Collection Advisor July/August 2018

ISSUE SPONSORED BY

USING TECHNOLOGY TO EMPOWER COLLECTIONS

NEW WORLD OF CREDIT CARD COLLECTIONS

THE SCARIEST THING IN COLLECTIONS GETTING SCARIER WHAT CONSTITUTES A DECEPTIVE PRACTICE? ASSUME THE SALE TO COLLECT DEBT BEWARE OF THE SKIP GUESSER

Vol. 18, No. 4

4 CRITICAL QUESTIONS COMMERCIAL COLLECTORS SHOULD BE ASKING 7 CHANGES IN INSURANCE YOU CAN’T AFFORD TO MISS

July/August 2018

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Introducing COLLECTOR

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p in the sky! It’s a bird, it’s a plane, it’s compliant debt collection incarnate! It’s CAP’N Collector!

Collection Advisor introduces the superhuman collector the industry deserves and the economy needs. CAP’N COLLECTOR will guide you through this and future issues of Collection Advisor, pointing out key pieces of information you need to know and advice you need to follow. He does this because this nation needs debt collection and that debt collection needs to be executed perfectly. With total compliance, impeccable chain of title and zero complaints, CAP’N COLLECTOR is the consumate collection professional fighting for justice, propelling the engine of a creditbased economy.

Every great innovation starts with an idea, a pondering, a thought. It eventually takes shape and becomes something that progresses man’s influence on his surroundings. This issue of Collection Advisor recognizes Top Technology Leaders of 2018. These technology experts surpass what is thought to be impossible by increasing the volume of debt recovered, improving the compliance during which payments was obtained and improving collection professionals’ life in the office. These thought leaders provide advice on page 16 that collection professionals would be wise to heed.

This issue also features an Agency Spotlight focused on the perfection of credit card debt and pitfalls collection professionals need to avoid. Additionally, professionals from insurance providers give their perspective on how collection professionals can select the ideal coverage for their agency.

Next issue Collection Advisor will lawyer up and present the Top Attorneys in Collections 2018 who reveal how today’s collection attorneys can hurdle the biggest problems in the industry. We will also present the thoughts of the Most Powerful Women in Collections. Healthcare collection solutions and phone automation products and services will also be presented and discussed.

Tell me about your latest adventures.

C A P ’N C O L L E C T O R capncollector@collectionadvisor.com

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July/August 2018

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PRO NETWORK EXCLUSIVES

14 USING TECHNOLOGY TO EMPOWER COLLECTIONS

July/August 2018 | Multi-Office Collections Issue

ADVISORS

Volume 18, No. 4

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4

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Adventures

of CAP’N COLLECTOR

AGENCY ADVISOR

Assume the Sale to Collect Debt Sam Eidson

Beware of the Skip Guesser Ron Brown

COMPLIANCE ADVISOR

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Survey Reveals Top 4 Collection Pain Points Harry A. Strausser III

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Top 30 Collection Technology Thought Leaders

T. STEEL ROSE

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Multi-Office Software Roundtable

How to Avoid Multi-Office

Software Challenges

Comparison Chart

LEGAL COLLECTION ADVISOR

BENCHMARK ADVISOR

JOSHUA FLUEGEL

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22

7 Changes in Insurance You Can’t Afford to Miss

The Scariest Thing in Collections Getting Scarier Nick Jarman

4 Critical Questions Commercial Collectors Should Be Asking Michael L. Starzec

JOSHUA FLUEGEL

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COLLECTION INDUSTRY ADVISOR

Success Strategies

Jeffrey S. Simendinger.

Co-Founder and COO at SIMM Associates

SKIP TRACING ADVISOR

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ADRIANA HOLLAND

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What Constitutes a Deceptive Practice?

Debra J. Ciskey

FEATURES

JOSHUA FLUEGEL

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SUCCESS STRATEGIES

Collection Products & Services Directory

DEPARTMENTS

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Welcome

Collection Industry Top Product Nominees July/August 2018

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Assume the Sale to Collect Debt

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Almost ten years into my collection career I branched out to sell final expense life insurance. I learned a collection call is just like sales in many ways. Some of the techniques I learned in sales working for 100% commission elevated my skills to the next level. A few of the techniques I learned include opening the call with enthusiasm, making a friend by building rapport in an effort to gain the consumer’s trust and, most importantly, assume the sale. Once I implemented those techniques, closing the deal became much more attainable.

Having the ability to effectively listen was crucial to my success. At times it took patience, empathy and the ability to Sam Eidson relate with each individual. Both industries require a high level of professionalism and the ability to think fast and overcome objections while remaining respectful. Today I’m going to dis- to properly negotiate arrangements I want to better understand cuss some of the style I get consumers to make payments over the consumers’ financial situation. the phone. Everyone has their own way of collecting and no Once I understand where they are financially I’m able to one has an unassailable approach. However, the techniques provide repayment options. I follow standard call progression I’ve used throughout the years have enabled me to close deals asking for the balance to be paid in full. If they are unable to at a high percentage. pay in full I ask how short of the On every call I sit with good balance they are. In most instances posture and a smile on my face they will say all of it. As the cli“I’ve found that my tone of voice while focused on what’s in front ent allows, I will then offer a lump of me. I’ve found that my tone sum settlement. If they still claim is more prominent when sitting up of voice is more prominent when to not have it I will offer the settleand it’s almost like consumers can sense sitting up and it’s almost like conment in multiple payments. Once sumers can sense when I’m smiling those options have been exhaustwhen I’m smiling through the phone. “ through the phone. I always keep ed I offer a payment plan based in mind that the consumer was on time frames. I start with six not expecting my call and wasn’t months and go up from there until looking forward to discussing their debt so selling myself at the I meet the consumer’s financial ability. Once arrangements have beginning is imperative. I do this by being upbeat and pleasant been agreed upon I provide the consumer with payment options to speak with. It’s my job to motivate the consumer to repay I want them to accept. I start by saying, “I can set this up via their debt so being focused on what’s in front of me keeps the check by phone, go ahead with the routing number as soon as consumer engaged while on the phone. you’re ready.” If the consumer claims to not have their routing I always ask open-ended questions allowing the consumer number I immediately advise them I can retrieve it and to go to speak because it’s far more important for me to listen. While ahead with their account number. If the consumer claims to not they are speaking I document all information given as it may have their account number I respond by saying, “that’s ok, we help with negotiations later in the conversation. I attempt to can make an exception and set it up using your debit card. Go gather full and complete information at the beginning of the ahead with your card number.” call, however, if the consumer seems impatient I will wait until While the aforementioned techniques have helped myself the end. Updating full and complete information is important and others, I’ve closed deals throughout the years where some in the event their payment is returned for non-sufficient funds. I deviation may be necessary based on call flow. That’s the beauty start by verifying the address and phone numbers we have on file of collecting debt; each call has contrasting variables based on are correct. Then I ask a few questions that lead them into giv- client, consumer, hardship, personalities and abilities. ing me their employment information. I ask if they are working full time or part time, what’s their occupation and immediately Sam Eidson is the Director of Compliance for Delta Outsource follow by asking for whom they work. The majority of the time Group, Inc. He also serves on the Board of Directors for the they answer without even realizing what they’ve given. In order Missouri Collectors Association.

