collector - january 2009...the cost of dirty data • usps move update requirements • cutting...
TRANSCRIPT
The Cost of Dirty Data • USPS Move Update Requirements • Cutting Costs
Published by ACA International http://www.acainternational.org
PRSRT STDU.S. POSTAGE
PAID
MINNEAPOLIS, MNPERMIT NO. 76
January 2009
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features18 Opportunity Knocks
In the midst of an economic crisis, many credit andcollection agencies are scrambling to prepare for thelooming “perfect storm” of increased placementvolume, increased collection costs, lower fees andreduced recovery rates. However, agencies can makethe most of the crisis by increasing profitableplacement volume. By Marc Trezza
22 The Cost of Dirty DataWorking in the collection industry in this economyisn’t easy. The success equation has changed: reach alot more people to collect the same amount of money.The cost of bad contact information means it takesmore time to reach people. So do you increase staffor improve existing resources? By Michael Sebastian
24 New Requirements for Postage SavingsAll businesses are searching for ways to cut costs,including the U.S. Postal Service (USPS). To reducethe amount of undeliverable mail, the USPS initiateda new Move Update requirement to reward mailerswho pay attention to address scrubbing—andpenalize mailers who don’t. By Harry Stephens
contents januaryvolume 74, number 6
highlights9 Strengthening Benefits
Dues adjustment will help boost the association’soutreach and member benefits. By Jay Gonsalves, IFCCE
10 Protecting Your InvestmentThe ACA International staff take pride in being goodstewards of your membership dollars. By Gary D. Rippentrop, CAE
14 ACA NewsAndersen and Hayes named Top Women in Finance;Professional Credit Service earns PPMS designation.
26 Cutting Costs in ToughTimesAlliance ACA offers associationmembers substantial discounts onnecessary services.
30 Credit Crunch Ripple EffectsAs foreclosures and delinquenciesincrease, creditors look for ways to maintain theirbusinesses. By Rachel Remley
35 Keeping Tabs on State Activity As 2009 legislative sessions get underway, ACA willmonitor potential industry issues at the state level. By Kristine Adams
36 A Matter of PolicyStreamlining policies and procedures can maximizeproductivity and contain business costs.By David Cherner
48 Retooled and RedesignedRevamped ACA Online Web site offers simplenavigation, new look. By Tim Dressen
collectorPublished by ACA International
CHIEF EXECUTIVE OFFICER
Gary D. Rippentrop, CAE
EDITOR/AVP OF ACA INTERNATIONAL ENTERPRISES
Tim Dressen
ASSOCIATE EDITOR
Anne Rosso
GRAPHIC DESIGNER
Darla Rehorst
Collector is published monthly by ACA International,
4040 W. 70th St., Minneapolis, MN 55435.
Telephone: +1(952) 926-6547.
Fax: +1(952) 926-1624.
Web: http://www.acainternational.org.
E-mail: [email protected].
Annual subscription rates: $35 for ACA members, $70
for nonmembers. Single copies: $3.25 for ACA members,
$6.50 for nonmembers.
For display advertising information, please contact
Mohanna & Associates Inc. at [email protected] or
(972) 596-8777. Advertisement of products or services in
Collector does not constitute an endorsement by ACA of
those products or services.
The editors of Collector welcome submissions. However,
we cannot guarantee that we will publish any of the
articles we receive. Collector editors also reserve the
right to edit any and all submissions.
Information contained in Collector is not intended as
legal advice and should not be used to replace the
advice of legal counsel.
©2009 ACA International. All rights reserved. Materials
may not be reproduced without written permission.
columns & departments
13 ACA Calendar
46 ACA Staff Directory
36 Campus ACA
47 Classified Advertising
44 Display Ad Index
4 Executive Committee
40 Fastfax Index
45 Marketplace Advertising
38 Membership
6 Mission Statement
17 News Briefs
contents
22
2 I January 2009 Collector
48
30
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executive committeeACA International’s Executive Committee is comprised of five ACA members elected to office by the association’s members plus the chief executive officer, whoserves as an appointed, non-voting member. If re-elected each year, the elected Executive Committee members will serve on the committee for five years.
PresidentJay Gonsalves, IFCCEMiddleboro, [email protected]
President-ElectKarolyn [email protected]
Vice PresidentMartin Sher, IFCCEBirmingham, [email protected]
TreasurerMark NeebRochester, [email protected]
Past-PresidentChris WunderBaltimore, [email protected]
CEOGary D. Rippentrop, [email protected]
4 I January 2009 Collector
mission statement
ACA VISIONLed by ACA International, the credit and collection industry is self-regulated and well-respected by policy makers, business leaders andconsumers.
ACA MISSIONACA International contributes to the success of its members, the positivereputation of the industry and the health of the economy.
We accomplish this by:• Being the comprehensive, knowledge-based resource for the credit
and collection industry.• Clarifying the rights and responsibilities of all participants in the
credit and collection cycle.• Enhancing the knowledge and skills of credit and collection
professionals around the world.• Demanding the highest degree of ethical practices and conduct.
• Advocating effectively in critical legislative, regulatory andbusiness arenas.
• Offering services and products to improve member profitability.• Promoting the importance, value and integrity of the industry.
ACA VALUESLeadership—to achieve collectively that which is more difficult toaccomplish individually.
Integrity—to demonstrate a commitment to ethical principles.
Respect—to show regard and consideration for clients, colleagues andconsumers.
Responsibility—to promote accountability by all participants in thecredit and collection cycle.
Service—to assist, support and respond to the needs of credit andcollection professionals.
Want to stay up-to-date on the latestasset buying and healthcare trends? OrderCD-ROM recordings of the sessions featured
at the 2008 Fall Forum, held at The Westin Michigan Avenue
in Chicago.
• Learn more about asset buyingtopics, such as financing debt
purchases; compliance and ethics;pricing; and mergers and acquisitions.
• Get informed about healthcare topics, such as responding to an RFP;Medicare considerations; identity theft prevention; and HIPAATransaction Standards.
Add Fall Forum 2008 Session Recordings to Your Library!
To order, visit http://www.acainternational.org/store.For more information, call +1(952) 928-8000, ext. 710.
Add Fall Forum 2008 SessionRecordings to Your Library!
6 I January 2009 Collector
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ABD and $100 for CI. In fact, if a member wasinvolved in any of these add-on memberships, theelimination of this extra fee may actually be agreater savings than the base dues increase for ACAmembership. ACA projected my agency’s annualdues would go down by $64 as a result to my levelof program participation.
The change to ACA’s fiscal year is pretty self-explanatory. This was proposed primarily to betteralign the association with the fiscal year cycles ofmost association members.
As I explained in my opening remarks to theboard and have subsequently shared with variouscommittee members, the reasons for theseproposals were manifold: • Increase in federal legislation, issues and
committees of jurisdiction.• Tremendous increase in state legislation
affecting the industry, as well as the need foruniform state licensing.
• Member demand for market-specificinformation, greater value and more benefits,i.e., making program (HSP and GSP) anddivision (CI and ABD) member benefitsavailable to all interested members anddiscontinuing “add-on” program/division dues.
• Member demand for access to information24/7 and online services such as registrationsand dues payment.
• Expansion of strategic plan initiatives toinclude consumer outreach and education.
• Demand for research about the industry andoperations, e.g., benchmarking and topmarkets.
• Expansion of the strategic plan to addressinternational markets.
• Demand for online communities of practice.• Increase in alleged Federal Trade Commission
complaints and the corresponding affect on theindustry’s reputation.
• Member demand for uniform governmentoversight.
• Increase in negative media reports.• Need for coalitions to improve business
conditions for members.
Since I began writing this column, I have forthe most part targeted my remarks to thegeneral theme of that particular month’s
Collector. I’m going to depart from that trend thismonth, however, in order to address a topic you haveheard about already if you read the letter I recentlysent to ACA International members. If you didn’tread the letter, here’s your second chance to bebrought up to speed on a rather important recentdevelopment within our association.
On Nov. 19, 2008, the ACABoard of Directors met byteleconference to discuss andvote on three discrete, yetrelated, items: the eliminationof separate program fees for theAsset Buyers Division (ABD),Creditors International (CI),Government Services Program(GSP) and Healthcare ServicesProgram (HSP); a proposeddues adjustment; and thechange of ACA’s fiscal year to acalendar year. All three piecesof this proposal were approvedby the majority of the Board.
The dues adjustment became effective immediately.The fiscal year change passed, but needs to beapproved by a vote of the membership at the AnnualMeeting of the Membership in July in Las Vegas, perACA’s bylaws.
First, regarding the dues adjustment and programfee elimination. We use the term “adjustment” ratherthan increase because some members, particularly thesmall to mid-sized agencies, will actually end uppaying less overall, depending on their level ofinvolvement in the association’s programs or add-ondivision memberships.
The adjustment will increase the “per employee”rate agencies pay as well as the “cap” level for agencydues. CI, ABD and Members’ Attorney Programmembers will also see a base rate increase. However,at the same time, the adjustment eliminates theadditional dues fees for members joining HSP andGSP or adding on a membership in ABD or CI.These add-on dues were $180 for HSP, GSP and
Strengthening BenefitsDues adjustment will help boost the association’s outreach and member benefits
By Jay Gonsalves, IFCCE
president’s page
January 2009 Collector I 9
continued on page 44
department directors, with the aid of theExecutive Management Team, develop budgets toaccomplish the business plan initiatives. Proposedbudgets are then presented to the ExecutiveCommittee for review and modification. Onceapproved, the budget is presented to the ACABoard for final approval. The annual budget,which paves the road map to results, is thenallocated on a monthly basis. Each month, actualresults are reviewed and scrutinized against thebudget, and operational decisions are made in aneffort to deliver member benefits with budget.
With the recent economic crisis, the ACA staffhas been especially diligent and creative aboutcutting costs. Many steps have already been takento cut costs, including:• Used frequent flyer miles to bring in the
government affairs strategic planningcommittee in October, saving in excess of$6,500.
• Implemented a temporary hiring freeze.• Renegotiated a hotel contract for the 2008 Fall
Forum conference when registrations wereslower than expected, avoiding an $18,000attrition penalty.
• Switched employee health insurance carriers atrenewal time, saving $12,500 with no decreasein benefits. As your association staff, we pledge to continue
our role as good stewards of your membershipinvestment throughout this new year and beyond,regardless of economic conditions. We see it as avital part of our responsibility to you, themembers who have entrusted us to carry out ACAInternational’s mission and goals as contained inour strategic plan. cm
Gary D. Rippentrop, CAE, is ACA’s CEO. He canbe reached at [email protected].
ACA International is truly yourassociation. You, the members, own 100 percent of this organization. You elect
the board members and Executive Committeeofficers who lead ACA, and many of you serve oncommittees and task forces that guide theassociation’s initiatives.
As your association’s hired staff, all ACAInternational employees are committed to
protecting your investmentand helping you get the mostvalue from your membership.Quite simply, we take pride inbeing good stewards of yourmembership dollars.
The ACA staff is constantlyseeking effective methods tohelp members get the mostvalue from ACA benefits. Forexample, offering Campus ACAeducational training inmultiple formats gives you theflexibility to choose thedelivery method that best fitsyour operation’s goals and
budget. Teleseminars, for example, offer membersthe chance to educate as many employees as theychoose with no travel expenses for one fee perlocation, which is a great value given today’seconomy.
ACA also offers members valuable businessservices at substantially discounted rates. Pleasesee the “Cutting Costs in Tough Times” articlebeginning on page 26 for information aboutseveral Alliance ACA programs that canimmediately save you money on office suppliesand furniture, telecommunications services,shipping, employment background screening,registered agent services, job benchmarking,printing and car rental.
Another way your ACA staff protects yourinvestment is by ensuring ACA achieves its goalsin a fiscally prudent manner. This begins with thecreation of annual departmental business plansaimed at achieving goals set forth in the member-developed strategic plan. Subsequently,
Protecting Your Investment The ACA International staff take pride in being good stewards of your membership dollars
10 I January 2009 Collector
By Gary D. Rippentrop, CAE
upfront
Commercial CollectionChallenges in a Down Economy
I t’s no big secret that the economy is in an intense slowdown andbusinesses are dealing with unprecedented financial challenges.
How is this turmoil affecting the commercial collection industry? Inthis 90-minute interactive teleseminar, you’ll have an opportunity tohear from the owner of one of the leading commercial collectionagencies in the country, Robert Ingold, about his view on thechallenges of doing business in this new economy and strategies forkeeping your agency afloat in these uncharted waters. Robert willaddress the following topics:
• Get back to the basics—a discussion of the tools available forcollection.
• Relationship review—a discussion of managing, keeping andassisting the customers that you have targeted for continuedgrowth and profit. How you can provide these customers withsolutions that assist them during this economic slowdown.
• Creative thinking—look for new methods of cost control andincome expansion to get to the other side of this slowdown.
Robert Ingold, a member of the IACC Board ofDirectors, is currently president and CEO ofCommercial Collection Corp of NY Inc., where he’sbeen employed since 1979. The agency has been inbusiness since 1962, involved predominantly in thecommercial collection market. CommercialCollection Corp of NY also derives about 25 percentof its business through outsource opportunities.Prior to joining the agency, Robert was employedwith Chase Manhattan as an installment loan officer,where he was collection manager for VisaCollections. Robert recently received the Bob CaineLeadership award through the Commercial LawLeague of America. He is a frequent speaker oncollection and credit trends throughout the country.
To register, visit www.commercialcollector.com.
