Collection Advisor September/October 2018

THE AUTHORITY ON COLLECTIONS AND TECHNOLOGY

20 MOST POWERFUL

WOMEN

ENCOURAGING 5 BEHAVIORS TO INCREASE MORALE THE NEW CFPB AND ITS FAITH IN THE AMERICAN PEOPLE Courtney Reynaud

DEMONSTRATING YOU ARE THE KEY TO PATIENT SATISFACTION September/October 2018 Vol. 18, No. 5

3 RECOMMENDED WAYS TO GROW YOUR FIRM PUTTING THE CARE BACK IN HEALTHCARE COLLECTIONS HOW TO SUCCESSFULLY INFLUENCE UNINFORMED REGULATORS SKIP TRACING’S 4 PRIMARY SOURCES OF INFORMATION IS CREDIT BUREAU REPORTING A VIABLE TOOL FOR HEALTHCARE DEBT?

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Captain Collector I Welcome

Welcome

Y

ou’re in luck! You happen to have before you an issue of Collection Advisor that features the thoughts and tips of dozens of collection professionals that have not only found success in their own organizations but are improving the world of debt collection. This issue features the Top Collection Attorneys of 2018, the 20 Most Powerful Women in Collections and Success Strategies featuring Richard Bennett of PlusFour. All of these professionals share their wisdom with you with every turn of the page.

In this issue Agency Advisor Sam Eidson highlights the power of attitude and the mental factors that can lead you to success. Skip Tracing Advisor Ron Brown describes paid and free data websites for skip tracing and what you can expect to find in each. Compliance Advisor Debra J. Ciskey reveals what competition and decentralization are doing to healthcare collections.

Collection Industry Advisor Nick Jarman discusses the interaction he has had with lawmakers and what you can expect when you make your voice heard for the good of the industry. Legal Collection Advisor Michael L. Starzec reflects on recent CFPB action and derives its overall goal: to empower consumers with responsibility.

Benchmark Advisor Harry A. Strausser III explains the best time to grow your firm. Collection Advisor proudly introduces its newest columnist, Management Advisor Gordon C. Beck III. In his inaugural column he clarifies how useful of a tool credit bureau reporting is in healthcare collections.

Do you hear the phone ringing? Pick it up because it’s the next issue of Collection Advisor focusing on telecom collections. We will also take a closer look at the most innovative agencies in the country as well as enterprise and virtual collection software solutions.

Until next time, I look forward to hearing from you about your adventures in collections.

Up, up and away…

TM

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SEPTEMBER/OCTOBER 2018

Table of Contents

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20 Most Powerful

WOMEN

AGENCY ADVISOR

Encouraging 5 Behaviors to Increase Morale Sam Eidson

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In Action

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SKIP TRACING ADVISOR JU

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COMPLIANCE ADVISOR

Demonstrating You Are the Key to Patient Satisfaction Debra J. Ciskey

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MANAGEMENT ADVISOR

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Is Credit Bureau Reporting a Viable Tool for Healthcare Debt?

Gordon C. Beck III

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Cover photo credit: Alex Reynaud Ocean Pics

Skip Tracing’s 4 Primary Sources of Information Ron Brown

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LEGAL COLLECTIONS ADVISOR The New CFPB and Its Faith in the American People Michael L. Starzec

Captain Collector 1 Welcome Collection Industry 7 Top Product Nominees Attorneys 9 inTopCollections Success Strategies 17 in Healthcare

16

BENCHMARK ADVISOR

3 Recommended Ways to Grow Your Firm Harry A. Strausser III

22

COLLECTION INDUSTRY ADVISOR

How to Successfully Influence Uninformed Regulators Nick Jarman

2

24

Richard Bennett, President of PlusFour

Collection Advisor Business Directory

Agency Advisor I Sam Eidson

Encouraging 5 Behaviors to Increase Morale

Director of Compliance Delta Outsource Group Board of Director Member Missouri Collectors Association

E

ver since I entered the collection industry I’ve heard embraced the culture we created. It’s lasted because the leadabout the importance of a positive mental attitude. ers responsible for encouraging the behaviors are the same I’m a positive person as it is so it didn’t take long people who created them. In order for your employees to buy for me to embrace and eventually preach the value of having a in you must have buy in from your leadership team. positive mindset. The mind is the most powerful tool we posBelow are the five behaviors we expect from everyone in sess. It can bring success and if not used properly can bring our organization: failure. As leaders it is our responsibility to create a culture of positivity while encouraging the behaviors we expect.

Engaged – Whether you’re speaking to a consumer, third party Years ago we came up with an initiative to increase morale or co-worker, be present and focused in everything you do. around the office. The acronym for the name of our company Own it – Taking personal accountability for actions, processes is DOG so we thought it would be fitting to name the initia and the job. Not who should but I should. tive PAWS, “Positive attitudes will succeed.” Every quarter two Positive – In an industry that comes with a lot of negativity you employees from each department volunteer to be part of the must remain positive in order to be successful.

PAWS committee. They discuss Challenge/Change – If you don’t ways to improve morale and come an agree with something or have up with fun contests and social anan idea that could make it “Nothing feels better than to receive praise events for our employees. anbetter we ask that you in front of your peers. Positivity becomes Throughout the years our past an challenge and change the president would come up with an status quo. contagious and eventually others will strive catchy slogans and clever acronyms Respectful – Being honest, open to be the next to receive such praise.” in an attempt to create the culture anand considerate to each other. we desired but the majority of them seemed to come and go with We not only refer to our time. In January of 2017 our new president empowered the star behaviors when an employee has demonstrated one or more leadership team to come up with five behaviors that we felt of them, we also refer to our star behaviors when someone has were important to our growth and success. During our annot demonstrated one or more of the behaviors. For example, if nual senior leadership meeting each of us wrote the behaviors someone generates an avoidable complaint, the majority of time we thought were important on a large dry erase board and it’s because they weren’t being respectful. If someone exhibits then we all voted until we agreed on the five behaviors we negativity on the floor we will work with the employee to idenwould begin to encourage and expect from our workforce. tify the behaviors that could be improved. We explain how the We named the behaviors our star behaviors, created a logo behavior is important to our organization, team and also his/her and displayed it throughout the office. We then printed up personal goals. We discuss the negative outcomes from not demhundreds of star cards for leadership to give out to employonstrating the behavior. We clearly articulate our expectations, ees who exhibited one or more of our star behaviors. In the set priorities (i.e., what behavior(s) should be addressed first) and beginning we would give the star cards out throughout the teach employees to always reflect on behaviors. week when an employee displayed the behaviors we were As organizations grow in size it can be easy to forget the encouraging. Over the past few months we’ve started to give values on which the organization was founded. It’s extremethem out during our weekly floor meetings so praise is given ly important for leadership to always be mindful of who has while everyone is present. Nothing feels better than to receive contributed to the growth and recognize those on a daily praise in front of your peers. Positivity becomes contagious basis. I believe that our organization can and will achieve and eventually others will strive to be the next to receive such greatness so long as those who continue to contribute daily praise. For almost two years the entire organization has are recognized and appreciated.

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September/October 2018

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Skip Tracing Advisor I Ron Brown

Skip Tracing’s 4 Primary Sources of Information

I

n the 21st century tracing environment there are primarily four types of data sources a tracer utilizes to locate missing people or assets: pay-a-fee data sites, free data sites, public record data sites and social media sites.

Pay-a-Fee Sites The pay-a-fee sites use proprietary software to

access billions of online records to conduct person, phone, address, email, Social Security and civil records searches, as well as criminal background and motor vehicle searches. These websites are often to track down hard-to-find skips. The reports generated from paya-fee sites searches will usually also include any known aliases, solid assets, licenses, email addresses, photographs, relative, associates as well as business and social networks.

