miscellaneous

Each week we bring you 10 of our most favorite stories from around the industry.

Week of August 29, 2010

1. Collectors sometimes try to stick you with a debt that was never yours

(WBIR.com, 09/02/10)

When the phone rang a few weeks ago at the McColl household the family got an unwelcome surprise: a debt collector on the other end of the line.”

2. Payday Loan Defendant Settles Charges; Illegally Tried to Garnish Borrowers’ Wages

(Statesboro.biz, accessed 09/02/10)

One of the owners of a payday loan and debt collection operation has agreed to settle Federal Trade Commission charges for his role in a scheme that illegally tried to garnish borrowers’ wages and used other illegal debt-collection practices.”

3. Home mortgage servicing company violated debt collection policies

(News Quench, 09/01/10)

The American Home Mortgage Servicing company based in Texas has been accused of violating the Texas Debt Collection and Deceptive Trade Practices Acts. Allegations from the state, including Attorney General Greg Abbot, say that AMHS used unlawful tactics to coerce payments from homeowners.”

4. Creditor sued for not contacting debtor’s attorney

(Southeast Texas Record, 09/01/10)

A Missouri creditor is being sued for violations of the Fair Debt Collection Practices Act after one of its collectors refused to contact a debtor’s attorney.”

5. One Entrepreneur Lost $3.5 Billion And His Finance Company — And Got It All Back

(The Business Insider, 09/01/10)

Twelve years ago, Bill Bartmann was the 25th richest person in the U.S.  But when a scandal hit his  debt-collection company, Commercial Financial Services, it collapsed and took Bartmann’s $3.5 billion net worth down with it.”

6. AGUEROS v. HUDSON & KEYSE, LLC

(Leagle.com, 08/31/10)

This appeal arises from a debt collection action. Appellee Hudson & Keyse, L.L.C. filed suit against Agueros to collect an outstanding debt. In response, Agueros asserted various affirmative defenses and counter-claims, for actual and statutory damages, under both state and federal debt collection acts. Hudson & Keyse then non-suited its action. Thereafter, the parties went to trial on Agueros’s counter-claims. Based on Agueros’s failure to prove any statutory violations or actual damages, the trial court entered a take-nothing judgment and subsequently denied Agueros’s motion for new trial. The trial court filed extensive findings of fact and conclusions of law in support of the take-nothing judgment. On appeal, Agueros complains that the evidence was legally and factually insufficient to support the trial court’s findings that she suffered no damages and that Hudson & Keyse did not violate the federal fair debt collection laws. Agueros likewise contends that she proved her claims for violation of 15 U.S.C. sections 1692e and 1692f as a matter of law. Finally, Agueros argues that, even absent an award for actual damages, the trial court erred in denying statutory additional damages.”

7. Five Rules for Collecting Late Payments

(Business Week, 08/31/10)

The warning signs of a customer’s cash-flow woes are easy to detect. Reduced orders, slowing payments, a change in phone number or business name, and a reluctance to get on the phone are all signs that trouble is brewing. Requests for duplicate invoice documentation or claims that “the check is in the mail” are also obvious stalling techniques.”

8. Sierra Group Compliance Signs Contact with United Collection Bureau to Launch ETHIcollect Compliance Program

(insideARM.com, 08/20/10)

United Collection Bureau, Inc. (UCB) announces the execution of a consulting service contract with King of Prussia, PA based Sierra Group Compliance, LLC to launch ETHICollect, an innovative new enterprise-wide, fully process-integrated compliance and consumer relationship management program. The program was designed and blueprinted for UCB by Sierra Group Compliance consultant Michael Fiori with UCB’s Executive Management Team lead by Jeff Horner, Chief Development Officer.

9. ACA Joins U.S. Chamber Call to Repeal IRS Reporting Requirement in Healthcare Bill

(insideARM.com, 08/27/10)

As the new health care bill slowly begins to take effect and people begin to examine the small details within the legislation, little known provisions have been discovered that have the potential to impose large burdens on small business in the very near future. One of these provisions is known as the 1099 reporting requirement.”

10. IACC Agency Certification Program Celebrates 10 Years

(insideARM.com, 09/02/10)

The International Association of Commercial Collectors, Inc. (IACC) Board of Directors is pleased to announce the 10th anniversary of its IACC Agency Certification Program. Offering members another step in quality assurance, obtaining this objective, third-party designation demonstrates an agency’s commitment to compliance and the highest standard of operations.”

