Collection Advisor May/June 2018

USING TECHNOLOGY TO EMPOWER COLLECTIONS

THE ORIGIN OF THE CYBERTRACKER CREATING A CORPORATE LEGACY “REASONABLE BELIEF” APPLIED TO CREDIT REPAIR ORGANIZATIONS’ ACTIVITIES INTERVIEWING THE NEXT TOP GUN THE CHANGING LANDSCAPE OF COMMERCIAL COLLECTORS ELECTRONIC PAYMENT SOFTWARE ROUNDTABLE BENEFITS OF LEGAL DEBT COLLECTION ON THE NATION’S ECONOMY 5 THINGS YOU NEED FOR GOVERNMENT COLLECTIONS

Rick Bonitzer

May/June 2018

Vol. 18, No. 3

DEVELOPING TALENT IN GOVERNMENT COLLECTIONS Collection Advisor P.O. Box 92342 Southlake, TX 76092

SMALL OFFICE COLLECTIONS SOFTWARE ROUNDTABLE

PRSRT STD US POSTAGE PAID COLLECTION ADVISOR

Partner with CDS Software for your collection needs.

CollectOne is an award­winning, single source collection solution that provides a feature­rich set of automated business processes designed to minimize costs and maximize results.

Our software provides you with the flexibility to manage multiple debt categories and the scalability to eliminate the necessity of upgrading software applications to meet growing business needs.

Our Services Include Collection Software

All of the flexibility and scalability you need to maximize productivity in a single source solution.

Web Portal

Leverage the power of the Internet with real­time account access.

Increase productivity by allowing debtors to settle their balance online.

Industry Integrations Redefine your collection efficiencies by implementing our numerous industry­leading integrations.

Find out how CollectOne can help you better manage your accounts.

A CDS Software Solution | CollectOne.com

Application Sets + Consumer Debt

+ Commercial Debt

+ Healthcare

+ Student Loan

+ Legal Collections

+ Government

+ Debt Buyers

+ First Party

+ Insurance Subrogation

+ Property Management

Setup a demo today! info@CollectOne.com | 888.816.3333

4 Nick Jarman 6

Harry A. Strausser III

8

Ron Brown

10 Debra J. Ciskey 12

Sam Eidson

16

Bob Ingold

17

Michael L. Starzec

THIS ISSUE MADE POSSIBLE BY: CDS Software.............................. Inside Front Cover IDI, Inc...........................................................Back Cover Melissa Data...................................................... Page 3 CSS IMPACT........................................................ Page 5 VeriFacts.............................................................. Page 7 Cornerstone Support.................................... Page 9 Sentinel Development Solutions Inc....Page 26

GOVERNMENT COLLECTIONS ISSUE

e m o c l e W G

overnment collections is a coveted vertical by many accounts receivable professionals. It has a custom set of regulations that are more favorable for the collectors and the legitimacy of being selected by the government can help drum up new clients. But as with all choice business, many are gunning to land it which can make for a competitive playing field. This issue features an Agency Spotlight that discusses what an agency must do to maintain success in such a competitive field as well as the importance of training.

Agency Advisor Sam Eidson remedies your recruiting woes by providing some helpful tips on hiring. Collection Advisor’s new Legal Collection Advisor, Michael L. Starzec, discusses the recent changes at the CFPB and what they may or may not mean for accounts receivable efforts. Skip Tracing Advisor Ron Brown recounts an eventful business trip and how it gave birth to the concept of cybertrackers. Collection Industry Advisor Nick Jarman outlines government collections for those considering entering the vertical. Benchmark Advisor Harry A. Strausser III gets nostalgic and expresses the importance of archiving your company’s history for employee morale and your own psyche. Compliance Advisor Debra J. Ciskey dives into credit repair organizations and why you need to take a closer look at letters you receive from credit repair organizations disguised as “consumers.”

This issue we examine small office technology companies that watch trends in collections, listen to the resulting need from accounts receivable professionals and produce solutions that respond to both. Collection Advisor also spoke to numerous technology thought leaders about encouraging payments through ease of use payment functionality.

Next issue Collection Advisor brings together the leading minds in software to discuss the future of technology for the Top Collection Partners 2018. We will also talk to industry experts about mid-range (101-999 seats) collection software.

Until next time, we look forward to hearing from you.

Joshua Fluegel

Editor-in-Chief

josh@collectionadvisor.com

Innovative E-Pay Solutions, Inc............Page 26 Collect!................................................................Page 26 Comtronic......................................................... Page 27 Simplicity Collection Software ............Page 28 Quantrax...........................................................Page 29

.com

May/June 2018

Checklists and Training Tools

1

CollectionAdvisor.com ACCESS ONLINE

USING TECHNOLOGY TO EMPOWER COLLECTIONS

ADVISORS

24

4

COLLECTION INDUSTRY ADVISOR 5 Things You Need for Government Collections Nick Jarman

Creating a Corporate Legacy Harry A. Strausser III

FEATURES

11

Rick Bonitzer, President of Credit Collection Partners

13

11

SKIP TRACING ADVISOR The Origin of the Cybertracker

20

10

23

AGENCY ADVISOR

Interviewing the Next Top Gun Sam Eidson

LEGAL COLLECTION ADVISOR Benefits of Legal Debt Collection on the Nation’s Economy Michael L. Starzec

2

THE BOTTOM LINE Video Services How to Improve Your Reputation T. STEEL ROSE AND JOSHUA FLUEGEL

24

Collection Advisor Business Directory

16

17

JOSHUA FLUEGEL

23

12

The Changing Landscape of Commercial Collectors Bob Ingold

Small Office Collections Software Roundtable Software That Grows with You Comparison Chart and Checklist

COMMERCIAL COLLECTION ADVISOR

JOSHUA FLUEGEL

Ron Brown

“Reasonable Belief” Applied to Credit Repair Organizations’ Activities Debra J. Ciskey

Electronic Payment Software Roundtable Keep Electronic Payments Easy – or Else

8

COMPLIANCE ADVISOR

Agency Spotlight Collect Like the Government Does

28

6

BENCHMARK ADVISOR

Volume 18, No. 3

Business Directory

May/June 2018

13

DEPARTMENTS

1 7

Welcome

Collection Industry Top Product Nominees May/June 2018

.com

Collections MadeEasy Easy Collections Made

With Right-PartyContact ContactData Data With Right-Party NAME

NAME

Listware速 Listware速

@ Listware ensures you have right-party contact Listware ensures you have collections right-partyand contact information for successful information for successful collections and account management efforts. account management efforts.

This simple-to-use data cleansing tool helps This data cleansing tool helps you simple-to-use locate and maintain current address and you locate and maintain current address telephone numbers for less than a penny aand telephone record! numbers for less than a penny a record!

Contact data for 140 million households & data for 140 million households & 19Contact million businesses

19 million businesses Multiple data sources updated regularly Multiple data sources updated regularly 15+ years proprietary Change of Address records 15+ years proprietary Change of Address record Different access methods: Online, Excel and Different access methods: Online, Excel and Salesforce Salesforce

Available in:

Available in: Listware速 Online

Listware速 Online

Start for Free

Start for Free www.melissa.com/clean www.melissa.com/clean Melissa Data is Now Melissa.

Why the change?

Melissa is Now Melissa.

See for Data Yourself at the New www.melissa.com

Why the change?

1-800-MELISSA

5 Things You Need for Government Collections

ROUTING SLIP

Initials

G

Government collections can be vastly different than traditional collections as compared to accounts such as financial services, telecom, or utilities. Namely, government or municipality debt is owed indefinitely with no statute of limitations and the debts are not dischargeable in bankruptcy. There are several key elements that need to be taken into consideration when collecting on government debts. It consists of knowing the data elements, segmentation, training, integration and data reporting.

Data Elements

First, it is important to know and understand the data elements of the debts that are coming across the system and eventually to the collector’s desk. A couple things to consider is whether the debt has been adjudicated and is it exempt from bankruptcy.

What data fields are the client providing and are they providing enough data to make a connection to the individual from which you are looking to collect. It is important to ensure enough data points are sent over so you can identify and collect from the correct individual.

Segmentation

If all you collect on is government debt, then segmenting it from non-government debt isn’t an issue. However, if you are collecting multiple verticals it is important to ensure that government debt is segmented from non-government debt. There are many reasons for this. Mostly because the government debt is not governed under the Fair Debt Collection Practices Act, which allows for more leniency to collect the debt whereas non-government debt is regulated under the FDCPA and collection activity is more restrictive. Segmentation of government debt itself is also important as different types of debt generate more revenue than others. For example, traffic violations may liquidate out higher than felony debts and thus should be treated accordingly.

