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ProvanaDebt Life Cycle:Ecosystem

1

1. Introduction

Private and Confidential 2

TABLE OF CONTENTS

1. Introduction

2. Debtors and Creditors


TABLE OF CONTENTS

1. Introduction


3. Entities in Debt Collection Ecosystem


TABLE OF CONTENTS

1. Introduction


3. Entities in Debt Collection Ecosystem

4. Scenarios in Debt Collection Ecosystem


TABLE OF CONTENTS

1Private and Confidential 6

Introduction

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What is Loan?

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Loan is an amount of money borrowed by one party (corporation(s)/ individual(s)) from another,

under the condition that it is to be paid back at a later date, usually with interest


What is Loan?

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What is Debt?

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When the said borrowed amount is not paid back within the stipulated time period, it becomes a

debt


What is Debt?

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The most common forms of debt are as follows:


Types of Debt

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1. Loans, including mortgages, and auto and student loans


Types of Debt

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1. Loans, including mortgages, and auto and student loans

2. Credit card debt


Types of Debt

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An automobile loan is taken when one purchases a vehicle


Automobile Loan

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A student loan is a type of loan designed to help students pay for post-secondary education and the

associated fees, such as tuition, books, and supplies, and living expenses


Student Loan

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A credit card debt occurs when someone buys services or products using a credit card issued by a

bank or some other financial institution


Credit Card Debt

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1. The process of collecting debt by the debt issuer or a third party, owed by an individual or a

business to the lender is called debt collection


Debt Collection

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1. The process of collecting debt by the debt issuer or a third party, owed by an individual or a

business to the lender is called debt collection

2. It takes place when the said individual/business, even though legally bound to pay, does not do

so as per the agreement


Debt Collection

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Debt Collection: First-party vs. Third-Party Collection

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1. If the debt issuer himself collects the debt, it is called first-party collection



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1. If the debt issuer himself collects the debt, it is called first-party collection

2. If the debt is collected by a third party, on behalf of the company that issued the debt, it is

called third-party collection




Debtor and Creditor

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1. A creditor can be a person, business, bank, or financial

institution to whom the money is owed


Creditor

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2. Some more examples of loans provided by creditors

are as follows:


Creditor

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are as follows:

a) Utility bills - electricity or water bills


Creditor

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are as follows:

a) Utility bills - electricity or water bills

b) Taxes


Creditor

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1. A debtor is an individual/group of individuals or a business that

owes a debt to another entity


Debtor

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1. A debtor is an individual/group of individuals or a business that

owes a debt to another entity

2. All debtors have an obligation to pay back the loan amount

(which has now become a debt) and the associated interest

over a period of time, as per the agreement


Debtor


Entities in Debt Collection Ecosystem

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Mentioned in the subsequent slides are the different entities in the debt collection process;

together, they make up the Debt Collection Ecosystem



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1. Creditor



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1. Creditor

2. Debtor



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1. Creditor

2. Debtor

3. Debt Buyer



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1. Creditor

2. Debtor

3. Debt Buyer

4. Law Firm



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1. Creditor

2. Debtor

3. Debt Buyer

4. Law Firm

5. Collection Agency



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1. Creditor

2. Debtor

3. Debt Buyer

4. Law Firm

5. Collection Agency

6. Network Manager



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1. A creditor may first attempt to recover the debt through an internal collections team


Charging Off Debt

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2. However, when all the collection efforts are exhausted, it charges off the debt and generates a

statement mentioning the charge-off date and amount


Charging Off Debt

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2. However, when all the collection efforts are exhausted, it charges off the debt and generates a

statement mentioning the charge-off date and amount

3. Essentially, charge off is the declaration by a creditor that the debt is unlikely to be collected

without any legal intervention


Charging Off Debt

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1. A debt buyer is an organization that purchases charged-off accounts from creditors and

attempts to collect the outstanding amount from the consumer by placing the account directly

with a law firm or a collection agency or through a network manager


Debt Buyer

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1. A debt buyer is an organization that purchases charged-off accounts from creditors and

attempts to collect the outstanding amount from the consumer by placing the account directly

with a law firm or a collection agency or through a network manager

2. Debt buyers can also purchase debts from other debt buyers who would have previously

purchased a portfolio of accounts


Debt Buyer

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1. A debt collection law firm is an organization licensed to collect a debt on behalf of and in the

name of a creditor or debt buyer through legal actions


Law Firms

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2. Each law firm has attorneys who are licensed to pursue collections


Law Firms

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2. Each law firm has attorneys who are licensed to pursue collections

3. Law firms operate on commission or a fee system, taken from either the creditor or the debt

buyer


Law Firms

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1. These are organizations that specialize in collecting debt by following the non-legal method,

i.e., calling a debtor and asking for payments


Collection Agencies

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2. The agencies primarily attempt to connect with the debtor by calling them and setting up a

payment arrangement


Collection Agencies

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2. The agencies primarily attempt to connect with the debtor by calling them and setting up a

payment arrangement

3. Similar to law firms, collection agencies also get a commission or fee for the money that is

collected on a debt


Collection Agencies

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1. This is an intermediate body that coordinates the collection efforts between a creditor/debt

buyer and law firms/collection agencies


Network Manager

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2. A network manager’s portfolio of debt may include debts from different states


Network Manager

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2. A network manager’s portfolio of debt may include debts from different states