Agency Advisor

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July/August 2018

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Beware of the Skip Guesser

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In our last issue we discussed the origin of the word “cybertracker,” some of the traits required of a cybertracker and a few of a cybertracker’s sources. In this edition we will look at the traits required of a professional skip tracer as well as the difference between a skip tracer and the type of person we commonly refer to as a skip guesser.

Skip Guesser A skip guesser is a person who is actually a wan-

nabe, who would rather stop short of a full trace investigation and guess at where a person or assets may be rather than taking the time to verify the information they have obtained. This group of industry leeches host on unsuspecting clients and often utilize the sources and resources of professional tracers to make themselves appear they have done their job in locating the subject or mortgaged asset.

Example: The skip guesser’s information indicates the subject

moved to Houston, Texas. They check directory assistance and obtain three possible phone numbers and addresses for the subject.

Rather than attempt to verify their information, the skip guesser will send the three addresses to a professional agency in Houston providing the three addresses as possible locations for the subject and/or the mortgaged assets. The agent handling the assignment drives the three addresses and finds one is an empty lot in a mobile home park, one is a four-hundred-unit apartment complex where the agent has no apartment number and can get no information from the apartment manager due to privacy laws and the third address is a two-million-dollar home in a gated lake community.

A day and many miles are wasted because the skip guesser did exactly that… he/she guessed instead of verifying. They drew conclusions based on assumptions rather than knowledge.

That last statement pretty well sums up the definition of a skip guesser, “a person who attempts to locate people or assets by drawing their conclusions based on assumptions rather than knowledge and thereby providing incomplete or misdirected information.” Now let’s take the same scenario and see how the professional skip tracer would move forward to locate the subject in question.

Skip Tracer The first thing a good tracer understands is they go backwards to go forward. The tracer must be diligent and gather information related to the subject of the hunt which the tracer knows to be fact in order to establish patterns and habits. This is where conclusions begin to be based on knowledge instead of assumptions. A professional tracer understands that there is power in knowledge and the more knowledge that is obtained the better the likelihood of success.

A professional tracer understands the value of base Knowledge such as the subject’s full name, date of birth, social

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Skip Tracing Advisor Ron Brown

security number, marital status and previous employment.

These must be the first things the tracer obtains. The tracer then displays patience and delves deeper for more supplemental information such as the previous address’ type of dwelling: apartment, mobile home, single-family house. Was the subject buying, renting or leasing? The type of work the subject did at their last job and their reason for leaving that employment. The name, location and contact information for relatives and references. Spousal information and possibly the type of vehicle the subject usually drives. Previous communication devices, landline or cell phone, and the means of communication the subject prefers, voice contact, e-mail or text. When the subject actually left the last known address and under what circumstances. All facts, all truths and all information based on actual knowledge. Now we will see how the professional tracer utilizes this knowledge in the same scenario.

Example: The professional skip tracer’s information indicates

the subject has moved to Houston, Texas. Information obtained during the investigation indicates the following: The subject is a welder and has relatives in the Houston area, is married with three school age children, buying his home at his last known address, is 38 years old and primarily communicates through voice contact via a cell phone.

With this verified information the professional tracer will take the path of least resistance in the tracing industry, “time is money,” and contact the relative in the Houston area inquiring about the subject.

This article is continued on www.CollectionAdvisor.com.

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.

July/August 2018

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PHONE AUTOMATION

What Constitutes a Deceptive Practice?

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The Bureau of Consumer Financial Protection recently issued its annual report on the FDCPA (Report), including input provided by the Federal Trade Commission related to complaints and enforcement issues. https://s3.amazonaws.com/files.consumerfinance.gov/f/ documents/cfpb_fdcpa_annual-report-congress_03-2018.pdf These agencies continue to share responsibility for FDCPA enforcement. While the report contains many pages of data about collection industry demographics and complaints, my interest always falls to the narrative related to enforcement actions, because it is here that we learn about the practices that might bring an industry member to the attention of the enforcement teams at these agencies. Of particular interest are descriptions of deceptive practices identified in supervisory exams and enforcement actions.

In the supervisory examinations summary only a couple of examples were described. In supervisory examinations of debt collectors handling credit card debt, the Bureau focuses on instances in which debt collectors deceptively implied that authorized users are responsible to pay the debt for the main cardholder. According to the report, examiners observed debt collectors “[a]ttempting to collect a debt directly from an authorized user of a credit card, even though the authorized user was not financially responsible for the debt.” The Bureau explains “[s]oliciting payment from a non-obligated user in a manner that implies that the authorized user is personally responsible for the debt constitutes a deceptive means to collect a debt.” (Report, p. 20) Further, Bureau examiners continue to observe false representations to consumers about the effect on their credit score of paying a debt in full rather than settling a debt for less than the full amount. Considering the Bureau initially provided compliance advice related to this practice back in July, 2013 in CFPB bulletin 2013-8, it is somewhat surprising this continues to be an issue, yet a review of 10 collection calls will reveal in nine of them the consumer will bring up this very question. Specific and adamant scripting provided to collectors can prevent occurrences of this potential violation.

The bulletin can be found on the Bureau’s website: https:// www.consumerfinance.gov/policy-compliance/guidance/ implementation-guidance/bulletin-effect-debt-paymentscredit-reports-scores/ If you enjoy a good story, you should spend time reading the content of the enforcement actions. Spend time reading the complaint filed by the Bureau and the FTC as well as the order. The complaints often contain more detail and description related to actual practices, and can be very

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Compliance Advisor Debra J. Ciskey

instructive. Deceptive practices were prevalent violations in enforcement actions carried out in 2017.

The FTC has focused its enforcement efforts primarily on activities of organizations that purport to be debt collectors but are either seeking to collect on fake debt or debt they have no authority to collect. The FTC initiated or resolved six actions involving phantom debt collection.

Two of those six involved the sale of fake debt portfolios.

Both agencies are working to eradicate FDCPA-prohibited behavior, regardless of the legitimacy of the organization they are investigating.

Often the fake debt collectors use threats and harassment to collect phantom debt from consumers. One pending action is against a quasi-consortium of seven debt collection agencies, six individual debt collectors, four payment processors and a telephone marketing service provider. Purported debt collectors involved in this scheme used threats of arrest and prison if payments were not made. They made allegations that consumers had committed a crime, tricked people into paying debts they didn’t have the authority to collect, threatened dire consequences such as lawsuits, garnishments, and imprisonment. They deceived consumers about their identity, claiming to be unrelated, legitimate small businesses.

In another action, a company allegedly targeted thousands of Spanish-speaking consumers, collecting fake debts and coercing consumers into purchasing goods they did not want.

In the collection of municipal debt such as court fines, parking tickets and other debts, another company used letterhead falsely suggesting they were a government agency.

The company made false claims that consumers were subject to imminent arrest for nonpayment, that the consumer’s driver’s license would be suspended and falsely represented that debts would be reported to consumer reporting agencies.