New IACCTeleseminar
IACC Teleseminar: Wednesday, Feb. 18, 2009 Noon Eastern/ 11:00 a.m. Central/ 10:00 a.m. Mountain/ 9:00 a.m. Pacific
Conferences/MeetingsOnline Seminars
TeleseminarsUnit Meetings
Seminars
APRIL 20098-10: Missouri Collectors Association AnnualMeeting, Downtown Hilton, St. Louis; Contact: RogerMedlin, (866) 945-2028;http://www.acainternational.org/mo
16-18: Oregon Collectors Association AnnualMeeting, Red Lion Inn, Salem, Ore.; Contact: AngieTrainor, +1 (541) 882-8585,http://www.acainternational.org/oregon
21-22: Mid-Atlantic Collectors AssociationAnnual Meeting, Baltimore Marriott Waterfront Hotel,Baltimore; Contact: Rose Jeffries, (717) 730-9745
MAY 20096-8: Illinois Collectors Association AnnualMeeting, Eagle Ridge Resort, Galena, Ill.; Contact:Roger Medlin, (866) 945-2028;http://www.acainternational.org/il
12-13: Indiana Collectors Association AnnualMeeting, Embassy Suites, Indianapolis; Contact: JeffRattler, (765) 646-6034; www.acainternational.org/in
JANUARY 20097-10: Leadership Symposium, Silvertree Hotel,Snowmass Village, Colo.; Contact: Karen Mueller,+1(952) 928-8000, ext. 114; www.acainternational.org
13: Fair Credit Reporting Act, 11 a.m. – 12:30 p.m.CST; Instructor: Wendy Badger; Contact: Amy Stumvoll,+1(952) 928-8000, ext. 143;http://www.acainternational.org
15: The Art of Persuasion, Philadelphia, Miss.;Instructor: Harry Strausser III; Contact: Robin Long, (601)420-1240
15: Cybertracking in a Cost-Conscience CollectionEnvironment, 11 a.m. – 12:30 p.m. CST; Instructor: RonBrown; Contact: Amy Stumvoll, +1(952) 928-8000, ext.143; http://www.acainternational.org
15: Professional Telephone CollectorsTechniques, Harrisburg, Pa.; Instructor: DwayneHeisler; Contact: Steve Kusic, (800) 360-9953, ext. 3053
16: Collecting With Confidence (1/2 day),Philadelphia, Miss.; Instructor: Harry Strausser III;Contact: Robin Long, (601) 420-1240
16: FDCPA: Fair Debt Collection Practices Act,Harrisburg, Pa.; Instructor: Dwayne Heisler; Contact:Steve Kusic, (800) 360-9953, ext. 3053
19: Understand U.S. Market Cycles and ReduceYour Agency Costs, 11 a.m. – 12:30 p.m. CST;Instructors: Irwin Bernstein and Tina Hanson; Contact:Amy Stumvoll, +1(952) 928-8000, ext. 143;http://www.acainternational.org
21: Ethical and Professional Collections, 11 a.m. –12:30 p.m. CST; Instructors: Karolyn Rubin and DavidCherner; Contact: Amy Stumvoll, +1(952) 928-8000, ext.143; http://www.acainternational.org
21-22: Foundational Training on ProfessionalPractices Management System (PPMS), MarriottHarbor Beach Resort and Spa, Fort Lauderdale, Fla.;Contact: Lindsay Lumpkin, +1(952) 928-8000, ext. 138;http://www.acainternational.org
22: Ethical and Professional Collections, 11 a.m. –12:30 p.m. CST; Instructors: Karolyn Rubin and DavidCherner; Contact: Amy Stumvoll, +1(952) 928-8000, ext.143; http://www.acainternational.org
MARCH 20094-5: Nebraska Collectors Association AnnualMeeting, Embassy Suites, Lincoln, Neb.; Contact: AndyMaschmann, (402) 228-3371
15-17: March for Success Conference andExposition, Green Valley Ranch Resort & Spa, LasVegas; Contact: Karen Mueller, +1(952) 928-8000, ext.114; http://www.acainternational.org
17-20: Foundational Training on ProfessionalPractices Management System (PPMS), GreenValley Ranch Resort, Spa and Casino, Las Vegas;Contact: Lindsay Lumpkin, +1(952) 928-8000, ext. 138;http://www.acainternational.org
17-20: Credit and Collection Business Academy,Green Valley Ranch Resort, Spa and Casino, Las Vegas;Contact: Lindsay Lumpkin, +1(952) 928-8000, ext. 138;http://www.acainternational.org
18-20: Multi-Unit Meeting: Georgia, Florida,Tennessee, Alabama, Virginia and South CarolinaUnits, Sandestin Bayside Inn, Sandestin, Fla.; Contact:Roger Medlin, (423) 304-0520
JULY 200913-15: ACA International’s 70th AnnualConvention and Exposition, Wynn Las Vegas;Contact: Lindsay Lumpkin, +1(952) 928-8000, ext. 138;http://www.acainternational.org
For a complete, updated list of upcoming ACA events,visit http://www.acainternational.org/events.
January 2009 Collector I 13
aca calendar
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14 I January 2009 Collector
aca news
R E C O G N I T I O N
Andersen and Hayes named Top Women in Financeoutstanding service and tireless
efforts of both Rozanne and Valerie
to improve our association and
serve our membership,” said Jay
Gonsalves, ACA International
president. “This well-deserved
award is further validation of both
Rozanne’s and Valerie’s important
contributions not only to our trade
association, but to the credit and
collection industry and the business
community in general.”
Andersen is a member of the executive
management team at ACA International and
oversees the association’s day-to-day
operations. She has been instrumental in
developing and furthering ACA’s government
affairs initiatives.
Hayes is also a member of ACA’s
executive management team and is
In September 2008, Finance and Commercenewspaper selected two ACA International
staff members as “Top Women in Finance.”
ACA International Executive Vice
President and General Counsel Rozanne
Andersen, CAE, and Vice President of Legal
and Government Affairs and Corporate
Counsel Valerie Hayes were honored with
the “Top Women in Finance” award, which is
reserved for women who have made
significant contributions to the financial
services industry by positively influencing
their business and community. Nominations
were submitted by trade associations,
corporate leaders and other members of the
profession, and the honorees were chosen by
the editorial staff of Finance and Commerce,
a daily newspaper covering business news.
“For many years the members of ACA
International have been grateful for the
responsible for overseeing ACA’s legal,
government affairs and compliance
departments as well as ACA’s dispute
resolution program.
Award recipients were honored at a
lunch celebration held Thursday, Nov. 6,
2008, at the Hilton Minneapolis. Andersen
and Hayes were also profiled in a special
supplemental edition of Finance andCommerce in November 2008.
Valerie Hayes
C E R T I F I C A T I O N
ACA Announces Latest PPMS Certificationparticipants about the 18 basic elements
of a PPMS and how to develop the
following types of documentation to
support the PPMS:
• Company manuals
• Company procedures
• Work instructions
Developing and documenting a PPMS
is the core of the ACA International
Agency Certification Program. While
each agency’s PPMS will be unique, by
following the overall guidelines of the
program, the agency will demonstrate a
ACA International congratulates the
latest member agency to receive
the Professional Practices Management
System (PPMS) certification
designation:
• Professional Credit Service, Eugene,
Ore.
PPMS is a management system for
collection agencies based upon
developing, implementing and adhering
to a set of industry-specific professional
practices and policies. The required
foundational training session teaches
commitment to quality assurance and
client satisfaction that is the foundation
of the ACA agency certification
designation.
The next Foundational Training on
PPMS seminars will be held at Marriott
Harbor Beach Resort and Spa in Fort
Lauderdale, Fla., on Jan. 21-22, 2009,
and at Green Valley Ranch Resort, Spa
and Casino in Las Vegas on May 17-20,
2009.
For more information, visit
http://www.acainternational.org/ppms.
Rozanne Andersen, CAE
www.technologyfreedom.net
It’sagame
ofInches!
How are you going toWIN THE GAME?
March 15-17, 2009Green Valley Ranch Resort,
Spa & Casino – Las Vegas
Who should attend:Healthcare track:• CEOs • Managers• Sales• Operations• Compliance
Technology track:• CEOs• Managers• Operations• IT• Compliance
ACA International is proud to present the 23rdannual March for Success Conference & Expo,featuring the ever-popular healthcare track, focusingon healthcare receivables management, and a newtechnology track, focusing on practical applicationsof technology for the credit and collection industry.
To register, fill out theenclosed registration formor register online atwww.acainternational.org/marchforsuccess.
The Chief Executivemagazine’s CEO Index
reached its lowest level ever in
November, hitting 50 points (set
at 100 points when polling
began in October 2002). The CEO
Index has dropped 56 percent in
the preceding 12 months.
In November, four out of the
five indices—Current
Confidence, Future Confidence,
Business Condition, Investment
and Employment—reached their lowest
levels to date. The only index that showed
signs of moderate gains was the
Investment Confidence Index, which
increased six percent to 87.3 points.
Business Condition Index, which
measures current business temperament
among executives, has experienced the
highest percentage drop this month,
falling approximately 47 percent to 19.5
points from 36.9 points last month. The
Business Conditions Index stood at 117.9
percent in November 2007.
Moreover, an unprecedented number of
respondents—more than 90 percent—
said they would rate current business
conditions as “bad,” compared to 28
percent of CEOs who said the same in
November 2007.
In November, a record number of
CEOs—75 percent—said they expect
employment to decrease over the next
quarter, compared to 68 percent of CEOs
in October and 41 percent of CEOs that
said the same last November.
Moreover, according to the
Employment Confidence Index, which is a
E C O N O M Y
CEO Confidence: How Low Can It Go?
leading indicator— with a 4-6 month lag
time— of actual employment conditions,
the nation’s unemployment rate is not
likely to improve any time soon. The
Employment Confidence was the second
biggest loser of all the indices this month,
falling approximately 31 percent to 35.7
points from 51.5 points in October and
approximately 72 percent since November
2007 when the Index was at 129.6 points.
Back in February, the point gap
between current and future confidence
levels was 69.5 points, a sign that current
conditions, which were overly optimistic
at the time, were not an accurate
reflection of future conditions. As a result
of continued decline in current conditions,
this gap now has narrowed down to just
23.0 points.
In a reflection of dire economic
conditions, one respondent said, “The
confidence of citizens and business alike
has been shaken. It will take many
months to inject some stability in the
markets.”
Managing change for a business is
never easy. Altered or limited
resources, new technology and price
competition pose different types of
threats for companies.
For employees, however, recent
changes in terms of layoffs, shrinking
pensions and uncertainty for the future
has made it necessary for workers to
adopt a business perspective in dealing
with and managing change.
Viewing a career much in the same
strategic way a business views its future
is more important now, according to
ActionCOACH, a business coaching firm.
“Successful businesses manage
change by looking for opportunity in the
midst of crisis,” ActionCOACH Marketing
Director Jodie Shaw said. “More money
is made in slowdowns than in a boom,
and that is a result of companies getting
focused on their strengths and providing
added value to their customers.
Employees need to look at their careers
in the same way.”
Revamping a resume or thinking
about skills in a new way can help
employees transition within a company,
or assist in finding new opportunities in
a tight job market. Shaw advises,
“There's not much you can do if you are
involved in a massive layoff, but you can
revamp your resume, focus on your
unique skills and look to transfer your
skills and abilities to a new market.”
J O B S
Employees Need toAdopt BusinessMindset in ChangedEconomy
news briefs
January 2009 Collector I 17
18 I January 2009 Collector
In today’s tough economy,agencies are seeking thebest methods to increaseprofitable placements.
By Marc Trezza
January 2009 Collector I 19
n the midst of an economic crisis,many credit and collection agenciesare scrambling to prepare for the
looming “perfect storm” of increasedplacement volume from current clients,increased collection costs, lower feesand reduced recovery rates.
However, agencies can make themost of the crisis by increasingprofitable placement volume. Sure, itsounds like a no-brainer—until you takea close look at your sales and marketingefforts and realize that the sameapproach you have been using for yearsis just not designed to accomplish this.
What steps should agencies take toprotect their business and increaseprofitable placement volume? First,conduct an analysis to determine whatclients and types of business are yourmost and least profitable. Here’s a verysimple analysis as an example:• Start with last year’s tax return. What
were your total operating expensesfor the year?
• Divide your total operating expenses(salaries, collection costs, insurance,etc.) by the number of accountsplaced to get your average unit cost.For simplicity’s sake, let’s call it $10.
• Next, calculate your average unityield for that year. Divide your totalgross fees earned by the number ofaccounts placed. Let’s say thatnumber is $12. You are operating ona 20 percent profit margin (on a peraccount average).
• Now do a unit yield calculation foreach client. Divide the clients over$12 from the ones under $12.
• Separate out the clients that haveunusual cost-drivers. An easy examplewould be a client that requires 500account collector queues when youraverage is 1,000 accounts percollector. We’ll address these clientsseparately.
• Go back to the rest of your “standardprocedures” clients and assess whatthey have in common. Are healthcareclients generally below the line? Areeducation clients generally above the
I Happier employees will work harder andperform better, cost of turnover will
decrease and attracting new employeeswill be easier. It will all feed on itself.
line? Are there more or lessprofitable categories of businesswithin those market verticals (such astuition being more profitable thanPerkins Loans)?
• Carve out those below the line,focusing on any that are below your$10 threshold.
• Do the same on the upper end of thescale. Are there many clients at $15or more? Assess the highestprofitability clients forcommonalities.Now you must develop a three-prong
plan of attack, combining both short-term and long-term tactics. Let’s startwith cash-drain clients below the profitline.
1. The Bottom LineStep 1: Renegotiate increased fees to
bring these clients above the profit line.If your salespeople can’t handle this typeof negotiation successfully, they willneed professional collection salestraining immediately.
Step 2: Target clients that are notwilling to increase your fee forreplacement. The goal is not to firethem, but to replace them with moreprofitable business. You need to executea shift in the quality of your accountinventory without having to add (or cut)staff—holding costs steady whileincreasing recovery rate and fees.
2. The Top LineThe Marketing Plan: What do your
most profitable clients have in common?You need to target your futuremarketing and sales efforts only to
“above the line” business, with the focuson the big dogs (those with the highestunit yields that are not offset bydramatically increased unit costs).
The Sales Plan: This is where therubber meets the road. Salesmanagement is not just about drivingnumbers. You must control the directionyour salesforce is headed from now on.• Pipeline management is critical. You
must apply the same managementfundamental you use on thecollection floor to your sales efforts.You must establish minimumprospecting criteria for eachsalesperson. That means requiring aminimum number of new first-timeprospects entered into the pipelineevery month for each target marketyou have established. You cannotallow your salespeople to live offtheir “tickler file” any longer. If mostof the sales effort is, “Today I’mgoing to call all the people who toldme six months ago, ‘I’m happy withmy agencies, call me in six months,’”that has to stop now. As a growthstrategy for your agency, that makesas much sense as telling a collectoron his first day of work, “Here are1,000 accounts. That’s all you’regoing to get for the rest of your life.Have a great career.” Consider“pipeline angioplasty,” which meanstraining and coaching salespeople toactively work to improve the qualityof prospects in your pipeline, whichwill automatically improve theprofitability of the new deals youclose and shift your profit lineupward.
