Archives for February 2016

Performant Financial Corporation Announces Financial Results for 4th Quarter and Full Year 2015, lowers Revenue Projection for 2016

February 28, 2016 By Leave a Comment

Performant Financial Corporation (PFMT), yesterday announced financial results for its fourth quarter and full year ending December 31, 2015. The company also hosted a conference call to discuss the results.

PFMT is one of the few publicly traded companies in the ARM space. PFMT has also historically been one of the Department of Education’s (ED) top performing private collection agencies. However, the company’s contract with ED expired in April of 2015 and the company has not received placements from ED since the contract expired. The ED RFP remains in a delayed re-bidding process. (Editor’s note: See multiple prior insideARM stories on the delay in the ED RFP.)

Fourth Quarter Financial Highlights

  • Total revenues of $41.1 million, compared to $39.7 million in the prior year period, up 3.4%
  • Net income of $2.2 million or $0.04 per diluted share, compared to a net loss of $(2.4) million, or $(0.05) per diluted share, in the prior year period
  • Adjusted EBITDA of $9.8 million, compared to $4.9 million in the prior year period
  • Adjusted net income of $4.0 million, or $0.08 per diluted share, compared to an adjusted net loss of $(0.2) million or $(0.00) per diluted share, respectively, in the prior year period

Student lending revenues in the fourth quarter were $32.8 million, an increase of 7.0% from $30.7 million in the prior year period. The U.S. Department of Education and Guaranty Agencies accounted for revenues of $9.7 million and $23.2 million, respectively, in the fourth quarter of 2015, compared to $13.7 million and $17.0 million in the prior year period.  Student loan placement volume (defined below) during the quarter totaled $0.9 billion, compared to $1.7 billion in the prior year period. This figure reflects the lack of placements under the PFMT contract with the Department of Education, which expired in April 2015.

Full Year 2015 Financial Highlights

  • Total revenues of $159.4 million, compared to $195.4 million in the prior year period, down 18.4%
  • Net loss of $(1.8) million, or $(0.04) per diluted share, compared to net income of $9.4 million, or $0.19 per diluted share, in the prior year period
  • Adjusted EBITDA of $28.8 million, compared to $44.7 million in the prior year period
  • Adjusted net income of $6.6 million, or $0.13 per diluted share, compared to $15.3 million and $0.31 per diluted share, respectively, in the prior year period

Revenues for the full year ended December 31, 2015 were $159.4 million, a decrease of 18.4% compared to $195.4 million in the prior year period.  Student Lending revenues declined 13.7% to $119.4 million from $138.3 million in 2014.

Future Guidance

The company suggested 2016 will bring additional reductions in revenue. Lisa Im, PFMTs Chief Executive Officer commented: “The same challenges that we faced in 2015, including the suspension of placements from the Department of Education pending the contract re-bidding process, reduced student loan recovery fees, etc., have continued into 2016.  We anticipate that 2016 will be softer than 2015 primarily due to the delayed impact on our revenues of reduced student loan placements in 2015.  Further, even if we are successful in obtaining the outstanding contract awards there will be a several month implementation period before we would begin to see significant new revenues. As a result, we expect 2016 full year revenue to be in the range of $125 to $135 million.”

insideARM Perspective

Since PFMT is one of the few publicly traded companies in the ARM space, the earnings reports are always interesting.  The fact that PFMT has historically been a major player in the ED contract also provides a rare inside look into the magnitude of that contract.

PFMT has had the ED contract for years.  However, they were not one of the five PCA’s that received contract extensions in March of last year. As a result, they have not received any new placements from ED since last April.  Still without new placements for 8 months, ED revenues for the fourth quarter were still $9.7 million. That number dramatically illustrates why so many ARM companies are participating in the ED RFP.  The company did not offer any opinion on timing for any ED RFP award.

During the earnings call Ms. Im briefly mentioned the fact that PFMT was also hopeful of obtaining a contract from the IRS. insideARM previously reported on recent legislation requiring the IRS to use private collection agencies. However, Ms. Im was cautious about setting any expectations on potential revenue from an IRS contract.