3. Network managers have the expertise to handle these spread-out portfolios, in terms of placing

them with law firms or collection agencies that are better suited to collect the debt


Network Manager

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1. A plaintiff is the creditor or debt buyer on behalf of whom the law firm files a lawsuit for debt

collection


Plaintiff vs. Defendant

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1. A plaintiff is the creditor or debt buyer on behalf of whom the law firm files a lawsuit for debt

collection

2. A defendant is the debtor against whom the case is being filed in the court for collecting debt


Plaintiff vs. Defendant


Collection Ecosystem: Scenarios

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A creditor directly places the charged-off accounts with a collection law firm or agency for collection


Scenario 1

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A creditor directly places the charged-off accounts with a collection law firm or agency for collection


Scenario 1

Creditor

Law Firm

Collection Agency

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1. A creditor sells charged-off accounts to a debt buyer


Scenario 2

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1. A creditor sells charged-off accounts to a debt buyer

2. The debt buyer, as the new owner of the debt, attempts to recover the debt through a

collection law firm or a collection agency


Scenario 2

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Scenario 2

Debt Buyer

Law Firm

Collection Agency

Creditor

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A creditor or debt buyer hires a network manager to get the charged-off accounts placed with a

collection law firm or collection agency to collect the debt(s)


Scenario 3

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A creditor or debt buyer hires a network manager to get the charged-off accounts placed with a

collection law firm or collection agency to collect the debt(s)


Scenario 3

Network Manager

Law Firm

Collection Agency

Creditor/Debt Buyer

ProvanaStructure of Law Firms

61


Overview

1. These are firms licensed to collect debt(s) on behalf of and in the name of a creditor or debt buyer through legal means


Debt Collection Law Firms


2. Law firms operate on commission or a fee system from either the creditor or the debt buyer




2. Law firms operate on commission or a fee system from either the creditor or the debt buyer

3. These organizations may operate in one or more states, depending on their license to practice




Organization Structure of Law Firms and Provana’s Support Services

Organization Structure of Law Firm: Provana’s Support


Attorneys Law

Firm

1. Lawyers in the USA are known as attorneys


Attorney


2. They specialize in debt collection practices and are licensed to represent client(s) in one or many states


Attorney



3. A law firm may also hire an outside licensed attorney to appear in the court


Attorney



3. A law firm may also hire an outside licensed attorney to appear in the court

4. In a law firm, attorneys are responsible for all legal proceedings, such as reviewing and approving law suit, judgment, and garnishment packets, and other court-related activities


Attorney

Attorney: Provana’s Support

Provana’s Attorney Support team within the BPM Operations department provides assistance to the law firm attorneys in various processes




Attorneys

Legal

Operations

Team

Law

Firm

Legal Operations

1. Legal Operations comprises multiple teams and requires a mixed skill set; for example,


Legal Operations


2. The Legal Assistance team provides support to the attorney to maximize collection efforts during the litigation process


Legal Operations


2. The Legal Assistance team provides support to the attorney to maximize collection efforts during the litigation process

3. The Paralegal team reviews accounts’ eligibility for due legal action, notarizes affidavits, and drafts documents


Legal Operations: Provana’s Support

1. Different teams within BPM Operations help the law firm manage not just daily, but also any unexpected hike in production during the litigation process



1. Different teams within BPM Operations help the law firm manage not just daily, but also any unexpected hike in production during the litigation process

2. The team reviews, drafts, and assembles lawsuits, judgment packets, garnishments, etc.



The Voice Services team supports the law firms in procedures that require calls to be made to either court(s) or bank(s)/employer(s)



Provana’s IDAP is a data analytics platform that provides various reports to identify areas of improvements in overall operations of the law firm




Attorneys

Legal

Operations

Team

Collections

Team

Law

Firm

1. The Collections team plays a key role in generating the law firm’s revenue


Collections

1. The Collections team plays a key role in generating the law firm’s revenue

2. Its main function is to contact consumer(s) and secure payment(s), negotiate settlement(s), and set up payment plan(s)


Collections

Collections: Provana’s Support

Provana’s Human Call Initiator (HCI) and Transfer Agents (TA) team helps law firms’ collections teams in increasing the rate of successful contact



Provana’s Manual Call Monitoring team monitors calls to ensure collectors are following all the policies and procedures



Provana’s ICAP platform offers automated speech analytics and call monitoring facilities to improve collection and ensure compliance



Provana’s IConnect247 platform is a consumer self-service app that law firms can offer to debtors



Provana’s IConnect247 platform is a consumer self-service app that law firms can offer to debtors

a) Debtors can use the app to send queries to the law firm


We also utilize IDAP,



We also utilize IDAP, Provana’s data analytics platform that provides customized reports to identify areas of improvements in the collection processes



Attorneys

Legal

Operations

Team

Collections

Team

Client

Services

Team

Law

Firm

Client Services


Client Services within a law firm is the team that handles all the law firm’s client communications

Client Services


Client Services within a law firm is the team that handles all the law firm’s client communications

1. For example, reporting to clients, handling new clients, building relation with existing clients, and renewing contracts

Client Services: Provana’s Support


Our BPM Operations team helps law firms perform various client services-related tasks, such as handling law firm’s client emails and reporting based on law firm’s client requirement



Attorneys

Legal

Operations

Team

Collections

Team

Client

Services

Team Compliance

Team

Law

Firm

The Compliance team helps law firms ensure that they are in compliance with all their clients’ requirements, as well as federal and state requirements