�
20 I January 2009 Collector
• Consider sales management software.Your software should be able tomanage your salesforce for a fractionof the cost of a direct-hire manager.Sales management software can helpyou successfully manage youragency’s pipeline while providinghighly effective and proactive salesmanagement and coaching. Look forsoftware tailored specifically for salesmanagement and collection sales.Effective sales management meansmaking the sales process quantifiableand measurable. You cannot managewhat you cannot measure.
• Adopt a more professional salesapproach. If you keep doing whatyou’re doing, you will keep gettingwhat you’re getting. You have toinvest in improvement if you want toreap the results. A true solutions-
selling, consultative approach isrequired. Creditors do not want tohear the same old “canned pitch”anymore. The fact that so fewagencies use a professional solutions-selling approach is why it’s so difficultto get a first appointment with aprospect who doesn’t know you.Creditors think the conventionalagency sales approach is a waste oftheir time—and it’s certainly a wasteof yours. Every agency that’s everbeen fired had state-of-the-arttechnology and software, a dialer,references, experience, insurance andbonding, followed the FDCPA, was“patient relations conscious,” etc.Those are minimum requirements,not reasons to hire you. It’s likeshowing up at Dodger Stadium andtelling Joe Torre you should be on
the team because you have a glove.Once again, this is a lack-of-professional-training issue.
• Seek professional collection salestraining. Most agencies expectsalespeople to already be trainedwhen they hire them, but few have acollection sales training programsimilar in quality to their collectortraining program. So where is all thistraining coming from? Nowhere.Most agencies have been trading thesame journeyman salespeople (alongwith their bad habits and burnedbridges) for years. If you want toimprove profitability, look at yoursalespeople. If they are not properlytrained and managed, it just isn’tgoing to happen. According tocreditors, compared to other vendortypes collection salespeople are ratedthe lowest in terms of professionalismin their sales efforts. No wondermost agencies are unhappy with sales!
Salespeople need effectiveprofessional sales management. Applythe rules you use on the collectionfloor. If you had no collectionmanagement system, minimalresources or support, and no queuemanagement, what would happen toyour collection performance? Youwould never do that to yourcollectors and collection managers, sodon’t do it to your salespeople.
3. Reduce TurnoverThe challenge is not only to get
great employees but to also keep them.What used to be soft issues are nowcore principles that separate one agencyfrom another in the competition fortalent.
The cost of living is skyrocketing andit’s getting tougher for your staff tomake ends meet. You don’t want themjumping to your competitors. Turnoveris expensive, increasing costs andhurting performance at the same time.So what can you do? Consider offeringfour-day workweeks with 10-hour days
to cut down on commuting costs, forexample. There is a directcorrelation between happyemployees, performance andhappy clients.
Stress a positive workenvironment and reinforce thevalue of what our industry doesfor our country’s economy. Showyour employees how much moreeverything from a loan to a pack ofgum would cost if it were not forcollection professionals. Changetheir perspective. Community serviceefforts and rewards will go a long waytoward overcoming the unfair negativestigma attached to our industry while alsoreducing turnover. Once a year, use yourdialer for charity fundraising on a Saturday.Make sure your local news outlets cover it—bethe “agency with a heart.” Leverage it in your salesand marketing efforts and use it to help attract andkeep good employees.
You can win the war for talent, but first you have toelevate talent management to a burning corporatepriority.
Opportunity KnocksA leader who understands that in chaos there is
opportunity comes out on the other side stronger thanever. This economic crisis is one of thoseopportunities.
Balance long- and short-term approaches. CEOshave found all too often that the push for short-termsolutions with a focus only on cutting costs continuesto pile layer after layer of new, more serious problemsonto their shoulders. Repeated short-term fixes oftendig us into deeper and deeper holes.
The bottom line is that better-trained salespeoplewith more effective tools and proper direction willclose more deals with higher profit margins. Happieremployees will work harder and perform better, cost ofturnover will go down and it will be easier to attractnew employees. It will all feed on itself. This three-prong approach to making the most on the economiccrisis is not a cost—it’s an investment in your futureand a great leadership opportunity. cm
Marc Trezza is president of Search Net Corporation(http://www.searchnetcorp.com/agency). He can be reached at [email protected] or (201) 238-2133.
ow to focus yourmarketing and salesefforts only on business
above your profit line:
1. Assess your marketingmaterials (proposal package,brochure, etc.). How do theydistinguish you from the best ofyour competitors? They cannotsimply say what everyone else’s
materials say. As you do yourassessment, break down each section
and ask yourself, “What claims andstatements will my top competitors
make about this? Is what I’m saying goingto distinguish me from them? Is my
proposal just a boring recitation of facts thereader has heard a thousand times before?”
2. Get a proven industry pro to review yourmaterials. Make sure you get a qualityassessment and critique for free. For example, youwant to hear: “After a no-fee assessment, if I feelwe can make significant improvement, I will tellyou why, how and how much it will cost based onthe scope of the work.”
3. Focus your marketing and sales efforts on themore profitable market verticals. For example,many agencies will excel when they increase theirpursuit of commercial accounts. The sales cycle isshorter, the collection cycle is shorter and theunit yield is higher. But for that strategy to work,you have to have professional commercialcollectors and you need a service plan to keep theclients once you’ve got them. You can’t servicecommercial clients the way you do other clients.This also requires proper training andmanagement.
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January 2009 Collector I 21
22 I January 2009 Collector
Improving data quality can return significant dividends.
By Michael Sebastian
January 2009 Collector I 23
orking in the collectionindustry in this economy isn’teasy. There is more demand
for your services but fewer peoplepaying their debts. Add the post-holiday activity, and time simply isn’tyour friend. You need quick results.The success equation has changed:reach a lot more people to collect thesame amount of money. The cost of badcontact information means it takesmore time to reach people. So do youincrease staff or improve existingresources?
Hectic schedules sometimes preventus from seeing the obvious, like one ofyour most valuable assets—your data.Accurate information is the lifeblood ofthe collection business. So how good isyour information? If the experts arecorrect, your business may be subsistingon a diet of missing, incomplete andotherwise bad data.
The Data Warehousing Institute(DWI) estimates the cost of bad or“dirty” data exceeds $600 billionannually. Another study indicates that 2percent of contact records becomeobsolete each month, costing a firm 15percent to 20 percent of its operatingincome. The actual cost of bad data maynever be known, but it’s safe to say it issignificant enough to warrant yourattention.
Ignoring the data problem is a poorbusiness strategy. First recognize thatbad data is a business problem you cantackle—regardless of your technicaldeficiencies. Smart collectionprofessionals approach technicalprojects with a business focus. There areplenty of technical people who can helpyou get to your business goal. It’s criticalto distance yourself from technicaldiscussions if you are responsible forbusiness results. So with your businesshat firmly in place, consider thefollowing suggestions for improvingyour data.
Make Your Data a High Priority Do your employees and data
providers know the importance of yourdata? If you aren’t serious about yourinformation, they probably won’t take itseriously either. Look at your data as theraw material you use to run yourbusiness, and insist on quality data.
Have a Business FocusIt’s amazing how very smart business
people treat technology-relatedproblems as somehow different. Baddata is a business problem, so be aware ofyour conversations with technicalpeople. It’s all too easy to take theconversation in directions that aren’trelevant to your business questions. Ifyou ask technical people for the time,they may be determined to explain howto make a clock. Those of us who live inthe technical world can get immersed incomputer jargon, endless acronyms,special handshakes, etc. Keep theconversation on business outcomes. Aska lot of seemingly naive questions. Ifyour technical services provider insistson giving you technical answers, speakwith a supervisor or find another dataprovider.
Establish Data Accuracy MetricsYou don’t need to spend a lot of time
or money on complex measurementsystems, but have a system or process inplace that allows you to easilyunderstand the quality of your data.This could be as simple as surveyingemployees at a team meeting. What istheir estimate of correct addresses orphone numbers? Is it 80 percent? 50percent? 20 percent? Who in yourorganization can answer this importantquestion?
Partner to SucceedA data provider who isn’t willing to
take some risk has very little incentiveto dig into the issues with you. Anyonecan sell data; you need someone whocan help you see the big picture. Trydeveloping business relationships thatmake sense for you and your dataprovider. Is there a way that your data
provider can offer guarantees on itsquality, perhaps base the fee on yourincrease in collections? This could helpboth of you—you recover more moneyand your supplier’s commissionincreases. Remember this simpleequation:
This might not always be possible,but it is always worth a discussion. Youmight ask why a data provider wouldn’tconsider such a potentially lucrativeagreement.
Above all else, remember thattechnical problems must tie to businessresults. Otherwise, why are you doingthem? Don’t get sidetracked byprotracted technical discussions thatwaste valuable time and don’t add toyour bottom line. In this economy, youneed every advantage you can find.Information is your raw material. Makesure you’re using the best you canafford and regularly check the qualityof this valuable asset. In this corporateenvironment, partnering with acompetent and dedicated data serviceprovider could mean the differencebetween surviving and thriving. cm
Michael Sebastian is the chiefinformation officer at SourceCheck, afraud prevention data aggregator andspecialty analytics firm. He can bereached at [email protected] [email protected].
W
Better Information = More Collections
= Higher Provider Fee
Better Information = More Collections
= Higher Provider Fee
24 I January 2009 Collector
New Requirementsfor Postage
SavingsMeeting USPS Move Update
requirements offers businesses the best postage discounts.
By Harry Stephens
January 2009 Collector I 25
ostage and letter serviceexpenses are usually the secondor third line item on a collection
agency’s budget. In the face of astruggling economy, it’s likely thatcollectors will have more transactionvolume with less return. And withpostage slated to go up again in May2009, raising the stamp cost by 2 centsand business mailers’ rates by at least 4percent, it’s more important than everto put a laser focus on this part of yourbusiness.
All businesses are searching for waysto cut costs, including the U.S. PostalService (USPS), which recentlyannounced a $2.8 billion dollar deficit.And to make matters worse, for the firsttime in history 16,000 U.S. postalemployees and mail carriers who lackunion protection may be subject totermination in early 2009. It certainlymakes sense that the USPS is activelyseeking ways to increase efficiency andemploy money-saving techniques.
Reducing Costs by Reducing UAA Mail
One such effort to save everyoneunneeded expense went into effect Nov.23, 2008. To reduce the amount (andcost) of undeliverable-as-addressed(UAA) mail, the USPS initiated a newMove Update requirement to rewardmailers who pay attention to addressscrubbing—and penalize mailers whodon’t. This new address hygienestandard applies to both first-class mailand standard mail. It rewards mailerswho update their bulk mailing addressesevery 95 days with a discounted mailingrate.
The Move Update requirementseeks to reduce mail pieces that requireforwarding, returning or discarding byperiodically matching a mailer’s addressrecords with customer-filed change-of-address orders. The Move Updaterequirement will result in highermailing quality by updating incorrectlyaddressed mail pieces, eliminating extraexpense on the handling, delivery and
sorting of these materials. Applying thisrevised standard is critical to both thebusiness interests of mailers and thefinancial health of the USPS.
It’s All in the Details In essence, the new mailing
standards require the mailer’s completeattention to address detail. With postalcosts on the rise, collection agencies arewise to adopt an accurate addresshygiene policy. After all, a dedication toaccurate mailing saves expenses inmaterials and postage, and helpsagencies comply with the Fair DebtCollections Practices Act (FDCPA), aswell as the USPS guidelines.
As part of the new Move Updaterequirement, the USPS will only allowproactive updating methods, such as theNational Change of Address (NCOA)software, which makes change-of-address information available to mailersto help reduce undeliverable-as-addressed (UAA) mail pieces beforethey enter the mail stream. Updated,computerized change-of-addressinformation is provided to NCOAlicensees by the USPS on a regularbasis. This process is certified by theUSPS to increase the number ofdeliverable mail pieces by providingmailers with current, delivery-pointcoded addresses for individual, familyand business relocations.
Aside from reducing the amount ofUAA mail, NCOA has the addedbenefit of increasing mail delivery speedand saving mailers money by reducingcosts for printing, mail processing,postage and address correction changes.Using this method, all agencies andmailers assure the USPS that theiraddresses are standardized with a ZIP +4 code, carrier route and delivery pointbarcode.
Collection agencies or third-partymailers do not have to use NCOA to bein compliance with the new MoveUpdate requirement. Mailers may alsouse the FASTforward-licensed multilineoptical character reader processing
method, but it’s important to note thisis acceptable for letter mail complianceonly.
Paying Attention to Business RulesPostage accounts for approximately
80 percent of the expenses listed in thepostage/letter services line item of yourbudget. Ensuring your processes areboth efficient and effective requires youto look closely at the business rules youhave in place that determine whataction should be taken when it comes tomailing decisions. For example, NCOAprovides coding to identify people whohave moved and left no forwardingaddress. Putting a business rule in placethat triggers whether or not to mail in asituation like this can save significantexpense. Work with your ITdepartment or service provider toensure you have the best mailing rulesin place to fit with your businessstrategies.
It’s more important than ever to keepabreast of the USPS’s continuing effortsto reduce costs in the months ahead.Collectors who work to proactivelyimplement new requirements, either ontheir own or with their third-partyprovider, will be rewarded with the bestpostal discounts and most efficient andaccurate delivery of theircommunications. Ensuring targetedrecipients are reached reduces bothpostage and payment turnaround, whichis good news in any economy. cm
Harry Stephens is president/CEO andfounder of DATAMATX(http://www.datamatx.com), a provider ofprinted and electronic billing solutions.He is also president of The ImagingNetwork Group, an association forelectronic service bureaus. He can bereached at [email protected].
P
26 I January 2009 Collector
Cutting Costs inTough Times
January 2009 Collector I 27
ow more than ever, businessesacross the country are lookingfor ways to cut costs and
improve their bottom line. ACAInternational has entered intoagreements with several companies tooffer substantially discounted pricing soassociation members can save on varietyof important services, such astelecommunications, employeebackground screenings, car rental, jobbenchmarking tools and more.