Training

Another important element of government and municipalities success is training, training and more training. Since this is such a unique vertical it will require unique and continual training for all staff members which include collectors, skip tracers, client support, payment processing and all other departments. There could be several different scenarios at play when collecting in this vertical. Does the fine or fee need to be paid prior to renewing a license or obtaining a new service the individual is seeking?

Often there are multiple fines and/or fees that are owed as well

4

Date

Collection Industry Advisor Nick Jarman

and it is important to adjust accordingly. There is certain collection software that allows for easy bundling of multiple accounts to make the user process seamless.

Integration

Integration is also a critical component. Your collection system must be completely in sync with the various systems your government clients are using. There are a handful of unique government-based systems used by governments and municipalities and it is imperative to know their inner workings and what is entailed with getting acclimated to the host collection system.

It’s important that your collection and support staff, along with your client’s staff, are on the same page with the processes, procedures and expectations. The goal is to make the integration as easy, simple and uncomplicated as possible. The easier it is for your client to work with you and your processes the better. Look at it this way, if it isn’t easy and user-friendly then something isn’t setup correctly.

Data Reporting

Lastly, data reporting that comes from your agency to your government clients needs to be consistent, reliable and up to par.

Government clients need to know what the performance numbers are and it shouldn’t need to track you down to get them.

They should be readily available and either on demand or scheduled to be sent at a specific time. Your clients will consistently be questioned about the results, performance and progress. It’s up to you to ensure they have that data available and at their disposal. Also, having a client web access portal where the client can go to look at accounts and view reports anytime is highly recommended.

Nick Jarman is the Chief Operating Officer of Credit Collection Partners, Inc. and owner of RightAway Consulting & Coaching. Jarman recently served three years on the Board of Directors for ACA International and is the past President of the Missouri Collectors Association.

May/June 2018

.com

Creating a Corporate Legacy

T

The collections industry has a long history. From the beginning of the concept of the extension of credit hundreds of years ago, this is an industry that has grown and changed dramatically. Over the last century, with the exponential growth of credit, the first and third-party debt collection industry has exploded and players in the market continually leverage new and exciting technologies to facilitate the process. Healthy bottom lines are important but developing a compliant culture is at the very foundation of any reputable ARM participant.

Since selling my firm in May of 2017, I have had much time to reflect on my career in this industry spanning over four decades. As I continue to clean out file cabinets, drawers and closets I am finding an incredible amount of memorabilia which outlines the evolution of both my recent firm and my family’s original organization. One of the dynamics that makes this industry special are the many stories of generations who have worked and thrived in this often-misunderstood industry. I have found old pictures of collectors working with manual cards and rotary phones and cigarettes burning throughout the office! Ancient marketing materials and collateral that would be laughable in 2018 but state of the art in the ‘60s. My corporate history has been all around me in boxes, bags, closets and drawers. What an opportunity to reflect on the years.

Do you know your corporate history? Certainly, some of our readers work in organizations just formed over the last decade or two but what about those that have a rich history spanning generations? What we learn from our past is organizations engaged in collections have been important members of their communities and have created, organized and developed programs to assist local and regional charities. It was Pearl Buck who reminds us, “If you want to understand today, you have to search yesterday.” Many of us who have spent an entire career in this industry reflect on the words of that famous Beatles song, “Yesterday, all my troubles seemed so far away. Now it looks as though they’re here to stay.

Oh, I believe in yesterday.” It was a different time, it was a different industry, but the same giving sentiment still runs true in collections offices across the US. Just as Americans are focused on their family heritage and flock to sites like Ancestry.com, collection offices should use 2018 as a time to reconnect to their office culture of years gone by and provide an interesting, historical perspective to current staff! So, where do you start?

ROUTING SLIP Initials

Date

Benchmark Advisor Harry A. Strausser III

2) Look Through Old Files and Obscure Closets It is almost

guaranteed if you dig around hard enough, you will find some ancient corporate treasures within your office surroundings, especially if your organization has occupied the same building for years. While cleaning out my Dad’s office basement in 2009 I found one of the first, original “bag phones” when cellular phones were introduced!

3) Google Your Company Name You will undoubtedly find

some narratives online posted by predatory law firms lambasting your organization as a bad player, as we all do, but you may also be surprised at some of the old articles about your firm’s history and community involvement. Also Google the names of your owner, past company officers and other noted company team members.

That could lead you to some rich historic perspectives. An industry friend recently looked at the “Collector of the Month” plaques on his wall that dated back to the 1960s. He reached out to some of those names (some had been long gone) and acquired some wonderful vintage stories!

4) Access Industry Periodicals If your organization has been ac-

tive in organizations like ACA International, you may want to access old issues of Collector magazine which might have some stories highlighting your firm’s past volunteer and charity initiatives. Each year, for quite some time, the ACA Education Foundation has sponsored The Collector Challenge month in April. Many firms conducted fundraising events for this annual drive and you may have been involved and featured in an article at some point.

1) Interview Tenured Staff Members Most offices have a staff 5) Start a Documenting Process Several years ago, one of my staff member or two that have been a part of the team forever! Take the time to interview them and collect stories of the good old days.

They will have loads of examples of where the company came from and what life was like in the earlier days. Get their perspectives on the changes they have seen and write down their historical accounts.

6

members retired. She was in her seventies. She had worked for my firm for many years and with family prior to that. She was a great “scrap booker” and I found wonderful books with memorabilia from most of our notable company events and accomplishments. It was fascinating and a real throw Continued on page 9 May/June 2018

.com

COLLECTION INDUSTRY TOP PRODUCT NOMINEES MAIL SERVICES High Cotton

highcottonusa.com

877-838-2345

PCI Group

pcigroup.com

800-394-0328

Renkim

renkim.com

734-374-8300

RevSpring

revspringinc.com

866-536-2376

SourceLink

sourcelink.com

866-947-6872

MID-RANGE COLLECTION SOFTWARE Beam Software

BEAM

beamsoftware.com

800-212-2326

CDS Software

CollectOne

collectone.com

888-816-3333

CODIX

iMX Collection

codix.eu

404-790-0998

Comtronic Systems

Debtmaster

comtronic.com

800-414-2814

Comtech Systems

Collect!

collect.org

800-661-6722

CSS

CSS IMPACT! HD 2.0

cssimpact.com

877-277-4621

DAKCS Software Systems

Beyond.net

dakcs.com

800-873-2527

Interactive Intelligence

Interaction Collector

inin.com

800-267-1364

InterProse

InterProse ACE

interprose.com

844-244-1135

Lariat

Lariat

lariatsoftware.com

877-268-6667

Ontario Systems

Artiva RM

ontariosystems.com

800-283-3227

Quantrax Corporation

RMEx

quantrax.com

301-657-2084

Roydan

Bloodhound

roydan.com

800-236-6906

Sentinel Development Solutions, Inc.

eCollections

ecollections.com

877-395-8976

Simplicity Collection Software

SimplicityCollect

simplicitycollectionsoftware.com

866-791-0224

The Computer Manager

Debt$Net

debtnet5.com

800-552-8397

The Origin of the Cybertracker

I

In the process of instructing men and women across the United States and Canada I have found there are three distinct and readily identifiable groups: cybertrackers, skip tracers and skip guessers.

In this series I would like to address the traits and recognition flags of each group and look at the advantages and disadvantages associated with each group. First let’s explore the cybertracker and look at its origin.

Several years back I was contracted to instruct an offshore service company’s select group of employees in the art and science of skip tracing. I was assured the selection process for this group included at least an associate degree in communication and that each selectee had been through an accent neutralization course. After receiving the required immunization shots and an 18-hour flight I arrived in my host country. I was picked up at the airport in a company limousine and driven to a five-star hotel where I was provided with first class accommodations. After a nice lunch and an opening conversation with the company’s executive staff I was driven to their training facility which equaled or surpassed any teaching environment I had previously encountered. I was appointed a personal assistant who would assist me during my four-week instructional tenure and was introduced to the 20 selectees that I would be working with. The group was impressive with their computer knowledge and skills and I looked forward to the next day’s beginning class.

The next day started early at 7:30 a.m. with a group breakfast and at 8:00 we settled down to a day of basic theory lessons.

Lunch went great and then in the afternoon we began to use the skills that had been taught in the morning class. This session did not go well as the students seemed to forget their neutral accents and anytime they became frustrated or received any type of resistance during a call they reverted to their native accent which was, at times, hard for even me to understand. I could not follow what they were trying to ask of the pre-selected informants and their attempts proved futile in gaining pertinent information.