While some data brokers offer a “no hit-no fee” payment structure, many pay-a-fee sites charge one-time, monthly or yearly fees for their automated search services. There are also many free resources available that require manual searching by the user.

Free Data Sites Let’s look at some of the free data sites being used by professional collectors today.

The obvious sites to start with would be Google, Facebook, Twitter and even the old Myspace. One or all these common free sites may shed light on your subject’s current location. Often overlooked sites are YouTube, Instagram, LinkedIn and Amazon. From these sites the tracer might move on to more subject specific sites such as Vimeo, Picasa, Pinterest, Kickstarter and, although shut down on several sites, Klout on Facebook continues to be a good source for information. There are also several news sites I would recommend for the professional tracer to include Digg and Reddit.

Public Record Data Sites We then would move on to public

record data sites. The well known and often used sites would include court records, civil records and criminal records. In some areas utility records may be available. In most states, court records are public record. Such records are sometimes available and searchable online. Court records usually include criminal charges, marriage and divorce records.

A couple often-overlooked sources I would offer would be the US Department of State and the IRS. The US Department of State, Overseas Citizens Services will help locate relatives or friends who are overseas when there is concern about their welfare or a need to notify them of emergencies at home.

The Privacy Act requires that U.S. citizens over the age of 18

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Member National Association of Fraud Investigators Author “MANHUNT: The Book” Contact rbrown2150@aol.com

provide a Privacy Act waiver before information about them is released to a third party. Persons in the United States may inquire about the welfare or whereabouts of U.S. citizens abroad by calling the Overseas Citizens Services at 202-647-5225. If you would like more information about locating persons of unknown whereabouts, you may call the U.S. General Services Administration, Federal Government Information toll-free at 1-800-333-4636, Monday through Friday, from 8:00 a.m. to 8:00 p.m. eastern time. This service often comes in very handy when you are in touch with a close relative of the person you are searching for who will assist and if the person is thought to be out of the country.

The next source is the IRS. The IRS will usually forward a letter from an attorney, estate administrator or other person who needs to contact a subject.

For more information and clarification, you may refer to the IRS Handbook 1.3, Chapter 11, which you may find in Other Information Available to the Public. If you would like the IRS to help you locate an individual, place a personal letter, stating nothing more than a request that the subject contact you regarding a personal business matter and providing your contact information, addressed to the individual in a blank envelope. Include first class U.S. postage, and do not seal the letter. Place the unsealed letter in another envelope and address it as follows: Internal Revenue Service Office of Disclosure Operations 1111 Constitution Avenue NW Washington, DC 20224

Social Media Sites The last area we will discuss today is the

use of social media sites. Searching social media sites is a good way to find someone for free. One of the advantages of using social media to track someone down is many women who change their name at marriage continue to use their maiden name on social sites. Social media sites often provide photos that can be useful in ensuring the correct individual is located.

Such sites also provide links to friends or relatives who may inadvertently provide information or clues to your subject’s current location and employment.

This article is continued on www.CollectionAdvisor.com.

September/October 2018

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Compliance Advisor I Debra J. Ciskey

Demonstrating You Are the Key to Patient Satisfaction

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merica’s watchdog on competition, the FTC, says that “Competition in health care markets benefits consumers because it helps contain costs, improve quality, and encourage innovation.” (https://www. ftc.gov/tips-advice/competition-guidance/industry-guidance/ health-care) As providers seek to contain costs, we have seen decentralization of care popping up around us. For example, the number of stand-alone emergency departments, in a 2016 study, had increased 76% from 2008 to 2015, mostly in states that do not have “determination of need” regulations that aim to protect local health care providers from competition. For some patients, the free standing emergency department can be a precursor to hospital admission when surgery, observation or more long term or targeted care is required. (https://catalyst. nejm.org/how-the-freestanding-emergency-department-boomcan-help-patients/) This increased competition in the provision of medical services can squeeze the already stretched resources of provider billing departments, pushing CFOs to seek help earlier in the billing and collection process. Increased competition is driving a higher level of focus on patient experience, not only by care providers but also as it relates to billing and collection.

While the facility the patient chooses may be in part guided by the network of providers under contract with the patient’s insurance plan or plans, another strong consideration can be patient satisfaction with or confidence in the billing processes of a provider.

With the push to convert to electronic health records, modernization of revenue management systems has taken a back seat, sometimes to the detriment of patient satisfaction, which can be a driver of patient choice when it comes to the decision about where to seek medical care. Another complicating factor is consolidation within the healthcare industry. When account management systems of merging systems can’t talk to each other, patient billing can become a confusing battle of the hospital bill, lab and other secondary services bills and the doctors’ bills that clog the patients’ mailbox. If a freestanding emergency facility visit was part of the patient’s care process, additional complication can result from the fact that some free-standing emergency departments are not permitted to participate in Medicare, Medicaid and TRICARE because they are not outpatient departments of an acute care hospital.

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Compliance Officer Wakefield & Associates. Inc. Board of Directors Member/ Certified Instructor ACA International, Inc.

The confusion is voiced by patients every day. Once that hospital bill is paid, they assume that process is now behind them. Then they get a statement from a doctor they have never heard from, providing a balance for who knows what service?

And it is 90 days after the service date and they are just now receiving a bill? Is this legitimate? And a call to the hospital doesn’t provide any information because the hospital doesn’t employ the doctor directly? We could ask these questions all day, and perhaps have spoken with patients who have asked us exactly those questions. Until all billings for all services provided during a hospital encounter are provided in a one-stop-shopping type of portal or billing statement, these problems will continue.

Another consideration is the audience. Geriatric patients want a paper bill. Millennial patients want to access their bills online, see their explanation of benefits side by side with their bill and want to pay electronically. Some patients will not pay anything that doesn’t carry their signature. The transition to all electronic billing has its own set of challenges. Today’s millennials are tomorrow’s geriatrics, but for the time being, the ability to provide account information that meet the needs and desires of a broad range of patients can be key to getting paid. Billers and early out providers who can close this gap may be able to provide higher levels of patient satisfaction for their clients, proving their value.

Staffing back office programs is a universal concern. Clients who ask the collection agency to take on their internal back office programs may be doing so because they cannot maintain competent and adequate staff to do it, especially if they lack technical support to add efficiency to their processes. Taking on such an endeavor requires the application of technology for efficiency to improve the extended business office experience. Be ready to work with the client to implement process changes. Moving manual processes from one location to another will not solve the problem—you may be experiencing the same staffing challenges that face your clients. Demonstrating ways that you have created efficiencies within your own operation can bring some comfort and optimism that you are the key to patient satisfaction and more success in the competitive world of healthcare.

I would like to thank Tina Hanson, Executive Vice President/ Chief Strategy Officer, State Collection Service, Inc., Madison, Wisconsin, and Penny Mount, Director, Active A/R Solutions, Wakefield and Associates, Inc., Fort Morgan, Colorado, for their contributions to this article.

September/October 2018

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TOP

ATTORNEYS IN COLLECTIONS

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hange is in the air for the accounts receivable industry. Any changes start with the creation or modification of a law regulating the industry and trickle all the way down to how best to reconcile a single transaction between a buyer and a seller. A good attorney is one that works to influence the entire process, encouraging fair and effective ways of settling open accounts.

Collection Advisor presents the Top Attorneys in Collections. These attorneys have been nominated by their peers for efforts to improve collections through legal collections, creditor defense and legal consultation. These Top Attorneys reveal what they think is the biggest challenge for collection attorneys today and how they overcome it.

JOHN H. BEDARD JR. BEDARD LAW GROUP, P.C.