Compliance


The Compliance team helps law firms ensure that they are in compliance with all their clients’ requirements, as well as federal and state requirements

Compliance: Provana’s Support

IPACS is a compliance management system that automates and centralizes key compliance tasks, such as policy and procedure management, vendor management, and audit, training and testing, and consumer complaint management to help law firms adhere to industry regulations, state, and law firm’s client requirements



Provana’s ICAP platform offers automated speech analytics and call monitoring to ensure compliance



The Manual Call Monitoring team monitors conversations between a collector and the debtor, scores the call(s) as per FDCPA, other applicable laws, and law firms’ guidelines, and recommends remediations




Provana Governance Risk and Compliance (GRC) team reviews various samples of files worked on by different teams and ensures that procedures are performed within the defined guidelines


Private and Confidential100

Provana Governance Risk and Compliance (GRC) team reviews various samples of files worked on by different teams and ensures that procedures are performed within the defined guidelines

a) The team also assists the organization in collating information requested by the law firm’s client during remote and/or onsite audits



Attorneys

Legal

Operations

Team

Collections

Team

Client

Services

Team Compliance

Team

Accounting

Team

Law

Firm

Accounting

The team is responsible for tasks such as


Accounting


1. Posting all payments received and costs incurred on files in the collections system


Accounting



2. Remitting the abovementioned payments to the law firm’s clients


Accounting



2. Remitting the abovementioned payments to the law firm’s clients

3. Reconciling the law firm’s client trust account reports with the collections system to catch and mitigate any discrepancies


Accounting: Provana’s Support

The Finance & Accounting team within BPM Operations helps the law firm’s clients achieve quick turnaround on both lengthy as well as time-sensitive procedures, such as payment and cost posting




Attorneys

Legal

Operations

Team

Collections

Team

Client

Services

Team Compliance

Team

Accounting

Team

IT & HR TeamsLaw

Firm

Information Technology

1. The Information Technology (IT) team offers assistance and support to all employees within the law firm on hardware and software used within the firm and also performs some automated procedures, such as scanning, the law firm’s client reporting, and placement imports


Information Technology

1. The Information Technology (IT) team offers assistance and support to all employees within the law firm on hardware and software used within the firm and also performs some automated procedures, such as scanning, the law firm’s client reporting, and placement imports

2. A law firm can have an internal IT team, or a third-party provider of IT-related functions


Human Resources

The Human Resources (HR) team is primarily responsible for recruiting new personnel, handling employee issues, and processing payroll for the firm


Human Resources

The Human Resources (HR) team is primarily responsible for recruiting new personnel, handling employee issues, and processing payroll for the firm

Provana does not provide any support to these two teams




Attorneys

Legal

Operations

Team

Collections

Team

Client

Services

Team Compliance

Team

Accounting

Team

IT & HR TeamsLaw

Firm

BPM Operations

Services

BPM

Operations

Services:

Attorney

Support

BPM

Operations

Services;

IDAP

Voice Services:

Call Monitoring Services;

ICAP;

IDAP

BPM Finance &

Accounting Services

GRC Services

Call Monitoring Services

ICAP; IPACS; IDAP

No services

or products

ProvanaDebt Life Cycle:Snapshot

113

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Debt Life Cycle

ProvanaDebt Life Cycle: Placement and Pre-suit Collection

115

Private and Confidential

1. Placement and Validation Period


TABLE OF CONTENTS


2. Provana’s Support Services


TABLE OF CONTENTS



3. Pre-suit Collection


TABLE OF CONTENTS



3. Pre-suit Collection



TABLE OF CONTENTS

1Private and Confidential

120

Placement and Validation Period

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1. Assigning a portfolio of charged-off accounts with the debtor’s information by a creditor/debt

buyer directly or through a network manager to a collection law firm is known as Placement


Import of Debt Account

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2. The portfolio of accounts has the debtor’s information, which includes full name, address,

phone number, date of birth, social security number (SSN), debt amount, debt commencement

date, debt charge-off date, etc.



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2. The portfolio of accounts has the debtor’s information, which includes full name, address,

phone number, date of birth, social security number (SSN), debt amount, debt commencement

date, debt charge-off date, etc.

3. The law firm’s IT team imports the information into the firm’s collections system and each

account is assigned a unique file number



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Scrubs are a set of actions that are performed to filter accounts on which collections cannot be

continued as per US debt collection laws


Scrubs

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These are usually performed to eliminate the following:


Scrubs

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1. Accounts that fall under the purview of the Servicemembers Civil Relief Act (SCRA), which is a

law that seeks to protect members who are either in active military or were so for up to a year

after active duty


Scrubs

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after active duty

a) The act protects soldiers, sailors, airmen, marines, coast guardsmen, etc., , from certain financial obligations

and practices, and ultimately from being sued


Scrubs

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after active duty



2. Bankruptcy accounts, as these show the legal status of a person or an entity, duly approved by a

court order, and clearly imply that the debtor cannot repay his/her/its debts to the creditor


Scrubs

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after active duty



2. Bankruptcy accounts, as these show the legal status of a person or an entity, duly approved by a

court order, and clearly imply that the debtor cannot repay his/her/its debts to the creditor

