Collection Procedures

A new account is entered into our computer system the same day it is received. An acknowledgment to our client and validated first demand notice to the debtor are produced and mailed. A possible debtor match report is printed. This report is given to a staff unit manager to screen and verify other accounts against the same debtor and match them together. Automatic assignment of the account to a unit collector then occurs.

Within 24 hours of placement, Stuart Allan & Associates, Inc.’ procedures for collection begin. Telephone contact is made by a Private Investigator who announces that a pre- litigation asset and liability search has been initiated on the debtor’s company.

The debtor is advised that this investigation will not benefit his company and is then given the opportunity to stop the process immediately by contacting the collector assigned to his case. While awaiting the debtor’s response, the collector initiates their compilation of data to assist in determining whether “unwillingness” or “inability” is the reason for non-payment.

When the debtor contacts the collector and makes arrangements to satisfy his debt, the investigation is temporarily halted. If inability to resolve the debt is identified, optional investigation is possible. A licensed, Stuart Allan private investigator can, in fact, be sent to a debtors home or place of business to continue with our pre-litigation asset and liability search.

In our experience, the initial contact made by our private investigators are adequate stimuli to move the principal to take action. The national average recovery rate for collection agencies who send form letters and issued calls requesting payment is 30%. Stuart Allan & Associates, Inc. average recovery rate utilizing the above approach is 65% -85%.

Our collection assignment matrix is specified by alpha assignment, number of accounts, and dollar volume to each collector.

Our system allows us to establish and prioritize the fashion in which accounts are presented to a collector. A daily work file is created through an automatic process activity for each collector. Upon logging on each day by using the collector's initials and password, the system locates the work file for the day. The accounts are automatically presented to the collector based on the look up priorities. Example: broken promises, new business, call debtors, etc. Each account in the process must have a new activity and next date of follow-up before the next account appears on the collector’s screen.

A collector may set up a time to call on an account for evening call, weekend call, or specific time of day. A message at the specified time and a keystroke brings the account to the screen for the call. This process can also request itemized statements, suit authorizations and verification of direct payments to our clients. Requests for reports from attorneys are also computer generated and activity added to follow-up.

All cancellations are reviewed by a supervisor. Accounts can be canceled and returned by a supervisor at any time, while the account is being viewed. A cancellation list is generated monthly to our clients.

All staff members have been assigned their individual identification, using initial and password. This allows access to the system and tracks all activity. Any account can be code directed to a supervisor for review or advice.

A variety of internal reports will be generated to provide information to assist management in evaluating the direction and performance of all staff and the agency.

Performance & Work Standards

Our existing collection software package affords our collection supervisory people several different methods of evaluating quality, quantity and specific effectiveness of both the system and personnel.

COLLECTOR HISTORY
The collector history is a complete recap of all dollars referred, collected and returned for each collection unit which includes fees, average payment, liquidation and unit yield.

PENDING ACTIVITY REPORT
The pending activity report shows the workload and payment promises scheduled thirty days ahead.

Additionally, supervisors audit specific files on an ongoing basis to assure quality, consistency, and appropriateness of handling.