THE LESSON – SHARE YOUR DREAMS

On August 28, 1963, Dr. Martin Luther King, Jr., stood on the steps of the Lincoln Memorial in Washington D.C. and shared his dream regarding civil rights equality with an estimated crowd of 250,000 people. This past weekend marked the 47th anniversary of that occasion. 

Over the years, Dr. King’s “I Have a Dream” speech has earned a reputation for being one of the greatest speeches in human history. In 1999, for example, more than 130 leading scholars were asked to share their opinions on the Top 100 speeches of the century. Dr. King’s speech took top honors. 

Since it had been several years since I last read the full text of the legendary speech, I decided it was time to give it another read. Although the speech represents Dr. King’s vision for civil rights equality, re-reading the speech did not cause me to think about civil rights this time around. Instead, I found myself thinking about dreams. Not the middle of the night “falling off a cliff” type of dreams, but the instinctive dreams that we have for our lives. What we want to do. What we want to accomplish. What we want to leave behind. Those types of dreams. 

Dr. King clearly had a passion for his dream. This is evident by the immense amount of time and energy he spent pursuing it. In fact, Dr. King received the Nobel Peace Prize in 1964 for his efforts. 

According to the official Nobel website, here are some interesting things about Dr. King you may not know: 

• He graduated high school at the age of 15, received a B.A. degree at the age of 19, and received a doctorate degree at the age of 26.
• Between 1957 and 1968, he traveled over six million miles and spoke over twenty-five hundred times.
• He wrote five books and authored numerous articles.
• He conferred with President Kennedy and campaigned for President Johnson.
• He was arrested more than twenty times and assaulted at least four times.
• He was awarded five honorary degrees.
• When notified of the Nobel award, King announced that he donate the money–$54,123–to the furtherance of his dream.

Do the math and you realize that Dr. King was 35 years old when he won the Nobel Peace Prize, and that he was only 34 years of age when he delivered that remarkable speech. 

Thirty-four years old. Think about that. 

Let it set in. 

Now ask yourself, “Have I been putting in the type of hard work and dedication needed to achieve my dreams?” 

You can access the full text of the speech here, or if you prefer, watch the video below: 

THE CHALLENGE

To view this week’s challenge, please visit www.insideARM.com/go/collector-challenge website or click here. 

THE REFLECTION

1.    What big dreams do you have for the industry?
2.    Why do you think some people fail to achieve their dreams?
3.    What do you do when someone tells you that your dream is too big?
4.    What steps do you take to achieve your dreams?
5.    What are the biggest challenges you face when working towards your dreams?

Dream big!
Gary Jensen
Editor | collector mentor 

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

Each week we bring you 10 of our most favorite stories from around the industry.

Week of August 8, 2010

1. Woman suing loan company after debt collector goes to her work

(WFAA-TV, 08/13/10)

Being late on a loan has turned into a fiasco that a Fort Worth woman never expected. The debt collector showed up at her job and the ensuing drama didn’t end until police were called.”

2. Debt Collector Gives His Time and Money to Feeding Kansas Citys Hungry

(Debtcollectionagencysoftware.com, accessed 08/13/10)

What started four years as a selfless way to give back to people in his community has grown into a passion for Shawnee, Kan. resident Arthur Lott. Today, Lott purchases, prepares and delivers more than 450 meals to men, women and children at three Kansas City, Mo. homeless shelters each month.”

3. Article On Why The FDCPA Is Designed To Protect Debt Collectors

(Alabama Consumer Law Blog, 08/04/10)

When we think about who the Fair Debt Collection Practices Act (FDCPA) is designed to protect we don’t normally think of . . . debt collectors. In a new article we explain how the FDCPA is designed to protect honorable . . . law abiding debt collectors from those debt collectors that are abusive and dishonorable.”

4. Raleigh woman sues JCPenney Credit for unfair practices

(The West Virginia Record, 08/12/10)

A Raleigh County woman is suing JCPenney Credit Services, General Electric and NCO Financial Systems after she claims they engaged in unlawful debt collection, unfair or deceptive practices and invasion of privacy, among other things.”

5. 3 things you should never say to a debt collector

(Wallet Pop, 08/12/10)

Lynnette Khalfani-Cox offers consumers three tips for dealing with collectors. Do you agree?

6. Lawsuits Against Collection Agencies, Creditors Spike

(Credit & Collections Risk, 08/12/10)

The number of collection agencies and creditors sued under various consumer statutes spiked to 480 in the second half of July, compared with 389 in the first half, according to data from U.S. District Courts.”