Performant Financial Corporation Announces Financial Results for 4th Quarter and Full Year 2015, lowers Revenue Projection for 2016
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Accounts Receivable Management

Filed Under: News

CFPB to Focus on Debt Substantiation, Consumer Communication, Director Says

February 28, 2016 By Leave a Comment

Towards the beginning of his comments at the Consumer Advisory Board Meeting yesterday, Consumer Financial Protection Bureau Director Richard Cordray slipped in a quote from French author Antoine de Saint-Exupéry: “A goal without a plan is just a wish.”  Though they leaned far more towards wish than plan, Cordray’s comments did detail the agency’s ambitious, high-level vision for the next two years. Several of those stated goals involve the collections industry.

Cordray listed nine broad agency goals in all, which he characterized as being “key areas where we hope to make substantial progress over the next two years.”

Many of those goals, whether directly or indirectly, impact the industry:

  • A student loan market “where student loans are serviced in a way that is transparent and fair to help students repay their debts.”
  • A debt collection market where “everyone who collects debts substantiates the debts they are collecting and communicates with debtors about their debts in a respectful, lawful, consumer-oriented manner.”
  • A consumer reporting market “with better data that is more accurate and inclusive of more consumers.”
  • A market “free from discrimination and where consumers have equal access to small business lending.”
  • And an entire consumer financial marketplace “where consumers will have the ability to effectuate their rights and hold institutions accountable for unlawful conduct.”

These goals will drive Bureau actions of the next two years, Cordray added.

“[S]trategy starts with what we want to see in the marketplace, which then can guide us in selecting the tools most appropriate for the task,” he said.

The insideARM Perspective

In his comments, Director Cordray does not discuss creating a set of rules in which consumers and financial services firms operate, nor is he talking about specific practices the agency plans to target. Instead, he and his agency describe an idealized financial services sphere – a perfect outcome – and suggest that, in the next two years, the agency will develop and deploy certain, to-be-determined tools to affect that change.

Enforcing an outcome is a much bigger project than enforcing an input, but it seems clear that the CFPB intends to focus on the former.  Of course, we’ll all have to see just how far the Bureau intends to go to create this idealized financial services market, but if Cordray and his agency are serious about meeting these goals, then financial services companies may have quite a bit more government involvement, rulemaking and enforcement to look forward to in the next few years.

CFPB to Focus on Debt Substantiation, Consumer Communication, Director Says
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Accounts Receivable Management

Filed Under: News

Using Adjusted EBITDA to Add Back Value

February 28, 2016 By Leave a Comment

The sale of a business is challenging on many levels. Arguably, the most difficult aspect of every transaction for buyers and sellers alike is establishing the value of the business that is being sold. Like beauty, value is truly in the eye of the beholder. For an owner who started a business and wants to sell it, determining its value is an emotional process. The seller’s goal is inevitably to maximize the amount of cash the buyer will pay for the business.

A buyer views an acquisition differently; he or she wants to price the transaction favorably so his or her shareholders will maximize their return from the investment. Herein lies the challenge of pricing a business.

There are several approaches for valuing a closely-held business, but the income-power model is the most-preferred method for determining the fair market value of a service business like a collection agency. The underlying theory is that a company’s “value” is denoted by the current income stream that owners accrue. The income stream is typically identified as EBITDA (earnings before interest, taxes, depreciation, and amortization), or the net cash flow of the business. A buyer will then apply a multiple to the selling business’ adjusted EBITDA.

EBITDA is a straightforward calculation. Adjusting or normalizing EBITDA to reflect the selling business’ true earnings is a challenge and needs to be addressed carefully to account for any excess or non-recurring expenses that will not exist after a sale. Typical adjustment areas include:

  1. Susan, a long-term company employee who receives a $50,000 salary plus benefits, will not be employed post sale. Her responsibilities will be absorbed by other personnel within the company at no additional cost to the buyer.
  2. One-time or unusual expenses, such as the cost of shutting down or opening up a call center facility, should be added back. However, trying to add back system upgrades is difficult because the buyer will view these expenses as recurring.
  3. The cost of a Washington Redskins ticket or country club membership and monthly dues is a personal benefit to you, not the business.
  4. Is your partner active in the business? If not, add back his or her salary and benefits.
  5. Will you remain active in the business post sale? If not, you may be able to add back some portion of your compensation, but understand that a buyer will scrutinize this adjustment by evaluating your role and responsibilities.
  6. If you own the building that your business occupies, you may be able to add back a rent adjustment. In some instances, an owner underpays rent to themselves as a benefit for owning the building. Expect a negative adjustment to earnings to bring rent up to fair market value.
  7. A buyer may have to incur additional expenses running your business. For example, your business may not have a CFO. A buyer may see the need to hire one, thereby applying a negative adjustment to account for this additional cost.