These cost-effective Alliance ACAprograms are available exclusively toACA members at the speciallynegotiated rates. The products andservices provided through Alliance ACAcan help association members broadentheir horizons and maximize efficiencyin order to save money.
TelecommunicationsThe ever-changing telecommuni-
cations industry can make choosing areliable provider with the best rates achallenging task. Because telecom issuch a large part—and expense—of yourbusiness, it can be costly to misjudgeyour telecom requirements.
Through Alliance ACA, associationmembers can leverage the expertise ofAmerican Business Communication(ABC), a telecommunicationsmanagement company that helpsbusinesses save hundreds of thousandsof dollars while improving theirprofitability and helping them takecontrol of unchecked expenses. ABCtakes a unique holistic approach toexpense management, optimization,procurement and overall managedservices of fixed telecom and mobilecommunications.
“What many ACA members do notknow,” said Carolyn Morain, presidentof ABC, “is that ABC will work with anycarrier—including the one you usetoday.”
ABC recently launched its “ABCGuarantee,” which means a telecomaudit or contract negotiation essentiallycosts you nothing, and the savings mean
more profitability, control and peace ofmind. ABC provides a full suite ofmanagement solutions, including:• Technology assessments.• Procurement and carrier selection. • Technology-enabled services for
lifecycle management ofcommunications and expenses.
• Ongoing managed services and one-call support.
• Second-tier help desk support.
Office SuppliesUpgrading office furniture and
maintaining office supplies can beextremely expensive. Fortunately,through an agreement with OfficeMax,ACA members may purchase officesupplies, computer supplies and officefurniture at a special discount. Thisexclusive Alliance ACA purchasingprogram gives members a number ofbenefits, including special member-onlypricing at more than 900 OfficeMaxstores, free delivery on all in-stockorders over $50 (certain restrictionsapply) and a complete satisfactionguarantee.
Through the OfficeMax Advantageprogram, you will be assigned adedicated account manager to handle allyour transactions, plus you’ll have accessto the expertise of OfficeMax’s furnitureor technology specialists.
Registered Agent ServicesState registration and licensing
requirements include the appointmentof a registered agent within eachjurisdiction. This can be expensive anddifficult to manage if you maintainregistrations and licenses in multiplelocations. CT Corporation, a providerof compliance and governance workflowtools and services, will give ACAmembers deeply discounted rates forregistered agent services.
Background ScreeningVerifying employment and character
references for potential hires is a given.Though the Internet has made it easier
for employers to do limited onlineinvestigative work on their own, moreoften companies rely on experiencedoutside vendors to reduce their liabilityand cut costs. Alliance ACA offersLexisNexis background screeningsolutions at special member rates tohelp agencies hire the right person,protect themselves against negligenthiring legal action and save on turnovercosts.
Because the credit and collectionhiring pool is full of candidates with avariety of experiences and qualifications,agencies need fast and accuratebackground information for eachpotential hire. Choose from a variety ofservices—from a basic report in just afew seconds to more detailed reports,including national and county criminalsearches, driving record searches,previous employment verification andcredit reports.
ShippingAlliance ACA’s discount delivery
program saves association members upto 26 percent on select DHL and FedExshipping services. You can also processyour shipments online to receive anadditional 5 percent discount on eligibleshipments. Best of all, there are no costsand no minimum shipping requirementsto take advantage of this great newmember benefit.
Car RentalWhether you need a car rental
service for business trips or visitingclients, ACA members can receive year-round discounts on car rentals throughagreements with Hertz, National CarRental and Alamo.
Job Benchmarking and OnlineAssessment Tools
Implementing a comprehensivecandidate selection program can helpyou increase hiring success, reduceturnover, save valuable managementtime and improve overall performance.Job candidates don’t always possess the
N
28 I January 2009 Collector
attributes necessary for success in thehighly competitive and fast-paced worldof collections. Through a process thatinvolved ACA member input, TheRainmaker Group has assembledprofiles containing the unique attributesnecessary for success in four of the mostcommon collection agency positions.
“We don’t tell clients whether theyshould or shouldn’t hire a person, butwe do tell them what the person’sattributes are and how they stack upagainst an established industrybenchmark,” said Michael Lindblom,human talent engineer for TheRainmaker Group. “You use theinformation we give you as part of yourtotal decision-making process.”
The Rainmaker Groupbenchmarking and candidate assessmentprogram will help you identify uniqueattributes necessary to be successful inthe four most common collectionagency positions:• Third-party financial debt collector• First-party medical debt collector• Third-party medical debt collector• Debt collector manager
The Rainmaker Group offers easy-to-use online assessments withimmediate feedback.
After candidates pass an initial interview and resume check, youcan direct them to complete an onlineassessment, which takes about 40minutes. Within 24 hours, you willreceive a copy of their report and abenchmark comparison spreadsheet.
Benchmarking the job andcomparing the candidate to thebenchmark has proven to be up to 60percent more effective than traditionalhiring methods.
“Choosing the right person for thejob is always important, but even moreso in this economy,” Lindblom said. “Ittakes a certain type of person to besuccessful in the credit and collectionindustry and it’s important to identifythe best candidates to give you an edgeon your competition and to help yousurvive.” cm
For member-exclusive discount codesand contact information for eachAlliance ACA program, visit ACAOnline at www.acainternational.org/alliance.
CompetitiveAdvantage
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Solutions
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ACA International takes calls virtually every dayfrom vendors who are eager to offer ACA memberstheir products and services. They all want theendorsement of ACA International to become an Alliance ACA vendor.
We have reviewed many products and services from manycompanies, but only eight have passed our stringent due diligenceprocess to become Alliance ACA-endorsed vendors.
Companies cannot buy this coveted distinction. It must be earned byconsistently demonstrating their ability to provide thoughtful, innovativeproducts and services that serve the credit and collection industry. Mostimportantly, they must provide superior value and attention to customer service.
Discover the advantages of Alliance ACA products and services and enjoy the savings!
Visit http://www.acainternational.org/alliance today for more information about Alliance ACA and how each featured program can help you find a successful solution!
Alliance ACA Products and Services• ABC Telecommunications Management & Consulting • DHL and FedEx Shipping
• CT Corporation Registered Agent Services • LexisNexis Screening Solutions
• Johnson/Anderson Envelopes and Printing Services • The Rainmaker Group Job Benchmarking
• OfficeMax Office and Facility Supplies
Many ask.Few are chosen.
stuck with multiple mortgages they can’tafford to pay.
Investment property owners havestarted renting out their properties in aneffort to avoid foreclosure, which hasincreased competition in the housingmarket.
“Apartment communities end upcompeting with very desperatehomeowners,” he said. “You can rent ahouse for about what it costs to rent anapartment.”
Thomas, who manages thecollections for 12 of Ovation’s 18 luxuryrental apartment communities, remindscustomers of the risks that come alongwith renting a home in today’s economy.“You don’t know if that home is going tobe foreclosed on,” he said. “There arealso advantages to renting an apartmentover a home, including a lower securitydeposit.”
For the most part, the type of debtOvation residents accrue is back rent or
fees they owe under theterms of the lease. Basedon an analysis fromJanuary 2008 to June2008, Ovation foundthat more than half ofthe company’s bad debtcould be attributed toaccelerated debt—rentresidents didn’t paybecause they moved outbefore the end of theirlease.
“People are losingtheir jobs, which makesthem unable to affordtheir living expenses,”Thomas said. “They endup having to leave but,unfortunately, they stillowe that rent.”
For a major portion of the creditindustry, the implications of thehousing market downturn have
occurred on a large scale. However, thenumber of foreclosures reported insome regions has caused creditors totake a closer look at their ownbusinesses.
Nevada posted the nation’s highestforeclosure rate in October, with one inevery 74 housing units receiving aforeclosure filing, according to theRealtyTrac October 2008 U.S.Foreclosure Market Report.
Foreclosure filings were reported on14,483 Nevada properties in October,an increase of 11 percent from theprevious month and up nearly 119percent from October 2007.
Robert Thomas, account managerfor Ovation Property Management inLas Vegas, said investors planning toflip houses they purchased in the boomperiod over the past 10 years are now
Credit Crunch Ripple EffectsAs foreclosures and delinquencies increase, creditors look for ways to maintain their businesses
Before renting out one of its units,Ovation leasing agents run a creditreport on applicants to determine theirmortgage history. In the past year,Thomas has seen the number offoreclosures on credit reports rise.
Although a number of credit cardcompanies and lenders have tightenedtheir lending standards, Ovation’sapproval standards haven’t changed inthe last five years.
“Our main goal is to keep occupancyup, so I think we’re more willing to bemore forgiving now than in the past,”Thomas said. “When you’re at 95percent occupancy, you have the luxuryto be more stringent, but when you’re inthe low 90s, you want to get theoccupancy up.”
Many apartment communities offerrenters some sort of incentive orconcession for signing a lease. Thomassaid Ovation typically offers the firstmonth’s rent to residents in addition togift cards to major retail outlets.
“We’ve tried to work with peoplebecause of the economic times, butthere’s a point where we have to drawthe line,” he noted.
Although debt loads have increasedin the apartment industry and totaloccupancy has decreased in some areas,Ovation hasn’t seen a decrease indemand.
“The increase in bad debt really hasto do with the fact that people are lessable to spend as much on their home asthey could in the past,” Thomas said.
Nevada isn’t the only state feeling thehousing market crunch. Floridareported one foreclosure filing for every157 housing units in October—the thirdhighest foreclosure rate in the nation.
Martin Chapman, chief operatingofficer for Flamingo Financing Inc. in
By Rachel Remleycredit world
30 I January 2009 Collector
Sunrise, Fla., said Florida began toexperience a downturn six monthsbefore the rest of the country becausetourism and construction, the primarydrivers of state’s economy, were hitsimultaneously as the credit industrybegan to collapse.
“We started noticing ripples in theeconomy as early as the beginning of2007,” Chapman said. “Initially westarted seeing problems when gas pricesstarted going through the ceiling.”
Flamingo, which provides automobilefinancing for the subprime market, hasseen delinquencies increase as gas pricesrise. Chapman said although Flamingo’sfigures show it often takes just a few daysfor delinquencies to increase when gasprices go up, it has taken nearly threemonths for delinquencies to declinesince prices have decreased.
“It’s going to be very hard for theaverage consumer to rebound rightnow,” he said.
Some creditors have stoppedgenerating new business in the wake ofcurrent economic conditions. In aneffort to adapt, Flamingo has started tolimit the number of loans it extends toconsumers and has tightened lendingstandards.
“We double- and triple-verify everystipulation for the loan,” Chapman said.“In the past, we would accept a pay stubas proof of employment. Now we callto verify or we look at bank statements
January 2009 Collector I 31
32 I January 2009 Collector
credit world
that show the money was actuallydeposited.”
In addition to adopting morestringent lending requirements,Flamingo outsources its repossessionmanagement so collectors can focus oncollecting. Plus it recently switchedfrom monthly pay schedules to weeklypay schedules.
“Because of the high-risk nature ofthe loans we buy, we prefer they pay ona weekly basis,” Chapman said.
Although Flamingo’s percentage ofrepossessions has remained the same,Chapman said the number of skips hasincreased dramatically. “People are
taking the vehicles and driving acrossstate lines, making it extremely hard tolocate these cars,” he said.
In both Las Vegas and Florida, thedecrease in new home construction hashad an adverse effect on the job marketand population growth.
“It was booming in the earlier part ofthis decade and now it’s slowed to thepoint where jobs aren’t on the rise [inLas Vegas] anymore,” Thomas said.
In Florida, Chapman said thedownturn has affected the number ofloans his company has originated in thepast six months. Flamingo went fromoriginating 1,200 auto loans in February
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2007 to approximately 400 loans inFebruary 2008.
“A lot of our clientele work inconstruction and lost jobs when theindustry collapsed, so they can’t affordthe down payment on a vehicle,” hesaid. “It’s a ripple effect.”
Similarly, apartment communitiesthat were converted intocondominiums during the housingboom are sitting empty. “There are toomany houses on the market and notenough buyers,” Thomas said. “Priceshaven’t bottomed out yet.”
Thomas speculated that the first sixmonths of 2009 will determine howquickly market conditions will improveand, until then, the housing industrywill continue to feel the crunch.
“It’s interesting to see how theapartment industry affects and isaffected by the housing industry,” hesaid. “It’s all tied together.”
In the meantime, Chapman believesbusinesses of all sizes should betightening their belts until marketconditions improve.
“This is no time for luxury expensesof any kind or any that aren’t 100percent necessary to running yourbusiness,” he said. “Any businessdecision that is made today needs to bemade keeping in mind that thingsmight not improve for the next 12months.” cm
Rachel Remley is a communicationsspecialist for ACA’s Member ServicesDepartment.
To purchase the CD-ROM recordingof ACA’s recent teleseminar, IncreasingCollection Rates in Troubled Times,visit the ACA Store athttp://www.acainternational.org/store.
ACA’s Insurance Products and Services
Safety in Numbers
Discover how your agency may benefit.Contact ACA’s Risk Management Departmentat +1(952) 926-6547 or [email protected]
As a participant you will have access to:
• A stable offering of sound coverage, including Errors & Omissions, Business Package, Work Comp,Umbrella, and Crime.
• A personal representative servicing your industry exclusively.
• A dedicated claims team and defense panelspecializing in collection law.
• Group representation for coverage and price negotiations.
• ACA’s Collection Notice Review (CNR) Program.
Nature provides us with clear examples of group endurance. Those that participate in ACA’s Insurance Programs haveweathered many storms together and are prepared for those yet to come. Their participation is a guiding force indetermining legislative initiatives and industry standards. This force has changed perception.
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http://www.acainternational.org/convention
Play Your Cards Right!
January 2009 Collector I 35
By Kristine Adams
In addition to a new president andCongress, 2009 also brings a new startfor most state legislatures across the
country. More than 40 legislatures are setto convene this month, and ACAInternational anticipates many willaddress issues critical to the credit andcollection industry this year.
In 2008, legislation in Florida, Illinois,Iowa, Kansas, Mississippi, New Jersey,Oklahoma, South Carolina andTennessee was introduced to permit aprivate third-party debt collector torecover outstanding government debt. Anumber of the bills introduced wouldpermit a government entity to contractwith a private third-party debt collectorto recover the outstanding debt and makethe consumer responsible for anycollection fee incurred by thegovernment entity resulting from itscontract with the collection agency.