7. Debt collector for $200 bill gets nailed for $1.5-million judgment

(Hanna Boucher’s blog, 08/12/10)

I have worked in the  collections field for over 20 years.  I followed the FDCPA and was compliant.  Most collectors I have seen have been in the grey area. Then there are even many more that I see violate the FDCPA completely while the company owners are aware of it.”

8. Collection law firm sued for attempting to collect debt

(The Southeast Texas Record, 08/11/10)

A professional collection law firm is being sued after placing telephone calls to a Texas resident without disclosing they were attempting to collect a debt.”

9. Consumer files two lawsuits against debt collectors

(The Southeast Texas Record, 08/11/10)

A Lewisville resident has filed two lawsuits against debt collectors for violating the Fair Debt Collection Practices Act.”

10. Collection Agency Promotes “Good” Stories of the Collection Industry

(Collections Recon, 08/11/10)

American Profit Recovery,  a collection agency based in Michigan, Massachusetts and North Carolina, recently posted a number of short stories and profiles geared toward showing the general public and others that there are many aspects of the collection industry that go unreported, are misrepresented and intentionally covered in the media one-sided. The stories focus on how the agency has helped businesses and consumers come together in a diplomatic way to resolve debt, not just collect debt. The profiles can be read here at: http://www.collectionagencyblog.com“

Each week we bring you 10 of our most favorite stories from around the industry.

Week of July 18, 2010

1. Debt collection lands 3 men in Utah County jail

(ksl.com, 07/22/10)

Three men rush into a home in an attempt to recoup $400.

P.S. – If you are looking for a juicy story about a collection agency violating the law you’ll be disappointed.

2. Debt Collection: A Look Inside Collection Training

(PRLog.org, 07/22/10)

Michael Brazier of Freedom Debt Management reviews six tactics that collectors are using to “manipulate” or “trap” customers. Brazier lists thinking positively as one of those methods. Seriously? Positive thinking?

3. Debt collection can be a dirty business

(Tampa Bay Online, 07/21/10)

Attorney Jeff Kaufman says about debt collectors: “You’re talking about a bunch of guys in boiler rooms…these people do whatever they want…It’s pretty dirty.” Kaufman goes on to say that collectors “prey upon the weak” and calls collectors “creepy human beings.”

Too many movies perhaps?

4. Collecting a bounced check takes 1,600 days

(HAARETZ.com, access 7/23/10)

Interesting collection statistics from Israel. Buckle up. 

5. Some debt collectors turn to Facebook

(Arizona Daily Star, 07/20/10)

Consumer claims to be broke. Facebook photos show Corvette and fishing trip. Consumer decides to pay bill in full.

6. Collection Agency Welcomes New Team Members in Michigan Office

(PRLog.org, 07/19/10)

American Profit Recovery adds three to their sales team.

7. ‘RealHousewives of New Jersey’ star Danielle Staub files report with Wayne police

(NorthJersey.com, 07/19/10)

It doesn’t involve a professional debt collector, but we just couldn’t resist the story about a 30 year old debt and 50 phone calls in one day.

8. Debt Collection From the Collector’s Point of View

(The Atlantic, 07/16/10)

Editor Megan McArdle piggybacks off of CNN’s “confessions” slideshow and asserts that “The fact is, collecting money from those who owe it is a miserable job.  That means that the people who do it are going to be miserable–and that it’s probably hard to attract high quality workers.” Is this really a fact? Share your thoughts. 

9. New Financial Regulatory Law to Impact the Debt Collection Industry

(insideARM.com, 7/23/10)

ACA International, The Association of Credit and Collection Professionals, issued a press release concerning the Consumer Financial Protection Act of 2010 that President Obama recently signed into law. You might also be interested in FDCPA Defense Attorney Tomio Narita’s overview for collectors which can be found here.

10. CNN Spins Words of Ex-Debt Collectors into “Confessions”

(insideARM.com, 07/21/10)

insideARM.com’s managing editor Michael Klozotsky gives his two cents on  CNN’s “confessions” slideshow. You don’t want to miss this post.

THE LESSON – ENCOURAGE OTHERS

Sometimes when the going gets tough, the tough just want to quit. At least that was the thought running through my mind last weekend as I was finishing the final two miles of a 10k. You see, I’ve been training for a marathon (my first marathon actually) and last weekend I decided to pack in a full day of racing to help me get some miles in—15 miles worth of racing to be exact. It started with a 10k in the morning followed by a 5k and 10k later that night.