Another operation sent texts containing false statements in an effort to trick consumers into calling them.

Continued on page 9 July/August 2018

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THE ADVENTURES OF...

COLLECTOR

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CAP’N COLLECTOR Designed by Adriana Holland, Sales Assistant and Illustrator Ciskey - Continued from page 8 Texts purported to inform recipient a credit card payment had been declined, and to call a provided number immediately. This same outfit also used deceptive emails and calls threatening arrest and lawsuits.

While these allegations seem mighty outrageous to those of us who own and work in legitimate debt collection agencies, constant vigilance related to the activities of our employees is required to prevent creative minds from implementing practices you would not condone. The organizations in the actions described above were full-out scammers – that is not us. However, detective controls such as call recording and monitoring, management walking around, and regular training and retraining can ease your mind about the practices your collectors are employing, and may even help you improve your performance for your clients. I highly recommend it.

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. .com

July/August 2018

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The Scariest Thing in Collections Getting Scarier

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When it comes to debt collection, there are numerous things to be afraid of: the broad and conflicting interpretation of the FDCPA, predatory plaintiff attorneys, ever-changing and increasing compliance requirements; the list could go on. But there is one thing that should be the scariest for everyone involved in debt collection that supersedes all the aforementioned. That is call-blocking technology. While call-blocking technology isn’t new and has been around for well over a decade, it is within the last several years that it has been taken to a whole new level, especially with the government and the FTC’s interest in allowing consumers to choose which calls they want to receive versus those they don’t.

While on the surface, having consumers choose which calls they want to receive versus those they don’t might not sound too problematic, but when you begin to drill down on how to accomplish this, one can be quick to change their tune. Few would argue that consumers should not have to receive “unwarranted” calls, but “unwarranted” has now manifested to “unwanted” and this is where the subject gets murky. What constitutes “unwarranted” versus “unwanted,” likewise, warranted versus wanted?

For this article, we are going to define warranted calls in the context by which the consumer has an expressed business relationship with entities such as their finance company, airline, pharmacy or even children’s school, as examples. Calls made by telemarketers with whom the consumer has no prior business relationship nor was their information provided would constitute “unwarranted.” You could poll many different individuals and probably get back many different interpretations of what they considered wanted versus unwarranted.

Why should those involved in debt collection not just be afraid, but be very afraid? The answer is simple; on top of callblocking technology, it’s increasingly difficult to reach a consumer by phone as the ARM industry has seen decreases year over year in right party contact percentages.

There are several ways call-blocking technology works.

While there are smart phone apps available that allow consumers to arbitrarily block phone numbers that call them, or in some cases, send those calls directly to voicemail, phone companies or third party entities can get involved and block calls based on what they feel may be an “unwarranted” (or unwanted) phone call. The latter is what is most concerning from my perspective.

If a consumer decides to put any caller on their personal call-blocking list, that is their prerogative. Ultimately, if time sensitive information generally conveyed in a debt collection call doesn’t make its way to the consumer, the consumer must accept personal responsibility for this inability to communicate.

However, when the government or a private business prevents time sensitive information from being conveyed to a consumer,

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Collection Industry Advisor Nick Jarman

a line must be drawn in the sand. Think about this from a highlevel perspective regardless of whether you’re a debt collector or a consumer. Do you think it is fair? Does it seem legal? Whose best interest is really served in having a private business serve as the gatekeeper and subjectively determine if a call goes through to a consumer’s phone or is blocked?

That is the very conundrum we find ourselves with today. A private business already has some capability of blocking any calls they want or deem “unwanted.” As time goes on they will continue to gain market share with telephone providers. As they do, more and more “warranted” but maybe “unwanted” calls will be blocked from ever going through. Today, debt collection companies are being negatively impacted by this as their calls are not going through to the consumers phone they are calling even though intentions are to help them resolve their outstanding debts. In looking through their result files, agencies are seeing their telephony provider send them records indicating the phone call was blocked due to “scam” or “spam.” I would highly recommend everyone check their telephony return files and see if you are getting the same records back. If not, work with their telephony provider to ensure you are notified when such records do occur. The bottom line is right now, a private business with support of the government, notably the FTC, serves as judge, jury and executioner as to whether your legitimate and warranted phone calls will even make it through to the consumer’s phone. That alone is why we should be afraid, very afraid of not just where this very issue stands today, but where it may manifest to tomorrow.

This article is continued on www.CollectionAdvisor.com.

Nick Jarman is the owner of RightAway Consulting & Coaching. Jarman served the last three years on the Board of Directors for ACA International and is the past President of the Missouri Collectors Association.

July/August 2018

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Success Strategies Credit Card Collections

New World of Credit Card Collections

BY JOSHUA FLUEGEL

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redit card debt collection looks very different than it did only a few years ago. Professionals are still exploring this new world, looking for and walking the fine line that is profitability in a jungle of regulation. This issue of Collection Advisor we receive Success Strategies from Jeffrey S. Simendinger, Co-Founder and COO of SIMM Associates and find out what he does to manage collection professionals and keep a collection floor productive.

How did you become involved with SIMM Associates and collections? I am one of the cofounders of SIMM and have been involved with it since day one. I started in collections as a part-time collector employed by MBNA while attending the University of Delaware.

I was later offered a full-time position in MBNA’s Customer Assistance Department which was a fancy name for collections. I worked my way through the delinquency buckets and within a short period of time I was working in their backline pending charge off area. My father who is the other cofounder of SIMM has been in the industry since the late ‘70s. He managed the Collection Agency and Attorney networks for several large issuers. We decided to go out on our own and SIMM was created.

What is something you do to ensure things run smoothly on the collection floor? Contests and recognition are some things we do to ensure the staff doesn’t become complacent. Communication between management and collection staff is also a critical piece. Contests keep collectors sharp and motivated. It’s a very tough job these days with all of the required client and regulatory disclosures; plus the quality assurance and compliance initiatives which are now more important than overall performance. It’s a different industry .com

July/August 2018

than it was seven to eight years ago. Those agencies that didn’t or couldn’t adapt found themselves struggling. I cannot stress how important communication is to the health of a collection floor. Information from clients, analytics, compliance and quality assurance helps collectors understand what is required of them, as well as how well they’re performing.

What do you think is an often-overlooked mistake that would guarantee failure in credit card collections? I think not truly listening to the consumer is a huge failure for any type of collections. Every consumer’s situation may be different and to take a cookie cutter approach to rebuttals and objections is just not a smart way of handling collection calls. We teach and train our staff to “qualify” each and every consumer so that we truly understand their particular situation. Knowing what occurred that put them into financial hardship as well as their financial wherewithal and their ability to make repayment helps us offer solutions. Building a rapport with the consumer goes a long way.

