Gager v. Dell Financial Services, the Circuit Court reversed a district court’s earlier finding that once a consumer provided consent to receive autodialed or prerecorded calls, a consumer cannot later revoke the consent.



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Persons using auto dialer technology or prerecorded messages are required by the TCPA to obtain the “called party’s” “prior express consent” before making their calls. While some types of calls are excepted from this requirement, telemarketing and debt collection calls are subject to the TCPA. (insideARM.com August 29, 2013)



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In Nelson v. Santander, a Court held that preview dialing (using a dialer with human intervention) violated the TCPA due to the capacity of the telephone system used. That order was subsequently vacated, leaving debt collectors to question the efficacy of preview dialing. (insideARM.com September 25, 2013)



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http://www.wiwd.uscourts.gov/opinions/pdfs/11-C-307-C-03-08-13.PDF

http://www.wiwd.uscourts.gov/opinions/pdfs/11-C-307-C-03-08-13.PDF


Creditors cannot accidentally call the wrong consumer cell # on a number that HAS express consent. If a borrower’s old cell # has been re-assigned by the cell provider, express consent is no longer valid. Creditors today are trying to scrub the “express consent” portion of their portfolio to minimize situations like this.



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New Skip Trace Technology Designed to Combat TCPA Challenges

VeriFacts understands this challenge to the creditor industry and is currently developing a product that will assist creditors scrub the “express consent” portion of their portfolio as a proactive check and balance.



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Questions?



VeriFacts, Inc.800.542.7434

[email protected]

www.verifactsinc.com

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Cloud Contact Center Solutions

John McNamara, Chief Marketing Officer - LiveVox



LiveVox Private VoIP Cloud ™ Functionality

ACD/PBX

Predictive Dialer

IVR

Applications

Features Benefits

Redundancy Eliminates single points of failure

Cloud Integration

Faster application deployment across sites

Centralized Control

Faster and easier change management

New Feature Upgrades

Keeps pace with changing business needs

Features Benefits

Cloud Capacity Provisioning

Fully burstable, addresses contact center seasonality

Portability Ensures optimal licenses and technology across locations

Cloud-Based Switching

Global load balancing enabled through network-layer, real-time presence, routing & screen pops

PCI-DSS Certification Simplifies multi-site security

Call Recording

Configuration Manager

Campaign Manager

Compliance Suite

Real-Time Reporting

Business Analytics

Call Scripting

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Impact of LiveVox on Today’s Market

Redefining What is Possible

Point of Efficiency

Status Quo: Stagnation

Where Cost Outweighs Benefit

Impact of LiveVox:

New levels of Growth

LiveVox removes the cost and complexity of scaling across multiple sites/applications – enabling global contact centers

to realize new levels of growth and profit.27

VS.

LiveVox’s Cloud Based Platform Provides

Enables Network SimplicityCloud Enabled SimplicityPremise-Based Complexity & Silos

Global virtualized Queue Management, Visibility & Unification

Real-time Burstable Capacity & Campaign Configurations

Fully Redundant, Scalable PCI-Certification & Compliance Suite

Single point of integration for rapid application adoptions

STRATEGIC BENEFITS:



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Impact of Cloud Integration

Cutting Speed To Market Up To 80%

Why have integrations required so much time?Managing an ecosystem of hardware technology is similar to linking compounding mismatched puzzle pieces. Introducing a new application requires individual configurations and integrations – costing resources and time.

Simplicity is the key to rapid speed to market.LiveVox Cloud simplifies the ecosystem, providing a single point of universal integration – for all applications, existing and new. Eliminating complexity removes the root cause of integration delays, shrinking adoption times by up to 80%



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Phone Dialing Attempt Supervisor (PDAS)

Multi-factor compliance database check

Summary

• Compliance dial levels and “Max attempts” change frequently

• Unique rules at state, area code, zip code, or municipality

• Unrestricted dialing resulted in compliance gaps and risk

Solution• Leveraged LiveVox dialing platform and APIs

to integrate with client compliance databases for multi-factor checks

• Integration completed within 60 days



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Enabling Unprecedented Speed To Market: Big DataLiveVox’s Cloud integration capabilities dramatically simplifies and accelerates 3rd party application adoption

A leading global BPO service provider with a global network of 100+ contact centers with more than 24,000 agents in 11 countries

ABOUT:

Goal: Adopt a cutting edge 3rd-party personality matching application across multiple sites & business lines

An accounts receivables company with over 1,300 agents across multiple sites, servicing over 2 million Americans

ABOUT:

Goal: Integrate Speech Analytics across all operations to mitigate compliance risk

Achievement with LiveVox

LiveVox employs a team of integration experts that collectively boasts over 100+ years of experience in contact center technology

LiveVox completed the integration across all desired functions and locations within 45 days