With government budget deficitconcerns still looming, many states willcontinue to focus on the recovery ofoutstanding government debt, such asunpaid court costs, personal and propertytaxes, and other delinquencies owed tomunicipalities, counties and the state, tobring revenue into state and localgovernment coffers. These efforts couldmean new opportunities for third-partydebt collectors.
Also on the horizon is the issue ofconsumer privacy. In November 2008,the Massachusetts Office of ConsumerAffairs and Business Regulation releasedStandards for the Protection of PersonalInformation of Residents of theCommonwealth, as required under thestate’s identity theft prevention law of2007. These regulations establish astringent standard for businesses toprotect and secure a Massachusettsresident’s personal information.
The regulations require any personwho “owns, licenses, stores or maintainspersonal information” about aMassachusetts resident to “develop,implement, maintain and monitor acomprehensive, written informationsecurity program” to protect aMassachusetts resident’s personalinformation. Personal information isdefined as a combination of theMassachusetts resident’s name plus oneother data element, such as a SocialSecurity number or a financial, credit ordebit account number. The regulationsapply to personal information in anyform, including electronic, paper, visualand audio.
Although other states have yet toenact similar regulations, ACA is keepingclose tabs on any developments. Statesoften draft their proposals aroundsuccessful efforts in other states. In 2001,California adopted changes to the civilcode that give consumers the ability toenact a “security freeze,” blocking accessto their entire credit report. Since then,40 other states have approved or enactedsimilar provisions.
In addition, given the growingeconomic uncertainty over credit andlending, the industry is likely to faceincreased scrutiny. Some states havealready enacted measures to reduce ordelay foreclosures. In July, CaliforniaGov. Arnold Schwarzenegger signed S.B.1137, which requires lenders to contacthomeowners 30 days before filing anotice of default, the official beginning ofthe foreclosure process; encouragesbanks to explore loan-restructuringoptions before initiating foreclosures;mandates that property owners,including banks, maintain foreclosedproperties; and doubles the requiredeviction notice for renters in foreclosed
Keeping Tabs on State Activity As 2009 legislative sessions get underway, ACA will monitor potential industry issues at the state level
properties. Similar measures may beintroduced in other legislatures in 2009,however, it’s unclear whether statelegislatures will also target garnishmentand other post-judicial remedies toprotect consumers.
ACA will continue to monitor issues atthe state level as legislative sessions getunderway. While the association’s stateunits serve as the primary advocacy groupfor state legislation, ACA can play a vitalrole in supporting those efforts. ACA’sgovernment affairs staff can provideinformation about whom to contact aboutspecific concerns in your state; help stateunits draft position papers; and reviewproposed bills or current laws.
Another critical tool ACA offersmembers is the State Action Fund.Administered by ACA’s InterstateCommittee, funds are granted to stateunits to help pay for outside help to passor defeat state legislation deemed criticalto the continued success of the industry.
Finally, ACA members can alsosubscribe to ACA’s State Tracking ActionNetwork (STAN) to stay up-to-date onstate-level legislation. STAN, availablethrough ACA’s Web site, tracks bills andcommittee meetings in all 50 states.STAN can search for legislation by topicor by state and includes a “politicaloutlook”—a summary of the most recentand relevant political information on thelegislation. Each STAN subscriptionincludes e-mail alerts when action istaken on legislation.
For more information on how ACA’sGovernment Affairs Department canassist you, please call +1(952) 926-6547 ore-mail [email protected]. cm
Kristine Adams is ACA’s governmentaffairs specialist.
government affairs
36 I January 2009 Collector
Businesses can contain costs inmany different ways: Reducingpayroll expenses, office supply
use and utility bills; saving on postage;and reviewing vendor contracts, forexample. But before you grab thatcalculator and start slashing, consider asimple but easily overlooked opportunityto contain costs: streamlining yourpolicies and procedures.
As your business has grown, policiesand procedures have been developed toaddress a variety of issues, includingcompliance, security, informationtechnology and employment. Thesepolicies and procedures may be quitelong and extensive, requiring allemployees—from management down—to understand them and reactaccordingly.
You may not notice it, but the timespent designing, implementing andunderstanding these policies andprocedures can be expensive in terms ofemployee productivity, which could be
used for more cost-effective purposes.Identifying how employment resourcescan be better used requires you toconsider the “opportunity cost” of yourdecisions.
Opportunity cost is the cost ofmaking a decision. When you make adecision, you forego an alternativedecision, which could be less costly butmore productive. Although notconsidered part of a financial statement,opportunity cost should be a criticalfactor in a company’s decision-makingprocess.
Streamlining your policies andprocedures can reduce the opportunitycost of your workforce. If your policiesand procedures are understandable andmesh well with each other, yourworkforce spends less time learning andimplementing them. In turn, the timesaved can be used for more cost-effective purposes, such as sales andmarketing, collection efforts, etc.
Streamlining policies and procedures
begins at the top, as only efficientmanagement can help maximize lower-level employee productivity.Maintaining and updatingcomprehensive policies and proceduresalone takes up significant and importanttime for managers who could, forexample, be educating your collectionstaff.
Again, consider the opportunity cost.How much productivity does executivemanagement lose if it must spend themajority of its time updating,maintaining and educating staff about itspolicies and procedures? What otheractivities could management be doing ifthose policies and procedures wereeffectively streamlined?
Streamlining policies and proceduresshould not be confused with ignoringthese important rules—quite theopposite. Your internal policies andprocedures are the cornerstone toensuring your employees understandcost containment. But in order for thosepolicies and procedures to remain cost-beneficial for your business, you have toconsider whether they could invokecompliance without squanderingproductivity. The bottom line: yourpolicies and procedures must maximizecompliance and productivity. cm
David Cherner is ACA International’slegal counsel and legislative director ofstate government affairs.
A Matter of Policy Streamlining policies and procedures can maximize productivity and contain business costs
campus acaBy David Cherner
During times of economic uncertainty, staff training is as important as ever to retain
quality employees and maintain your competitive edge. Campus ACA’s monthly
teleseminars are a great way to train more staff in less time because it’s possible to
educate as many people as you can gather around a telephone.
Teleseminars focus on timely issues and the concepts, and skills presented use real-life
examples that can be put into practice on the job that very day. Studies show that in
training formats where skills are applied during learning, such as teleseminars, 97 percent
of participants will follow through and use the new skills on the job. Teleseminars keep
your entire staff abreast of up-to-the-minute issues in the credit and collection industry
while improving your bottom line.
E D U C A T I O N
Teleseminars Help Maintain Competitive Edge
January 2009 Collector I 37
Individuals who achieve certificates have demonstratedtheir knowledge of productive and compliantprocedures. Certificates are earned by those individualswho have completed prescribed coursework and havepassed the final exam. All specialists receive acertificate and publication of their names in Collectormagazine. For more information about this program,contact ACA’s Education Department [email protected] or +1(952) 928-8000, ext.215.
CREDIT AND COLLECTION SPECIALIST
Nevada—Robert Thomas
PROFESSIONAL COLLECTION SPECIALISTS
Alabama—Landon Rogers, Deavin Willett
Arkansas—Angela Smith
California—Robert Bruce
Florida—Sandy Justice, Laura Powell, Pamela Toti
Illinois—Qyjuana Aken, Lawrence Helferich, AlmaMurillo, Maureen Wilson
Indiana—Woody Burchett, Tara Maisonneuve, HeatherSteiner
Iowa—Jill Christianson
Kansas—Annie Johnson
Kentucky—Amber Cowan
Michigan—Khemberlynn Bell, Kristie Pitcher
Minnesota—Cally Christensen, Kraig Krohn
Missouri—Sabrina Bates, Kayla Bauer, Besima Cregan
New Hampshire—Robin Lee Brown
New Jersey—Nicole Szabo
North Carolina—Brent Liner, Christine Raphael
Ohio—Jeremy Miller
Oregon—Eden Daniken, Kathleen Kuhn-Fields, AshleyScott
Tennessee—Kim Cooper, Shanna Harmon, AnthonyHutson, Christian Martinez, Leila Sarras, MargaretScalf, Kristine Young
Texas—Travis Barber
campus aca
Offer your staff a comprehensive and dynamic learningenvironment with GeoLearning Web courses. CampusACA is teaming with GeoLearning Inc. to offer more than300 Web courses for everyone in your organization, 24hours a day, seven days a week.
The self-paced online courses are grouped into four major categories: • Business Skills and Professional Development.• Workplace Safety and Human Resources Compliance. • Desktop Computer Skills. • Information Technology Skills.
For more information about purchasingGeoLearning Web courses, visit the Web Courses section in the ACA Online Store atwww.acainternational.org/store.
GeoLearning: ACA’s New Technology Training Resource It’s the answer to advancing your employees’ professional growth.
The new members listed above are designated as either “agency,” “asset buyer,” “attorney,” “creditor” or “vendor,” based on ACA International’s five membership categories.Agency members provide a variety of accounts receivable management services to more than one million creditors. Asset buyer members buy, sell, finance or service asset saletransactions. Attorney members practice law in the credit and collection arena, representing fellow ACA members. Creditor members are experts in credit management, lending andfirst-party collections, holding positions such as lenders, credit union executives, managers and credit counselors. Vendor members supply goods or services to the credit andcollection industry.
38 I January 2009 Collector
membership
DIVERSIFIED TELECOMMUNICATIONSCONSULTING, LLC, Scottsdale, Ariz. (vendor)
CYNTHIA D. KINNEY, Bragg & Kuluva, Los Angeles,Calif. (attorney)
STEPHEN M. MACPHAIL, Bragg & Kuluva, LosAngeles, Calif. (attorney)
THE CREDIT BUREAU OF SANTA MARIA INC.,Redding, Calif. (agency)
KENYON M. YOUNG, Bragg & Kuluva, San Diego,Calif. (attorney)
TRACY C. LEMMON, Bragg & Kuluva, San Francisco,Calif. (attorney)
NACM COLORADO, Lakewood, Colo. (agency)
KAREN LAHEY, Hertzmark Crean & Lahey, LLP,Waterbury, Conn. (attorney)
MICHELLE FITZGERALD, Del-One: Delaware FederalCredit Union, Dover, Del. (creditor)
RELIABLE RETURNS, LLC, Fort Myers, Fla. (agency)
SAS 70 SOLUTIONS, Tampa, Fla. (vendor)
DEBORAH CALLAWAY, Simon Chase & Associates,LLC, Norcross, Ga. (creditor)
SHARON HALL, Simon Chase & Associates, LLC,Norcross, Ga. (creditor)
RESURGENCE FINANCIAL, LLC, Northbrook, Ill.(agency)
STEPHENY STOTTLEMIRE, JD Byrider, Glen Burnie,Md. (creditor)
LESLIE C. BENDER, PROFESSIONAL ASSOCIATION,Timonium, Md. (agency)
MARY DELANEY GREER-BADER, DTE Energy,Detroit, Mich. (creditor)
DAVID L. JOHNSON, DTE Energy, Detroit, Mich.(creditor)
ALESIA SMITH, DTE Energy, Detroit, Mich. (creditor)
CHRISTINE WISNIEWSKI, DTE Energy, Detroit, Mich.(creditor)
P & M CORPORATE FINANCE, Southfield, Mich.(vendor)
C & H COLLECTION SERVICES INC., Cherry Hill, N.J.(agency)
DEBBIE LANCASTER, Hunterdon Radiological Assoc.,Clinton, N.J. (creditor)
LISA SINGLEY, Hunterdon Radiological Assoc., Clinton,N.J. (creditor)
MITCHELL ALLEN & SONS DEBT RECOVERY LLC,Old Bridge, N.J. (agency)
FORREST H. DYER JR., Continuum Health Alliance,Voorhees, N.J. (creditor)
WINDHAM PROFESSIONALS INC., East Aurora, N.Y.(agency)
DUSTY TINSLEY, Midwest Inc., Fairport, N.Y.(attorney)
PEC ASSOCIATES, Lockport, N.Y. (asset buyer)
RICHARD SOKOLOFF, Richard Sokoloff Attorney AtLaw, Medford, N.Y. (attorney)
RHONDA L. EPSTEIN, Hoey, King, Toker & Epstein,New York, N.Y. (attorney)
DAVID S. KASDAN, Hoey, King, Toker & Epstein, NewYork, N.Y. (attorney)
TOM BROADHEAD, Genesis Financial Solutions Inc.,Beaverton, Ore. (attorney)
CLINTON TAPPER, Professional Credit Service,Eugene, Ore. (attorney)
TIFFANY SHARKETTI, Preferred Auto Credit Exchange,Ellwood City, Pa. (creditor)
MILLENNIUM HOLDINGS GROUP, LLC, EastNorriton, Pa. (agency)
BLUE MARSH RECOVERY, LLC, Sinking Springs, Pa.(agency)
ARC FINANCIAL MANAGEMENT, LLC, StateCollege, Pa. (agency)
LETTERLOGIC INC., Nashville, Tenn. (vendor)
AMERICAN MUNICIPAL SERVICES, Carrollton, Texas(agency)
NECS, Dallas, Texas (agency)
COLE, TANNER & WRIGHT INC., Houston, Texas(agency)
ALLEN L. ADKINS & ASSOCIATES, P.C., Lubbock,Texas (agency)
MELODY WILLIAMS, MGC Mortgage, Inc, Plano,Texas (creditor)
ACA International Welcomes New MembersED WALTON, Barron, Newburger, Sinsley & Wier PLLC,
Terrell, Texas
PAUL A. GILL, Accelerated Financial Solutions,Chesapeake, Va. (attorney)
TIMOTHY S. BACKES, Xpress Cash Management,Brokaw, Wis. (creditor)
DENNIS SCHENK, Associated Bank, N.A., StevensPoint, Wis. (creditor)
MANDANTE S.A., Buenos Aires, Argentina (agency)
JAMAICA COLLECTION & RECOVERY SERVICESLTD, Kingston, Jamaica (agency)
MCCONNEL LAW OFFICE, Istanbul, Turkey (agency)
SYTEL LIMITED, Aylesbury, Bucks, United Kingdom(vendor)
NEWMAN & COMPANY LTD, Leeds, United Kingdom(agency)
MEMBERSHIP AS OF NOV. 30, 2008Agencies: 3,318Asset Buyers*: 65Attorneys: 917Creditors: 707Vendors: 181
TOTAL MEMBERS: 5,188*Total number of asset buyer members, including thoseholding other memberships, is 345.