The day ended on a low note as I felt I had just not conveyed my expectations clearly to the group.

The second day went no better than the first and it seemed that there was just no way to teach the students the intricacies of extracting information from people located in the United States.

It was like trying to teach birds how to communicate with fish.

I was very disappointed in myself for undertaking such a task. I toiled over the different teaching methods I had learned through the years and concluded that there was just no avenue I could venture down which would accomplish my goals with this client. I went to bed trying to think of a way to extricate myself

8

ROUTING SLIP Initials

Date

Skip Tracing Advisor Ron Brown

from this precarious position. As I tossed and turned in my sleep a word kept coming into my head… cyber highway… cyber highway. I woke up around 3:00 a.m. and jotted down some notes so I would not forget what was going through my head.

I had read an article on the airplane regarding how information was now stored on an information highway and that highway was referred to as the cyber highway. I wrote down a word that would become a catch phrase of an industry, “cybertracker.”

The next morning, I gave the students a written test over the material we had covered the first two days. As they worked on the test I expanded a list of benefits for cybertracking which I would use to explain to my contracting company executives why we were changing directions and the pros and cons. I knew the pros had to outweigh the cons. Before the class resumed I made a quick call to my assistant and asked her to set up a meeting with the executive staff of the company for 5:00 p.m. that evening.

When I entered the meeting room I could see the look of concern on everyone’s face and I started the discussion on a down note with the statement, “I am sorry, but I am unable to teach your staff how to telephonic skip trace people living in the United States.” I continued by explaining that the informants would be suspicious and possibly could not understand the questions they were being asked. I concluded with the statement that the people in their company I had been working with were just too polite with their, “please advise me,” statements. I could see the look of disappointment on their faces and their questioning looks at each other. I then used that great neurolinguistics word, “but,” which turned their attention back to me. “I can teach them the techniques of the science of cybertracking. With the computer skills your employees possess I think I can turn them into first-class cybertrackers.” A quizzical look came on their faces as I am sure at that time none of them had ever heard the word Continued on page 9 May/June 2018

.com

“The professional cybertracker roams the cyber highway 24/7/365 like the bounty hunters of old, successfully seeking and finding location information on errant consumers.“ cybertracking or cybertrackers and had no idea what it meant.

I continued by explaining that cybertrackers were “read-only” tracers and therefore we could skip a large part of having to learn all the requirements set forth in United States Federal Laws and the State Consumer Protection Laws related to contacting third parties, allowing more classroom time devoted to learning skills.

When I explained how cybertrackers could work 24/7/365 from any site with a computer and an Internet connection, I saw their eyes light up and I knew a new job title had been created in the credit collection industry, “cybertracker.”

I spent the next three weeks working with this exceptionally bright and skilled group locating and beta testing data sites, mining the selected sites for data and learning the masterful art of massage and manipulation of data. As I departed this country of polite, computer-skilled people, I felt a sense of accomplishment in that I had succeeded in applying what they were best at to an area where they could utilize their knowledge and skills to be successful in their endeavors.

Today there are very few companies in the collection and asset recovery industry that do not utilize the computer skills of mil-

lennials to cybertrack and through waterfall techniques keep their tracing costs to a minimum while their efforts are amply rewarded.

There are free social sites, public domain and open data sites as well as the pay-for-data sites which have been created to provide instant data on almost every citizen in the United States.

They are a silent group and because they are a “read only” group you never see or hear them. They are just there coming and going like the wind, leaving no trace of their paths. The professional cybertracker roams the cyber highway 24/7/365 like the bounty hunters of old, successfully seeking and finding location information on errant consumers.

Now you have knowledge of where the title cybertracker originated, always remember everyone is somewhere and they can run but they can’t hide.

In the next issue we will look at the traits, tools and techniques used by some of the industry’s most recognized and successful skip tracers. Until then, good luck and good hunting.

Ron Brown is a member of the National Association of Fraud Investigators and the author of “MANHUNT: The Book.” Contact him at rbrown2150@aol.com.

Strausser - Continued from page 6 back in time! Today, we don’t record our corporate initiatives like we used to. Start an electronic process of scanning the historic documents and proactively saving current events.

Appoint a corporate historian!

6) Share Your Story With the advent of

websites and social media, we have a perfect platform to share the positive things we do with the world. It is fantastic PR for your firm to let the community and industry know what you do to give back.

History is important and your organization’s role in our industry and your community is critical. Most people don’t get a warm, fuzzy feeling when they think of collections. Telling your story can help warm their hearts and change their perspectives.

We welcome ideas and best practices from our readers. Feel free to send your ideas for possible inclusion in a future column. Until next time, I’m in a collection office hear you!

Harry A. Strausser III is the President of Interact Training and Development. He can be reached at harrystrausser@gmail.com. .com

May/June 2018

Ready for your next agency audit?

State Licensing & Insurance for Nearly 20 Years Get a free coverage analysis by calling 770-626-7121 or www.cornerstonesupport.com/collectionadvisor

9

“Reasonable Belief” Applied to Credit Repair Organizations’ Activities

Y

You have seen them by the binful, no doubt, if you are a data furnisher to credit reporting agencies. The nearly identical envelopes containing nearly identical disputes from consumers, written in such archaic language you would think they were written sometime early in the last century. Language such as: “data dispatched by our company” and “may evince an intention” and my favorite which is used frequently, “may be contained with visà-vis that data. . .” And, interestingly, many seem to be signed by the same hand. The cherry on top is the sender’s use of presorted first class postage stamps. Got the picture? Hold that thought, we’ll come back to it in a moment.

These letters would purport to be direct disputes – written disputes to a data furnisher of information furnished to credit reporting agencies. If legitimate, that is, sent by the consumer to the data furnisher, containing specific information that the consumer is disputing and an explanation of the basis for the dispute, the data furnisher would be required to conduct reasonable investigation and correct or remove the furnished data within 30 days, and then notify the sender of those actions. (CFR Title 12, Chapter X, Part 1022, Subpart E, §1022.43(e). However, when the furnisher has a reasonable belief that the direct dispute is submitted by, is prepared on behalf of the consumer by, or is submitted on a form supplied to the consumer by a credit repair organization (CRO), the data furnisher does not have such a duty.

The senders of bulk letters take steps to conceal the fact that the sender is not the consumer to prevent the data furnisher from invoking the credit repair organization/reasonable belief exception.

The letters have a signature, they are on plain white paper – not letterhead. They carry the consumer’s return address. Maybe if a data furnisher received one or two such letters in any given period of time, they might not conjecture that the letter might be from a CRO – but might instead think the consumer has downloaded a generic dispute letter from the Internet. However, when the letters are delivered, literally, in mail trays from the post office, it gives one pause.

Now, the data furnisher doesn’t even have to open a letter to know it was not sent by the consumer, just by observing the postage. Unless one is a stamp collector or aficionado, who looks at the stamp? Close observation will reveal that the postage is a presort first class stamp. This would indicate that the sender is in the business of sending letters – sound familiar? A sender who qualifies to use presorted first class mail must at a minimum have 500 pieces of mail in a batch. Of course, that is where mail consolidators enter the picture, further supporting the belief that the sender is an organization of some type, not an individual. This alone can create a reasonable belief that the letters carrying such postage come from a credit repair organization.

10

ROUTING SLIP Initials

Date

Compliance Advisor Debra J. Ciskey

Another ploy I have heard about recently appears to be another effort by a credit repair organization to save money. The data furnisher receives a large envelope containing a large amount of pages – even 50 or more – all of which are dispute letters, nearly identical in appearance but from different people. Do you suppose everyone living in the same area got together on their own and decided to send you one big envelope with all their disputes? No, I didn’t think so. This practice has CRO written all over it.

What about a debt collector’s duty to report the debt as disputed if he knows or should know that the consumer disputes the debt? This can be a hang up. Look at the provisions of the Fair Debt Collection Practices Act that define who a consumer is, or who can stand in the shoes of the consumer. There is no provision for a credit repair organization to speak for the consumer. CROs are third parties. The FDCPA says that the consumer has the right to identify any third party as an authorized party, but this authorization must be given directly to the debt collector by the consumer. (§805(b)). Such letters do not provide authorization.

Would you mark an account disputed if a random, unidentified individual called your office to tell you that John Doe disputes his debt? Experience of many is that the accounts have previously been marked disputed anyway as the result of indirect disputes via eOscar (www.e-oscar.org).