Expect that a buyer will want to evaluate EBITDA trends over a few years, as well as your current year’s performance and projected EBITDA performance. Be prepared to produce these calculations early on in discussions with a prospective buyer because he or she will always ask for them. If it takes a while to produce this information, a buyer may get concerned about your financial controls.

Knowing the value of your business is crucial when selling. Contact our sister company, Topline Valuation Group, at questions@toplinevaluationgroup.com to learn more.

Using Adjusted EBITDA to Add Back Value
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Accounts Receivable Management

Filed Under: News

Executive Change: ERC Makes Big Moves and Adds Industry Vets to its High-Powered Management Team

February 28, 2016 By Leave a Comment

Today ERC announced the appointment of Dawn Wierzbicki as Chief Sales Enablement Officer; Pat Kennedy as Senior Vice President of Business Development; and Fred Lundquist as Senior Vice President of Business Development.

Dawn comes to ERC with many years of proven success in the ARM and BPO industry and will start up ERC’s newly created department of Sales Enablement. “ERC has experienced significant growth over the years and with Dawn’s vision and expertise, this newly created department will allow our company to further supply our clients with creative and innovative solutions to their ever-growing needs” says ERC’s President and COO Marty Sarim.

“It’s an exciting time here” says Denny Bender, ERC’s Chief Sales Officer “and we are very fortunate to announce, in addition to Dawn, the appointment of industry veterans, Fred Lundquist and Pat Kennedy. Fred is known as one of the most connected and educated professionals in the government and student loan verticals, and will be a valuable asset to ERC’s continued growth. Pat’s tenure and knowledge in early stage customer life cycle aligns well with ERC’s next growth spurt and we are pleased to welcome him to our team.”

“I’m very excited to have Dawn, Pat and Fred join our elite team of executives. These additions demonstrate our unwavering commitment to building a best-in-class organization for our clients, employees and shareholders” says ERC’s Co-Founder and CEO, Kirk Moquin.

About Enhanced Resource Centers LLC

Headquartered in Jacksonville, FL, and founded in 1999, ERC initially emerged as a leading firm in the Accounts Receivable Management industry. Through significant growth and diversification efforts, ERC now provides end-to-end BPO solutions to a diversified list of clients in a broad range of asset classes and account segment types. More information: www.ercbpo.com

Executive Change: ERC Makes Big Moves and Adds Industry Vets to its High-Powered Management Team
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Accounts Receivable Management

Filed Under: News

Syncom Celebrates 20th Anniversary as National Collection Agency

February 28, 2016 By Leave a Comment

HOUSTON, Texas — Synergetic Communication, Inc. (Syncom) is celebrating their 20 year anniversary as a national collection agency. Syncom is headquartered in Houston, Texas and services many large financial institutions. Their historical niche in the industry has been mid to late stage recoveries in Auto Finance and Mortgage industries.

In the past couple of years, growth has been in its late stage program called Laser. This program is effective across all industries and is most effective on accounts 2-6 years from charge-off. Laser is a great option for those credit grantors that have decided not to sell their vintage receivables, but still want a strategic solution to continue to recover money on their warehoused accounts.

Syncom is a debt-free, Techlock-certified national collection agency that takes great pride in our ability meet our client’s expectations for service, compliance, and performance.

Founder and President, Mike Orlando, feels “Entering 2016, we have never been better positioned to serve our clients. Over the past four years, we have made a lot of investments in technology and personnel to be ahead of all the obstacles that are required to perform today. Our growth will continue in our core business industries as well as other industries that can benefit from our services.”

To find out more about Syncom visit our website at www.syncomcorp.net or contact Executive Vice President, Tim Caraveo at 713-859-8254 or tcaraveo@syncomcorp.net

 

Syncom Celebrates 20th Anniversary as National Collection Agency
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Accounts Receivable Management

Filed Under: News

PRA Group Reports Fourth Quarter and Full Year 2015 Results, Revenue, Income Fall

February 28, 2016 By Leave a Comment

Yesterday, PRA Group (PRAA), a global leader in acquiring defaulted receivables, reported its financial results for the fourth quarter and full year 2015.