Laws and rules relating to the collection industry are changing at a rapid pace.

All attorneys in the ARM space are challenged to keep up with changes in case law, regulatory activity, and legislative movement.

Our office overcomes these challenges by remaining active in the industry, reading industry publications, new cases, rules, and laws, and addressing the needs of clients personally and professionally. .com

September/October 2018

LAUREN M. BURNETTE BARRON & NEWBURGER, P.C.

I think one of the biggest challenges collection attorneys face is the misconception held by too many people unfamiliar with our industry – that collecting debts through litigation is somehow not “real” litigation. Too much bad press has left this impression on too many people. I try every day to change that narrative through litigation and education.

JUNE D. COLEMAN CARLSON & MESSER, LLP

One of the biggest challenges that face attorneys is being over-regulated by state and federal governmental agencies when attorneys need to have independence to ethically and professionally represent their clients. This is even more true since attorneys are already subject to regulation by their state bars. I address this issue by working with groups like ACA and its state units to educate legislators that an attorney’s ethical obligations to his or her client cannot be regulated by consumer protection agencies or consumer attorneys.

Continued on page 11

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Management Advisor I Gordon C. Beck III

Is Credit Bureau Reporting a Viable Tool for Healthcare Debt?

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redit bureau reporting continues to be a tool of recovery within the ARM industry that is the subject of much debate. With the growing demand from clients across the country for the agencies to handle all aspects of their credit reporting it has become vital for agencies to know, understand and execute their processes, without error, because the consequences of the alternative can be devastating.

The financial burden on the agency, the open liability and the potential for regulatory consent orders makes credit reporting a frightening proposition. On the other end of that equation, there are indeed positives. Credit reporting continues to be an effective means of recovery by boosting contacts from consumers who otherwise may not have intent to communicate with the collection agency, but the negative collection tradeline commands their attention. I have conducted many studies and, in almost every instance, internal testing has proven that reporting does increase liquidation versus the alternative.

I have received feedback from multiple large agencies who have conducted similar tests and have found similar results.

The process of credit bureau reporting is defined and standard for almost every type of debt…and then there’s medical. Which begs the question, if given the opportunity to choose, should you or should you not report your medical debt to the credit reporting agencies?

As mentioned above, I think it is fair to say that the operational view would be that it boosts contacts and recoveries, while the compliance perspective would be that it encourages disputes and therefore carries the risk of litigation. Regardless of the departmental perspective, it appears that many agencies have settled into reporting delinquent debts through the credit reporting agencies. The conversation becomes more muddied when discussing the type of debts being reported. Credit cards, installment loans and others receive little discussion as those accounts have previously been reported in a “current” status, follows a timeline of declination and, when severely delinquent, reports on an individual’s credit as a charge-off by the original creditor. The frustration for consumers appears to stem from the type of accounts, such as medical, where positive history is never reported, but as soon as delinquency appears, they are adversely impacted and thus seems unfair to many consumers. The question has even been asked as to whether or not medical debt should be considered an extension of credit in the first place or is it just a “bill” and, therefore, even be able to be reported?

With all of these considerations, along comes an outlier with medical debt. We have all experienced the frustrations of non-approved medical claims, incorrect medical coding, billing

10

CEO Diversified Consultants, Inc.

for procedures that may have never taken place, disagreements about deductibles, unauthorized procedures and on and on. The consumer’s frustrations generally result in dispute after dispute.

When the dispute is received, the agency has the responsibility to conduct a reasonable investigation, but with medical debt the definition of reasonable can be very broad and result in furnishers settling dispute lawsuits, impacting the organization’s bottom line.

The frustrations resulting from incorrect reporting have piqued the interest of the legislators and regulators. The previous practice was that hospitals, doctor’s offices and many other types of medical debt owed would not be reported by the “first party” owner of the debt and would only be added to the bureau as a collection by the agency. Based on the common billing problems mentioned previously, it was determined that it was unfair for consumers to not have a voice in the review of the medical bill for which they were judged to owe. In 2016, all three major credit reporting agencies implemented a rule that would not release the reporting to the consumer’s bureau for 180 days after the first reporting. There is no doubt that this was put into play to stem the overwhelming tide of disputes, complaints and lawsuits levied against the credit reporting agencies and, by default, the collection agencies. Many of these decisions were the result of the 2015 settlement agreement between the New York Attorney General with all three credit reporting agencies. It is important to note, however, that these rules were not retroactive.

The latest development in the world of healthcare reporting is the introduction of the FICO 9 score, ultimately deeming medical debt less impactful to the consumer’s overall score while completely removing any medical debt that has been paid. This development has proven huge to the recovery of medical debt as it provides positive leverage for the debt collector while bolstering the incentive for the consumer to pay the outstanding debt.

While the debate will rage on as to whether or not reporting medical debt produces greater recovery opportunities or just manufactures disputes/lawsuits, it is certainly clear that if the agencies are given the right negotiating tools such as leveraging the removal of the debt for payment, it can and will be a drastic change in course for those that have decided not to report. Yes, the challenge will continue as to whether or not the consumer owes the debt in the first place, but with the pressure on the providers to provide accurate data to the bureaus and less errors reaching the agency, I think it is a fair assessment to conclude that with the proper internal investment, rock solid procedures and a solid collection strategy it will be very hard to compete with those agencies that determine reporting medical debt will be an arrow in their operational quiver.

September/October 2018

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Continued from page 9 KATIE GRZECHNIK NEILL ARS NATIONAL SERVICES

The biggest challenge for attorneys in the collections industry today, especially for those defending agencies against FDCPA claims, is dealing with the hyper-technical, pie in the sky claims that plaintiffs’ counsel come up with. It’s especially frustrating when the suit is filed by a consumer who never had any real harm done to them by the use of a single word or phrase in the letter sent to them, yet courts continue to find that such consumers have standing to bring these claims. Defending such claims is expensive for agencies and the attorneys’ fees provision of the FDCPA provides no relief to agencies even if they win the lawsuit. Because of this, many agencies settle, which essentially turns into money in the plaintiffs’ counsel’s pockets.

This emboldens plaintiffs’ counsel to continue the cycle since there is very little downside to them except for a loss of time. My dream is for the industry to become more proactive in these issues and to find a way to fix this disparity, which is ultimately harming consumers.

STEFANIE H. JACKMAN BALLARD SPAHR LLP

Managing all the operational, legal, and compliance requirements in today’s legal collection environment. For many of my clients, investments in automation, new technology, and experienced talent has proven essential to compete in a costeffective and compliant manner. It also is important to have strong vendor relationships to assist with efficiently outsourcing certain areas of legal compliance.

JOY N. JACKSON, J.D. FABER & BRAND, LLC

The biggest challenge for collection attorneys today and in the past has been combating our negative public image. I believe this can be overcome by acting with the highest degree of integrity, treating others with respect, and pushing ourselves to be involved in positive ways in our communities, whether it be in politics, academia, charity, etc.

MICHAEL A. KLUTHO BASSFORD REMELE

My practice is focused on defending collection attorneys and agencies when named in lawsuits brought by consumers. While our firm, Bassford Remele, does not collect consumer debts per se, our defense practice has provided a unique window into the many challenges collection professionals encounter when attempting to collect consumer accounts. In particular, a significant number of lawyers and law firms have chosen to exclusively sue collection professionals, including collection attorneys. “Kitchen sink” counterclaims (alleging very tenuous claims, at best) following service of a collection lawsuit have become a common tactic employed to avoid paying debts. This in turn forces the collection attorney to spend valuable time responding to the counterclaim/roadblock rather than securing a judgment on behalf of the creditor client. Given this potential reality, whenever possible it is best to develop a truly robust relationship with your creditor client whereby detailed procedures and channels of communication are established to streamline the production of the evidence and proof necessary to defeat the counterclaim, and successfully prosecute the collection lawsuit.