3. Deceased accounts, which mean that the consumer is dead; however, please note that

some law firms still attempt to collect the debt from the debtor’s estate


Scrubs

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Any account with a positive scrub result (hit) is then routed to the review team, which determines

the validity or reasons behind the positive hit


Scrubs

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Media Review,

Request, and

Process

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1. Media refers to all the supporting documents used to prove a debt against an individual or

entity


Media Review, Request, and Process

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1. Media refers to all the supporting documents used to prove a debt against an individual or

entity

2. Usually, all the media is made available to the law firm at the time of account placement



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The following are some commonly required documents or media:



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1. Charge-off Statement



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2. Last Activity Statement



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3. Full Pay Statement



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4. Bill of Sale



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4. Bill of Sale

5. Chain of Title/Assignment of Claim



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4. Bill of Sale


6. Client Affidavit



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4. Bill of Sale


6. Client Affidavit

7. Account Summary



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4. Bill of Sale


6. Client Affidavit

7. Account Summary

8. Contract/Application



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4. Bill of Sale


6. Client Affidavit

7. Account Summary

8. Contract/Application

9. Terms & Conditions



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1. All associated media are reviewed, cleaned, renamed, and uploaded in the imaging system



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2. As per the state, court, and loan type requirements, the missing media are requested



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2. As per the state, court, and loan type requirements, the missing media are requested

3. The complete process is called Media Processing



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Media Review,

Request, and

Process

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1. Skip tracing is the process of locating a person's whereabouts


Skip Trace

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2. Some firms prefer performing the skip trace for address verification, as the address provided by

the creditor may be a bad one, i.e., it may be incorrect


Skip Trace

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2. Some firms prefer performing the skip trace for address verification, as the address provided by

the creditor may be a bad one, i.e., it may incorrect

3. Frequently used skip trace applications include Accurint, Westlaw, CBR (Credit Bureau Report),

and IDI Core


Skip Trace

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Media Review,

Request, and

Process

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1. Accounts are reviewed by attorneys to ascertain that they are eligible to move forward as per

the law firm’s client and state guidelines


Attorney Review

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1. Accounts are reviewed by attorneys to ascertain that they are eligible to move forward as per

the law firm’s client and state guidelines

2. Once the attorney reviews and approves an account, the demand letter is sent to a debtor


Attorney Review

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Media Review,

Request, and

Process

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1. A demand letter is the first communication between a law firm and a debtor


Demand Letter

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2. It is a formal business letter sent to the debtor requesting payment


Demand Letter

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2. It is a formal business letter sent to the debtor requesting payment

3. The objective of sending a demand letter is to inform the debtor that the account has been

placed with a law firm by a creditor or debt buyer for collections and any payments should be

made to the law firm


Demand Letter

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A demand letter contains crucial information, such as the following:


Demand Letter

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1. Law firm’s name, address, and contact details


Demand Letter

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2. Debtor’s name and address


Demand Letter

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3. Original creditor or/and current creditor


Demand Letter

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4. Firm collection system file number


Demand Letter

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5. Original account number (with only the last 4 digits showing)


Demand Letter

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6. Account due balance


Demand Letter

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7. Inform debtor about his/her rights to dispute the debt and ask for debt validation documents


Demand Letter

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7. Inform debtor about his/her rights to dispute the debt and ask for debt validation documents

8. Mini Miranda


Demand Letter

Demand Letter: Sample


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1. Mini Miranda is a disclosure statement that is mandated by the US law to reveal the purpose of

contact


Mini Miranda

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1. Mini Miranda is a disclosure statement that is mandated by the US law to reveal the purpose of

contact

2. The most common statement is, “This is an attempt to collect a debt and any information

obtained will be used for that purpose”


Mini Miranda

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1. Under US collection laws, debtors have the right to not be contacted again by a law firm or a

collection agency after requesting cease and desist (C&D)


Cease and Desist

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1. Under US collection laws, debtors have the right to not be contacted again by a law firm after

requesting cease and desist (C&D)

2. A debtor can request C&D either verbally or in writing, and can choose to not be contacted ever

again or be contacted only through mail or call


Cease and Desist

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1. Under US collection laws, debtors have the right to not be contacted again by a law firm or a

collection agency after requesting cease and desist (C&D)

2. A debtor can request C&D either verbally or in writing, and can choose to not be contacted ever

again or be contacted only through mail or call

3. On receiving such a request, the file in the collections system is flagged, barring any calls being

made to or any physical letters being sent to the debtor, barring legal (court) documents


Cease and Desist

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1. No legal action is taken against the debtor for 30 days from the date that the demand letter is

sent


30-day Validation Period Starts

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sent

2. This interval is termed the Validation Period



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sent

2. This interval is termed the Validation Period

3. Essentially, the debtor is given 30 days to respond to the demand letter



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A debtor may choose to accept or dispute the debt or not respond to the law firm at all upon the

receipt of the demand letter



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If a debtor accepts the debt, the law firm tries to take one of the following steps



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1. Payment arrangement – Paid if Full (PIF)



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2. Payment arrangement – Settled in Full (SIF)



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2. Payment arrangement – Settled in Full (SIF)

3. Payment arrangement – Payment Plan (PPA)



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1. If a debtor disputes the debt, the law firm provides him/her with all the supporting documents

to prove that he/she is the owner of the debt



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2. If a debtor does not respond to the demand letter, his/her account is queued for further

collection process in the debt life cycle



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2. If a debtor does not respond to the demand letter, his/her account is queued for further

collection process in the debt life cycle

Please note that the collection efforts cannot be initiated on a disputed debt or even a portion of

that



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188

Provana’s Support Services

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1. Various teams in Provana have the experience of handling procedures performed during the