Fourth Quarter Highlights

  • Cash collections of $369.4 million, non-GAAP cash collections of $380.3 million.
  • Revenues of $230.2 million, non-GAAP revenues of $236.7 million.
  • Income from operations of $71.2 million, non-GAAP income from operations of $87.4 million.
  • Net income of $41.0 million, non-GAAP net income of $49.0 million.
  • Return on average equity, annualized, of 19.8%, non-GAAP return on average equity, annualized, of 27.5%.
  • $225.9 million in investments, ($135 million of buying in Europe)

Full Year Highlights

  • Cash collections of $1.54 billion, non-GAAP cash collections of $1.56 billion.
  • Revenues of $942.0 million, non-GAAP revenues of $954.4 million.
  • Income from operations of $310.3 million, non-GAAP income from operations of $363.0 million.
  • Net income of $167.9 million (vs. $176.5 million in prior year) , non-GAAP net income of $207.9 million.
  • Return on average equity of 19.9%, non-GAAP return on average equity of 24.6%.
  • $963.8 million in investments.

The company also announced the acquisition of certain assets of Recovery Management Systems Corporation (RMSC). Per that company’s website, RMSC is a “leading specialist in bankruptcy process reengineering, bankruptcy account control and asset recovery to facilitate compliance and maximize recovery.”

The transaction also includes the hiring of most RMSC employees.  Mike Petit, president of PRA Insolvency Investment Services, commented on the acquisition: “We are extremely impressed with RMSC’s technology platform supporting its bankrupt account processing and recovery management business. This acquisition strengthens and broadens our ability to offer bankruptcy processing services to our clients and complements our existing Insolvency business.”

During the earnings call Steve Fredrickson, PRAA Chairman & CEO provided additional rationale for the acquisition as well as data on the decline in purchases of Bankruptcy/insolvency portfolios:

“As recently as 2012 and 2013, we purchased $263 million and $243 million of insolvency accounts in those two years respectively. In 2015, we purchased $65 million. Our insolvency operations are generating returns that we are pleased with. We simply cannot buy enough of it.

To that end, we have continued our goal of diversification by acquiring certain assets of RMCS earlier this month and have hired most of their team. RMSC has an impressive technology platform that includes bankrupt account process and recovery management, which will strengthen our ability to offer processing services to our clients, and fits perfectly with our existing insolvency business. Some modest existing and flow portfolio volume comes with that purchase. We feel this purchase strengthens our ability to compete for insolvency assets and servicing relationships in the U.S. under virtually any scenario.”

Frederickson also discussed the current U.S. purchasing environment: “To my disappointment, we began 2016 with a number of large sellers still out of the market. With charge-off rates and bankruptcy filings continuing at historic lows, albeit showing some signs of an uptick recently, the lack of volumes has affected inventory levels in the U.S. This is a situation which we hoped would rectify itself months ago, yet still continues into the new year with no concrete end in sight. “

Future Guidance

Management was not optimistic about 2016. During the earnings call Frederickson noted: “Without a pickup in bankruptcy sale volume in the U.S. or an even larger increase in U.S. core and European portfolio sales, we’ll have to adjust downward our long-term internal growth rate goals to single digits until the situation changes. Our internal goals on return on equity should remain achievable.”

On the other hand, Frederickson remains positive for the long-term: “One thing remains evident for our future long-term results: the industry consolidation in the U.S. Core market remains a critical positive for us.” The CEO apparently believes that, as soon as supply of receivables in the U.S. starts to increase, PRA Group will be in a good position to pick up market share.

insideARM Perspective

Yesterday we reported on the earnings announcement from Encore Capital Group (ECPG) and suggested that the best way to review the current state of the debt buying industry was to review the earnings announcements from ECPG and PRAA at the same time.

Both companies reported investments during the quarter and the full year.  PRAA reported $225.9 million in portfolio purchases in Q4 and $963.8 million in purchases for the full year. ECPG reported $293 million in portfolios purchases in Q4 and $1.02 billion in purchases for the full year.

Unfortunately, the companies do not report all of the same “highlights”.  For example, ECPG always highlights Estimated Remaining Collections (ERC).  PRAA does not highlight that information. Both companies utilize both traditional call centers and legal activity to generate collections. ECPG reported that legal channel collections accounted for 43% of total collections. PRAA does not highlight the sources of their collections.

Both companies are active internationally. Though to obtain comparative data on the international operations one needs to dig through the earnings announcements.

Finally, it is interesting that PRAA announced an acquisition at the same time ECPG announced a divestiture. ECPG’s rationale was to divest a business that did not produce margins consistent with the rest of the business. PRAA announced acquisition will provide additional revenue opportunities.