AGENCY MEMBERS REINSTATEDCLAIMS RESOURCE SERVICES INC., Campbell, Calif.CDR FINANCIAL SERVICES, LLC, Long Beach, Calif.GENPACT SERVICES LLC, Gurgaon, Haryana, IndiaPAHWA IMPEX PRIVATE LIMITED, New Delhi, IndiaCOLLECTION AGENCY ACM, Moscow, Russia
AGENCY MEMBERS TERMINATEDAgencies ClosedNORTH AMERICAN COLLECTION AGENCY INC.,Edgemont, Pa.SPECIALIZED CREDIT SERVICES LLC, Fond Du Lac, Wis.
January 2009 Collector I 39
ACA Thanks Current Members for Their Recruitment Efforts8 MEMBERS
Thomas Stockton, Carrollton, Texas
5 MEMBERSKathleen Kinggard, Miami, Fla.Eric Mock, Park Ridge, Ill.
4 MEMBERSDebbie Gatti, Marietta, Ga.Terri Shepherd, Burnsville, Minn.Gill Vigneault, East Brunswick, N.J.
3 MEMBERSChris Coffman, Shawnee Mission, Kan.Sean Lamb, Pasco, Wash.Eric Snyder, Mansfield, OhioRoger D. Weiss, Saint Louis, Mo.David Winters, Salisbury, Md.
2 MEMBERSJessica Devenish, Provo, UtahMarel Giolito, Las Vegas, Nev.Stephen Hooley, Elkhart, Ind.Roy Nickerson, Spring Valley, Calif.
1 MEMBERDavid Barnard, Indianapolis, Ind.Terri Boettcher, Longmont, Colo.Lawrence Cassidy, Sacramento, Calif.Jennifer Dietrich, Hartland, Mich.Brian Dunleavy, Burnt Hills, N.Y.Fran Fisher, Fairfax, Va.William E. Hopkinson, Charlottesville, Va.Holly Horn, Oklahoma City, Okla.Greg Lang, Tempe, Ariz.Christian Lehr, Phoenix, Ariz.Cara May, Owensboro, Ky.
ACA salutes and thanks these individuals for recruiting new members. Recruiters of five or more new members are recognized with certificates of appreciation and in a final year-end list published in July. In addition, U.S. unit membership chairs compete for Unit Membership Incentive Awards. For membership information, contact ACA’s MembershipDepartment at +1(952) 926-6547 or [email protected].
L. Wayne McBride, Mobile, Ala.Roger Medlin, Chattanooga, Tenn.Samantha Oberhausen, Jackson, Miss.Joe Spiek, Phoenix, Ariz.Yvonne Thornton, Eugene, Ore.
RECENTLY ADDED/UPDATED DOCUMENTSFCC Issues Declaratory Ruling Regarding Dialing Wireless
Numbers (2pp) Revised 11/25/08 1252FCC Issues Declaratory Ruling Regarding Dialing Wireless
Numbers (long version) (6pp) Revised 11/25/08 1253FCC Issues Declaratory Ruling Regarding Dialing Wireless Numbers
Frequently Asked Questions (9pp) Revised 11/25/08 1300Massachusetts Data Security Regulations (2pp) Revised 11/21/08 3003Natural Disasters and Collection Efforts (2pp) Revised 11/21/08 3010TCPA: An Overview of the FCC Regulations (7pp) Revised 11/25/08 9515TCPA: Technology Requirements for Automatic Dialing Devices,
Predictive Dialers and Caller ID (4pp) Revised 11/25/08 9518Voice Mail Messages in the Wake of Foti (7pp) Revised 11/19/08 1146
1099-C1099-C FAQ (4pp) Revised 12/20/05 23281099-C Statements to Consumers—Don’t Attempt
Collection (2pp) Revised 10/4/06 23411099-Cs: Not Just for Credit Grantors (7pp) Revised 4/4/05 23161099-Cs: Reporting Discharges of Indebtedness (16pp)
Revised 10/31/05 2324Collecting After Filing Form 1099-C (3pp) Revised 10/4/06 2340Debt Purchasers: 1099-C Reporting Requirements and
the FDCPA (2pp) Revised 10/17/07 4555
ASSET BUYINGBuying Receivables (7pp) Revised 8/30/07 4551Debt Buyers Must Now Be Licensed in Massachusetts (2pp)
Revised 6/22/06 2046Debt Purchasers Required to Send Notice of Purchase to
Consumers (2pp) Revised 7/6/06 4554Law Issues for Debt Purchasers (6pp) Revised 11/22/04 4552State Licensing Requirements for Debt Purchasers (21pp)
Revised 8/20/08 4553
BANKRUPTCYBankruptcy and Pre-Petition Checks (6pp) Revised 8/408 1175Bankruptcy and Spouses (3pp) Revised 9/5/06 2338Bankruptcy Code and the FDCPA (7pp) Revised 12/14/07 1166Bankruptcy Reform: Conversion (1p) Revised 6/16/05 2320Bankruptcy Reform: Duty to Negotiate with Credit Counselors (3pp)
Revised 10/21/05 2325Bankruptcy Reform: Mandatory Credit Counseling
and Debtor Education (3pp) Revised 6/15/07 2318Bankruptcy Reform: Notice to Creditors (2pp) Revised 6/29/05 2322Bankruptcy Reform Overview (4pp) Revised 7/6/05 2323
Obtaining the information you need is now easier than ever thanks to Fastfax, ACA International’s fax-on-demand system. Simply dial thephone number below and, when prompted, enter your ACA member number, the codes indicating which documents you would like andyour fax number. Within minutes, the documents you requested will be automatically faxed. An updated list of documents and codes canbe found by requesting document #100. This service is available only to ACA members, and it’s completely free. Compliance-relatedFastfax document may be downloaded from ACA’s E-Compliance Web page at http://www.acainternational.org/ecompliance.
U.S. Toll-free: (800) 254-8459 International: +1(732) 544-5903
Bankruptcy Reform: Redemption (2pp) Revised 6/15/05 2321Bankruptcy Reform: Support Obligations (2pp) Revised 6/13/05 2319Debts Incurred After Filing Bankruptcy (2pp) Revised 9/7/06 2339Duty to Screen for Bankruptcy (4pp) Revised 8/7/07 1156
CHECKS AND ELECTRONIC PAYMENT TRANSACTIONS Accord & Satisfaction (3pp) Revised 3/31/04 2303ACH Network Overview: Accounts Receivable (ARC)
Entries (3pp) Revised 10/14/05 1204ACH Network Overview: POP Entries (2pp) Revised 10/14/05 1200ACH Network Overview: RCK Entries (3pp) Revised 10/14/05 1201ACH Network Overview: TEL Entries (2pp) Revised 10/14/05 1202ACH Network Overview: WEB Entries (4pp) Revised 10/14/05 1203Answers to Check Collection Questions (4pp) Revised 2/23/06 1205Check Acceptance and Identification (4pp) Revised 7/3/07 1206Check-Related Statutes of Limitations (39pp) Revised 2/26/07 1223Collecting Debts Online (6pp) Revised 11/21/06 1207Choice of Law Issues in the Check Industry (3pp) Revised 8/4/03 4007Credit Cards, Consumers and Collection Agencies (3pp)
Revised 5/6/05 9510Overview of the ACH Network (8pp) Revised 5/11/05 4013Overview of PADDs, EFTs and ACH Transactions (3pp) Revised 1/5/05 4015Payday Loans Under Fire (3pp) Revised 3/26/03 4002Payment Card Data Security (4pp) Revised 7/9/08 1173Payment Transaction Fees (5pp) Revised 5/27/08 4006Recurring EFTs, PADDs and ACH Transactions—Are They
Treated as Post-Dated Checks? (4pp) Revised 9/25/08 4011Regulation CC (2pp) Revised 2/23/06 1217Regulation E (6pp) Revised 9/25/08 2330Service Fees: When is a Point of Sale Sign Required? (4pp)
Revised 6/6/06 1216Service Fees for Electronic Transactions (2pp) Revised 2/23/06 1219Service Fees for Returned Checks (3pp) Revised 10/1/08 3004Signatures of Negotiable Instruments (53pp) Revised 10/9/03 1220Stale Checks (2pp) Revised 6/1/07 1221State Check Chart (9pp) Revised 4/29/07 3007State Requirements Regarding Notice of Dishonor and Affidavit
of Mailing for Check Collection (64pp) Revised 4/7/06 1215State Service Fee Statutes (50pp) Revised 5/20/08 1218Stop Payment Checks (2pp) Revised 5/22/06 1222Undetermined Service Fees (3pp) Revised 9/23/08 2065
CREDITOR ISSUESThe Basics of Business Entity Selection (5pp) Revised 11/21/06 2054Credit Grantors and the FDCPA (3pp) Revised 9/14/01 8004
fastfax
40 I January 2009 Collector
January 2009 Collector I 41
Reporting Commercial Debt on a Consumer’s Credit Report (2pp)Revised 9/5/06 1528
Responsibilities of Data Furnishers and CRAs Upon Notification from a Consumer Dispute (3pp) Revised 10/25/05 1526
FAIR DEBT COLLECTION PRACTICES ACT (FDCPA)Agency Names (7pp) Revised 8/5/08 1134Amendments to the FDCPA (3pp) Revised 11/15/06 2051Attorney Communications and the FDCPA—A Case Law Approach
(5pp) Revised 12/18/07 1169“Attorney In Fact” is not an “Attorney” for Purposes of FDCPA (2pp)
Revised 8/20/99 1123Attorney Involvement and the FDCPA (3pp) Revised 11/21/06 2055Bona Fide Error 1692k(c): Adequate Procedures (2pp) Revised 6/19/02 1129Caller ID and the FDCPA (4pp) Revised 12/18/07 1168Can I Collect on a Holiday? (1p) Revised 11/17/06 1111Can Knowledge be Imputed to a Debt Collector? (4pp)
Revised 6/7/07 2344Can You Contact a Consumer if the Consumer’s Attorney Ignores
Your Requests? (5pp) Revised 3/16/03 1138Cease Communication Requests (3pp) Revised 6/7/06 1136Class Certification (3pp) Revised 7/21/06 2050Collection Efforts During the 30-Day Validation
Period (7pp) Revised 7/2/08 1172Communicating with Consumers Via E-mail (3pp) Revised 7/10/07 2332Communicating with Debt Settlement Companies (4pp)
Revised 10/22/08 3002Continuous Violations Doctrine (3pp) Revised 6/7/07 2345Cooperating with Law Enforcement Agents (3pp) Revised 1/8/07 2342Court Raises Reservations Over Collection Agency Call Trap
Programs (2pp) Revised 10/9/01 2309Decoding Camacho: Its Effect on Collection Letters (3pp)
Revised 2/11/06 2331The Effectiveness of Rule 68 Offers of Judgment in
Class Action Lawsuits (5pp) Revised 3/12/07 2060Employment Verification: When is it Permitted (3pp) Revised 4/15/04 1135Envelopes and the FDCPA (2pp) Revised 10/10/08 1155Frequency of Collection Calls: What Constitutes Harassment? (3pp)
Revised 4/3/08 2333FTC Advisory Opinion on FDCPA Continues to Create Questions (7pp)
Revised 6/20/03 1139FTC Permits Notice of Ceasing Collections (3pp) Revised 12/12/07 1165In Person Collections (5pp) Revised 12/14/07 1167Is the Lack of State Licensure a Violation of the FDCPA (4pp)
Revised 4/23/07 1152Itemization of a Consumer’s Debt (5pp) Revised 9/23/08 1251Kickbacks & Referral Fees Have FDCPA Implications (3pp)
Revised 12/15/99 1125Kojetin Decision on Add-On Fees May Create Problems for
Collectors (3pp) Revised 7/29/08 2002Mini-Miranda Disclosure (3pp) Revised 5/5/06 1145Mistake of Law as a Bona Fide Error Defense (4pp) Revised 2/1/07 1150Multiple Agencies or Creditors Collecting on the Same
Account (2pp) Revised 8/2/06 1147Multiple States’ Special Text in a Single Collection Letter (4pp)
Revised 10/6/08 1141
The Equal Credit Opportunity Act (4pp) Revised 9/22/06 8044Extending Credit to U.S. Service Members (7pp) Revised 10/4/07 8047The Fair Credit Billing Act (6pp) Revised 7/29/08 8032The Fair Credit Billing Act—What Creditors Should Know (3pp)
Revised 11/1/06 8045Marketing Creditor Services with Integrity (3pp) Revised 11/21/06 2058State Laws Covering First-Party (Creditor) Collections (15pp)
Revised 5/20/08 2044State Laws Requiring First-Party (Creditor) Collectors to Provide
Mini-Miranda Disclosure (3pp) Revised 12/12/06 8050When Customers Withhold Payment (2pp) Revised 6/15/07 2346
FAIR CREDIT REPORTING ACT (FCRA)Adverse Action Requirements Under the FCRA (6pp) Revised 8/12/08 1176The Brady Decision: Disputed Debts and Credit Reporting (5pp)
Revised 12/12/07 1113Check Verification and the FCRA (4pp) Revised 7/12/05 4001Data Furnisher Liability When Investigating Consumer Disputes
Under the FCRA (3pp) Revised 3/26/08 1256Date of Delinquency Reporting Requirements (3pp) Revised 4/22/08 1510Direct Disputes from Consumers to Data Furnishers under FCRA (3pp)
Revised 3/9/04 1522FCRA Disposal Rule in Effect (3pp) Revised 6/7/05 1525FCRA Identity Theft Provisions: Blocking Information Resulting from
Identity Theft (4pp) Revised 2/26/04 1521FCRA Identity Theft Provisions: Fraud Alerts and Active Duty
Alerts (6pp) Revised 1/23/04 1513FCRA Regulations Requiring Implementation of Identity Theft Prevention
Program (6pp) Revised 10/29/08 1250FCRA: Relation to State Laws (9pp) Revised 2/9/04 1518FCRA: Sharing Financial Information with Affiliates (7pp)
Revised 4/22/08 1512FCRA to Require Disclosures for Loans Secured by Residential
Property (2pp) Revised 2/23/04 1520FCRA Truncation Requirements: Credit and Debit Cards and
Social Security Numbers (5pp) Revised 8/6/08 1514Financial Institutions’ Duty Under the FCRA to Provide Consumers
with Notice of Furnishing Negative Information (5pp) Revised 1/25/05 1519
New Requirements for Credit Reporting Agencies: Discrepancy in Address (2pp) Revised 8/6/08 1517
New Rules Pending Specifying Format of Disclosure of Contact Information in Connection with Unsolicited Offers of Credit and Insurance (2pp) Revised 2/2/04 1516
Ninth Circuit Decision Impacts Collectors’ Ability to Obtain Consumer Reports (3pp) Revised 10/30/07 1163
Overview of the FACT Act Amendments to the FCRA (3pp) Revised 5/19/05 1523
Permissible Purposes Under the FCRA (6pp) Revised 10/30/07 1154Private Right of Action Under FCRA Section 615 (4pp)
Revised 11/21/06 2052Regulation FF: FCRA Medical Information Regulations (3pp)
Revised 3/13/06 1527Medical Information Furnishers and the FCRA (5pp) Revised 12/18/07 1515Reportable Information (6pp) Revised 10/21/08 3001