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2. Some of the key ones are as follows:



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a) Manual Placement – BPM Operations



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b) Media Processing (review and requesting) – BPM Operations



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c) Skip Trace – BPM Operations



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c) Skip Trace – BPM Operations

d) Scrub – BPM Operations



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1. It is vital to adhere to the rules and regulations defined by the state and the law firms’ clients



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1. Its is vital to adhere to the rules and regulations defined by the state and the law firms’ clients

2. Provana’s Governance, Risk, and Compliance (GRC) and Manual Call Monitoring teams

thoroughly validate the different activities during the placement period and also the calls made



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1. Its is vital to adhere to the rules and regulations defined by the state and the law firms’ clients

2. Provana’s Governance, Risk, and Compliance (GRC) and Manual Call Monitoring teams

thoroughly validate the different activities during the placement period and also the calls made

3. In case of any non-compliance, the teams share their finding(s) with the law firm



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199

Pre-suit Collection

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1. Before following the legal course of action to collect debt, law firm collectors may try to contact

the debtor by making calls to pursue them to make payments once the validation period is over


Pre-suit Collection

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2. On receiving the demand letter, some debtors call the law firms to discuss payment

arrangements


Pre-suit Collection

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2. On receiving the demand letter, some debtors call the law firms to discuss payment

arrangements

3. All the collections made on an account before filing a suit with the court is called Pre-suit

Collection


Pre-suit Collection


203


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Provana’s Collection team members help the law firms generate revenue by contacting the debtors

and pursuing payments



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The BPM Finance & Accounting team helps the law firms in posting the payments on files and

undertaking other procedures such as remittance and reconciliations



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The GRC and Manual Call Monitoring teams perform regular audits to ensure that all procedures

are performed as per the guidelines of the state(s) and the law firms’ clients



ProvanaDebt Life Cycle: Suit and Post-suit Collection

207

Private and Confidential

1. Suit


TABLE OF CONTENTS

1. Suit



TABLE OF CONTENTS

1. Suit


3. Post-suit Collection


TABLE OF CONTENTS

1. Suit


3. Post-suit Collection



TABLE OF CONTENTS


212

Suit

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Suit

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1. All accounts are reviewed to determine the eligibility for filing a law suit


Suit Review

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2. For example, the account may be reviewed to ascertain the


Suit Review

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a) Availability of required media


Suit Review

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b) Debtor’s age and asset(s)


Suit Review

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c) Demand letter was sent to the debtor, the 30-day duration has passed, and the letter was not

returned due to bad address


Suit Review

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d) Suit amount is above the minimum client and state threshold amount


Suit Review

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e) Statute of limitations has not expired


Suit Review

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e) Statute of limitations has not expired

f) Account has no open disputes, complaints, or positive bankruptcy, deceased, or SCRA hit(s)


Suit Review

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Accounts that do not meet the defined criteria are rejected and allocated to different teams, as per

the rejection status, for remediations or closure (if required)


Suit Review

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1. Once a suit is cleared in the review round, it is drafted for further processing


Suit Drafting and Assembly

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1. Once a suit is cleared in the review round, it is drafted for further processing

2. Post drafting, a set of documents – such as summons, complaint, balance affidavit signed by

the client, military affidavit and media – are assembled and arranged in a pre-determined

sequence to create a Suit Packet


Suit Drafting and Assembly

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Suit

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1. Suit packets are printed and sent to an attorney for review and approval/rejection


Attorney Review and Approval

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2. The attorney reviews the packets for correct court (small claim, district, circuit, magistrate, etc.)

based on the claim amount, media, case title, etc.



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2. The attorney reviews the packets for correct court (small claim, district, circuit, magistrate, etc.)

based on the claim amount, media, case title, etc.

3. All approved suits are then filed either electronically or in the form of hard copies, as per the

services offered by that court



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Suit

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Suit packets are filed with the courts in the following ways:


Suit Filing

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1. Paper Filing


Suit Filing

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1. Paper Filing

2. Electronic Filing (eFiling)


Suit Filing

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1. The attorney-signed suit packets are physically sent to the court


Suit Filing: Paper Filing

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1. The attorney-signed suit packets are physically sent to the court

2. A court clerk enters the complaints in the court’s system and assigns a docket number, known

as the case number


Suit Filing: Paper Filing

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1. A law firm team member files the suit(s) and uploads all the associated documents on the

court’s website


Suit Filing: eFiling

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1. A law firm team member files the suit(s) and uploads all the associated documents on the

court’s website

2. Thereafter, the court generates a docket number, which is noted in the collections application


Suit Filing: eFiling

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Suit

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1. To proceed further with the suit, a copy of the summons and complaint is delivered to the

debtor


Service

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debtor

2. It is this process of delivering the summons and complaint that is known as Service


Service

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debtor


3. The objective of service is to ensure that the debtor is aware of the court hearing’s date and

time


Service

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debtor



time

4. If Service is successful, it is termed as Service Perfected


Service

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debtor



time

4. If Service is successful, it is termed as Service Perfected

5. Suits packets can be served to the defendant using various methods, as per the state laws


Service

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Some common modes of service are as follows:


Service

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1. Certified Mail


Service

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1. Certified Mail

2. Sheriff/Constable Service


Service

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1. Certified Mail

2. Sheriff/Constable Service

3. Process Server


Service

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1. In some states of the US, the summons and complaint document is served first and then filed

with the court


Service: Serve First

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1. In some states of the US, the summons and complaint document is served first and then filed

with the court

2. In such a case, the suit packet is filed with the court after the consumer receives a copy of the

attorney-signed complaint, along with the Affidavit of Service (also known as Return of Service)


Service: Serve First

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1. On the other hand, in many states, the summons and complaint is served only after a suit is

filed with the court


Service: File First

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1. On the other hand, in many states, the summons and complaint is served only after a suit is

filed with the court

2. In that case, the Return of Service/Affidavit of Service is filed with the court as evidence that

the debtor was served


Service: File First

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1. Dismissal is a motion filed by the law firm with the court, requesting the court to dismiss the

case


Dismissals

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case

2. Dismissals are commonly filed by the law firm in the following situations:


Dismissals

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case


a) Debtor has made full payment or settled the account


Dismissals

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case



b) Debtor has filed for bankruptcy, is deceased, or is active in Military


Dismissals

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case




c) Debtor has moved location(s) and his/her whereabouts cannot be determined


Dismissals

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case




c) Debtor has moved location(s) and his/her whereabouts cannot be determined

3. The court can also dismiss the case if the law firm is unable to provide sufficient information to

prove its claim or has been unable to serve the defendant


Dismissals

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Suit

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1. Once the debtor is served with summons, he/she has time till the hearing date to file a written

answer in his/her defense or attend the court hearing


Contested

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1. Once the debtor is served with summons, he/she has time till the hearing date to file a written

answer in his/her defense or attend the court hearing

2. If a debtor disputes the debt or challenges the case in court, the case is scheduled for trial and

is called a contested case


Contested

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1. If a debtor does not file an answer or appear in the court on the day of the hearing, the case is

called a non-contested case


Non-Contested

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2. In this scenario, the law firm can proceed with filing motion for default judgment against

him/her


Non-Contested

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him/her

3. If the debtor accepts the allegations, case becomes non-contested


Non-Contested

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him/her

3. If the debtor accepts the allegations, case becomes non-contested

4. In this scenario, the law firm can proceed with filing motion for judgment on pleadings against

him/her


Non-Contested

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Suit


265


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1. Suit review, drafting, and assembly – BPM Operations



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2. eFiling – BPM Operations



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3. Cost Posting – BPM Finance and Accounting

a) This team posts the court and service fees incurred also to be recovered at the time of judgment



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3. Cost Posting – BPM Finance and Accounting

a) This team posts the court and service fees incurred also to be recovered at the time of judgment

4. Provana’s GRC team audits the different activities during this period




270

Post-suit Collection

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1. Once a debtor is served with the summons, he/ she may contact the law firm and try to set up

a payment plan—monthly, weekly, or biweekly



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2. In this phase, usually, the law firm and the debtor sign a document called stipulation



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a) The stipulation is usually for a lesser amount than the debt, although in some cases, the debtor may

agree to pay the entire amount



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a) The stipulation is usually for a lesser amount than the debt, although in some cases, the debtor may

agree to pay the entire amount

b) Breaching the stipulation results in a default judgment against the debtor



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3. In turn, the law firm may also try to reach out to the debtor



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3. In turn, the law firm may also try to reach out to the debtor

4. In case no agreement is signed between the two parties or the law firm is unable to contact the

debtor, the firm proceeds with further legal proceedings to collect debt




277


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Provana’s Collection team members help the law firms generate revenue by contacting the debtors

and pursuing payments



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The BPM Finance & Accounting team helps the law firms in posting the payments on files and

undertaking other procedures such as remittance and reconciliations



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The GRC and Manual Call Monitoring teams perform regular audits to ensure that all procedures

are performed as per the guidelines of the state(s) and the law firms’ clients



ProvanaDebt Life Cycle:Judgment and Post-judgment Collection

281

1. Types of Judgments


TABLE OF CONTENTS


2. Default Judgment


TABLE OF CONTENTS


2. Default Judgment



TABLE OF CONTENTS


2. Default Judgment


4. Post-Judgment Collection


TABLE OF CONTENTS


2. Default Judgment


4. Post-Judgment Collection



TABLE OF CONTENTS


287

Types of Judgment

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Courts award different types of judgments in favor of the plaintiff depending on the scenarios


Judgment and its Types

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Courts award different types of judgments in favor of the plaintiff depending on the scenarios


Judgment and its Types

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Default Judgment is awarded in favor of the plaintiff and in the case when the defendant does not

respond to summons or fails to appear in the court for the hearing


Types of Judgments: Default Judgment

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This judgment is granted if the debtor filed an answer or attended the hearing, but did not

challenge the case


Types of Judgments: Judgment on Pleading

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A stipulated judgment is an agreement between the parties to a case to settle the matter


Types of Judgments: Consent/Stipulated/Agreed Judgment

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1. Such agreements or settlements become a court Judgment when the judge sanctions it



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1. Such agreements or settlements become a court Judgment when the judge sanctions it

2. It is also known as Agreed or Consent judgment



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When a court is unable to come up with a decision on the basis of the submitted facts and

evidences, the case is set for trial


Types of Judgments: Trial Judgment


296

Default Judgment

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Default Judgment

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1. The uncontested cases are reviewed for motion for Default Judgment