Achievement with LiveVox

LiveVox’s provides 100% call recording that enables comprehensive data for effective speech analytics

LiveVox helped the company integrate speech analytics across the entire enterprise within 30 days



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Enabling Unprecedented Scalability: Multi-Site Centralization

From Franchise Model to Centralized Operations

A preeminent debt buying organization with a partnership network of approximately 1,300 outbound agents distributed across 32 individual contact centers

Business sought to streamline all contact centers under a centralized operation

LiveVox leveraged MPLS carrier interoperability and multi-site configurations to unify all operations

Complete enterprise distributed control, visibility, management, and reporting

Standardized procedures and service levels across the enterprise

Virtualized, real-time enterprise network deployment and management

Increased compliance mitigation across all operations

Integrating Operations After an Acquisition

Leading hospital receivables management outsourcing company with 200+ agents across 3 contact centers

Company made a recent purchase, acquiring 2 additional contact center operations

Working with LiveVox, the company sought to integrate the additional operations with heterogeneous workstations into a single platform

Within 30 days, LiveVox migrated all operations, agents and workstations into a single, uniform platform

Company avoided historic integration and resource requirements of assimilating multiple sites and applications

Rapid migration enabled the company to quickly streamline and expand business opportunities

RESULT RESULT

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Convoke Systems

Dave PaukenCEO - Convoke Systems

Industry Problems We Work To Solve

Service Provider Oversight: Overseeing vendor adherence to contracts & regulations– Ability for issuers to receive, store, measure, analyze, audit, and report

on servicers– New CFPB requirements for banks, nonbanks, and supervised service

providers– Adherence to service level agreements (SLA)

Information Supply Chain: Problems with flow of information in collection systems– Issuer to servicer supply chain– Servicer to issuer and issuer to servicer supply chain– Information mobility across channels and service providers

Regulation: Increasing regulation resulting from information supply chain breakdown– Collection activities– Complaints and disputes– System of record discrepancies



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Convoke OverviewWhat We Do

– Information supply chain solution– Inter-company exchange of information between 3rd

parties– Audit and edit functionality– Vendor oversight and regulatory compliance

Initial Market Focus– Agency, legal, and asset sales (debt buyers)

Market Adoption– Customer relationships with major credit issuers– 5 legal networks, 50 state level attorneys, another 50

onboarding– Over 100 registered debt buyers



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Operating Metrics

MetricDec 2011

Dec 2012 Oct 2013

Accounts on Convoke 6.2M 8.4M 11.1M

% Increase 35% 32%

Documents on Convoke 782K 2,132K 10,217K

% Increase 173% 379%

Supported Documents 3 20 53

% Increase 567% 165%

Total Network Size 25 72 142

% Increase 188% 97%



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Documents Supported By Convoke

Issuer Documents

1) Access Check

2) Affidavit

3) Application

4) Credit Agreement

5) Chain of Title

6) Change in Terms

7) Monthly Statement

8) Payment Copy



Legal Channel Documents1) Answer 2) Attorney Representation

Notice 3) Cease & Desist Notice 4) Closure Notification 5) Complaint 6) Complaints Response 7) Continuance 8) Counter Claims 9) Court Motions 10) Debtor Correspondence 11) Default Affidavit 12) Demand Letter 13) Discovery 14) Dismissal 15) DOD Active Service

Verification 16) Firm Correspondence 17) Garnishment Order 18) Hearing 19) Judgment 20) Judgment Execution 21) Judgment Renewal 22) Judgment Set Aside 23) Motion for Summary Judgment

Affidavit

24) Other 25) Payment or Settlement

Stipulation 26) Power of Attorney 27) Post Suit Miscellaneous 28) Pre Conversion Active

Litigation 29) Pre Conversion Judgment

Resolution 30) Proof of Service 31) Property Mortgage 32) Reaffirmation 33) Release of Lien 34) Satisfaction of Judgment 35) SCRA Judgment Affidavit 36) SCRA Release 37) Settlement Letters 38) Settlement Release 39) Stipulations Consent 40) Substitution of Attorney 41) Suit Filed 42) Summons 43) Time Stamped Affidavit 44) Vacated Judgment 45) Validation

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Functionality Service Provider – Agency and Legal

– Issuer and service provider documents maintained together and accessible

– Immediate access by service provider of issuer documents– Agency verification and dispute resolution, case-ready legal files– Upload documents and audio from servicer based upon issuer

criteria– Audit tools to substantiate compliance – Mobility, visibility, and control over bi-directional document flow– Functionality to enhance SCRA compliance

Asset Sales (debt buyers)– Minimum standard documentation available to servicer at time of

sale– Document ordering and delivery subsequent to time of sale– Chain of title tracking



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Technology Solution



Convoke

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Comparison of Information Supply Chains



ConvokeSystems

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