Could you describe specific tactics you feel are necessary in credit card collections As I mentioned earlier, today’s collection call is much different than it was previously and it’s so very important to take advantage of every right party contact. This can be said for every asset class but when you’re dealing with an unsecured credit card account, repayment is normally very low on the priority list for someone that is having financial hardship. Typically mortgage, rent and car payments are going to take priority rather than paying on a delinquent or charged off credit card. With that being said its imperative to embrace technology specifically

Jeffrey S. Simendinger

for those clients that allow email, text and other communication methods. Working with a proven data provider to be able to utilize batch processing for phone appends and to obtain new contact information is an important component of a successful operation. Qualifying the debtor before entering into settlement or repayment terms is a must. This ensures that money isn’t being “left on the table.” Believe in the power of the payer. An established payer base to supplement new money or month-one recoveries plays a very important role.

Finally, consistent monitoring and coaching of your staff is critical. Complacency can be devastating, so side-byside evaluations performed by managers/ supervisors as well as a robust internal collector scorecard that helps shed light on those underperforming members of a team [is a must].

What do you enjoy doing in your free time? I love to travel and I’m a fantastic cook.

I’ve had the opportunity and privilege to coach youth baseball and football for the last 10 years. I’ve recently hung up my whistle but I do still on occasion make it out to the fields to see how the programs are doing.

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4 Critical Questions Commercial Collectors Should Be Asking

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From a distance, commercial collections appear to be just another collection file, the way a Thoroughbred and a Clydesdale are both horses, just that one races and the other hauls Budweiser.

However, that would be a mistake. Commercial and consumer debt are as different as a horse and a zebra.

Commercial files are attractive for a number of reasons. The balances are significantly higher promising larger returns. It is also a relief to know there are no FDCPA concerns. In addition, they can be a welcome change from template driven consumer litigation. That said, its unique nature requires an analysis to ensure it is the right fit for your firm. It is important to conduct an initial file review, just as you would for consumer debt. The difference is in the questions you need to ask.

What Kind of Business?

Your initial inquiry is to verify the corporate status of the potential defendant. Are they incorporated and in good standing with your secretary of state? Are they an LLC or a partnership? Or, are they using a business name but are really a sole proprietor? If the corporation is dissolved, that is not the end of your inquiry. They may continue to do business, only now without corporation protection. The date of dissolution and the date of your client’s contract will help dictate if you can sue and who to sue as well.

Any Disputes?

It is also crucial to require your potential client to disclose any disputes they received from the customer and how they were addressed. For example, in one case, we were asked to collect for breach of a sales contract for an electric forklift. Simple, right? Well, it turned out the buyer did not pay because our client sourced forklifts from overseas and the manufacturer used a charging cord incompatible with American outlets.

As you can guess, we did not take that account.

Contingency Fee or No? Before accepting the file, verify if a con-

tingency fee arrangement is appropriate. This may seem strange, but a significant percentage of commercial work is pursuing unpaid insurance premiums. However, under insurance policies, the final amount owed is not determined until there is end-of-term audit. In many of these potential files, that audit never happened.

As a result, there is no sum certain that is owed and the invoice is only an estimate. Hence, the proper litigation avenue is an action in equity for specific performance to force the audit, which is not properly recompensed by a contingency fee.

Finally, once you accept a file, send a demand letter. While not required as these are not consumer debts, this may result in settlements, returned mail that discloses new addresses, business closures or details about why the bill wasn’t paid – financial

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Legal Collection Advisor Michael L. Starzec

hardship or issues with your client’s performance that the seller might have forgotten to relate.

Does the Client Know?

Another aspect to consider in taking commercial work is legal sophistication. Your big bank clients know that at times they have to make business decisions to take less or nothing at all to avoid exposure or negative outcomes. In many commercial cases, even if you are receiving files from a forwarder, the actual plaintiff is a small business that has never engaged in litigation. They will be unaware of the processes, how much time a case may take and the risks associated with trial. They likely have an inflated idea of what litigation can do and often assume that because there is a contract, they are going to immediately prevail and/or that a judgment entry means they will receive immediate payment. Many take their cases personally, making them unable to make the business decisions often necessary in litigation. Therefore, take time to fully explain the limits of litigation, the risks involved and that a 50% settlement in hand is worth more than a 100% judgment on paper.

By the same token, ensure your retainers have provisions that address what happens in the event of counterclaims or other substantive litigation. A provision that allows you to opt out or have your client choose a different counsel in the event of substantial litigation is ideal. Moreover, even if there is no counterclaim, commercial litigation often involves demanding discovery, depositions and motion practice. As such, verify your staff has the legal bandwidth to handle these matters and the time to address them properly.

Commercial work can help diversify your client base and provide big hits if you recover settlements on these larger balances. However, understanding the internal logistics, client learning curves, the amount of litigation involved and the differing strategies that must be employed are critical to ensuring success.

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.

July/August 2018

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CHANGES IN INSURANCE YOU CAN’T AFFORD TO MISS

BY JOSHUA FLUEGEL

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nsurance is not normally the first thing on collection professionals’ minds.

However, in the event of an “occurrence,” worried thoughts may circle a professionals mind regarding whether or not correct decisions were made when selecting a policy. Here are seven areas a proactive collection professional should know for their company’s protection.

1

“You’ve seen the myriad of news stories about data breaches across various business sectors,” said Ben Johnson, director of risk management – insurance at Cornerstone Support. “Credit grantors are requiring Ben Johnson their partner collection agencies to obtain cyber liability/data breach coverage more than ever before, and the required limits continue to increase as well. But here is some good news: The cost to purchase cyber liability insurance has dropped drastically in the past year, due in part to increased competition from various insurers entering the marketplace. That pendulum will eventually swing back toward higher premiums if some carriers experience data breach claims in our industry, making this the optimal time to get insured. In terms of the coverage, cyber insurance carriers are now offering more comprehensive policy features for various claim scenarios involving hacking, fines, business interruption, cyber crime and more.”

Not only will the industry, and in turn, clients and vendors change, regulation will continue to evolve. This evolution can create new requirements for insurance and licensing needs. .com

July/August 2018

2

“Our licensing and

bond areas are preparing their clients for Wyoming’s transition to the National Multistate Licensing System this summer as announced earlier this year, said Janis Janis St. Martin St. Martin, CIC, vice president of Collectors Insurance Agency. “It is also notable that we have seen a significant increase in requests for new or additional licensing. This is a reliable indicator of industry growth.

3

“We are monitoring developing TCPA

litigation to determine what impact ACA International’s recent win over the FCC will have. It is really important that agencies continue to employ sound and defensible TCPA loss prevention procedures. We are working closely with our dedicated and expert attorneys to stay on top of the issue for our insured members.

4

“The insurance marketplace has shifted

a bit with additional carriers pulling out of the collection segment. This is always of concern as the number of acceptable carriers that provide adequate errors & omissions is finite. Without sustainable competition, negotiating terms can become increasingly challenging for everyone. Lastly, when considering a non-admitted carrier, agencies should review their client’s contractual insurance requirements as many will include carrier rating and solvency standards.”

Even if you did your homework and your agency was ironclad in its coverage and licensing, changes can bring about gaps in coverage that can be discovered through regular auditing and inspection.

5

“Read your errors & omissions policy

carefully – especially the definitions and exclusions sections,” said Johnson.