By the time I got to the last two miles of the last 10k, I was spent. My legs were cramping and I was getting dehydrated. In fact, my normal pace had slowed dramatically and my stride had turned into baby steps. That was about the time when my mind spoke up: “You’ve already run more than 11 miles today, just drop out now.” “Hey, it’s okay to walk from here.” “You can’t do it.” “Stop.” “No one would fault you for quitting now.”

Apparently many of the spectators and fellow racers also knew what was going on because I started hearing people cheer me on. “Just two more miles, you can do it.” “Looking good, keep it up.” “Just a few more blocks.” “Don’t give up, you got this.” Their words of encouragement were just what I needed to keep pushing forward. Then, when I hit the last mile, another runner pulled up beside me, just as exhausted as I was and said, “Do you think we can pick off 10 people before the finish line?” Now at this point I was really hurting and my mind was still insisting that I drop out. But, I’ve always had a hard time turning down a challenge and without hesitation I replied, “I think we can pass a dozen.” “Let’s do it then,” he said.

So there we were. Two guys ready to give it our all for the last mile of the race. I wasn’t sure where the energy was going to come from, but I was ready to try. As we passed other runners, we heard, “Good job guys!” “Finish strong” “Way to go!”

My pace for that last mile was nearly a minute faster than my pace for the previous two miles and I know where I found the energy. It was in the words of encouragement that I was hearing all around me. We finally crossed the finish line, but we didn’t pass 12 people. We didn’t even pass 10. We passed eight. But that was eight more than I would have passed had my “encourager” not pulled up beside me and challenged me to go with him.

THE CHALLENGE

To view this week’s challenge, please visit www.insideARM.com website or click here.

THE REFLECTION

1. What did you learn about yourself this week as a result of completing this challenge?
2. How can you continue to benefit from this challenge in the future?
3. What was your biggest takeaway?
4. What positive changes could you make going forward in order to maximize the benefit of this challenge?
5. How would continual practice of this challenge change your life?

C’mon, you know you can do this! You’re almost there!

Gary Jensen
Editor | collector mentor

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

Photo on Flickr c/o ingorrr

A new pet photo contest has been posted on InsideARM.com.

Here are the details as posted on the contest website:

If you’re a pet owner and work in the collection industry, send us a photo of your furry, feathered, or slippery companion for a chance to win the first ever (that we know of) ARM industry pet photo contest.  As with our previous contests, entrants will send in their submissions, we’ll narrow it down to a group of finalists, and insideARM.com readers will vote on the best pet photo. The winner gets a $50 gift certificate to PetSmart.

To submit your photo, please visit http://www.insidearm.com/go/contests/pet-contest/pet-contest.

Photo on Flickr c/o suchitra prints

Would you like a chance to win an extra $50? We thought so! And, thanks to InsideARM.com you can!

This past April, InsideARM.com launched a contest series to provide credit and collection industry professionals an opportunity to have a little fun while getting rewarded for doing so.

The Collector Contest Series is relatively simple. Visit the website, click on one of the available contests, and submit your entry. Then, once the contest closes, readers will place their vote and a winner will be selected.  Just think…it could be you!

So what are you waiting for? Stop by and enter today!

For more information, please visit www.insidearm.com/go/win-50-bucks.

Photo on Flickr.com c/o Photos8.com

In my last post I called attention to the awesome contest going on over at InsideARM.com (Share Your Best Collections Story and Win $50!).

The contest closed a few days ago, and the entries have been filtered down to the final five. The polls are currently open and I encourage you to stop by and vote for your favorite story.

Here is a brief overview of the finalists:

• KEEPING INSURERS HONEST – Read how one collector helped a consumer get to the bottom of a $240,000 account.
• COLLECTORS HELP SHOOTING VICTIM – Collectors in one agency raise $2,000 to pay off an account for a consumer who fell victim to a mass shooting in a mall.
• THANK YOU, GRETTA – Ever receive a thank you note from a thankful customer? Read along as Monica expresses her gratitude for one collector’s willingness to help her find a solution.
• STICK TO THE BUDGET – A collector helps a young couple develop a budget to pay their bills. Two years later they come back — debt free — for additional advice as they plan for buying a house.
• DREAM HOME – A collector receives a thank-you note after helping a customer close on her new house by clearing up misinformation.