Forethought in this regard is far superior to an after-the-fact, ad hoc, response when the inevitable counterclaim arises.

RONALD C. MILLER M ILLER AND STEENO, P.C.

The biggest challenge for collection attorneys are frivolous lawsuits filed under the guise of protecting consumers when it appears that the vast majority of these lawsuits are filed only to line the pockets of consumer attorneys. Collection attorneys need to be very diligent in maintaining robust attorney meaningful review procedures to reduce the amount of errors being committed. Additionally, they need to adopt policies and procedures for every aspect of their collection practice to afford them the opportunity of claiming a bono fide error as a defense in the event a lawsuit or counterclaim is filed under the Fair Debt Collection Practices Act.

HARVEY M. MOORE, ESQ. THE MOORE LAW GROUP

I view the biggest challenge for collection attorneys today as finding systematic approaches to making workflow efficient, so that we can meet client expectations while satisfying state and federal requirements in an ever changing legal collections environment. At The Moore Law Group, we seek to have well documented processes with defined ownership and accountability, establish measureable targets and continuously create and evaluate reporting that looks back at the past and anticipates the future. In that way, we seek to keep track of what we are doing and how we can be better.

Continued on page 13

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Legal Collection Advisor I Michael L. Starzec

The New CFPB and Its Faith in the American People

I

n early May, Director Mulvaney announced that the CFPB’s student loan division is being shifted to its consumer information unit in an effort to transition the agency to a vehicle that provides consumers information about their legal rights. In the ultimate act of poor timing, this decision was announced at nearly the same time as a Federal Reserve report that announced student loan debt had risen to $1.5 trillion, surpassing auto loans, which clocked in at a paltry $1.1 trillion while credit cards were reported at $977 billion.

Not surprisingly, reaction was negative. Many feared the move would negatively impact efforts to curb abuses in the student loan industry, particularly the pending action against Navient who was accused of steering borrowers into higher payment options without providing other cost-saving options. At the same time, a USA Today editorial opined that student loans were “modern-day debtors prisons,” providing an appropriately Dickensian tableau for the discussion. The writer’s proposal was to reinstate bankruptcy for student loans.

Unfortunately, many commentators, be they professional, political or pundit, who examine public policy issues, focus only on the immediate, individualized results of the status quo. While this ensures maximum emotional impact, it ignores the larger, macroeconomic reasoning for the policy and the effect change might have on millions of consumers.

Consequently, the USA Today editorial would have you believe student loans are non-dischargeable because it purposefully disadvantages students to unfairly benefit lenders. However, a little research, specifically, typing into a search engine “why are student loans non-dischargeable” garnered a Forbes article that answered that question with precision. Congress made discharge of mortgage and student loan debt more difficult because of the societal benefits to promoting home ownership and access to higher education.

Without restrictions on bankruptcy, policymakers feared there would be reduced investment capital directed to mortgages or student loans, which keeps them available and affordable. If the loans were immediately dischargeable, lenders might not risk loans to students. As better educated workers command higher salaries and can compete better globally, ensuring affordable education loans would ultimately lead to a better standard of living. Hence, Victorian squalor

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Partner Blitt and Gaines, P.C Vice-president Illinois Creditors Bar

was not the inspiration for non-dischargeability; it was greater access to the American Dream.

But consider Navient’s dilemma. They are a debt servicing company whose purpose is to recover student loan debt. In that capacity, they are charged to ensure a given debt is paid and, upon default, recover that balance as quickly as possible. However, the CFPB action alleges impropriety because Navient may have directed students into arrangements that had higher payments. Put differently, they were supposed to collect money, just not so much. To be fair, I do not know if Navient’s service agreement required them to offer the option with the lowest payments first. But, all things being equal, this encapsulates the dilemma of our not-so-new regulatory collection universe: Creditors are being asked to be both their client’s and the consumer’s advocate.

As a result, we are in the untenable position of having an ethical duty to zealously represent our clients while, at the same time, being required to provide advice to consumers at odds with that ethical duty.

Moving full circle, Mulvaney’s goal to transform the CFPB’s mission into one of education of consumers recognizes this dilemma. But, to my mind, this is an intended side effect to a broader policy goal that could have a national and generational impact. The CFPB’s previous iteration portrayed collections like a black and white 1940s western: The CFPB wore the white hat, banks and attorneys were the vicious cattle rustlers and the consumer was the obligatory damsel tied to the railroad tracks. Under that world view, every consumer was the “least sophisticated consumer” and therefore all consumers were victims. Mulvaney appears to be trying to balance the scales: Not by regulation that only confers permanent victim status on consumers but by education that empowers the consumer to make informed financial decisions. In the end, isn’t that the real aim of college – education to create productive, responsible and rational adult decision-makers? For, as Jefferson famously said: “I know no safe depositary of the ultimate powers of the society but the people themselves; and if we think them not enlightened enough to exercise their control with a wholesome discretion, the remedy is not to take it from them, but to inform their discretion by education.” Let’s hope that our lawmakers, colleges and the loans made to pay them can do the same.

September/October 2018

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Continued from page 11 MANUEL H. (MANNY) NEWBURGER BARRON & NEWBURGER, P.C.

We have seen a great deal of painfully expensive TCPA litigation against creditors and debt collectors in the last few years. Recent case law suggests that creditors need to do a better job of building out consent to call cell phones, and both first and third-party operations need to build better dialing models.

Litigation involving credit reporting practices is also high-risk and costly to defend. ARM professionals need to be certain that they have solid compliance with statutory and regulatory requirements and that their training reaches every employee who has the capacity to trigger an FCRA claim.

LISA E. SPIWAK, ESQ. SPIWAK & IEZZA, LLP

I find the biggest challenge to overcome today is educating and convincing clients that they do require the use of counsel to collect their debts. Because there is so much personal information available on the Internet today, and it is so easy to contact debtors through email, many clients spend a lot of time trying to collect debt themselves to try and save attorney’s fees. By the time they realize that they do in fact require counsel to file suit, they have lost valuable time and the debtor’s assets are being depleted. Collections is a race and the horse that leaves the starting gate first is often the winner of the race.

LOUIS J. (LOU) WADE MCDOWELL RICE SMITH & BUCHANAN P.C.

Biggest challenge for collection attorneys today? One word: compliance. Lawyers face multiple layers of statutes, rules, and regulations. Lawyers fall subject to enforcement by multiple, overlapping bodies. Lawyers encounter vague and inconsistent court decisions addressing applicable laws. In addition, stricter rules apply to lawyers in the area of debt collection than many other areas of practice. To comply, lawyers must maintain knowledge of decisions from courts, rulings from regulatory bodies, and statutory or regulatory changes. In addition, the collection lawyer must constantly review their standards, practices, methods, and procedures with a critical eye.

JOHN ROSSMAN MOSS & BARNETT

The biggest challenge facing collection attorneys is the constant changes in the laws and requirements for complying with the FDCPA. I am on the steering committee of the Consumer Relations Consortium, a group of more than 30 collection agencies, debt buyers and creditors that meet regularly with the regulators in Washington D.C., including the CFPB and FCC, to implement common sense rules and requirements for our industry.

DAVID M. SCHULTZ HINSHAW & CULBERTSON LLP

I approach this question from the perspective of a defense attorney who represents collection attorneys in litigation and compliance matters.