“Endorsements amend the wording in the base policy form, and may contain exclusions or restrictions for consumer protection laws such as the TCPA, or for any class action claims. Does the policy cover defense and settlement costs? Does the carrier place a sublimit on consumer protection laws?

Is there an amended deductible for class action claims?

6

“The most common gap to watch for

in a cyber liability policy is an exclusion or sublimit for breach notification costs. All 50 states now have data breach notification laws, and the cost could be staggering for companies with high numbers of records stored in their system. Cyber liability carriers sometimes restrict notification costs to lower premiums, but it is important to make sure you are not underinsured for this critical line item on the policy.”

If your research reveals your agency needs to move to another insurance carrier, that is all the more reason to examine paperwork closely.

Rarely is a coverage provider a seamless match from the previous.

7

“‘Claims made’ E&O coverage is ex-

tremely difficult to move to new carriers without creating gaps in coverage,” said St. Martin. “In-depth coverage comparisons should be offered well in advance of a move to a new carrier. Poorly drafted coverage terms can and do result in a denial of coverage. Regardless, agencies should use their coverage renewal as an opportunity to identify any new services they may be offering or any additional compliance measures that may be needed.”

13

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EXPERT ADVICE FROM THE TOP 30

COLLECTION TECHNOLOGY

THOUGHT LEADERS

TOP

30

COLLECTION TECHNOLOGY THOUGHT LEADERS

T

he accounts receivable industry thrives on innovation of method and technology.

This innovation first takes form in the minds of thought leaders.

Collection Advisor reached out to industry leaders and colleagues to gather nominations for technology/ service providers in the collection industry that strive to work side by side with professionals to improve the industry’s efficiency and the country’s economy.

To qualify, executive officers of collection technology vendors were asked to provide advice for collec-

tion professionals and respond to candid questions from Collection Advisor Editor T. Steel Rose. Their insight will allow collection professionals to do more with less. Rose learned about collection performance rates in Europe, clear-yourname Festivals in Brazil and many other collection insights to be covered in a later issue.

The following are the Top 30 Technology Thought Leaders of 2018. In light of recent changes in many Americans’ paychecks, leadership from each of the following partners are asked:

What advice would you offer accounts receivable professionals as take-home pay has increased for 90% of American consumers due to tax changes?

16

AUTOSCRIBE CORPORATION ROBERT POLLIN | President & CEO “ Providing consumers with self-serve payment options has grown significantly – with more than two-thirds of Americans in the US leveraging digital banking and payment channels. Online payment portals and automated phone systems enable accounts receivable professionals to be more efficient and encourage consumers to self-service their debts as disposable income increases.”

Pollin added, “There is a reprieve in the heavy handed approach from the CFPB.”

BILLINGTREE EDGARS “EDZ” STURANS CEO and President “Consumers will likely take advantage of extra funds for new purchases. Their ability to pay will not necessarily increase their interest in paying off past debt. Since consumers will have better cash flow, offering payment plan options along with multiple payment channels, including self-serve options, should increase overall payment volumes.” Sturans added, ”The interactive website can be very helpful especially for millennials.”

BEAM SOFTWARE THOMAS MOHR | CEO “ I suggest that collection agents learn and understand how the federal tax-withholding guidelines affect them personally. Using that knowledge, collectors can educate consumers on how they can actually afford to pay any higher amounts the collector will be asking them to pay.

It should be used on the talk-off side to ask for higher payments on monthly payments.”

CASTEL COMMUNICATIONS JOHN RIPA | President “ During customer conversations, accounts receivable professionals should strategically present favorable take-home pay and tax changes as opportunities to accelerate debt relief. Speech analytics should ensure tax-related dialogue occurs during live conversations.

Call scoring and keyword spotting should determine which tax-related conversations and keywords produce the most collections revenue. You could pop a script based on the words.”

July/August 2018

.com

CDS SOFTWARE JEFFERSON K. KIM | President “ You should be cautious making long-term spending plans based on next year’s revenues from tax changes.

Tax code changes can be reversed. A great possibility however is investing in something now that will lead to future savings or efficiencies, such as a new software platform or employee training and development. The predicative dialer is interesting because even if the dialer regulation eases up, the way people use their phones has evolved. They may not pick up their phone at all, but after an initial consent, text messaging becomes more common.”

CODIX LAURENT TABOUELLE | Executive VP “ Review collection strategies for certain segments of consumers. Modify strategies utilizing flexible technologies. Utilizing AI based on statistical data is gaining momentum to profile debtors and optimize the strategies. Along with business process modeling technologies and easy payment mechanisms through debtor web portals, the CPR [collection performance rate] will keep going up.” Tabouelle added, ”In continental Europe, for example, the CPR is 70% for agencies, 60% for banks and 30% for utilities.

COGENT | AJAY KAUL President “ This 90% of Americans will derive benefit but they have to anticipate to be potentially being under-withheld for tax year 2018 thus owing money later. Accounts receivable professionals should consult consumers and negotiate payment terms or make more effective wage garnishments.”

COMTECH SYSTEMS INC. FRITZ SCHULZE | President “As the U.S. economy improves, AR professionals have a better opportunity to increase cash flows by taking advantage of new applications and technology available from suppliers who provide automation and contact plans that are both effective and compliant at price points never before available. Customization is key.”

COMTRONIC SYSTEMS JEFF DANTZLER | President “Agencies must continue to leverage all forms of outbound contacts, messaging and payment portal options, while at the same time reducing security risks by moving their collection platforms to the cloud where their cloud partners can offer best-in-class security standards. It has been a century of manipulation of data and security breaches like Expedia, Russia or North Korea. The best way to partner is with someone like Microsoft Azure in the cloud. Focus on dealing with the issues in the cloud, which reduces the expense. The workstations remain the same.”

CORNERSTONE SUPPORT, INC. MATT PRIDEMORE | Principal “ The tax changes on the personal side along with rising wages and full employment have led to consumer confidence levels we haven’t seen in over a decade. That coupled with the changes in leadership at the CFPB have made this a great time to invest in the ARM industry. There is a change in energy, more start ups in the last nine months than in the last six years.”

CSS IMPACT CARL BRIGANTI | President & CEO “ This anticipated increase will have competing attention from consumers as they make decisions as how to use the extra cash. In a way, this is an extended “tax season” and AR professionals should deploy the same strategies that are typically limited to “tax season” in order to compete for the additional earnings. Tactics which improve payments include targeting the right dials using real-time, propensity to pay, waterfall data and SMS text campaigns.”

EFT NETWORK, INC. ALEXANDER R. BACON | President “Additional ‘cash in consumers’ pockets,” that would presumably be available for debt re-payment (among other things), will vary significantly based on their gross income level, state of residency and whether the person owns a home. Be mindful of the tax benefit, but stick to your basics on collections strategies!”

EXPERIAN STEVE PLATT | Group President “ For years, the industry has talked about - right channel, right time and right offer. But, now it’s a reality. Businesses can access data and technology to gain insights about customers and communicate with them on a personal level by assessing their ability to pay, ultimately preserving the long-term relationship.