fastfax
42 I January 2009 Collector
HEALTHCARE Credit Reporting Medical Accounts Under HIPAA and the FCRA (4pp)
Revised 1/29/04 6259HIPAA Compliance Issues for the Collection Industry (2pp)
Revised 3/6/03 6251HIPAA Readiness Checklist (5pp) Revised 3/6/03 6254HIPAA-Trained MAP Attorneys (3pp) Revised 1/19/06 6255HIPAA’s Security Rule (10pp) Revised 4/4/07 2062Hospital Billing and Collection Practices (14pp) Revised 1/21/08 2805Collecting Medical Debt: Use Due Diligence With HMO
Accounts (15pp) Revised 1/11/07 2803Medical Debts—Statutes of Limitation and Interest (4pp)
Revised 8/7/07 1158Medical Fee Splitting: Illinois Supreme Court Decision (3pp)
Revised 6/21/07 2347Protected Health Information—Application of the Privacy Rule for
Billing, Claims and Collection Agencies (6pp) Revised 1/5/03 6258With Whom Can Debt Collectors Discuss a Medical Debt
Under the FDCPA and HIPAA? (5pp) Revised 5/30/06 2335
INTERNATIONAL ISSUESAlberta Collection Laws (13pp) Revised 12/5/07 2502Australian Privacy Act of 1988 (12pp) Revised 9/5/06 8042British Columbia Collection Laws (10pp) Revised 5/4/06 2503Canadian Collection Agency Licensing Administrators (4pp)
Revised 3/14/07 2500Canadian Licensing Chart (15pp) Revised 2/23/06 3006Debt Collection in the United Kingdom (4pp) Revised 5/12/08 1171Debt Collection Down Under (11pp) Revised 8/2/06 8041FDCPA and International Collections (2pp) Revised 3/16/03 1117Manitoba Collection Laws (10pp) Revised 5/4/06 2504New Brunswick Collection Laws (11pp) Revised 5/4/06 2505Newfoundland and Labrador Collection Laws (12pp) Revised 5/4/06 2506Northwest Territories Collection Laws (11pp) Revised 5/4/06 2507Nova Scotia Collection Laws (12pp) Revised 5/4/06 2508Nunavut Collection Laws (8pp) Revised 5/4/06 2509Offshore Outsourcing (5pp) Revised 5/29/08 1257Ontario Collection Laws (11pp) Revised 6/5/06 2510Prince Edward Island Collection Laws (8pp) Revised 5/4/06 2511Outsourcing Calls to India (3pp) Revised 3/17/03 8035Quebec Collection Laws (15pp) Revised 5/4/06 2512Saskatchewan Collection Laws (12pp) Revised 5/4/06 2513Statute of Limitations for Canadian Provinces (6pp) Revised 5/4/06 2501Yukon Collection Laws (9pp) Revised 5/4/06 2514
OTHER FEDERAL REGULATIONSAre Collection Notices Required to be Sent by First-
Class Mail? (4pp) Revised 3/27/06 1143Family and Medical Leave Act of 1993 (4pp) Revised 6/4/08 8053New Federal Court Rules Impact Storage of Electronic Records (2pp)
Revised 12/12/06 8048Overview of the CAN-SPAM Act (5pp) Revised 7/11/08 8040Overview of the Sarbanes-Oxley Act (3pp) Revised 2/3/05 2315Servicemembers Civil Relief Act (7pp) Revised 1/14/05 2312Unfair Deceptive Acts or Practices (4pp) Revised 6/15/06 2336
Pre-collect Billing & the FDCPA (8pp) Revised 8/19/03 1114Sample Dunning Notices Generally Deemed to be in Compliance
with FDCPA (7pp) Revised 12/11/07 1121Settlement Offers (5pp) Revised 9/23/08 1142Technology and the FDCPA (5pp) Revised 8/6/08 1115Text of the Fair Debt Collection Practices Act (14pp)
Revised 10/13/06 1149Validation Notice Requirements (6pp) Revised 8/14/06 1148Verification of a Debt: What Does Our Agency Need to Provide? (2pp)
Revised 8/22/05 1126Vicarious Liability for Creditors and Collectors (4pp) Revised 5/18/07 2064Voice Mail Messages in the Wake of Foti (7pp) Revised 11/19/08 1146
GENERAL COMPLIANCEAudit Terminology: SOX, SAS 70, ISO 17799, COBIT and
PPMS Explained (2pp) Revised 8/2/06 2337Collecting from Home—What Agencies Should Know (4pp)
Revised 2/25/08 1301Collecting from Minors (4pp) Revised 3/26/08 1254Conducting an Agency Compliance Audit (6pp) Revised 12/27/05 2329Creating an Effective Compliance Department (4pp) Revised 12/1/05 2327Estate Collections (2pp) Revised 3/12/07 2061Natural Disasters and Collection Efforts (2pp) Revised 11/21/08 3010
GOVERNMENT SERVICES AND STUDENT LOANSChanges to Student Loan Consumers’ Rights (3pp) Revised 4/19/07 2063Discharging Student Loans Through Bankruptcy (3pp)
Revised 12/13/06 8051Student Loans and State Licensing (5pp) Revised 3/16/03 2032Understanding Federal Student Loans—An Overview (6pp)
Revised 8/26/08 1177
GRAMM-LEACH-BLILEY ACT, PRIVACY AND SECURITYBiometrics and Its Effect on the Credit and Collection
Industry (4pp) Revised 8/4/03 4009Creditors and Identity Theft (3pp) Revised 11/21/06 2053Data Privacy Strategies for Financial Institutions (4pp)
Revised 11/21/06 2056Debt Collectors and Identity Theft (3pp) Revised 9/11/06 8043E-Disposal (3pp) Revised 11/21/06 2057FTC Issues Finalized Rule on Gramm-Leach-Bliley Act (7pp)
Revised 4/3/04 2250GLBA and Its Effect on Credit Grantors & Debt Purchasers (11pp)
Revised 1/11/07 2254GLBA and Its Effect on Third-Party Debt Collectors (10pp)
Revised 1/11/07 2253GLBA and Pretext Calling (2pp) Revised 3/6/06 2256GLBA Safeguards Rule Compliance Date Rule Coming Soon (3pp)
Revised 9/25/08 2255GLBA Sample Disclosures (5pp) Revised 6/27/06 2257Model Identity Theft Prevention Program (8pp) Revised 10/13/08 3011Security Breach Notification Requirements (6pp) Revised 6/12/08 2343State Privacy Chart (6pp) Revised 9/17/07 3009States Enact “Security Freeze” Laws (64pp) Revised 9/17/07 2059
January 2009 Collector I 43
State Manager Requirements (16pp) Revised 8/16/06 2035State Mini-Miranda Disclosure Requirements (6pp) Revised 5/2/08 2045State Operational Definitions for Debt Collector and
Debt (36pp) Revised 12/28/07 2030State Requirements Regarding Resident Offices (7pp)
Revised 6/18/08 2038State Review of Documents (3pp) Revised 1/21/08 1157State Right of Assignment Laws (22pp) Revised 2/27/08 2028State Sales Tax on Services (7pp) Revised 6/14/06 2039State Special Text Requirements for Collection Notices (30pp)
Revised 10/15/08 2008States That Require Collection Agencies to Prominently
Display Licenses (2pp) Revised 9/14/04 2042Statutes of Limitations (34pp) Revised 9/8/08 1122Statute of Limitations: Effect of Partial Payments or
Promises to Pay (13pp) Revised 3/12/07 2026Statutes of Limitation: Setting the Record Straight (4pp)
Revised 9/8/08 1119Trust Account Information (15pp) Revised 10/30/08 2041Use of Aliases (14pp) Revised 8/15/06 2018Use of Social Security Numbers (20pp) Revised 3/9/07 1140Web Addresses for the U.S. Court System (10pp) Revised 10/22/07 1162
TELEPHONE CONSUMER PROTECTION ACT Dual Purpose Calls Under the TCPA (3pp) Revised 6/24/04 9520FCC Issues Declaratory Ruling Regarding Dialing Wireless
Numbers (2pp) Revised 11/25/08 1252FCC Issues Declaratory Ruling Regarding Dialing Wireless
Numbers (long version) (6pp) Revised 11/25/08 1253FCC Issues Declaratory Ruling Regarding Dialing Wireless Numbers
Frequently Asked Questions (9pp) Revised 11/25/08 1300Laws Governing the Use of Automated Dialing and Announcing
Devices (ADADs) (35pp) Revised 5/20/08 2308National Do Not Call Registry: Its Effect on the Credit and
Collection Industry (6pp) Revised 7/11/08 9516TCPA: Newly Revised FCC Regulations Change the Way Businesses
Send and Receive Fax Messages (4pp) Revised 1/12/05 9517TCPA: An Overview of the FCC Regulations (7pp) Revised 11/25/08 9515TCPA: Technology Requirements for Automatic Dialing Devices,
Predictive Dialers and Caller ID (4pp) Revised 11/25/08 9518TCPA: Technology Requirements for Prerecorded Messages (5pp)
Revised 2/11/08 9519
Uniform Commercial Code: A Summary of Relevant Sections (3pp) Revised 8/6/08 2010
RISK MANAGEMENTCollection Notice Review (CNR) Approved Attorneys (4pp)
Revised 10/15/08 6560
STATE SPECIFIC INFORMATIONA Brief Summary of Commercial Collection Regulations (2pp)
Revised 5/20/08 2029Adding Fees to Debts (23pp) Revised 10/28/08 8000Age of Majority (9pp) Revised 7/10/07 1153“Closed” States and Collection Activity (2pp) Revised 8/9/03 2000Community Property (8pp) Revised 2/20/07 1151Confusion Abounds Regarding Recent California Restriction
on Predictive Dialers (4pp) Revised 7/3/02 2033Contacting Nearbys—State Restrictions (6pp) Revised 8/8/06 2017Handling Consumer Payments (5pp) Revised 8/9/06 2006How to Apply Payments (4pp) Revised 5/15/06 2334Idaho Collection Agency Act Amended (3pp) Revised 5/2/08 1170Interstate Chart (55pp) Revised 10/30/09 3005Louisiana Amends Consumer Credit Law (1p) Revised 6/27/06 2047Louisiana Repeals Laws Governing Collection Agencies (9pp)
Revised 8/26/03 2013Massachusetts Collections Regulations Overhauled (4pp)
Revised 10/26/04 2021Massachusetts Data Security Regulations (2pp) Revised 11/21/08 3003Mortgage Deficiency Balances After Foreclosure (25pp)
Revised 10/2/08 3000Notice and Language Requirements Added to California’s
Rosenthal Act (2pp) Revised 12/27/06 2016Nevada Revises Licensing Requirements and other Collection
Laws (4pp) Revised 8/7/07 1159State Branch Office Requirements (16pp) Revised 8/9/07 1160State Collection Laws: Doctrine of Necessaries (20pp)
Revised 8/20/08 2036State Collection Laws: Record Maintenance Requirements (19pp)
Revised 8/8/06 2037State Collection Laws: Communication with Spouses (6pp)
Revised 1/23/08 2040State Communication Chart (6pp) Revised 1/23/08 3008State Credit Reporting Laws (8pp) Revised 3/26/08 1255State Debt Collection Laws for Commercial Collectors (40pp)
Revised 5/19/08 2034State Gambling Laws at a Glance (10pp) Revised 5/17/06 2043State Guidelines—Right to Cure (25pp) Revised 10/25/05 2025State Interest Rates (58pp) Revised 8/20/08 2015State Laws Governing Oral Communication with Consumers (30pp)
Revised 10/28/08 2011State Laws Governing Recording Conversations
and Employee Monitoring (20pp) Revised 2/27/08 2027State Laws Regarding Disposal of Records (6pp) Revised 12/28/06 8052State Licensing/Registration Contact Information and
Fees (39pp) Revised 10/16/08 1133State Licensing Requirements for Changes in Ownership (11pp)
Revised 6/2/08 2031
44 I January 2009 Collector
Accelerated Data Systems...................................................................................5 & 32
Collection Data Systems ................................................................Inside Front Cover
Columbia Ultimate ......................................................................................................8
Comtech Systems Inc.................................................................................................31
Comtronic Systems ....................................................................................................11
DAKCS Software Systems Inc. .................................................................................28
DebtNet/The Computer Manager Inc. ......................................................................7
Direct Check Inc........................................................................................................45
Electronic Payment Providers Inc................................................Outside Back Cover
Information Access Technology (IAT) ........................................................................3
International Association of Commercial Collectors (IACC) ..................................12
J.C. Christensen and Associates Inc. .........................................................................20
Latitude Software.......................................................................................................15
MicroBilt ......................................................................................................................4
NCOAsource .............................................................................................................45
Regal Technologies ....................................................................................................45
Tritium Technologies.................................................................................................13
ad index
This issue’s display advertisers are identified below. Please thank these
advertisers for supporting ACA International by telling them you saw their
advertisements in Collector.
• Increase in complexity of legal andcompliance questions raised bymembers.While there is probably never a good
time to do anything that will cause anincrease in any member’s dues, there isalso a danger in not fully funding vitalinitiatives. For the reasons listed above, itis a critical time for our industry onmany fronts.