The biggest challenge that I see for collection attorneys is their ability to keep up with the FDCPA case law. For instance, how to apply the safe harbor language in Miller v. McCalla (or Avila in the 2nd Circ). Related to this is the increase in FDCPA suits against collection lawyers for conduct that occurred in collection lawsuits. .com

September/October 2018

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Benchmark Advisor I Harry A. Strausser III

3 Recommended Ways to Grow Your Firm

T

he collections industry has weathered several years of turmoil and instability. Firms have closed, sold or struggled to keep their proverbial heads above water and just survive. Although some verticals have maintained a robust outlook, for most it has been painful. Add the regulatory and compliance dynamics and it is safe to say that most in our industry wouldn’t categorize the last five to seven years as a fun time.

Many believe the winds of change are subsiding and it might be time to get our bearings once again and think about the growth of our organizations. A popular quote I have used often states, “Change is inevitable. Growth is optional.” Not everyone wants to grow their organizations. Some are happy where they’re at and that is OK. But if you are part of the emerging industry segment that sees optimism in our future and sunny skies ahead, you might want to read on!

I recently participated in a webinar with AccountsRecovery.net on this very topic. Here are the highlights of the discussion:

Is now a good time to grow your collection firm? It is

always a good time to grow! If we don’t grow, then we stay the same and risk losing ground in our organizations. For those firms that have survived recent industry challenges they find themselves in a market with very few new entrants/ competitors. There are opportunities that abound for those that want to gain a larger market share or expand into new verticals. The time may be perfect for growth.

What are some pros and cons of growth? A certain pro is that

growth, if managed correctly, can add revenue to your bottom line and opportunities for current staff to rise to new positions of leadership. As you gain additional market share, and perform, your increased notoriety in market segments can give your firm momentum for continued forward movement. With growth, however, comes challenges. You will have to establish and/or bolster your training programs, focus on skill development of your staff and address any additional compliance issues that might come with new industries you penetrate.

Is it better to grow organically or via acquisition?

It makes sense that growth often comes to fruition by the careful and strategic application of the sales process. Most agree, in the

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Director of Education and Membership Development ACA International, Inc. Contact strausser@ acainternational.org programs I have conducted over the years, that organic growth is difficult and hard to maintain. One of the core frustrations of most organizations has been the flat level of sales they have endured. The good news is that there are many opportunities today to grow via acquisition. The M&A firms typically only handle the deals over $5 million in fees but there are many small companies with solid clientele with fees $1 million or less that are happy to work a deal. Let your competitors know you are in an acquisition mode. Get the word out. Often, these deals are relationship based and owners don’t respond well to the cold call or form letter received in the mail.

Do you build up your infrastructure before acquiring new clients or should you get the new business first? Growth is

not good just for the sake of getting bigger. This should be a strategic process and so I believe that you need to build the machine before going to production! There have been many failure stories in the industry where firms were not prepared for growth relative to staffing, technology, education and compliance and failed miserably. There are times when a huge opportunity presents itself to your organization; perhaps a client that could double your size. Part of being strategic is also knowing when to say “no.” Start a strategic planning process and determine the level of growth and desired direction and then apply the plan.

Is it good to grow by adding more clients or by expanding products and services to your current clientele? There has

always been a sentiment in business that “it is easier to upsell your current clients than to find new clients.” I’ve owned a retail floral business for 22 years and we always ask a customer if they want to add a balloon, card, or a box of candy to their floral order. I can add a $5 balloon to a $25 bouquet and increase the sale by 20% instantly. Not as simple in the collections industry, but I always maintained and embraced a culture in my collection firm that provided a consultative relationship to our clients. We were the firm that had the answers and creatively worked to troubleshoot challenges in the client’s world.

This article is continued on www.CollectionAdvisor.com.

September/October 2018

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Healthcare Collections I Success Strategies

Putting the Care Back in Healthcare Collections

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ealthcare debt is a huge vertical with much opportunity.

However, an agency can only find success by effectively expressing to all involved stakeholders, Richard Bennett be they clients, employees, regulators or consumers, that it cares.

This issue Collection Advisor talks to Richard Bennett, president of PlusFour, Inc. to discover his Success Strategies for ensuring this care is known. These strategies involve differentiating your agency from others, letting your employees know they are valuable to the team and maintaining the certifications necessary, such as HITRUST CSF, to collect healthcare debt.

Richard, how did you get involved in collections? After deciding to open a business I researched different industries and was already familiar with others. I concluded that I wanted a service related company and decided on the collection industry.

It was my perception that in a good economy consumers’ ability to pay their debt is increased and in a worse economy there would be an abundance of bad debt to service.

How does an agency best represent itself to potential clients? An agency can best represent itself to potential clients by being truthful and realistic about expectations. The agency should accentuate what it excels at and the areas that make it stand out from competition. Potential clients are not interested in the same product presented in a different package. They are looking for real change with noticeable and measurable improvements in technology, transparency, compliance and performance. .com

What do you do to keep your collectors motivated and happy? We create an environment where all collectors feel and understand that we know they are an important asset and their personal investment of their time and dedication is acknowledged and rewarded. We make them feel valued.

They are highly trained and are treated as professionals in their field and are paid more in guarantee than in incentives. They also work as a team and are compensated as a team. They feel a responsibility to make the team successful, so each carries their weight and supports and helps each other thereby providing superior results for clients.

How do you keep good working relationships with clients? Maintaining good working relationships with clients comes from tedious and meticulous attention to detail. They need to feel that they are our most important client regardless of how small or large they are. We go beyond the norm in providing statistical information and reports to enable them to evaluate their bad debt and our performance. We provide several communication channels for them, provide them with a dedicated point of contact, and are always available to handle their needs quickly and professionally. We also present them many options on account placement making it as easy and efficient for them as possible.

How does PlusFour manage its technology (keep updated, manage data security, keep everything functioning properly)? We hire the best technology professionals available to maintain our technology with exhausting policies and procedures written for every job, every function, and every event. We have duplicity in our training and redundancy is our systems with a

September/October 2018

BY JOSHUA FLUEGEL

high level of sophistication in our operations. We use third-party software to maintain and monitor our policies and procedures as well as our training and education programs. Our systems are remotely monitored 24/7 with full reporting monthly on all systems including issues, updates, and patches. We are HITRUST CSF Certified. HITRUST CSF has become the information protection framework for the healthcare industry and brings a new level of effectiveness and efficiency to thirdparty assurance. The HITRUST CSF Certification is now the benchmark that organizations required to safeguard PHI are measured against with regards to information protection.

Why do you think some healthcare collection agencies fail? I believe they fail because they do not anticipate the future or their clients’ needs. They remain the same as the world around them changes.

What is the most important lesson you have learned collecting healthcare debt? That it happens to almost everyone at some time and to always treat those that are in collections with professionalism and respect.

How is PlusFour involved in the community?

Recently I was elected to the board of the Nevada Chapter of HFMA, Healthcare Financial Management Association.

Volunteering to help with the services provided by this organization to benefit the healthcare providers in my state. I am also actively involved in my local church.

What do you enjoy doing in your free time? Family occupies most of my free time. Married for 41 years, we have four married children and nine grandchildren. I am also an avid golfer and love to travel.

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20 MOST

WOM M

aking the collection industry the best it can be requires continuing influence from the best and brightest collection professionals.

Those who wield this power of change must not only maintain it but utilize their wisdom to determine what is best for their peers and consumers.

Of the 140,000 professionals in collections, nearly 70% are women.

Therefore Collection Advisor presents the Most Powerful Women in Collections, a list of collection professionals who have found success in their organizations and used that influence to create positive waves of change that ripple through the industry.

These powerful women answered the following questions: 1. W HAT WOULD YOU LIKE PEOPLE TO GET INVOLVED WITH TO IMPROVE THE COLLECTION INDUSTRY? 2. W HAT NEW TECHNOLOGY HELPED IMPROVE THE COLLECTION INDUSTRY IN THE PAST YEAR?