There is a fervent desire to understand the view of the financial position of the consumer.”

INNOVATIVE E-PAY SOLUTIONS GARY ADAMS | President “ This increase represents small amounts of extra cash per paycheck, not a lump sum like previous tax rebates.

ARM Professionals will benefit by actively encouraging payment plans! Automated solutions provide 24/7 convenience to the debtor, ensuring the highest possible payment while reducing overall compliance exposure and cost to the agency.”

Continued on page 18

17

TOP 30 COLLECTION TECHNOLOGY THOUGHT LEADERS

Continued from page 17 INTERPROSE MATTHEW HILL | President/CEO “My advise would be to continue to apply industry best practices when communicating with consumers.

Fair and compassionate treatment will always yield the best results regardless of the economic climate. It makes a win-win-win, for the client, the consumer and the agency. If the climate is on the upswing then improved collection results will be a natural by product.”

MICROBILT KEITH GOODNIGHT | SVP, Product Development & Management I mplement smarter data strategies to identify those most affected by tax rates. More money will increase consumers’ moving status, so monitoring address and phone changes will help maintain contact. Also, use collectability scoring strategies to prioritize collection resources on consumers realizing higher paychecks before others claim the additional income.”

LARIAT SOFTWARE JAMES DUNLAP | CEO “ Be prepared. The ARM industry requires ARM professionals to be prepared to adapt to changes in the market. Favorable market conditions are not advantageous unless you are prepared to capitalize them. The primary focus should always be on improving core competencies as they define success.” Dunlap added, “The ARM industry is no stranger to ups and downs.

Adaptability is the key”

ONECLICK-DATA JEFF FLOOD | Director “As consumers have more income it is a great time to focus on their employment, finding where they work and communicate with them at work or go for a garnishment since consumers have basically gotten a raise and thus are probably going to stay longer with their current employer. With a better job they may stay put and be easier to locate.”

LEXISNEXIS THOMAS C. BROWN Senior Vice President, U.S. Commercial Markets and Global Market Development, LexisNexis Risk Solutions “Getting to the right consumer quickly and in a compliant fashion are the most critical factors for collectors. Understanding the financial well-being of the consumer also is important so that a collector can customize repayment. Indicators like employment, liens, judgments, bankruptcy, property and other alternative data elements provide deeper insights. There has not been a dramatic change in paying down debt based on the tax break.”

LOCATESMARTER JONATHAN BROOKS | President “Although take-home pay has increased, there’s still outstanding debt. Skip trace data needs to be accurate and excess data must be reduced to improve phone penetration, right-party contacts and dollars collected.

The faster you reach a consumer, the less competition you’re likely to have – making payment recovery easier.” Brooks added, “Not just phone numbers, we are constantly analyzing the data.”

18

PAYMENT SAVVY CHAD DEATHERAGE | CEO “ The more a consumer realizes resolving a debt will bring peace of mind, the more eager one is to pay. Having compliant, responsive and emphatic agents on your team is the key to bringing in top-dollar revenues and taking advantage of the new tax law.”

PAYSCOUT MANPREET SINGH | President “ Tax breaks mean consumers have more disposable income to apply to outstanding accounts, but it’s important for ARM professionals to provide frictionless bill payment options. Payment portals allow consumers to set bill payments online - or via IVR - through an easy, convenient, self-service platform.” Singh added, “New technology from Visa will ensure a card number is never visible.”

QUANTRAX RANJAN DHARMARAJA | CEO “Consumers will not voluntarily pay their bills because they have extra money. They still need to be contacted and persuaded to pay. This is not your father’s business!

Today’s collections is all about change and old technology is not going to address the millennial paradox, mobile technology, the need for AI, chatbots, automation or analytics. For dealing with the millennial paradox who don’t want to answer the phone, Quantrax deployed a collection robot. It recognizes several languages, determines balance and has an intelligent engine for settlements.”

REVSPRING JOHN TELFORD President of Financial Services G iven ongoing wage stagnation, an increase in take home pay will be helpful to individuals striving to meet their financial obligations. Agencies should engage consumers using omni-channel communication and payment solutions that create a positive experience by making it easier to fulfill obligations in a convenient, compliant and secure manner. It is not just a millennial, consumers are over the fear of dealing with computers. It is a mass consumer swing. Customers want an interactive experience.

ROYDAN DAN HORNUNG | President “Many accounts receivable items are collected from a socio-economic segment that may not be representative of this statistic. Determining a consumer’s ability to pay should always be the top priority for any accounts receivable professional. Their tax situation, especially during tax season, is always an important part of the equation.” Hornung added, “You need to determine their communication style and adapt to it; and that is not trivial.”

SENTINEL DEVELOPMENT SOLUTIONS, INC. [ECOLLECTIONS] CHRIS J. ROBERTS President/Chief Operating Officer “ Because margins are already thin, my advice to ARM professionals would be to take a look at all of your existing business processes and see how automation (workflows) and automated collections practices (consumer portals) can reduce the need for human intervention during the collection process, thus further reducing costs. The more a collection operation can collect in a fully automated fashion the better.”

SIMPLICITY COLLECTION SOFTWARE CHRIS CAMPBELL | CEO “Automation! Find solutions to help you automate current processes and jump on collecting new accounts quicker. Quickly addressing new accounts and easily moving accounts between collection and AR processes in an automated fashion ensures that you are able to capitalize on and close out profitable accounts quicker without increasing overhead. Have software identify those who are going to make payments and are going to continue to stay on a payment plan.”

.com

July/August 2018

TCN, INC. TERREL BIRD | CEO and Co-Founder “ We believe accounts receivable professionals should recommend consumers be fiscally conservative with their incoming cash flow and prudent with their spending habits. As more money comes into consumers’ take-home pay, we believe they should save and diversify their incoming revenue and be weary of quick and easy marketing ploys.” Bird added, “Business intelligence permits management to see every aspect of a call.”

VOAPPS PAUL GIES | President “Get notices of consumers’ debts out around common paydays to be top of mind when the extra money comes. The quality of the call is better because they are calling back to get resolution. Our clients have immense success delivering voicemails on the 1st, 15th, 30th and Fridays so they are top of mind when the consumer has time to call and make a payment.”

WEBRECON LLC JACK GORDON | CEO “ I’m not usually one to give advice on how to collect money as I wasn’t particularly good at it. But it’s tough to go wrong when striving to be the one collector above all others that a consumer wants to pay.

Always be respectful, positive, helpful and authentic with consumers. There is the great convergence of a great economy and a more favorable compliance environment.”

TOP

30

COLLECTION TECHNOLOGY THOUGHT LEADERS

19

Multi-Office Software Roundtable

HOW TO AVOID MULTI-OFFICE CHALLENGES

BY JOSHUA FLUEGEL

C

ongratulations! You just opened your second collection facility. Now you just need collection software. You can just recreate the same setup you have at the first location, right? Find out what today’s software vendors think you need to know before diving into a software solution that should span multiple offices.