Any data furnisher who decides to apply a “reasonable belief” approach to their handling of inbound mail should have policies and procedures in place based on consumer financial protection statutes, and even in postal regulations, to justify their actions.

Seek the advice of counsel. Look at the statues and Regulation V. Sleep on it a few nights, counting identical #10 envelopes instead of sheep. You will come to the conclusion that is right for you..

Debra Ciskey is the Compliance Officer at Wakefield & Associates.

Inc. She is a member of the board of directors and a certified instructor for ACA International.

May/June 2018

.com

Agency Spotlight

Developing Talent in Government Collections

BY JOSHUA FLUEGEL

A

nyone who has worked in both the government and private sectors knows how much they contrast. Survival in government collections requires a great Rick Bonitzer deal of training so accounts receivable professionals may use the same language and business practices as their government counterparts. No easy feat.

This issue shines the Agency Spotlight on Credit Collection Partners and ask its president, Rick Bonitzer, what they have done to train and collect the way the Man does.

How did you get started in collections? It was part of relocating my family from the Chicago area down to central Illinois roughly seven years ago. CCP was a tiny little business when I took over.

What tool is your greatest asset in government collections? Why? Having an insider. We’ve got former government officials running our sales and client development teams.

Not only are they incredibly personal, possess the qualities you’d want in those positions, but they’re intimately familiar with exactly how specific government offices are run. A big time differentiator in the marketplace.

What tools help you the most with government audits? Why? Thorough documentation.

This is applicable not just for government audits but for all verticals. Plus, it’s just good business. Your agency should have written procedures on all operational processes including dispute resolution, data reporting and availability, remittance policies and accounting methods. It’s a lot of work, but audits will seem less daunting .com

May/June 2018

with a comprehensive list of your policies well documented.

What tactic do you implement to maintain good relationships with government clients?

Transparency. We provide our clients with an unmatched level of transparency via our client access portal. Our clients can view letters, review collector notes, obtain current demographic data (i.e. address and phones), and even listen to recorded conversations, all without asking a member of our team. All of this is at their fingertips 24/7. The ability to listen to recorded calls without notice is truly something unique; our clients love it!

What tactic do you find most effective with consumers in government collections? Well, I’d say training for starters. Training on proper terminology and approach. What I mean by that, is just getting on the same page with our clients with terminology. For example, we largely don’t use the word “consumer” in staff meetings or with clients, we use the word “defendant.” Why? Because they do. In doing so, we resemble a seamless extension of our government client’s office.

What can an agency do to get into government collections? Exhibiting at a trade show where government prospects regularly attend might be a good place to start.

You’ve got to expect and plan to network with other exhibitors at the conference.

Your prospects are likely their prospects too. Get to know them. Converse with as many as possible. Be engaging. Don’t expect to plunk down an exhibitor fee, set up a booth and expect your prospects to come to you. It’s a lot of hard work but don’t forget to have some fun along the way. Aside from your booth, your attitude will also be on display.

How is Credit Collection Partners involved in the community? CCP sponsors a whole host of youth sports teams throughout the year in the community. Beyond that, CCP is a generous donor to community based organizations and causes such as the YMCA, hospital foundations and last year we donated funds to the local “problem solving” court system.

What do you like to do in your free time? Coaching my kids in sports. Their ages are five, seven and nine. They play baseball, basketball, soccer and flag football.

Rick Bonitzer and the CCP staff making a donation to Judge Brad Paisley for the Christian County Problem Solving Court

11

Interviewing the Next Top Gun

A

As we all know, hiring employees is an expense. While it’s far more cost effective to retain and develop whom we have, turnover and growth make hiring new employees a necessity. Implementing a formal interview process allows an organization to be selective when searching for their next successful collector.

Finding the right fit to join your team is important to any organization no matter the industry. Today we are going to discuss a few of the things we do to separate us from our competitors.

Being prepared prior to interviewing candidates is a must. Not only are we interviewing the applicant, they are interviewing us.

Not being prepared, having a messy office or being unorganized could discourage an applicant from accepting your offer.

We recently revamped our interviewing process and it all starts with pre-screening the applicant via phone interview. During our phone interview we explain the position so the applicant knows what to expect especially if they’ve never collected before. After explaining the job description we ask the following questions: • What do you know about our organization?

• Why are you interested in collections – or – how many years experience do you have?

• We go over our schedule and ask if they have an issue working our scheduled shift? Being flexible is a plus.

• Do you have means of transportation to get to work?

• Tell me about your computer experience?

• What compensation are you looking for?

We’ve found that pre-screening applicants brings value by ensuring we interview candidates that have the willingness and ability to do our job. So long as the applicant passes our phone interview process we will have them come in for a live interview.

The most important part of the interview is the beginning. This is the applicant’s opportunity to make a great initial impression on the interviewer. While not a deal breaker, the first impression is weighed heavily. Showing up late or not being presentable can be detrimental even if the applicant has a glowing resume.

During the interview we ask a variety of questions that differ for those with experience versus those without. We ask open-ended questions requiring the applicant to elaborate which allows us to determine whether they are an ideal fit for the organization both personally and professionally. For example we will ask applicants with experience what portfolios they’ve worked, budgets they’ve been responsible for and may even test their compliance knowledge by asking questions off of our FDCPA test or something as simple as having them recite the mini-Miranda. Below are a few additional questions we ask during the interview: • What motivates you?

• How do you rate your verbal communication skills on a scale

12

ROUTING SLIP Initials

Date

Agency Advisor Sam Eidson

of 1-10? Why did you give yourself that rating?

• What would you do if a person on the phone became rude or upset?

• What type of pace do you like in a work environment?

• Describe the work environment or culture in which you are the most productive and happy?

• Provide an example of a time when you were able to demonstrate excellent listening skills. What was the situation and the outcome?

• Share an experience in which you successfully shared a difficult piece of information.

• Describe the last time you got really stressed at work? How did you cope? What happened in the end and how were you able to overcome it?

Interviewing those without experience can be even more challenging. We don’t have the luxury to test their knowledge of the industry so we look for certain attributes that make successful collectors. We want someone who is money motivated but also look for those who have the desire to learn, advance and grow with our organization. Confidence is an attribute that an applicant must have in order to be a successful collector. In addition, being well spoken is important for them to be understood over the phone. And last but not least the applicant must have a positive mental attitude. I’ve always said that consumers have a sixth sense when it comes to dealing with collectors. If the collector doesn’t have the attributes mentioned above it will be difficult for them to find success.

While the aforementioned techniques can help an organization find their next top gun there will always be exceptions.

We’ve had applicants who interviewed very well and fallen flat on their face and we’ve also given a chance to applicants who don’t interview well that end up being a top performer.

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

May/June 2018

.com

KEEP ELECTRONIC PAYMENTS EASY – OR ELSE

Electronic Payment Software Roundtable

BY JOSHUA FLUEGEL

I

f a consumer has the means to pay an account in full, the last thing a collection professional wants to deal with is a barrier in the transaction medium. Collection Advisor gathered the thoughts of leading minds in electronic payments to determine how best to secure a payment from a consumer while protecting their relationship with the client/agency.

WHAT IS SOMETHING ELECTRONIC PAYMENT SOFTWARE SHOULD DO TO ENSURE EASE OF USE FOR THE CONSUMER, THUS ENCOURAGING PAYMENT? MICHELLE JEFFERS VP Business Development of Applied Innovation

payment processors should optimize their payment capture channels to ensure each provides customized, personalized and frictionless payment experience for each agency.

With payment processors focused on these microconversion funnels, they will be examining each step of the payment process and common consumer pathways to improve the overall successful payment conversion rate within each payment capture channel. This goes beyond the payment capture channel itself – knowing how consumers are arriving at the payment capture channel allows electronic payment processors to focus and optimize each step of the payment process and cater the experience for each consumer and each agency.

Online payment portals have to be usable on all device types. According to research by Pew Charitable Trusts, 24% of consumers use their smartphone to pay bills, that’s nearly a quarter of your online payments. Payment sites should easily adjust to the screen size of any user.

The site should reassure the consumer that their data is secure and private. Many consumers are very savvy about technology and they should be comfortable enough with a site to enter personal and banking information.

Make it simple. Make sure it is easy to get to the site, easy to navigate the site and don’t have anything on the page to distract.

Let’s face it, paying a bad debt is not a pleasurable experience, so make it painless CARL A. BRIGANTI and quick. Offer various repayment options President and Founder so they can take care of repayment easily the of CSS, Inc. first time they access the site.