ALANE A. BECKET Managing Partner Becket & Lee LLP President-elect American Bankruptcy Institute 1. People in the collection industry need to hold each other accountable for their actions. There are too many instances of regulators and lawsuits calling out questionable practices.

To rid ourselves of the negative reputation we carry, we must first clean up our own houses.

2. Technology is invaluable and necessary, but it cannot replace knowledge, experience and reputation. These are hard earned qualities that turn an average participant into a standout.

ANITA M. MANGHISI, IFCCE President Independent Recovery Resources, Inc. 1. The debt collection industry has such passionate and dedicated people. With the sheer masses in our numbers and the resources at our disposal, if people got more involved with our advocacy and education initiatives we would make a real impact to our image and with our legislators.

2. The old method of communicating is simply not effective any more.

Between “do not call lists”, “blocked calls” and “robo calls” being a target for the industry, call analytics has become a necessity. We need to hone in on more profitable accounts and offer full automation for payment and communication.

ANNE THOMAS Chief Compliance Officer Cavalry Portfolio Services, LLC 1. Being actively involved in industry trade associations is a great benefit to those involved in collections.

2. The collection industry continuously makes improvements to systemic controls, specifically regarding call monitoring. These technological enhancements are a great asset to a compliance management system because they provide broader coverage.

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T POWERFUL

MEN

CAREN D. ENLOE Partner and Group Leader of Consumer Financial Services Litigation and Compliance Smith Debnam Narron Drake Saintsing & Myers, LLP 1. While it may sound counterintuitive, I’d like to see more financial literacy initiatives involving the industry. I have been involved in financial literacy initiatives at the high school level and am amazed to see how few young people really understand budgeting and the cost of credit.

2. Data analytics, while not a technology is crucial in understanding and refining collection techniques. As technology continues to advance, data analytics will continue to play a crucial role in understanding what collection techniques net results and help eliminate inefficiencies. With narrowing profit margins, I see this as crucial to success of the industry.

COURTNEY REYNAUD [ON COVER] President/CEO Creditors Bureau USA CFO California Association of Collectors 1. Industry activity is key to the success of the collection industry. Industry participants should get involved with their state/local units and national associations, participate in the lobbying and legislative efforts pursued at the federal/state level, and take advantage of educational events and networking opportunities provided by the national/state associations.

2. Agentless collections is the wave of the future. Providing options for consumers to communicate, dispute or pay an account via their preferred communication method has been shown to improve consumer satisfaction and decrease agency overhead costs and liabilities.

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September/October 2018

DEBRA J. CISKEY Chief Compliance Officer Wakefield and Associates Inc. 1. I am a firm believer in “knowledge is power.”

I would like to see more people get involved with the education programs offered by ACA International, Inc. and seek to achieve the professional designations that are available. Other organizations offer programs as well, but I am most intimately knowledgeable about the Campus ACA programs.

2. New technology that I started using is a learning management system called Eterna, offered by Learn.net. We use it to deliver training and testing to our employees twice a week, providing them with skills and knowledge, and the confidence to use them.

DONNA NICHOLSON STIEF Executive Director and Chief Compliance Officer Credit Bureau of Lancaster County, Inc. 1. There truly is power in numbers. We should be storming the “Hill” in droves at Washington Insights. This conference has increased in participation greatly over the years; however, comparatively, we are the few representing the masses.

Our voice will be heard more effectively and exponentially when more ACA members participate. It is a fantastic conference!

2. We have greatly benefited by using a litigious debtor scrub. This technology has been around for a while and I can’t imagine not having it!

Also, ringless voicemail drops is effective and in our experience, well received by the consumer.

IRENE HOHEUSLE, IFCCE, CCCO Vice President of Collections and Education Account Recovery Specialists, Inc. President Kansas Collector’s Association 1. Become involved legislatively. At ACA Washington Insights, BCFP’s Acting Director Mick Mulvaney was surprised so few responded to RFIs on topics for our industry. I know it’s partially due to our faith in ACA to represent us, which they did wonderfully. But it’s not enough. We all should get involved!

2. Though not new, call analytic software is the new pink. Every agency can improve training, compliance and bottom line when they can pinpoint issues on all calls quickly. Also, compliance management systems that keep track of compliance concerns and how they are handled and used to improve daily workflow.

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JULIE SIMES President | Zealandia Capital, Inc. 1. Pay it forward. We help the economy but it’s important to realize we can have an even greater impact.

Give back to your communities and share the positive role we play. Take time to reflect and realize how fortunate we are and give back to those are less fortunate.

2. While technology has evolved over the last year and allowed us to grow, expand, and help the bottom line – reality is we are plagued with new technology allowing consumers to avoid and evade their responsibilities. It is pertinent that we do not let this prevent new technology from improving the industry.

KELLY KNEPPER-STEPHENS General Counsel and CCO Stoneleigh Recovery Associates, LLC

JAN STIEGER, CAE, CMP, CRCP Executive Director | Receivables Management Association International 1. Community activities and local press. The overall industry reputation will be improved if each participant is proactive in their business community representing the industry in a professional and ethical manner and being good corporate citizens. We need 10 positive stories for every one sensational negative story or scam involving the debt collection industry - think globally, act locally!

2. I’m not sure that any specific new technology has improved the industry this year, but I do think that the creation of best practices and recognition in a few states and federally that the industry needs clarity on how the new technologies that are available can be used lawfully has been helpful.

JUDY LA SPADA Chief Executive Officer/Founder Virtuoso Sourcing Group, LLC

1. The debt collection rulemaking. Now is our chance to help the BCFP draft rules that would help bring clarity to many issues that currently prohibit the industry as a whole from efficiently communicating with consumers. Write the BCFP or join and donate to any of the organizations that lobby on our behalf so that they have the means to help bring about some positive changes.

2. Without naming one particular vendor or product, as there are many out there, the technologies that help agencies reach consumers in nonintrusive ways as the modern consumer requests that at the same time comply with consumer protection laws and regulations – this would include efficient message delivery whether by website, email, text, direct drop, phone apps, etc.

KELSI HAMILTON Compliance and Legislative Affairs Dynamic Collectors, Inc. Legislative Chair | Washington Collectors Association 1. I would like to see more people involved in grassroots advocacy. We provide an important and necessary service and should not be made to feel ashamed. We need to speak up to promote our industry and get rid of the negative stigma that often comes with it. It takes all of us being proactive to make it happen.

1. I would like to see industry professionals work harder to change the outside perception of our business. Most companies in our field are compliant, friendly and far more analytical than what is perceived by average consumers. Traditional media looks to publish the occasional horror story vs. communicating an authentic view of our business. By leveraging YouTube, Instagram, social media in general and our webpages with realistic portrayals of our work we can change the consumer’s perception of the experience and potentially receive a better response to our recruiting efforts and to our attempts to reach people.

2. I am not sure that it is new but I think an existing tool that is still under utilized is the website www.collectthetruth.org. This tool provides a platform to tell our story and share our truths. I have been using this site as one tool to help engage with my state’s lawmakers. Technologies to help with collections won’t matter if we are regulated out of business.

2. We have been very impressed by the variety of business intelligence tools that are available to us and the associated cost which has been driven down significantly through consolidation of suppliers and new competition.

1. The next year is perhaps the most critical time ever for federal advocacy for the collections industry as the BCFP moves forward with rules and the FCC reexamines TCPA interpretations. We need the industry to be telling their personal stories about the services they provide to consumers

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LEAH DEMPSEY Vice President and Senior Counsel, Federal Advocacy | ACA International

and the thousands of Americans they employ, which are critical to our advocacy efforts at the FCC, BCFP, SBA Office of Advocacy, and in Congress.