WHAT IS A PITFALL IN CONFIGURING A SOFTWARE SOLUTION ACROSS MULTIPLE OFFICES THAT MUST BE AVOIDED? THOMAS MOHR CEO of Beam Software Collection agents are very innovative and will often test the constraints of any collection software! The software should be configured to preclude agents in one office location from viewing or accessing accounts in another location. Floor managers and team leaders clearly do not want a collector accessing or cherry picking another office location’s accounts and working them.

LAURENT TABOUELLE Executive VP of Codix The most common pitfall is to rely too much on influential “old school” personnel during a software renewal project.

These personnel are valuable for their strong business expertise but they are invariably supporting and promoting the “this is the way we’ve always done things here, can’t be done differently” approach.

Change is usually scary, but necessary. A software renewal project requires a strong forward-thinking business sponsor.

TONY LAMAGNA Partner of The Computer Manager Having multiple offices and/or databases can lead to oversteps in one office onto another office leading to confusion and mishandling of accounts. The key to avoiding this pitfall is to have a clearly defined business plan and approach for each office. Regardless of how the business is structured, as long as each office understands the plan and follows procedures in place an agency can successfully operate with multiple offices.

FRITZ SCHULZE President and CEO of Comtech Systems Taking extra steps to maintain data hygiene will avoid the need for laborious corrections. In particular, we advise the use of a system wide unique identifier for each record.

JEFF DANTZLER President of Comtronic Systems One pitfall to avoid is thinking that your IT team can build out a better “homemade” cloud-based

20

deployment than a dedicated cloud vendor. That may have been possible five years ago, however, today you must take full advantage of collection vendors that partner with cloud titans such as Microsoft Azure or AWS for greatest efficiencies, economies of scale, unparalleled security and protection.

CARL BRIGANTI President and CEO of CSS IMPACT A common pitfall in configuring a software solution across multiple offices is to overlook the opportunity to customize each office as its own independent environment in the ecosystem with its own customized settings, permissions and workflows in order to maximize the productivity potential of the personnel at each location. Although this may require an investment of time at inception, the uplift is significant on the long run. Customizing each site around its very specific needs is more often than not neglected in favor of using a single-template solution approach that applies to all locations missing out on the opportunity to enhance efficiencies with the more tailored approach.

July/August 2018

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LEX PATTERSON President of DAKCS Software Systems A lack of communication between multiple offices while implementing a software solution can cause major issues. When configuring a system across multiple locations ensure that you have tools within your system that allow you to see each location’s metrics and performance information, preferably on an easily viewed dashboard.

MATTHEW HILL President / CEO of InterProse None. As long as each location has a resilient network and suitably fast Internet connection the rest of the deliverable is easy.

JAMES DUNLAP CEO of Lariat Software Utilizing technology that wasn’t designed for cloud deployments. It is possible to deploy older technology to the cloud and make it accessible from multiple offices; however, this presents challenges in security, efficiency, and flexibility. It’s true that redeploying legacy technology to the cloud can be tempting but in the long run it is far better to invest in the right tool for the job.

RANJAN DHARMARAJA CEO of Quantrax Corporation The pitfalls are likely to be a result of the software design. You are often restrained by your software and its flexibility. As an example, different companies can be on the same database or on different databases. If you want to move accounts from early-out to bad debt, having the data on a single “file” is a great help. Inquiring into an account in multiple databases, or consolidating multiple accounts into a single report can be challenging, depending on the database design. If the same consumer exists in different companies, the software may not be designed to search across all companies.

DAN HORNUNG President of Roydan Agencies that work across the country need to be aware of how to handle time zones effectively. Making sure phone calls and other activities are timed appropriately to the consumer’s location is imperative given the compliance implications that this could create if handled improperly.

CHRIS J. ROBERTS President and COO of Sentinel Development Solutions The largest consideration by far is to make sure that you choose a collections platform that can flexibly support all of your requirements.

CHRIS CAMPBELL CEO of Simplicity Collection Software Again, the question varies based on your collection software solution. For a web-based software solution, avoid the security trap.

Make sure you know how your data is being stored, is it encrypted as it is sent to your software provider’s server, and is it encrypted “at rest” while it sits in your provider’s database? Make sure that multiple locations can be secured and isolated easily if needs to be and that user access can be restricted not only to features and functionality but also to allowable timeframes and working hours. Finally, make sure your software provider has adequate network, Intrusion Detection Systems (IDS) and firewall monitoring in place to ensure your data is secure.

For traditional software solutions, it comes down to security as well. Make sure you have a skilled and experienced IT staff to properly configure firewalls and infrastructure hardware in order to ensure that data is being transmitted securely. Additionally, network monitoring, IDS and firewalls should be put in place and frequently monitored in order to verify that networks are secure and not compromised.

An untrained IT staff is sure to miss critical security components leaving your environment compromised and costing you additional dollars in the end.

Cast Your Votes!

Technology Innovation Awards

One of the most effective ways to cope with increasing industry regulation is to push the frontier of technology. The Technology Innovation Awards highlight advancements that make debt collection possible and improve bottom lines in collections across the country. To nominate a technological innovator, submit the product’s name and a brief description.

DEADLINE AUGUST 6

Innovative 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 AUGUST 6 Award recipients will be decided by the Award Committee, which is comprised of the editorial staff of 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.

Survey Reveals Top 4 Collection Pain Points

ROUTING SLIP

Initials

A

An important element in benchmarking is knowing what your peers in the industry are doing, thinking and lamenting. As human beings we enjoy celebrating success with others and we also find a sense of comfort in commiserating with those we know and respect relative to issues that plague us. Organizational leaders can certainly choose from a long menu of daily hindrances that might appear when running a corporation in the accounts receivable management space. But, are there some common themes of frustration shared by those that manage these firms?

In order to provide our readership with some timely and valuable industry feedback, we recently reached out to C-level professionals in the collections space and asked them to share their most pressing pain points encountered in managing their respective organizations. We asked them to list a few of the dynamics that keep them awake at night, provide the highest levels of frustration, aggravation and stress. Here is what we learned.

I am going to focus on the top four issues that found their way onto most of the lists presented to Collection Advisor. The very interesting element here is that most of these elements were found in part on virtually every response received. We have clearly discovered the most pressing matters to high level management in the collections space today.

The following ideas are not listed in order of importance or frequency of topic, as they were uniformly covered by the respondents:

1. Regulations/Compliance/Legislation

It will likely come as no surprise that the cause of much continued consternation in the ARM space is found on the regulatory front. It is not necessarily the depth of these regulations but the incredible breadth of the rules. Agencies are lamenting the constantly moving target of local, regional, state and federal regulators that seem to be focused on trying to control the businesses of collections professionals. Virtually every aspect of the collections office is plagued with oversight that forces management to perpetually run in circles.

Our ability to navigate productive, profitable operations is compromised by regulator oversight. The costs of adhering to these rules is prohibitive to many operators. Ask anyone that is truly nationally licensed how many human and financial resources are devoted to the licensing function.

Compliance officers are driven to create multiple layers of compliance protocol regarding what are often overlapping or competing rules. The mandates of call audits and data security overwhelm the average, compliant operation. The balance

22

Date

Benchmark Advisor Harry A. Strausser III

between being compliant and affording the collections team the leverage to make a profit is being squeezed.