There are two key comDon’t make them hunt for contact inponents for encouraging formation. Be sure it is easy to find a phone consumer payment with number, email, or some type of messaging an electronic payment system. If a consumer has questions and can- software: sense of security and respect for not get an easy answer, preferably online, time. When a consumer is expected to ofyou may lose them. fer information as important as their credit card or banking information, they must be ROBERT POLLIN reassured that the handling of this inforCEO of Autoscribe mation is going to be in a safe and secure User experience optimi- manner. Integration with payment proceszation is paramount to sors that take steps to ensure the security of ensuring ease of use and this vital information, such as tokenization, encouraging consumer is necessary. Ease of use is also central to payments. Electronic encouraging consumer payment. When a .com

May/June 2018

consumer is able to confidently submit and store payment info for use for future payments with little to no hassle, then it can be predicted that the consumer will readily be willing to repeat payment submission the next time it is required. This may also include offering a user friendly web portal for entering payments, as well as being able to easily be directed to an available agent with a professional and courteous presence over the phone.

BONNIE FINLEY Chief Sales Officer of EFT Network Through integration, a payment software can provide multi-channel opportunities for the consumer to pay. In a world where everything is at a consumer’s fingertips, having the ability to pay at the stroke of a finger is key to transaction volume.

One thing that a electronic processing software can provide to merchants is analytics. Analytics will help a merchant make smarter decisions in how they offer payments to consumer, what funding methods are most utilized and preferred by the consumer, the margin on the payment method, and the cost of returned, declined, or chargeback payments. Taking all of these things into consideration will allow the merchant to craft a payment channel that guarantees ease of use for the consumer with maximum return to the merchant.

Continued on page 18

13

Build Your Reputation

Before Someone Else Destroys It

Unite with other collection professionals to make the reputation of our industry stronger Organized by Collection Advisor, providing services to proactively build your reputation Membership Benefits:

• • • • •

Creation of a 1-Minute Video Spotlight Article about your organization Press Release tailored for you A/R Pro Best Practices Forum to post questions Reputation Guide Checklist

Join by June 30th to be included in the next conference call with directors Contact Josh at 888-610-1144 or email josh@collectionadvisor.com

"The key to moving your business forward in the marketplace

DIRECTORS

is professionalism and compliance and what better way to display these two critical areas of your agency than through the A/R Pro Network. ARPN is the key that unlocks the door to success.

"

Ron Brown

"The time is now for us to take our

Gordon C. Beck III CEO Diversified Consultants Inc.

industry back, come together as one and control our destiny; together, because NONE of us are as strong as ALL of us.

"

Ron L. Brown President and CEO CSI Group

Nick Jarman Owner RightAway Consulting

Gordon Beck

"I n business, your reputation is everything. Today, progressive

companies look for unique and robust affiliations that help make their organizations more efficient, professional, successful and compliant. The ARPNet program is a timely, cost effective and reputable way to take your company from great to outstanding!

Harry A. Strausser III

$495 per year ARProNetwork.com

"

Harry A. Strausser III Consultant Interact Training and Development

T. Steel Rose Editor Collection Advisor Magazine

A/R PRO NETWORK

TM

The Changing Landscape of Commercial Collectors

I

I started in this field in 1979, those were known as the glory years. Plenty of business and all creditors wanted was money collected and manual written reports explaining circumstances of the debtor. We would spend Monday through Thursday calling customers and Friday reporting on our portfolio. As for legal accounts, costs were small, credit managers would invest years trying to collect $1,200 through the legal system. Rates were non-negotiable. 25/20 was the norm and usually 50% for small balances. As for legal matters, the Commercial Law League Rates were the gold standard. Very seldom did a client ask for rate reduction and 10% non-contingent suit fees were the norm. How things have changed.

1) Rates – In the ‘90s they became fair game to all agencies

and rates as low as single digits were being offered on request for proposals. Margins were cut razor thin.

2) Technology took over – Collection systems meant to drive activity, dialer programs, statistical data that was never available became the standard. Email reporting and instant cash through ACH, etc., became the norm. Suddenly, creditors wanted and received instant information. Online access went one step further allowing creditors real-time access on their accounts.

3) While balances climbed steadily, the cost to sue went up even faster. Clients were less likely to invest in litigation on the medium-size balances. At the same time, technology allowed attorneys to handle the entire state shrinking the competition and availability of attorneys.

4) The recession of 2008 shrank the collection opportunities and many creditors learned to manage without the “sell at all odds” mentality that existed prior to that. Credit cards, shortened distribution times and on-line purchasing have changed the commercial collection industry drastically.

5) The above factors caused consolidation of many agencies and put further pressure on rates.

So how do we cope in 2018? By hiring remote employees, training, measuring results and retention.

ROUTING SLIP Initials

Date

Commercial Collection Advisor Bob Ingold

are they a self starter? Do they have Internet access? At CCC of NY, 25% of our staff operates remotely and are measured by the same standards as working in the office. The same qualities are required for hire whether in the office or remote.

Training It is important to train your staff. International As-

sociation of Commercial Collectors Inc. has an excellent commercial collection training program which all our collectors are required to complete in addition to FDCPA training and email literacy. CCC of NY has introduced a CCC University and all employees are reviewed for skill upgrades including collectors.

On-site webinars and trade organizations are excellent resources.

Measure Success is only determined by results. Measuring how many calls, how long on the phone, how many priority payments, how much money collected and what fees earned are just some of the numbers to be looked at. There is an expression: train up or train out. Formal training and measurements of performance lead to this conclusion.

Retention The key to a successful collection department is employee retention. So much of what we do is relationship management and continuity is important. Some ideas on retention are fair bonus structure and opportunity for promotion and recognition. This could be an entire article unto itself.

Our industry has changed drastically over the past 25 years

Hiring With the full employment market of this time and com- and the companies willing to change with it have been successpetition for the best and brightest, hiring has become a true challenge. Technology has shown us the answer – remote hiring.

With on-line access, VoIP phones, etc., remote employment is a way to hire the best. No longer is access to the office essential. Employees can work in any location and feel as close as the next office over. Some considerations must be explored –

16

ful. Companies like ABC-Amega, Caine & Weiner and CCC of NY have continually reinvented themselves and thrive in an era of change.

Bob Ingold is the CEO of Commercial Collection Corp of NY Inc, a commercial ARM company. He has served on board of governors for CLLA and is a past president of the IACC. May/June 2018

.com

Benefits of Legal Debt Collection on the Nation’s Economy

T

ROUTING SLIP

Initials

The old cliché relating to elected officials is that “all politics are local.” However, as our industry has learned with CFPB consent decrees and regulation by federal litigation, that adage seemed to have lost its meaning. Yet, Mike Mulvaney’s appointment and his recently leaked memo where he stated a legal truism, i.e. that “the people regulated should have the right to know what the rules are before being charged with breaking them…” it seemed that era was passing. In fact, even the recent PHH v. CFPB ruling which found the CFPB constitutional also found Cordray exceeded his authority and therefore struck down a $103 million fine.

So we can breathe easy, right? Not so fast! Because just as you say that, you look at the calendar and see yet another election cycle is underway which means once again, that all politics, especially relating to debt collections, are local.

The first hint that there might be a state-level reaction to the reduced enforcement role of the CFPB was a recent campaign ad which attacked a gubernatorial candidate for voting to allow garnishment of defaulted state-backed student loans. Imagine that – in a state that is nationally known to be in extreme financial distress, with unpaid bills and unfunded pensions, the responsible decision to allow recovery on state issued loans seems a no-brainer.

Not so. Politicians routinely “pick the low fruit” during elections and attract voters by slamming legal debt collections.

Perhaps coincidentally, just as I sat down to write this, our trade association lobbyist provided me a legislative report of pending bills and I was flabbergasted. Out of nowhere, there were no less than five proposed bills relating to debt collection, the most serious of which would almost eliminate the value of certain post-judgment actions. The most damaging suggestion is to reduce the garnishment rate from 15% to 10% and increase the wages exempt from garnishment to 60 times the statutory minimum wage. If that were not enough, another bill would require banks to automatically apply a $4,000 exemption to bank garnishments, eliminating the requirement for consumers to come to court and assert it. Another would see the interest rate of judgments reduced to 2%, or less than the rate of inflation.

Ironically, all of these proposed bills are labeled under “debtor protection” but I think it is more accurate to call them re-election protection. In return for votes, politicians making it more difficult to collect harms the consumers they claim to protect.