2. From an advocacy perspective, I would say that just over the past several years the use of social media to tell your story to Congress and regulators has become increasingly more important. As we have seen even from the President, social media gives us the opportunity to tell our side of the story in an unfiltered way. Lawmakers and their staffs are being educated through mediums such as Twitter and Facebook.

LESLIE BENDER, CIPP/US, CCCO, CCCA, IFCCE Chief Strategy Officer and General Counsel | BCA Financial Services 1. To improve the collection industry there are two types of activities that are helpful. First, the business of folks from various industry related trade associations, creditors as well as credit/collections folks, mingling and exchanging ideas is fantastic. Second, reaching out and having conversations with consumer advocacy groups to share perspectives and information is invaluable.

2. Many of the technologies that support “agent-less” and self-service options for consumers 24/7 are enormously helpful to our industry. I look forward to seeing how blockchain and some of the aspects of it may have an impact on our industry.

LISA IM Board Chair and CEO Performant Financial Corporation 1. Our industry has an incredibly diverse workforce with women making up 70%, and racial and ethnic minorities accounting for 40% of the total collections workforce. I’d love to see the industry lead in more diversity-focused philanthropic causes to help showcase the positive impact our employees have on the world.

2. The utilization of AI and advanced decisioning solutions within potential self-cure channels has allowed for improved customer experience and overall efficiency gains within many businesses—consumers can dictate the “how, when, where” of communication and resolution.

NICOLE M. STRICKLER Shareholder | Messer Strickler, Ltd. 1. My personal feeling is that it is important to assist, participate in, and support our industry’s trade organizations. Many of these groups work tirelessly not only to help improve our industry’s image but also to truly educate members of our industry on the importance of legal compliance. Building and maintaining a mindful group that values our place in the business ecosystem is key to our future success.

consumers and collectors, alike. Further, from my perspective as a consumer financial defense litigator, these changes have resulted in more industryfriendly court opinions concerning the use of dialing technology.

PAM KIRCHNER CEO | BCA Financial Services, Inc. 1. Advocating on behalf of our industry and developing relationships with lawmakers. There has never been a more appropriate time to meet lawmakers face to face and tell real-world stories about the impact of legislation and regulation on our businesses, employees, and consumers.

2. All technological products or services that assist our industry in our attempts to compliantly communicate with consumers on their cellular phones.

ROBBIE MALONE Trial attorney Malone Akerly Martin PLLC 1. As a trial attorney, I would like to see the industry be aggressive in taking positions that advance the industry’s position. I would like to see people use what we learn in the litigation world as a basis of their employee training and quality control.

2. I think the use of human intervention in telephony has had the biggest impact in the industry within the last year.

SHANNON DAUCHOT CEO | Parallon Revenue Cycle Point Solutions Division 1. Two things – drive sweeping, frequent updates to TCPA with the prominence of mobile phones and number portability, and the predatory, costly plaintiffs’ litigation impact. Second, eliminate the stigma of collector roles for recruitment of top talent, particularly within healthcare which focuses on having empathy and finding options for balance resolution.

2. “Gamification” is the latest technology we plan to test in limited areas to evaluate effectiveness in motivating staff and recruiting younger workforce. I remain cautious, to avoid demotivating or distracting some staff and because our current engagement activities are successful. Need to ensure we don’t lose sight of our purpose.

Continued on page 23

2. Improvements to dialing platforms in the past few years have been a great improvement to our industry. Reductions in dropped calls, dead air, and call queuing controls have taken away a lot of the past frustration both from

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September/October 2018

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Collection Industry Advisor I Nick Jarman

How to Successfully Influence Uninformed Regulators

T

here’s an old saying: there’s no time like the present. When it comes to seeking clarity and reform to exclude debt collectors from liability under provisions of the Telephone Consumer Protection Act, call blocking and labeling, contradicting FDCPA interpretations from courts, that saying couldn’t be closer to the truth. Many organizations have become increasingly frustrated that the TCPA, Foti, and now robocall issues haven’t been corrected. Many feel as if our industry should have had the legislation updated by now and are frustrated for the continued inclusion of the liability debt collectors face due to TCPA violations and not having a clear definition of a “communication” in the FDCPA. While credit and collection trade associations can push these reforms to the goal line, it will be up to the entire industry to see those reforms take place. Consumer advocate groups continue to invest money into lobbying against our cause. It may not be what you want to hear, but it is reality.

Our industry needs everyone whether an owner, executive, or employee to rise up, get involved, and start contacting policymakers and regulators on the federal and state level.

Personally, I have tremendous success in reaching out to both Democrats and Republicans. While some didn’t bother to respond, the majority did. We continue to setup face-to-face meetings with regional legislative directors and I have several conference calls scheduled regularly with legislative directors based in Washington, D.C. Based on the takeaways of these meetings and calls I am more encouraged than ever that we will see some of the reforms we have been longing for, it’s just a matter of when.

In Defense of Collections

The one thing I am confident in after having meetings with legislators and regulators is most of the legislators don’t know and some of the regulators aren’t aware of just how far-fetched and damaging some of these laws are. Many are not aware of the TCPA or FDCPA because of the massive amount of laws they have to know and understand. They have not been informed of the value of credit and collections. When I explain that debt collectors are being sued by opportunistic plaintiff attorneys because they called a consumer’s cell phone using an advanced telephone system, they were literally

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Owner RightAway Consulting & Coaching Board of Directors, Member ACA International

dumbfounded that anyone could be sued for calling a consumer on a cell phone, especially when collecting a legitimate debt. I get the same reaction when I explain Foti, and robocalls. They are genuinely taken back that these types of lawsuits could happen, let alone have an impact such as they have today on both consumers and debt collectors.

In Defense of Consumers

I have found success in speaking with the regulators and legislators’ offices by presenting the information in a way that puts consumer protection first and debt collection second. Explaining that debt collector issues are also consumer issues gets a very good response from legislators and, depending on who is President, regulators as well. When discussing the TCPA, I have used an approach which emphasizes that consumers with cell phones are losing their rights to be contacted using their communication medium of choice. I further explain that while their cell phone can be manually dialed, there are too many accounts in collections as almost 20% of all Americans have at least one account in collections. Debt collectors are simply unable to manually call the majority of accounts they have with cell phone numbers. Therefore, the account goes minimally worked at best and ultimately uncollected and the creditor has no choice but to seek legal action, legal action that could have easily been avoided if debt collectors had the ability to utilize advanced telephone systems.

The bottom line here is that not the trade associations, myself or even all the others within our industry currently informing regulators and legislators of the value and difficulties of the credit and collection industry is enough.

We need as many individuals within the credit and collection industry to rise up and start making a difference.

If there were as many individuals out there involved in this matter as there were sitting on the sideline waiting for laws to change themselves, these issues we currently face could have been resolved by now. From everyone who has risen to the challenge, to all of those who haven’t, now is the time to engage and get involved. Now is the time for everyone to get involved and modernize the debt collection process. Now is the time to rise up.

September/October 2018

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Business Directory

Collection Agencies United Collection Bureau, Inc.

1st and 3rd Party Collections ucbinc.com ssharma@ucbinc.com 954-236-6027 UCB, Inc. provides national debt programs for creditors in all markets from fully-secure high performance collection centers located in the U.S. and Latin America.

The Computer Manager, Inc. Debt$Net Collection Software debtnet5.com | sales@debtnet5.com 800-552-8397 Since 1987, Debt$Net collection software has provided collection agencies, law firms and in-house collection departments with one of the most comprehensive collection systems in the industry.

Quantrax Corporation Inc.