Photo on Flickr c/o Theresa Thompson

 InsideARM.com is currently running a contest for the Best Collection Story! And, get this…the winner will get their hands on a crisp $50 bill! Cha-ching!But, you gotta hurry. The contest closes on April 30th! Here are the details c/o of InsideARM.com: 

 Debt collectors: We’re looking for the best collection stories in the industry. They can be inspiring, funny, poignant…whatever you’ve got. 

 We’ll pick the top submissions and then showcase the finalists on insideARM for a reader vote to determine a winner.. The story with the most votes wins a $50 gift certificate to Amazon.com. 

 This is the first contest in a series we will be running for ARM professionals. We want to show the world that collectors approach their work basically the same way as everyone else, even if our stories are unique to the collection industry. Be on the lookout for more contests, complete with prizes, very soon. 

 So send in those stories where you helped someone with a long-running debt, or received payment in full in nickels, or had a consumer speak to you in Scooby Doo’s voice. There are no guidelines, just please keep the stories clean and respectful. 

 Submissions will be accepted until April 30, with voting beginning the following week on this page. 

 Email editor@insidearm.com or use the form here http://www.insidearm.com/go/story-contest to submit your story. Remember: you only have until April 30.

New software solution improves collections and provides intelligent tools to make better business decisions

(Muncie, IN. – December 15, 2009) – Ontario Systems, a leading provider of accounts receivable and revenue cycle management solutions for collection and health care industries, announces the introduction of Collect Savvy, a new software solution designed for better debt collection management. With a focus on reducing and controlling costs while making collections more strategic, Collect Savvy provides collection agencies the flexibility and intelligence needed to make agile decisions in an ever-changing industry.

From contact management to month-end processes, Collect Savvy automates everything based on the agencies needs and objectives. The software’s variety of new features is highlighted with Strategy Commander, which allows users to select a specific strategy for each account or group of accounts and then instructs the system to automatically follow the rules of the strategy. The system can estimate the cost of each action, estimate the return, and present the user with pinpoint ROI. In addition to Strategy Commander, Collect Savvy offers the Champion/Challenger feature, which enables users to see which strategies are meeting goals and which are not so that the strategy can be adjusted accordingly.

“With declining margins and decreasing liquidation, combined with ever-changing technology and regulations, collection agencies are looking for a way to keep pace in a brutal market,” said Tony Resize, CEO, Ontario Systems. “Collect Savvy not only offers users improved collections, but the intelligent tools it takes to make better business decisions. The software enables agencies to become smarter, more agile, and more profitable, all with no money spent in up-front capital expense.”

With the incorporation of the Microsoft Dynamics CRM platform into Ontario Systems’ software suite early this year, Collect Savvy users will improve their overall cash flow and realize cost reductions and operational efficiencies. In addition, because of the wide familiarity with Microsoft products, training and implementation become faster and easier. Aiding in the transition to Collect Savvy, the software also offers a Migration Navigator feature, which enables users of previous Ontario software versions like FACS, Artiva, or competitive software the ability of migrating to Collect Savvy with minimal effort or downtime.

“After using FACS for nearly twenty years, our agency has been blown away with the features and functionality of Collect Savvy – it’s basically night and day as far as ease-of-use,” said Nate Olson, Vice President of Operations, Illinois Collection Service, a customer who has been testing Collect Savvy through Ontario’s Technology Adoption Program (TAP) the last three months. “The feature-driven software, logical user-interface and support from Ontario make Collect Savvy very easy to use – essentially taking all of the programming associated with new software out of the picture. Ontario continues to design tools that deal with the issues we are all facing out in the market.”

Other significant features include:

· Best Data – ensures users have most accurate and effective demographi information available

· Data Services Waterfall – allows users to control what data sources they use when they pull them

· Matching – lets agencies take advantage of data services they have already purchased and share the data across accounts

· Business Intelligence – provides detailed reporting capabilities with logical, real-time dashboards that highlight key performance indicators

SmartTouch Financial – gives users automated period-end processing to handle report balancing, payment records and the seamlessly send client statements electronically.

Availability:

Collect Savvy is available immediately and can be deployed on-premise or as a Software-as-a-Service (Seas). For more information about Collect Savvy, visit www.ontariosystems.com.

About Ontario Systems:
Founded in 1980, Ontario Systems, LLC, is a leading provider of revenue cycle and collection management solutions for the health care and accounts receivable management industries. The company’s customers are among the nation’s top 100 hospitals and health centers. More than 55,000 representatives in more than 500 locations – including nine of the top 10 U.S. collections firms – use Ontario Systems software and services. More information, call 800-283-3227 or visit www.ontariosystems.com.