2. Lawsuits

Bad operators should be brought into check. Consumers have the right to sue those that harass them and/or treat them unfairly. However, the industry today is bombarded by thousands of suits each year initiated by growing numbers of predatory firms that sue strictly to make a buck. It has nothing to do with consumer protection.

The problem with these suits is CEOs and operations directors often take them personally. They get very emotionally involved in the process and much stress is created. Apart from the actual suit filings there are thousands of pre-litigation demands presented to firms annually. It is a money grab and agencies write the settlement checks regularly. We get worn down with the constant onslaught of these activities.

3. Unrealistic Client Demands

The larger the client, the more complex the relationship is in today’s market. The mandates received by agencies from the creditors they represent and the request for proposals they generate, drive down profitability and operational efficiencies. They want more and more for less and less. And, our clients are becoming larger as mergers and acquisitions in the creditor space mirror the same dynamic being experienced in the ARM industry. Our regional hospitals are being acquired by huge medical conglomerates. Financial institutions continue to consolidate.

Not only do the demands increase but agency fees are absolutely bottoming out. How much lower can rates go?

This article is continued on www.CollectionAdvisor.com.

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

July/August 2018

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an Se S o nti f t w ne are l S Co i m p lle lic i c ti t y on Th e Ma Co na mp ge u r ter

ro se La S o r ia ftw t are Qu Co a n r p tra or x at i on

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

Yes

Yes

Yes

Yes

Yes

Collection tasks recorded automatically

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Generates customizable correspondence on demand

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Automated letters by client w/ flexible triggers

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Offers automated faxing

No

Yes

Yes

No

No

No

No

No

Yes

Yes

No

No

No

Integrates with email

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Offers automated phone dialing

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Monitors individual collector performance

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Import debtor data w/out custom programming

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Designs custom reports on operator level

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Online, real-time coaching

No

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

No

Access vendor services automatically

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Multiple location and database functionality

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Goals feedback in real-time

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

GUI environment

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Secure/customizable remote Web access for collectors

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Secure/customizable remote Web access for debtors

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Secure/customizable remote Web access for clients

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Generate individual status reports for linked accounts

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Application development studio

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Integration with Crystal Reports

Yes

Yes

Yes

Yes

No

No

No

No

Yes

Yes

Yes

No

Yes

Pre charge-off collections

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Post charge-off recovery

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Agency/Attorney management

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Asset sales

Yes

Yes

Yes

Yes

Yes

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Metro2 reporting on post charge-off

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Standard agency/attorney/buyer formats

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Recovery management statistics and reports

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Automated file processing

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Repossession tracking

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Bankruptcy/Deceased management

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Work by account centric

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Work by person centric

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

Identifies and tracks problem invoices

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Coded problems separate from receivables

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Offers customer-level notes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Offers invoice-level notes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Electronically reproduces/transmits invoices

Yes

Yes

Yes

Yes

Yes

Yes

Yes Yes Yes

Yes

Yes

Yes

Yes

Yes

Yes

Ro

yd

Yes

Yes

erP

Yes

Yes

Int

D So AKC ftw S are

Yes

Recommends goals and scripts for collection calls

C I m SS pa ct

CO D

Automated workflow strategy tools

COMPANY NAME

IX

B So eam ftw are

C Sy omt s te e c ms h C Sy omt s te r o ms nic

MULTI-OFFICE COLLECTION COMPARISON CHART GENERAL FUNCTIONALITY

RECOVERY FUNCTIONALITY

PRE-CHARGE OFF FUNCTIONALITY Disputes/Deduction codes can be assigned

All systems permit related accounts viewed simultaneously, customized formatting of statements, set up clients as either gross or net remittance, statements can be regenerated for a specific period, tracks multiple internal and external contact names/numbers, user-definable collector/user interface, user-defined account matching criteria,user-defined balance buckets, user-defined

payment types, configurable account flow, prioritized work queues, work grouped by time zone and collection stage, sub-clients for a master client/consolidated statement, relate accounts across clients or sub-clients and user-definable client access interfaces.

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.

23

‘

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 Papryus 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.

July/August 2018 .com

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.

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.

.com

July/August 2018

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.

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.

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

July/August 2018 Volume 18, No. 4 Editor-in-Chief Joshua Fluegel josh@collectionadvisor.com Editor T. Steel Rose, CPA, ACG editor@collectionadvisor.com Copy Editor Myrna Nelson Advisory Board/Columnists 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.

25

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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.

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Built for start-ups. Scalable for growth.

Automate • Customize • Import • Cloud • Premise • Integrations

Demo.Collect-Cloud.com | Collect.org

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July/August May/June 2018

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800.414.2814 debtmaster.com

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July/August 2018

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

Debtmaster 360

Debtmaster®360 exceeds today’s collection industry standards by partnering with the Microsoft Azure® Cloud service for the best in security and performance.

Integrated compliance tools, debtor information, advanced agent dialing and messaging, payment processing, and client reporting make Debtmaster®360 the number one choice.

®

ColleCtion Software with Unrivaled SeCUrity

Create Create better better interactions. interactions.

Increase collections.

Increase collections.

VoApps DirectDrop Voicemail™ drives inbound calls from ™ you can grow your business. consumers seeking resolution VoApps DirectDrop Voicemailso drives inbound calls from

consumers seeking resolution so you can grow your business.

Whether your organization is plagued by call avoidance and contentious calls or

you’re simply having trouble reaching mobile phones, VoApps DirectDrop Voicemail is Whether the solution.

Voicemail delivers voicemails directly tocalls the or yourDirectDrop organization is plagued by callmobile avoidance and contentious consumers’ voicemail platform – without ever calling the mobile phone – so it easily

you’re simply having trouble reaching mobile phones, VoApps DirectDrop Voicemail

and efficiently drives inbound traffic to your call center, allowing you to recover

is the solution. DirectDrop Voicemail delivers mobile voicemails directly to the

more money while protecting your interests and remaining compliant.

consumers’ voicemail platform – without ever calling the mobile phone – so it easily

Benefits of VoApps Voicemail and efficiently drivesDirectDrop inbound traffic to your include: call center,

allowing you to recover

•

More qualitywhile mobile contacts in less time and more money protecting your interests

•

Much higher response rate than text or email

•

Benefits time of VoApps DirectDrop Agents’ is spent answeringVoicemail calls frominclude: consumers ready to pay

•

Generates instant and contacts measurable results • More quality mobile in less time

•

Increases dollars collected and liquidation rates

•

Get up and running in as little as one day

• •

remaining compliant.

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Agents’ time is spent answering calls from consumers ready to pay

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Generates instant and measurable results

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Increases dollarsatcollected and liquidation or• request a demo sales@voapps.com.

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rates

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Could your organization benefit from more positive, easier interactions and an increase in payments? If so, contact VoApps today to learn more or request a demo at sales@voapps.com.

855.973.0600

voapps.com

855.973.0600

voapps.com