I was told by Rep. Barney Frank (D-Mass.) during a recent meeting to workwith the various stakeholders and “getsomething done soon” regarding FairDebt Collection Practices Actamendments. We can’t mobilize anddispatch Rozanne Andersen, AdamPeterman and their respective staffs inWashington, D.C., if we are forced torun things too closely.
As I shared with the board membersand in my letter to the generalmembership, it was my commitment toyou as your president to leave ACAstronger than I found it and certainly notweaker. These adjustments are necessaryto ensure not only that outcome, but thefuture of our businesses as well, and weappreciate your understanding andsupport. cm
Jay Gonsalves, IFCCE, is 2008/09president of ACA International. He canbe reached at [email protected].
president’s pagecontinued from page 9
January 2009 Collector I 45
PAYMENT PROCESSING
REGALt e c h n o l o g i e st h e f u t u r e o f p a y m e n t s
quarter bw.ai 10/31/2006 1:52:29 PM
marketplace
INFORMATION SOLUTIONS PAYMENT PROCESSING
http://www.acainternational.org
46 I January 2009 Collector
Following is a list of staff members, their direct phone extensions, e-mail addresses and the calls they handle. If you cannot find the appropriate service listed here, call ACA’sgeneral phone number at +1(952) 926-6547. To access employees using their direct lines, dial +1(952) 928-8000 and enter the appropriate extension when prompted.
staff directory
ACCOUNTINGMarilyn Cerini, ext. 136, [email protected]—inquiries about statementbalancesMike Henke, ext. 110, [email protected]—accounting administrationPam Butera, ext. 131, [email protected]—accounting administrationKatelyn Pearsall, ext. 122, [email protected]—accounting administration
ASSET BUYERS/CREDITORSJessica Hartmann, ext. 117, [email protected]—Asset Buyers Division (ABD) andCreditors International (CI) inquiriesRachel Remley, ext. 127, [email protected]—ABD and CI membership inquiriesTed Smith, ext. 107, [email protected]—ABD and CI inquiries
CAMPUS ACA & EVENTSCathy Berg, ext. 123, [email protected]—general meeting and convention informationSara Blair, ext. 711, [email protected]—teleseminar, degree and diploma inquiresAlyssa Hulke, ext. 125, [email protected]—general education inquiries,credentialing, convention speakers, teleseminarspeakersPatty Larson, ext. 214, [email protected]—seminars, meetings andconvention inquiriesLindsay Lumpkin, ext. 138, [email protected]—general meeting informationAmy Stumvoll, ext. 143, [email protected]—seminars, meetings andconvention inquiries and registrationRebecca Swanson, ext. 216, [email protected]—sponsorship inquiries forCampus ACA, general education inquiriesMary Thao, ext. 119, [email protected]—general meeting and trade show informationLesli Wiese, ext. 212, [email protected]—curriculum/product development and credentialing
COLLECTION MARKETS & PPMSJessica Hartmann, ext. 117, [email protected]—healthcare and governmentcollections and PPMS inquiriesDiana Kruppstadt, ext. 118, [email protected]—healthcare collections and PPMSinquiriesSara Bobrowski, ext. 111, [email protected]—government collections inquiriesTed Smith, ext. 107, [email protected]—PPMS inquiries
COMMUNICATIONSTim Dressen, ext. 709, [email protected]—Collector magazine editorial,display ads and Marketplace adsAnne Rosso, ext. 705, [email protected]—Collector magazine classified ads, media kit requests
HUMAN RESOURCESStacy Kruzel, ext. 126, [email protected]—personnel, general information,corporate questions
LEGAL & GOVERNMENT AFFAIRSRozanne Andersen, ext. 132, [email protected]—corporate legalJulie Brooks, ext. 135, [email protected]—Members’ Attorney PrograminquiriesCompliance, +1(952) 926-6547, [email protected] Cottington, ext. 104, [email protected]—political action, ACAInternational Education FoundationEthics/Grievances, ext. 800, [email protected] Hayes, ext. 103, [email protected]—corporate legalAnn Ludes, ext. 133, [email protected]—ethics inquiriesSusan Rongitsch, ext. 134, [email protected]—Legal Fund inquiriesMai Vang, ext. 102, [email protected]—Members’ Attorney Program inquiriesAdam Peterman, ext. 101, [email protected]—government affairs inquiriesKristine Adams, ext. 121, [email protected]—government affairs inquiriesKathy Heimel, ext. 218, [email protected]—government affairs inquiriesJudy Mecay, ext. 105, [email protected]—ACA International EducationFoundation inquiries
MEMBER SERVICESJessica Hartmann, ext. 117, [email protected]—member serviceMike Klippenstein, ext. 710, [email protected]—product orders, subscriptionsDesiree Parris, ext. 148, [email protected]—industry research and statisticsTammy Schoenberg, ext. 115, [email protected]—member services inquiries
MEMBERSHIP (Agency/Vendor)LaDona Buescher, ext. 205, [email protected]—dues payments and renewals;agency changes of ownership and multi-officememberships
Debra Kildahl, ext. 204, [email protected]—member recruitment andretentionMarcia Mehlhaff, ext. 206, [email protected]—prospective, applicant, pendingand new member inquiriesSarah McGlynn, ext. 203, [email protected]—prospective, applicant, pendingand new member inquiries
PUBLIC RELATIONSJohn Nemo, ext. 124, [email protected]—media relations
RISK MANAGEMENTLisa Eubanks, ext. 240, [email protected]—bond inquiriesStephanie Lauseng, ext. 226, [email protected]—bond inquiriesTravis Coles, ext. 208, [email protected]—insurance inquiriesZach Gallagher, ext. 227, [email protected]—insurance inquiriesTessa Jagoe, ext. 209, [email protected]—insurance inquiriesFrank Hinnenkamp, ext. 223, [email protected]—insurance inquiriesDereck Tessmer, ext. 224, [email protected]—new business departmentalAlex Wagner, ext. 228, [email protected]—insurance inquiriesGeorge Ceaser, ext. 235, [email protected]—insurance inquiriesJoleen Schwartz, ext. 239, [email protected]—insurance inquiriesJennifer Cleveland, ext. 237, [email protected]—licensing inquiriesRobin Buendiger, ext. 233, [email protected]—licensing inquiriesCatherine Ramstad, ext. 232, [email protected]—licensing inquiriesJanis St. Martin, ext. 230, [email protected]—department inquiries
April 2008 Collector I 47
COLLECTION MANAGER—North CentralFlorida collection agency is searching for highenergy, experienced manager for this agency.Currently averaging $140K in fees per month.Salary, bonus, benefits. Interested individualsshould respond with resume [email protected]. No phone calls, please.
LTD FINANCIAL SERVICES in Houston isseeking professionals at all levels of thecollection industry to assist us in our continuedexpansion. We are a progressive agency withleading-edge technology, high commissionrates, excellent benefits and a greatenvironment. If you are a proven collector,supervisor or manager and are looking to makea change for the better, call Tim Feldman,president, at (713) 414-2100 or fax resume to(713) 414-2120.
IAT PREDICTIVE DIALER—The IAT predictivedialer system is modular, flexible, scalable andbuilt to fit your organization’s needs. It includesHosted IVR Messaging. Hosted IVR Messagingmakes it easy for customers to contact you.Increase agent productivity by improvingversatility between outbound/inbound callswith Call Blending. IAT’s Outbound IVR solutionprovides the perfect automated messagingscenario for any situation. Only used sixmonths. Prices to sell at $45,000. Call us forhardware, software and licensing details.Contact information: Telephone (610) 916-7202.E-mail [email protected].
PROVEN CREDIT & COLLECTIONsoftware—Since 1993, ideas like yours haveshaped Collect! Credit and Collection softwareby Comtech Systems Inc. That’s why Collect! isso customizable, efficient and fully scalable.The features you need are fully integrated intoCollect!—checks by phone, e-mail, fax, Internetaccess, SSL security, batch processing, flexiblereport system and many more. Run yourbusiness your way efficiently and effectivelywith Collect!. Let our dedicated tech supportteam show you why Collect! is the most cost-effective solution on the market today. Don’tmiss this opportunity to expand your businesspotential with the credit and collectionssoftware solution that freely conforms to yourstandards. Let us show you why our clientsenjoy using Collect! year after year. Contactinformation: Web site: www.collect.org.Telephone: (800) 661-6722. E-mail:[email protected].
WHAT CANKAULKIN GINSBERG
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We offer a full array of value-addedadvisory services that cover almost everystage of your company’s lifecycle, fromstrategic analysis to growth and exitstrategies.
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Our proven track record of closing deals andcreating value speaks for itself.
• Completed hundreds ofvaluations and fairnessopinions. Our valuations andother litigation supportservices consistently stand upin court proceedings.
• Completed well over 125transactions valued at morethan $3 billion for a variety offamily, private equity andpublic owners.
To confidentially discuss your businessneeds, call Michael Lamm at (240) 499-3808 or visit www.kaulkin.com to learnmore.
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Call in confidence to discuss your exitplans. At Marion Financial Corp., wealways put you first.
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MARION FINANCIAL CORP.MRECEIVABLE INDUSTRY’S MOST TRUSTED ADVISORS.
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Classified AdDeadlines:
February 2009: Dec. 1
March 2009: Jan. 2
April 2009: Feb. 1
Contact Anne Rosso at +1(952)
928-8000, ext. 705, or rosso@
acainternational.org.
BUSINESS SERVICESAPPRAISE OR SELL—I can appraise or sellyour agency no matter the size, type orlocation. I have completed over 700transactions. I will appear as an “expertwitness” anywhere in the United States. Allinformation furnished me is “strictlyconfidential.” Ray Edwards, CaliforniaAssociation of Collectors past president.Phone: (863) 815-7003. Fax: (863) 859-1578.
classified advertising
SALES PROFESSIONAL
Growing agency based on Long Islandwith a national client base seeks salesprofessional with proven track record andagency experience who can sell andmaintain client relations. We specializein customer retention and first-party andthird-party collections. We offercompetitive salary, benefits, 401(k) aswell as commission incentive with nodeclining scale. Serious candidatesshould include compensationrequirements. Please respond toCOLLECTOR, P.O. Box 390106,Minneapolis, MN 55419-0106. ATTN: Box 2058.
MASSACHUSETTS-BASED collectionagency looking to expand throughacquisition. We are interested in speakingwith owners of agencies throughout the EastCoast, of any size, interested in selling.Mutually beneficial agreements that affordagency owners an exit strategy. Contact usin confidence: Maia Aucoin, RevenueManagement Corp., 520 Main St., Waltham,MA 02452. (800) 236-5783. Fax: (781) 894-6650.
THINK YOU CAN STUMP HIM?
Call Paul with any sales or salesmanagement problem. If he can’t use his30+ years of experience to point you inthe right direction immediately or withina day, you’ll win a $100 gift or a month offree consulting. Better sales results arejust a call away. Make the call now!
Call 877-533-1680, ext. 702.www.netgain4results.com
Paul Morrow
January 2009 Collector I 47
be found using the search box in theupper righthand corner of each page.
Along the right side of the site, visitorswill find quick links to content specificallydesigned for members of several ACAmembership segments, as well as buttonsfor several of the site’s most popularpages. These include membershipinformation, the membership directory,ethics information, Fastfax, Collectormagazine, research, the ACA store, eventscalendar and Campus ACA.
ACA International’ssecondary audiences—consumers, reporters andpolicy makers—have theirown modified versions ofACA Online, accessible viatabs in the upper righthandcorner of the site.
Please watch ACA NewsLink for an announcementwhen the new site isavailable and take sometime to get familiar withthe new layout. cm
Tim Dressen isadministrative vicepresident of ACAInternational Enterprisesand editor of Collector.
Placing your cursor over any of thesetabs produces a clickable dropdown menuof pages within each section. For example,placing your cursor over Publicationsresults in the following list: CollectorMagazine, Newsletters, Reports,Brochures & Booklets, Research &Statistics, and Guides & Manuals.Clicking any of these menu items willtake visitors to the desired content on thesite.
Of course, content on the site can also
quick clicksBy Tim Dressen
In late January 2009, ACA Internationalwill introduce a completely revampededition of its Web site, ACA Online
(http://www.acainternational.org). The reorganized, redesigned site was
developed in response to membersuggestions and requests over the pastyear.
The new site’s navigation is basedprimarily upon the type of informationmembers are seeking, rather than theirrole in the credit and collection industry.The main navigation bar features eighttabs: Compliance, Government Affairs,Education & Events, People & Groups,Products & Services, Publications,Markets & Specializations and AboutACA.
Retooled and RedesignedRevamped ACA Online Web site offers simple navigation, new look
Each month, Quick Clicks profiles a different area of ACA Online. This month’s Quick
Clicks previews the upcoming redesigned, restructured site.
48 I January 2009 Collector
Site search
Navigation by topic
Clickable dropdownmenus
Quick links topopular pages
ACA’s Risk Management Products and Services
Flying In Formation
Discover how your agency may benefit. Contact ACA’s Risk Management Department at+1(952) 926-6547 or [email protected]
Members of ACA International that participate in ACA’s RiskManagement Programs maximize the profitability of theirbusinesses through sound risk management practices anddirectly impact ACA’s strategic initiatives.
Collector’s Insurance Agency, Inc. (a wholly ownedsubsidiary of ACA International) is dedicated solely to thereceivables management industry, offering industry-specificinsurance, bonds, and licensing products and services.
ACA’s Government Affairs/Compliance/Members’ Attorney Program drive needed legislation toreduce your exposures, provide current federal and statecompliance information and provide attorneys fluent incollection law for our Defense and CNR Panels.
Campus ACA and Member Services provide the finesteducational opportunities and products available to yourindustry, a key component of your internal risk managementprogram.
ACA Vendor Partners: Our brokers, carriers and serviceproviders have committed themselves to your industry asevidenced through their continual industry education,service and dedicated claims team.
Nature provides powerful examples. Whether flying in front to maintain direction, toward the middle to keep everyone aloft orhonking from behind to encourage momentum, concerted team efforts produce amazing results. ACA’s Risk Managementproducts and services are the result of such an effort.
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If you’re not using EPP’s integrated payment solutions, you’re missing something.
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