Collection Procedures

Upon receipt, all new accounts will be immediately entered into our collection system, 'The Sting' Accounts Receivable Management System by DAKCS Software Systems. A new account acknowledgment report will be produced after the accounts are input into the system. This acknowledgment report will list the total number and dollar value of accounts referred, and will be generated the next business day after input.

All accounts will be screened to verify if other accounts against the same debtor exist in our collection system. If additional accounts exist, all accounts will be matched together. At this point, accounts are automatically assigned to unit collectors.

Upon assignment, a validated first demand notice is produced and mailed to the debtor. In accordance with the Fair Debt Collection Practices Act, this notice will notify the debtor that they have 30 days after receiving said notice to dispute the validity of the debt.

If a mail return is received, the account will be automatically assigned to our skiptrace/investigation department. Our locators and investigators are armed with the most up to date skiptracing and investigative resources available. The accuracy of our information is extremely important for our efficiency. When a debtor is located, the account will be immediately assigned to a unit collector and moved to an active priority status.

If after the validation period, an account has not received a mail return, been paid in full, or disputed, the debtor will receive a notice of credit bureau notification. This notice will advise the debtor on the following:

If the balance is not satisfied within a specified time period, their account will become eligible to be reported to all three major credit bureaus, Equifax, Experian, and Trans Union.

If the collection account is reported on their credit profile, it will appear for seven years. As per the Fair Credit Reporting Act.

If the account is paid after it has been reported, it will still appear on their credit report with a zero balance until the seven years has lapsed.

This will show future creditors that the account was not paid to the original creditor and had to be placed with a collection agency to recover the money. As per the Fair Credit Reporting Act.

With DAKCS Software Systems and VIC III, a fully integrated predictive dialer which is an extremely valuable enhancement to 'The Sting' Accounts Receivable Management System, Stuart Allan Collections is able to offer a wide variety of collection programs to our clients. This system allows us to establish and prioritize the fashion in which accounts are presented to a collector.

The dialer uses the collector work queues, or a "campaign" of multiple collector work queues, as its basis for dialing. A daily work file is created through an automatic process activity for each collector. All staff members have been assigned their individual identification, using initial and password. This allows access to the system and tracks all activity.

Upon logging on by using collector's initials and password, the system locates the work file for the day. Our collection assignment matrix is specified by alpha assignment, number of accounts, and dollar volume, to each collector.The accounts are automatically presented to the collector based on the dialing priorities. Example: broken promises, new accounts, updated address or telephone information, etc. When the dialer reaches a live voice or an answering machine, the call switches to the collector and the account automatically apprears on the collector’s screen. This process usually takes about a half second. Accounts that receive a busy signal will be called back 5 times that day and then if unsuccessfull, timed for a next day call. Each account in the process must have a new activity and next date of follow-up before the next account appears on the screen. If a debtor has no telephone, the collector can use an activity code to generate a variety collection letters. Our collection software also allows us to generate any correspondence in a variety of languages. A collector may set up a timed call on an account for a specific time of day or evening call. A message at the specified time and a keystroke brings the account to the screen for the call. Any account can be code directed to a supervisor for review or advice.

Stuart Allan & Associates, Inc.’ collectors will always try to work with a debtor to try to recover the balance in full as promptly as possible. If the debtor is unable to pay the balance in full immediately, the collector will attempt to set up a payment arrangement to satisfy the debt. A collector is able to send out an installment agreement and payment book with one keystroke. If the Collector discovers the debtor is deceased, the collector will pursue an estate residual. If after receiving a number of demands, debtor is unwilling to pay or we are unable to locate, account activity is based on various factors:

Collectability
If the balance warrants, and the debtor has the means to pay, but is unwilling, the account will be reviewed for suit. If attachable assets are located, the collector would recommend suit.

Stuart Allan & Associates, Inc. will never initiate any form of legal action without prior authorization. If suit is authorized, Stuart Allan & Associates, Inc. has exclusive on premises legal representation and a network of attorneys that have been screened and tried by The Commercial Law League, The Columbia List, and The National List of Accredited Attorneys.

Accounts that refuse to pay or are unwilling to set up payment arrangements, balance does not warrant suit, or attachable assets cannot be located at this time, will be reopened periodically for review and will remain on credit bureaus until satisfied or seven years has passed from the date of loss. Debtors that have refused to pay in the past will be forced to satisfy their outstanding debts before future creditors will extend credit.

Current Telephone or Address
The skiptrace/investigation department will work accounts until subject is located or debtor is deemed unable to locate. All unlocatable skiptrace accounts will be periodically reviewed for possible updated information. All accounts will still be reported to all major credit bureaus until satisfied or seven years has passed from the date of loss.

A supervisor will review all requests for moving an account to an inactive status. A supervisor can return accounts at any time. An inactive account report is generated as frequently as required.

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

VIC I (optional)

Imagine an office environment where the phones are answered 24 hours a day, seven days a week; commitments are made, negotiations take place and payments are promised. That's what we give you with VIC, the new state of the art Voice Information Center from DAKCS Software Systems for round the clock collections.

Using a keypad on any touch tone telephone, account information is accessed by account number and verified by a personal identification number provided to the debtor on written correspondence.

Name, address and phone numbers are authenticated by the caller automatically, electronically, and confidentially.

Payment terms will be defined to fit requirements. The balance range can be set to instruct the minimum payment or the maximum number of months in which the debtor may have to pay the debt.

When a debtor calls into the VIC'S Debtor Module, the system goes through the following procedure:

Verifies the debtor and explains the account in detail.

Requests updated account information.

Works with debtor to pay the account in full.

Assists debtor in making payment arrangements.

Updates the account with all payment arrangements.

Sends installment agreement and payment book to debtor.

Transfers account to a collector or voice mail if questions or disputes exist.

The likelihood of reaching a satisfactory agreement is high. No one hears and no one sees. Just the debtor and VIC in a non-humiliating dialogue where personal dignity is preserved and embarrassing situations avoided.

Once the debtor has made a commitment, the account history is updated with the promise made and dated for the expected payment. Only disputed debts are automatically forwarded to the collector.

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.