RMEx quantrax.com marketing@quantrax.com 301-657-2084 Quantrax is a high-end collection technology company that has marketed and supported an intelligent collection software platform for over 25 years.

Simplicity Comtech Systems Collection Collect!

Software Credit and Debt SimplicityCollect Collection Software simplicitycollectionsoftware.com collect.org | info@collect.org Collection Software sales@simplicitycollect.com 800-661-6722 866-791-0224 Collect! combines ease of use with total integration AgreeYa Solutions As an industry leader, Simplicity is the only software proof functions.

Accounts are efficiently tracked from Cogent vider to offer a web solution with unlimited users, clients, the time you receive them until activity is concluded cogentcollections.com accounts, and custom fields at an affordable price! and they are closed.

Collect! keeps track of critical cogent@agreeya.com information automatically. Total integration provides 916-351-2538 Sentinel for seamless and accurate month end invoices and A comprehensive Collection and Case Management Development statements with full account histories.

Toll for Creditors’ Rights Law Firms and Collection Solutions, Inc. Agencies driving compliance , business optimization eCollections DAKCS Software

and easy integration. ecollections.com Systems sales@ecollections.com Beyond ARM CDS Software 515-564-0585 dakcs.com | sales@dakcs.com CollectOne The result of 20 years of industry-leading collections/ 800-873-2527 collectone.com DAKCS Software Systems is an industry leader in simpli- recovery platform development, eCollections is a info@collectone.com fying the process of collections and accounts receivable comprehensive enterprise collection system with flexible 888-816-3333 management. By creating highly configurable, innova- configuration, ease-of-use, powerful payment features, CollectOne is an award winning suite of debt coltive cloud and on-premise software solutions, DAKCS of- workflow automation, and unparalleled reporting and lection solutions that provides a feature-rich set of fers a way to run your business faster and more efficient. tracking. automated business processes designed to minimize DAKCS is committed to providing the tools necessary for costs and maximize results. success in the ever evolving ARM industry.

Collection Support Services CODIX Debtmaster® Applied Innovation Inc. iMX Collection, ClientAccessWeb, Debtmaster® 360 Legal and Recovery Solution PayStream, debtmaster.com codix.us/debt_collection GreenLight, and Papyrus 800-414-2814 bquinn@codix.us appliedinnovationinc.com Debtmaster®360 gives you a cloud hosted, cost404-790-0998 effective, flexible, secure, collection solutions that helps mjeffers@appliedinnovationinc.com iMX is a complete centralized debt collection and you manage compliance and provide quality service for 800-589-5651 recovery software solution. Based on the latest Applied Innovation provides a suite of compliant Clients and Debtors. technologies, iMX Debt Collection includes all the solutions for the ARM industry. Our solutions have most advanced business functionalities supported by proven to increase your bottom line with improved InterProse

native tools. efficiencies, increased client sales and retention, and InterProse increased web services. Designed for your continued WebAR ACE Collection Solutions growth and success. interprose.com/collection-advisor Software, Inc. aaron.reiter@interprose.com CSS IMPACT! HD™ 2.0 844-244-1135 cssimpact.com | carlb@cssimpact.com Debt Recovery Software Solutions through a patented 818-593-4830 Virtual Agent Collector and a true, web-based collecCSS IMPACT! HD™ 2.0 (Enterprise), the industry’s tion platform, open to third-party integrations and leading ARM | Collections & Compliance Platform packed with process automations. delivering decades of deep rooted industry acumen for the ARM, Collections & Compliance sectors. IXP (Lite) also available.

September/October 2018 .com

Predictive Dialers

Cornerstone Support State Licensing and E&O Insurance cornerstonesupport.com info@cornerstonesupport.com 888-445-8660 Cornerstone Support is the premier licensing and insurance provider to the collection industry; professionally trained to assist you with all of your state licensing needs.

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

Compliance LexisNexis® Risk Solutions LexisNexis ® Accurint ® for Collections lexisnexis.com/risk/receivables-management 800-869-0751 LexisNexis Risk Solutions assist debt recovery professionals with increasing workflow efficiencies, gaining greater insight into debt portfolios, collecting more in less time and achieving greater profitability.

Electronic Payments

Noble Systems Corporation Contact Center Technology

noblesystems.com info@noblesystems.com 404-851-1331 Noble Systems Corporation is a global leader in customer communications, providing innovative premise and cloud solutions for Contact Center, Workforce Management and Interaction Analytics technologies.

Skip Tracing IDI idiCORE ididata.com | sales@ididata.com 855-842-1410 Trusted for over a decade by collection agencies and collection attorneys. IDI provides fast, accurate and cost-effective consumer verification and skip-tracing solutions via online, API, and batch processing.

Reduce Cost, Not Quality.

LexisNexis® Risk Solutions LexisNexis® Accurint ® for Collections risk.lexisnexis.com 800-869-0751 LexisNexis® Risk Solutions assist debt recovery professionals with increasing workflow efficiencies, gaining greater insight into debt portfolios, collecting more in less time and achieving greater profitability.

VeriFacts Payroll Promise verifactsinc.com sclark@verifactsinc.com 800-542-7434 Payroll Promise is designed to support a legal strategy by locating verified full time places of employment.

The information returned is 100% guaranteed to be accurate.

Innovative E-Pay Solutions, Inc. Electronic Payments

Virtual Collections innoepay.com sales@innoepay.com 855-888-3729 Applied Innovation Inc. Specializes in providing Credit Card and Electronic ClientAccessWeb, Check processing accounts to the Collections Industry PayStream, for over 15 years. FDCPA Certified Agents, longtime GreenLight, and Papyrus members of ACA. appliedinnovationinc.com mjeffers@appliedinnovationinc.com 800-589-5651 Applied Innovation provides a suite of compliant solutions for the ARM industry. Our solutions have proven to increase your bottom line with improved efficiencies, increased client sales and retention, and increased web services. Designed for your continued growth and success.

LISTINGS AVAILABLE 1 issue - $500 2-6 Issues - $300 each .com

September/October 2018

September/October 2018 Volume 18, No. 5 Editor-in-Chief Joshua Fluegel josh@collectionadvisor.com Editor T. Steel Rose, CPA, ACG editor@collectionadvisor.com Copy Editor Myrna Nelson Advisory Board/Columnists Gordon C. Beck III Sam Eidson Debra Ciskey Ron Brown Nick Jarman Michael L. Starzec Harry A. Strausser III Publisher Angie Rose angie@collectionadvisor.com Sales Assistant/Illustrator Adriana Holland adriana@collectionadvisor.com Production Andrea Bergeron Paul andrea@collectionadvisor.com Subscription Changes Joshua Fluegel josh@collectionadvisor.com The opinions given by contributing authors are their own and not necessarily the opinion of our staff and ownership. All trademarks used are the property of their respective owner.

Collection Advisor (ISSN# 1556-0813) is produced six times a year by Abide Media, P.O. Box 92342, Southlake, TX 76092, 888-610-1144. Standard Mail postage paid at Sussex, WI 53089. ©2018 All Rights Reserved Magazine Publishing Group, Inc. Printed in the U.S.A.

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AND THEN THERE WERE TWO If you want the best, you will soon be evaluating these two products. One of them is powered by proven artificial intelligence, has been redesigned for today’s demanding environment and leverages automation, analytics and emerging mobile technologies. The other? Let's just say it's getting old. Fighting today’s problems with modern technology improves your results and your bottom line.

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Reliable PeRfoRmance foR confident collections Debtmaster速360, partnered with the Microsoft Azure速 Cloud is your winning combo for optimal performance when it comes to driving your collections. Integrated compliance tools, debtor info, advanced agent dialing and messaging, payment processing, and client reporting, are all available with Debtmaster速360.

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