In a recent law review article discussing the impact of regulation on lending, it was noted that if lenders cannot accurately price the risk of a loan, because of regulatory limits, the lender reduces exposure by lending less money to the same borrowers, or limiting to whom it loans. Without question, these proposed bills would have the exact effect. Specifically, a lender, knowing a potential borrower’s wage is less than 60 times the minimum .com

May/June 2018

Date

Legal Collection Advisor Michael L. Starzec

wage is also going to know that upon default, obtaining a judgment will not protect it, as the garnishment will never recover any money. Likewise, with a reduced interest rate post-judgment, inflation will simply devour the value of the loan, causing an even more significant loss if the loan is given and defaulted.

With those twin limitations, why lend to that person at all?

Moreover, what is missing from this discussion is the broader macro-economic aspect. The same article noted that 95% of debt is paid on time and of the 30 million debtors in collections the CFPB reported, there are roughly 30,000 debt collection complaints. That is the definition of statistical insignificance.

Adding to that, in instances where the complaint was that the debt was invalid, the FTC found that only 1-2% of those claims are valid, even among accounts bought by debt buyers.

These statistics just scratch the surface regarding the benefits of legal debt collection on the nation’s economy. Candidly, the truth doesn’t seem to attract voters! So what do those statistics mean in the real world? It means the real question that should be asked by politicians is whether the 95% of consumers who pay on time would be willing to pay higher interest to prevent creditors from being able to garnish the wages of the 5%? Although we know facts ought not get in the way of a politician’s reelection, studies from the 1970s through a 2013 Federal Reserve Bank of Philadelphia study have consistently shown lower income consumers are most negatively affected by restricting creditor remedies and, contrary to the politicians claims – interest rates are lower where there are fewer legal restrictions. Everyone pays less when there is a fair playing field for consumers and lenders.

At a minimum, all of us need to be aware of the trends in the election cycle and the likelihood of damaging legislation. It is imperative that you and your trade organizations be armed with skilled lobbyists and proper metrics to tell the true story.

Michael L. Starzec is a partner with Blitt and Gaines, P.C and is vicepresident of the Illinois Creditors Bar. He is a frequent speaker, writer and litigator on creditor’s rights.

17

Electronic Payment Software Roundtable

Continued from page 13 JENNIFER BRUMMETT Vice president of IES Ease of use of a payment solution/software is a primary factor in encouraging payment by debtors/ consumers. The solution provider should offer all payment channels and payment types. The payer should be able to pay using credit and debit cards, HSA cards, as well as ACH or other payments from their checking accounts. They should be able to make payments with a live agent during business hours, or totally on their own, at their convenience, 24 hours a day, 7 days a week. Payers should be able to make payment through a website, a virtual agent, IVR, or any other available method. They should be able to make both one-time and recurring payments, and should have flexibility in scheduling those payments. Finally, all payer-initiated solutions should be easy to navigate, and should provide clear, concise, and complete instructions and information to eliminate any confusion or reluctance by the payer.

CHAD DEATHERAGE CEO of Payment Savvy

No matter the industry, the merits of a dynamic electronic payment software are irrefutable.

Within the collections world, a solid system coupled with key best practices increases customer satisfaction and drives down organizational costs – a solid win-win for both agency and consumer.

At a base level, electronic payment software should drive a positive customer experience and encourage the continued use of selfservice. The key to achieving this is to hand the reins to the consumer. By allowing one to pick from a variety of payment dates and offering several repayment options – such as pay the balance in full, a minimum due payment or a completely consumer driven figure (within backend parameters you can enforce) – the control is put in the user’s hands. Ensuring your payment partner can set you up with both credit card and ACH merchant accounts only gives the driver more options to choose from and increases the likelihood of MATTHEW HILL a successful transaction being processed. It’s President/CEO of InterProse also worthwhile to consider adding a pay-byThe key here is thought- text option to your payment arsenal – it’s an ful design and keeping affordable and complaint way to reach conyour audience in mind. sumers on the go.

A payment site designed Within the payment portal itself, a sleek to serve a broad range of and simple aesthetic reduces confusion and consumers should include features to handle increases the odds a consumer will continue multiple languages, a step-by-step approach the payment course to completion. Ensure to payment options and a concise presenta- the login process is secure yet straightfortion. Research shows that a convoluted mes- ward. If it’s cumbersome to even access sage, too many options on one screen and too their account, the probability of the site bemany steps/clicks greatly reduce the chances ing used again falls fast to zero. Having a of a positive outcome. saved payment method within their profile,

18

making the process to edit a previously scheduled payment effortless, and allowing for several future payments to be scheduled within the same session are all ways to guarantee a positive consumer interaction. Today the cell phone is king and more readily available to individuals across demographics than computers. It is imperative your organization’s site be mobile friendly. Take the time to test it on various mobile browsers and across all pages to guarantee a static user experience.

In an industry heavily reliant upon avoiding negative consumer retaliations to remain viable, implementing any of the above measures to your electronic payment software not only encourages payment but increases consumer satisfaction. These options are not out of reach for an agency of any size to achieve and is a wise investment in your organizational success.

MANPREET SINGH President & Co-Founder of Payscout Electronic payment software should be accessible on a platform that is convenient for the consumer. Providing payment options on mobile devices through a text or email link (once permission is granted) is a good example of convenience and accessibility. If the customer interface is clear, intuitive and guides consumers through the necessary validations and authorizations seamlessly, they are much more likely to complete the process and finalize the payment.

DAWN UPDIKE Marketing and Customer Success Manager of PDCflow One of the best ways a payment software can ensure completed payments is to make the process as quick and painless as possible. A good software will be easy to implement, cause the least amount of friction and be intuitive for the user. It should provide options for testing the consumer May/June 2018

.com

experience such as web payments, customer recurring schedule setup and payment authorization requests. Agents should choose a product with the ability to modify and customize these functions in order to personalize the experience for their customer base. The software should be simple to manage no matter what associated tasks (document review, signature and ACH/credit card selection) need to be added to the payment.

MIKE MCDONNELL VP for Sales and Marketing of RevSpring It is critical for electronic payment solutions to offer consumers an intuitive user interface with maximum flexibility including: offer a quick pay option to accept a payment without creating an online account; provide the ability to set up one time payments, create a new payment arrangement or make a payment on an existing payment arrangement; offer the ability to schedule payments to better coincide with the consumer’s payroll cycle or availability of funds; allow online negotiation within clientdefined guidelines including settlements and payment arrangements; enable different payment types where legally possible including credit, debit and ACH.

EDZ STURANS CEO and President of BillingTree Ensuring ease of use and encouraging payment is all about creating a path of least resistance for the consumer and having access to accurate data. To maximize settlements, we must start with the consumer. He or she must be able to move freely between ‘channels’ and payment methods and feel confident that the funds being requested are truly an accurate, verified debt that is owed by the consumer. Just because a consumer receives a notification letter of an outstanding bill doesn’t always mean they plan to call or reply via mail. It may be more convenient to pay online, or contact the .com

May/June 2018

agency’s interactive voice response (IVR) system by phone to settle the outstanding account, or even negotiate a payment plan.

AR departments may deal with different consumer demographics that are more comfortable for different payment channels.

An older client base may prefer paper-based processes needing staff to dedicate time to managing those transactions. On the flip side, a student loan agency will more likely interact with a younger generation who are more accustomed to settling payments online or via mobile. Having a variety of payment options becomes the best way to meet varying consumer demand.

There are four payment technologies that I see making things easier for consumers: Interactive voice response and mobile solutions: IVR and mobile based technologies allow the consumer to receive accurate information and easily pay without agent intervention 24 hours a day. IVR and Mobile solutions are great ways to improve the consumer experience. Providing consumers with a simple automated method to pay a bill, when and how they want to, significantly reduces the time and work required to make a payment.

Recurring payment plans: Sometimes, for one reason or another, a one-off payment is not an option—healthcare insurance or property management bills being examples.

A recurring payment becomes the next best option for settling a bill, but is often difficult for the practice to sort out.

For each month or billing cycle, a new notification statement is sent electronically to the consumers, often via email. The statement automatically triggers a payment, which is instantly taken out of the client’s account, usually via credit card or ACH. Virtual negotiation: If a consumer can’t settle their bill in full or agree on a repayment structure, then it’s time for negotiation. New technology is enabling consumers to do this privately online without the stressful interaction with an agent. This process enables the consumer and the AR department to agree to a reduced balance and/or payment plan that works for both parties.

Cast Your Votes!

Most Powerful Women in Collections

This award recognizes women who have climbed the ladder of success in the accounts receivable industry and now use their influence to push the industry forward. Women selected not only focus on the success of their business entities but their compliance and the promotion of progressive regulation.