Default Judgment: Review, Draft, and Assembly

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2. Eligibility whether judgment can be filed or not is decided, on the basis of the Scrubs’ results,

service date (to determine the answer period is expired) and whether no answer is filed by the

debtor with the court and no payment arrangement is made by debtor



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2. Eligibility whether judgment can be filed or not is decided, on the basis of the Scrubs’ results,

service date (to determine the answer period is expired) and whether no answer is filed by the

debtor with the court and no payment arrangement is made by debtor

3. A default judgment packet is created by assembling the required documents and exhibits as per

court guidelines



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4. A default packet usually comprises the following documents:



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a) Affidavit of Debt signed by the plaintiff



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b) Return of Service/Affidavit of Service



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c) Military Scrub Results



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d) All applicable Media/exhibits as per state regulations



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d) All applicable Media/exhibits as per state regulations

5. The packet is printed and sent to attorney to review and approve/reject



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Default Judgment

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A law firm attorney reviews each document and account in the collections system to ensure it is

eligible as per the defined laws


Attorney Review

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Default Judgment

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The attorney signs the judgment packets and these are sent to the mail department to be sent to

the court (in case of paper filing) or are scanned in the system for the eFiling team to file with the

court website


Judgment Filing

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Default Judgment

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1. After the court awards a judgment against the debtor, the judgment information is carefully

entered in the collections system


Judgment Entry

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2. The following information is then updated:


Judgment Entry

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a) Judgment Date


Judgment Entry

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a) Judgment Date

b) Judgment Amount


Judgment Entry

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a) Judgment Date

b) Judgment Amount

c) Costs Awarded (filing and service fees)


Judgment Entry

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a) Judgment Date

b) Judgment Amount


d) Attorney Fee


Judgment Entry

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a) Judgment Date

b) Judgment Amount


d) Attorney Fee

e) Pre-judgment Interest Amount


Judgment Entry

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a) Judgment Date

b) Judgment Amount


d) Attorney Fee

e) Pre-judgment Interest Amount

f) Post-judgment Interest Rate


Judgment Entry

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The court signed and stamped copy is scanned in the collections system


Judgment Entry

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Default Judgment


322


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The BPM Operations team provides extended support to law firms in the Judgment phase



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1. Judgment reviews – BPM Operations



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3. Judgment Follow Up – BPM Operations and Voice Services



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Provana’s Governance, Risk and Compliance (GRC) team audits the different activities during the

Judgment period and also the calls made




328

Post-judgment Collection

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1. After the judgment is granted by the court, the debtor is obliged to repay the debt


Payment Plan

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1. After the judgment is granted by the court, the debtor is obliged to repay the debt

2. A debtor may agree for a payment plan to settle the debt or pay in full


Payment Plan


331


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The BPM Finance & Accounting team posts the payments on files and performs the remittance and

reconciliations procedures



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The Manual Call Monitoring team monitors and scores the call based on the state and law firm’s

client’s guidelines to make sure proper procedure is followed



ProvanaDebt Life Cycle:Garnishment

334

1. What is Garnishment?


TABLE OF CONTENTS


2. Garnishment Process


TABLE OF CONTENTS


2. Garnishment Process



TABLE OF CONTENTS


338

What is Garnishment?

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1. Garnishments are a post-judgment, legal collection method


Garnishment

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2. These are filed with a court after a judgment is received in the favor of the plaintiff


Garnishment

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2. These are filed with a court after a judgment is received in the favor of the plaintiff

3. The law firm shares the garnishment court order with the third party (called “garnishee”, who is

generally a bank or an employer) to withhold funds and pay the fund to court, law firm, or the

plaintiff


Garnishment


342

Garnishment Process

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Garnishment Process

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Accounts are reviewed before qualifying the account for garnishment


Review and Preparation: Wage and Bank

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The following checks are done before garnishment is prepared at a law firm



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1. Account is reviewed to ensure that there are no current arrangement in place



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2. The judgment is valid and has not been vacated or has not expired



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3. No bankruptcy information, deceased, and/or active military codes are present



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3. No bankruptcy information, deceased, and/or active military codes are present

4. Garnishment exemptions, such as SSI and hardship are also reviewed; in case there is any

exemption(s), the garnishment process is put on hold



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For all files that qualify the defined parameters, garnishment motions are drafted, reviewed, and

signed by the attorney before garnishment is filed with the court



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Garnishment Process

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1. An attorney reviews the packets based on the set state guidelines


Attorney Review

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1. An attorney reviews the packets based on the set state guidelines

2. The approved packets are then filed with the court


Attorney Review

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Garnishment Process

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The approved packets are filed with the court


Filing

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Garnishment Process

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A writ of garnishment is an order granted by the court to a third party (garnishee) to hold the funds

of a defendant for garnishment


Writ of Garnishment

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Garnishment Process

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1. The court-approved writ of garnishment, along with interrogatories and/or subpoena, is served

to the garnishee (employer or bank) and a copy of the order is sent to the debtor


Service

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2. Garnishments are served to the garnishee using the following methods:


Service

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1. Certified Mail


Service

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1. Certified Mail

2. Sheriff/Constable


Service

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1. Certified Mail

2. Sheriff/Constable

3. Process Server


Service

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The garnishee is obliged to provide an answer to the law firm within a defined time frame


Service

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Garnishment Process

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The garnishee’s answers (disclosures) are reviewed to determine whether the answer received is

negative or positive for further proceedings


Answer Review

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1. Positive Wage Answer – This means that the debtor is employed, does not have any prior

garnishment, and earns enough so that the funds can be garnished from his/her wages


Answer Review

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1. Positive Answer (Bank) – The debtor has a checking or savings account, funds are available

in the account, and these are not exempted funds


Answer Review

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a) Exempted funds include those for medical, child support, etc.