DEADLINE JUNE 25

Innovation Agency Award

Awards will recognize those agencies demonstrating advanced processes for technology and procedures in the A/R profession. The awards recognize outside-the-box thinking in management, compliance, motivation, community impact and cutting edge concepts to promote the Accounts Receivable professional.

DEADLINE JUNE 25 Award recipients will be decided by the Award Committee, which is comprised of the editorial staff at Collection Advisor, thought leaders among the profession, and the publication’s Editorial Advisory Board. Board members include A/R professionals from various sized firms across the country who are engaged in a variety of practice areas.

To submit a nomination, please contact Joshua Fluegel, josh@collectionadvisor.com or call 817-416-6650.

Small Office Software Roundtable

AVOIDING SOFTWARE SELECTION MISTAKES

BY JOSHUA FLUEGEL

T

he majority of the accounts receivable entities in the country have fewer than 100 seats. However, each organization can have just as many unique technology requirements as those with over 1,000. The trick is selecting a collection software solution that will satisfy these needs and needs that will develop over time. Many accounts receivable professionals make mistakes when confronted by this daunting task. Collection Advisor gathered the advice of technology thought leaders to reveal how you can avoid such pitfalls.

WHAT IS A MISTAKE YOU SEE ACCOUNTS RECEIVABLE PROFESSIONALS MAKE IN REGARD TO SMALL OFFICE COLLECTION SOFTWARE AND HOW CAN IT BE AVOIDED? THOMAS MOHR CEO of Beam Software My dad used to say, “It’s not that you get what you pay for, but you never get what you don’t pay for!”

Small businesses should clearly ask providers for a detailed list of the tools and support services that come standard with their collection platform. A common mistake is believing the system comes with certain features or it includes things like after-hours or unlimited support. Small businesses should ask the software provider to clearly articulate cost versus value.

TONY LAMAGNA Partner at The Computer Manager There are many factors to consider when evaluating new collection software for a small office. One aspect often overlooked is evaluating more than just the software. The company behind and team supporting the software should also be evaluated. By diligently researching support fees, programming services and interface capabilities along with features and capabilities of the software the small business can avoid hidden and additional costs. It also allows for the small office to see a full picture

20

of how the business relationship will support their success and growth.

FRITZ SCHULZE President and CEO of Comtech Systems Inc. A mistake we often see is for new agencies to start with a software that cannot grow with them as their requirements become more complex.

We suggest that new and small users consider three areas when selecting software: feature set, flexibility and scalability. A good feature set includes credit bureau reporting, remote access, client access, multiple reporting options, new business importing, automations and scheduling.

Flexibility means that you can configure the system to suit your workflow, and not the other way around. It does not take long for new users to want to customize their system, and no two sets of requirements are ever the same.

By either using HELP documentation, or with Technical Support Department, users can re-allocate fields, change field names, build custom reports, set up complex financials, add a database, create very complex, embedded event plans, report to bureaus and much more. Finally, by using a scalable application, agencies that start with

five users can grow to hundreds of users and millions of accounts, all without a dreaded data migration.

JEFF DANTZLER President of Comtronic Systems Small must not be synonymous with less. Regardless of agency size you need the best security and constant eyes on performing software updates and patches. In today’s world you must be in the cloud because you can’t afford the IT department that will ensure your survival otherwise

CARL BRIGANTI President/CEO of CSS, Inc. Probably the most common mistake accounts receivable professionals make with respect to their small office collection software is not investing the time to familiarize themselves with the entire toolset of features and functions that the application offers to them and leverage these to deploy more sound, effective and automated business processes. Repurposing just one employee that performs a manual task to the production floor by automating that May/June 2018

.com

More often than not, small collection offices tend to focus on the now, forgetting about future growth and business opportunities

process will have a significant incidence on the bottom line.

However, more often than not, small offices fail to allocate a resource or resources to dedicate to a consistent and continued “process improvement” of their collection software or overlook the fact that they are underutilizing the application and systems remain provisioned with virtually the basic requirements defined during the migration procedures. Furthermore, most small offices either do not plan for a “phase two” implementation to take the system to a higher level of efficacy or, if they do, they never get to it as they get immersed in the daily routines and this opportunity is ultimately missed.

Leveraging the option to continuously fine-tune the collection software can have a significant return on investment for any small office and this fact should not be overlooked.

LEX PATTERSON President of DAKCS Software A mistake would be not choosing a platform that grows with you. If your system doesn’t provide growth and scalability, the inability to compete and win business, or causes expensive migration costs, you may be opening up your business for unforeseen obstacles in the long run. Market experience, a customer centric culture, and a deep suite of technology solutions are all necessary benefits when looking for technology partners. The low costs in the beginning are not always better when you consider the lifetime ROI.

integrations. So often, the first instinct of a small company is to focus on the hard costs of a software platform and put insufficient weight on variable costs like employee time and consulting services. By identifying collection software with a heavy focus on process automation, inherited security and infrastructure compliance, and mature third-party technology integrations, a small company can appear quite large through increasing efficiency by eliminating wasted time and unnecessary consultants for a modest monthly commitment.

I believe in letting machines do the hard or mundane tasks - for the purpose of this topic, I will relate it to digging a hole. Would you rather hire five employees with shovels to take two days to dig a big hole, or rent a backhoe that accomplish that task in a fraction of the time and free you up to move on to the next job? With today’s technology, every minute of every hour a small business’s employees are committed to non-revenue generating tasks that a machine can do faster and more accurately is money wasted.

JAMES DUNLAP CEO of Lariat I’ve seen many accounts receivable professionals choose low-cost, antiquated software that isn’t adaptable or scalable and which doesn’t prioritize customer service.

Perhaps it is what they know already, but it often isn’t the best option for the success of their business.

RANJAN DHARMARAJA CEO of Quantrax Corporation

Most successful compa nies have had collection

systems for over two decades.

This is a new In my opinion, mistake generation of people, management style number one is undervalu- and technology. Look at change, but do not ing the advantages of au- change to do what you now do with newer tomation and third-party technology. Look at change to increase

MATTHEW HILL President/CEO of The InterProse Corporation

.com

May/June 2018

efficiency and offer your clients and consumers better service through mobile and self-service options that will probably dominate the industry very quickly.

DAN HORNUNG President of Roydan Smaller collection operations often don’t have the resources available to manage their internal IT needs.

A great way to avoid this is to find the right partners that can help take these aspects of your business off your plate, so you can concentrate on building your business and developing ongoing relationships with your clients. Take the time to interview vendors and find someone who’s a good fit from both a personal and business perspective.

CHRIS CAMPBELL CEO of Simplicity Collection Software More often than not, small collection offices tend to focus on the now, forgetting about future growth and business opportunities. Decisions regarding software, technology, flexibility and future growth, oftentimes fall by the wayside and the pressing question becomes, “I need a collection software now, what can I get?” Fast-forward two or three years when business has grown, and the business is expanding their client base, or revising business processes to accommodate the growth. Typically the software selected without regard for future expansion will not be adequate. The solution is simply to spend a little bit of extra time up front to select a software that will grow and adapt with the financial and logistical changes of your business; one that will not hold your collection data hostage when and/ or if you want to make a software change.

Be sure to select a collection software that is flexible, customizable and adaptable to your current and future needs.

Comparison Chart on page 22

21

SMALL OFFICE COLLECTION COMPARISON CHART ContinuedGENERAL on page 21

Beam Software

Comtech Systems

Comtronic Systems

CSS, Inc.

DAKCS Software

Lariat

Quantrax Corporation

Roydan

Customized formatting of statements

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Recommends goals and scripts for collection calls

No

Yes

Yes

Yes

Yes

No

Yes

Yes

Automated faxing

No

Yes

No

Yes

No

No

No

Yes

Designs custom reports on operator level

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Online, real-time coaching

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Accesses vendor services automatically

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Goals feedback in real-time

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

CHUI environment

No

No

No

Yes

No

No

No

No

Secure and customizable remote Web access for debtors

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Champion-challenger tools

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Application development studio

Yes

Yes

No

Yes

Yes

Yes

No

No

Integration with Crystal Reports

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

User-defined balance buckets

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

User-defined payment types

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Trust accounting

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

User-defined collection tasks

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Asset sales

Yes

Yes

Yes

Yes

No

Yes

No

Yes

Metro2 reporting on post-charge-off

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Recovery management statistics and reports

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Repossession tracking

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Bankruptcy/deceased management

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Account

Both

Both

Both

Both

Both

Both

Both

Assigns disputes/deduction codes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Identifies and tracks problem invoices

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Coded problems separate from other receivables

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Customer and invoice-level notes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Electronically reproduces/transmits invoices

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

FUNCTIONALITY

AGENCY FUNCTIONALITY

RECOVERY FUNCTIONALITY

Work by accounts or people (person vs. account-centric)

PRE-CHARGE-OFF FUNCTIONALITY

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

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

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

22

Simplicity Collection Software

The Computer Manager

The InterProse Corporation

Yes

Yes

Yes

No

Yes

No

No

No

No

Yes

Yes

Yes

Yes

No

No

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Both

Both

Both

Yes

Yes

No

Yes

Yes

No

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Weekly news video at CollectionAdvisor.com

How to Improve Your Reputation T ennis player Andre Agassi once marketed a Canon camera with the slogan, “Image is Everything.” For any collection agency, “Reputation is everything.”

Agencies are obligated to protect their own reputation in order to protect their client’s reputation. Here are five positive steps you can take to improve you image and your reputation at the same time: • Produce a video for your website to tell the world the important part you play in a credit-based economy.

• Write an article about how important compliant recovery is to you • Write a press release about a recent accomplishment of your agency • Find and implement a Reputation Guide Checklist • Participate in an A/R Pro Best Practices Forum with other leaders.

As Henry Ford once said, “You can’t build reputation on what you’re going to do;” so take the first proactive step to build your reputation before someone else destroys it. Unite with other collection professionals to make the reputation of our industry stronger.

Collections Industry National Emphasis Months Collection Advisor dedicates the upcoming months to the accounts receivable professionals’ mastery of the following technologies. Keep an eye out for special articles featured at CollectionAdvisor.com and the weekly email edition.

APRIL National Skip Tracing Month

MAY National Small Office Collection Month (1-100 seats)

JUNE National Electronic Payments Month

JULY National Mid-Range Collections Month (101-1,000 seats)

AUGUST National Mail Services Month SEPTEMBER National Medical Collections Month OCTOBER National Predictive Dialers Month NOVEMBER National High-End Collections Month (1,000+ seats) STAY UP TO DATE. REGISTER AT COLLECTIONADVISOR.COM .com

May/June 2018

23

‘

Business Directory

Comtech Systems Simplicity Collect!

Collection Credit and Debt Software United Collection Collection Software SimplicityCollect Bureau, Inc. collect.org | info@collect.org simplicitycollectionsoftware.com

1st and 3rd Party 800-661-6722 sales@simplicitycollect.com Collections Collect! combines ease of use with total integration 866-791-0224 ucbinc.com of functions. Accounts are efficiently tracked from As an industry leader, Simplicity is the only software prossharma@ucbinc.com the time you receive them until activity is concluded vider to offer a web solution with unlimited users, clients, 954-236-6027 and they are closed. Collect! keeps track of critical UCB, Inc. provides national debt programs for creditors in information automatically. Total integration provides accounts, and custom fields at an affordable price! all markets from fully-secure high performance collection for seamless and accurate month end invoices and Sentinel centers located in the U.S. and Latin America. statements with full account histories.

Development Solutions, Inc. Comtronic Collection Software eCollections Debtmaster ecollections.com debtmaster.com CDS Software sales@ecollections.com 800-414-2814 CollectOne 515-564-0585 Debtmaster®360 gives you a cloud hosted, costcollectone.com The result of 20 years of industry-leading collections/ effective, flexible, secure, collection solutions that helps recovery platform development, eCollections is a info@collectone.com you manage compliance and provide quality service for comprehensive enterprise collection system with flexible 888-816-3333 Clients and Debtors.

CollectOne is an award winning suite of debt colconfiguration, ease-of-use, powerful payment features, lection solutions that provides a feature-rich set of workflow automation, and unparalleled reporting and DAKCS Software tracking. automated business processes designed to minimize Systems costs and maximize results.

Beyond ARM Collection Support Services dakcs.com | sales@dakcs.com CODIX 800-873-2527 iMX Collection, Applied Innovation Inc. DAKCS Software Systems is an industry leader in simpli- ClientAccessWeb, Legal and Recovery Solution fying the process of collections and accounts receivable PayStream, codix.us/debt_collection management. By creating highly configurable, innova- GreenLight, and Papryus bquinn@codix.us tive cloud and on-premise software solutions, DAKCS of- appliedinnovationinc.com 404-790-0998 fers a way to run your business faster and more efficient. mjeffers@appliedinnovationinc.com iMX is a complete centralized debt collection and DAKCS is committed to providing the tools necessary for 800-589-5651 recovery software solution. Based on the latest success in the ever evolving ARM industry. technologies, iMX Debt Collection includes all the Applied Innovation provides a suite of compliant most advanced business functionalities supported by solutions for the ARM industry. Our solutions have InterProse proven to increase your bottom line with improved native tools.

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

888-445-8660 Corporation Inc. Cornerstone Support is the premier licensing and RMEx The Computer insurance provider to the collection industry; profesquantrax.com Manager, Inc. sionally trained to assist you with all of your state marketing@quantrax.com Debt$Net Collection Software licensing needs.

301-657-2084 debtnet5.com | sales@debtnet5.com Quantrax is a high-end collection technology company 800-552-8397 that has marketed and supported an intelligent collecSince 1987, Debt$Net collection software has provided tion software platform for over 25 years. collection agencies, law firms and in-house collection departments with one of the most comprehensive collection systems in the industry.

May/June 2018 .com

Collection Agencies

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 Innovative E-Pay Solutions, Inc. Electronic Payments innoepay.com sales@innoepay.com 855-888-3729 Specializes in providing Credit Card and Electronic Check processing accounts to the Collections Industry for over 15 years. FDCPA Certified Agents, longtime members of ACA.

Predictive Dialers 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 Inc. 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.

.com

May/June 2018

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.

Melissa Data Listware melissa.com greg@melissadata.com 800-542-7434 Melissa offers solutions that empower collection professionals with the right-party contact information for successful collections and account management efforts.

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.

Virtual Collections Applied Innovation Inc. ClientAccessWeb, PayStream, GreenLight, and Papryus 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.

May/June 2018 Volume 18, No. 3 Editor-in-Chief Joshua Fluegel josh@collectionadvisor.com Editor T. Steel Rose, CPA, ACG editor@collectionadvisor.com Copy Editor Myrna Nelson Advisory Board/Columnists Ron Brown Debra Ciskey Sam Eidson Bob Ingold Nick Jarman Michael L. Starzec Harry A. Strausser III Publisher Angie Rose angie@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.

25

COLLECTION TECHNOLOGY SHOWCASE 20,000 Collection Professionals Seeking Technology Solutions

Advertise Today | Call Angie at 888-610-1144

Collect Large, Pay Light.

Flexible. Scalable. Comprehensive. Modular. Now with Microsoft SQL Server based options. Software for first party, third party and specialized portfolio collections.

Call 1-800-661-6722 for a consultation Collect.org

26

877-395-8976 | www.ecollections.com

May/June 2018

.com

C lo u d C o m p l e t e

Debtmaster 360 ®

.com

May/June 2018

Your First ChoiCe in Cloud-Based ColleCtion soFtware You need software you can trust every step of the way.

Debtmaster®360, partnered with the Microsoft Azure® Cloud integrates compliance tools, debtor info, advanced agent dialing and messaging, payment processing, and client reporting, all in one secure, scalable platform.

800.414.2814 debtmaster.com

27

COLLECTION TECHNOLOGY SHOWCASE 20,000 Collection Professionals Seeking Technology Solutions

Advertise Today | Call Angie at 888-610-1144

GET DISCOVERED

Reach 20,000 Collection Professionals Using The Channels They Trust • Print – Collection Advisor Magazine • Online – CollectionAdvisor.com • Email – Weekly E-Newsletter • Sponsored Content – White Papers, Case Studies, Video Posts • Issue Sponsorships – One overall sponsorship is available for each issue. Front and Back page premium placement in print, online and email.

• Content Sponsorships – Each month we feature a distinct discipline within the collection process. Sponsor 1 full page, 4 email newsletters and an online banner ad.

Learn more. Contact Angie today.

888-610-1144

BUILD YOUR BRAND TO LAST 28

May/June 2018

.com

If you are a premium provider of accounts receivable services, your choices for collection software have dwindled. Many companies are not investing in new technology while others have been sold or acquired, leaving you with only two viable options.

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.

Isn’t it time to modernize?

Proven in over 35 states and Canada, confident and ready for a fight.

We are Quantrax.

(301) 657-2084 | www.quantrax.com marketing@quantrax.com