Answer Review

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a) Exempted funds include those for medical, child support, etc.

2. Banks freeze the funds, so these cannot be withdrawn


Answer Review

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1. If the answer received from garnishee is negative, i.e., in case of an employer, the debtor is no

longer employed or does not have an account in that bank, the account is routed back for asset

search


Answer Review

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1. If the answer received from garnishee is negative, i.e., in case of an employer, the debtor is no

longer employed or does not have an account in that bank, the account is routed back for asset

search

2. If the answer received from garnishee is negative, i.e., the debtor does not have sufficient

funds, the file is coded to be reviewed in the future (usually 6 months later) to check if the

debtor has sufficient income now and that the funds can be garnished


Answer Review

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Garnishment Process

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On receiving a positive answer, the law firm files a motion along with an order with the court, which

is served to the an employer or bank to mandate them to start sending the payments to the law

firm or submit those with the court


Order of Garnishment

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If the writ of garnishment is not received from the court, a follow up is done with the court


Follow Up

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If the writ of garnishment is not received from the court, a follow up is done with the court

1. A follow up can be done by calling the court clerk or sending a letter


Follow Up

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If an issued writ and interrogatory is not served to the garnishee, a follow up is done with the

process server or a Sheriff


Follow Up

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If an issued writ and interrogatory is not served to the garnishee, a follow up is done with the

process server or a Sheriff

1. The follow up can be done by calling the process server or sheriff office, or by sending a letter


Follow Up

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If a garnishee has been served, but has not answered, a follow up is done with the garnishee or the

entity that served the garnishee

1. This follow up can be done by calling the court clerk or sending a letter


Follow Up

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If a garnishee has been served, but has not answered, a follow up is done with the garnishee or the

entity that served the garnishee


Follow Up

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Garnishment Process

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1. Once the garnishment order is served to the garnishee, the funds are submitted to the court or

sent to the law firm against the debt and are posted on the file


Payment

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1. Once the garnishment order is served to the garnishee, the funds are submitted to the court or

sent to the law firm against the debt and are posted on the file

2. In case of a bank, the funds are received one time, whereas the employer can send the funds

until the debt is paid in full


Payment

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Garnishment Process

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1. In cases where the funds are delayed, law firms attempt to follow up with the garnishee for

garnishment funds


Fund Follow Up

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garnishment funds

2. This is done to ensure that payments are received on a regular basis


Fund Follow Up

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garnishment funds


3. In the case of a default in payment, the garnishee is approached seeking answer for defaulting

on garnishment payment


Fund Follow Up

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garnishment funds


3. In the case of a default in payment, the garnishee is approached seeking answer for defaulting

on garnishment payment

4. Once the amount is paid in full or settled in full or the defendant quits employment from the

garnished employer, the law firm is required to release the garnishment


Fund Follow Up

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Garnishment Process

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A law firm files release of garnishment with the court and may encounter one of the following

scenarios:


Release of Garnishment

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scenarios:

1. Debtor has paid the debt in full



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scenarios:


2. Debtor has agreed to a payment plan



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scenarios:


2. Debtor has agreed to a payment plan

3. Debtor has filed for bankruptcy, is deceased or is in active military service (falls under SCRA)



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1. A garnishment release is filed with the court and under the following categories:



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a) Fully Satisfied – Garnishment is released using this category in cases where the law firm is able to

collect the entire amount for which the garnishment order was filed and ordered by court



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b) Unsatisfied – The garnishment is released using this category in cases where the law firm is not able to

collect any amount for which the garnishment order was filed and ordered by the court



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b) Unsatisfied – The garnishment is released using this category in cases where the law firm is not able to

collect any amount for which the garnishment order was filed and ordered by the court

2. The release of garnishment can be either filed physically (paper) or electronically (eFiling) with

the court



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Garnishment Process

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1. A satisfaction of judgment is filed with court once the law firm is able to collect the amount

that was awarded by the court at the time of judgment and including the post-judgment court

costs


Satisfaction of Judgment

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1. A satisfaction of judgment is filed with court once the law firm is able to collect the amount

that was awarded by the court at the time of judgment and including the post-judgment court

costs

2. A copy of the satisfaction of judgment is mailed to the defendant


Satisfaction of Judgment

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Post satisfaction of judgement, the file is routed for closure in the collections system and a report is

generated to inform the law firm’s client


Account Closure

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Garnishment Process

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Garnishment Process


404


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1. Garnishment review, drafting, and assembly – BPM Operations



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2. Preparing Writ of Garnishment – BPM Operations



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3. Service Checks – BPM Operations and Voice Services



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4. Garnishment Follow Up – BPM Operations and Voice Services



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4. Garnishment Follow Up – BPM Operations and Voice Services

5. Garnishment Answer Review – BPM Operations



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6. Order of Garnishment – BPM Operations



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7. Payment – BPM Finance and Accounting



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8. Garnishment Release and Satisfaction – BPM Operations



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8. Garnishment Release and Satisfaction – BPM Operations

9. Account Closure – BPM Operations



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GRC and Manual Call Monitoring teams help law firms in being compliant with all requisite

guidelines and requirements



THANK YOU!

415

Documents

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