PRA Group Reports Fourth Quarter and Full Year 2015 Results, Revenue, Income Fall
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Accounts Receivable Management

Filed Under: News

Encore Capital Group Announces Financial Results for Q4 and Full Year 2015

February 28, 2016 By Leave a Comment

Yesterday, Encore Capital Group (ECPG), an international specialty finance company with operations in eight countries that provides debt recovery solutions for consumers across a broad range of assets, reported its financial results for the fourth quarter and full year 2015 ending December 31, 2015.

In a separate press release ECPG announced an agreement to divest wholly owned subsidiary Propel Financial Services (Propel). “To focus on our higher return investments and in order to maximize our returns on invested capital, we’ve reached an agreement to divest our tax lien subsidiary, Propel,” said Kenneth A. Vecchione, the Company’s President and Chief Executive Officer. “The sale of Propel provides significant benefits to Encore. In addition to allowing us to take advantage of new opportunities for higher returns both in the U.S. and around the world, this transaction will allow us to improve our liquidity and lower our leverage.”

Encore had acquired Propel in 2012. The transaction is expected to close before the end of the first calendar quarter of 2016. The deal would establish Propel’s enterprise value at slightly more than $340 million. Once completed, the sale transaction is expected to generate more than $150 million of after-tax proceeds for Encore.

As a result of the agreement to sell Propel, Encore booked a non-cash goodwill impairment charge of $49 million dollars in the fourth quarter. On a cash-on-cash IRR basis, Encore’s 3 year-ownership of Propel is expected to conclude as a nearly break-even investment.

Fourth Quarter Highlights

  • Estimated Remaining Collections (ERC) grew 10% to a record $5.7 billion, compared to $5.2 billion at the end of last year.
  • Gross collections from the portfolio purchasing and recovery business grew 6% to $417 million, compared to $394 million in the same period of the prior year.
  • Investment in receivable portfolios in the portfolio purchasing and recovery business was $293 million, to purchase $4.1 billion in face value of debt, compared to $259 million, to purchase $2.4 billion in face value of debt in the same period of the prior year. Encore deployed $148 million in the U.S., $69 million in Europe and $76 million in other geographies during the fourth quarter of 2015. Encore’s subsidiary Propel Financial Services also purchased $52 million of tax liens during the fourth quarter of 2015, raising Encore’s total deployment in the quarter to $345 million.
  • Total revenues increased 8% to a record $298 million, compared to $277 million in the same period of the prior year.

 Full Year Highlights

  • Gross collections from the portfolio purchasing and recovery business grew 6% to $1.70 billion, compared to $1.61 billion in 2014.
  • Investment in receivable portfolios in the portfolio purchasing and recovery business was $1.02 billion, to purchase $12.7 billion in face value of debt, compared to $1.25 billion, to purchase $13.8 billion in face value of debt in the prior year. Encore deployed $506 million in the U.S., $424 million in Europe and $94 million in other geographies during 2015. Encore’s subsidiary Propel Financial Services also purchased $220 million of tax liens during 2015, raising Encore’s total deployment for the year to $1.24 billion.
  • Total revenues increased 8% to $1.16 billion, compared to $1.07 billion in 2014.

insideARM Perspective

The ECPG quarterly reporting provides an excellent overview of the debt-buying industry. To get even a more robust view of the market the ECPG reports should be viewed in conjunction with the Portfolio Recovery Associates (PRAA) reports. (Editor’s note: PRAA is expected to report earnings later today.  insideARM will report on that announcement in tomorrow’s newsletter.)

Both ECPG and PRAA have a challenge educating potential investors on the debt buying environment today versus the debt buying environment of the past.  During the earnings call, Ken Vecchione, ECPG President and CEO commented: “For those of you who compare our US business now with how we performed in prior periods, we would be the first to admit that we are not currently generating returns in line with our peak years from 2010 to 2012. That world changed when a few large issuers left the US market and removed a substantial portion of supply.”

Later Vecchione reported: “I’m pleased to report that we are now seeing evidence of an inflection point in our invested capital returns. As we enter 2016, we expect higher returns on newly committed forward flows in the US. Today, we have commitments for over $270 million of capital deployment at returns that are 15% higher than our returns in 2015.”

One other interesting topic in the reporting was the use of the legal channel. This came up in two areas. First of all, the company reported that legal channel collections accounted for 43% of total collections and grew to $181 million in the fourth quarter compared to $160 million and 41% of collections a year ago.

Secondly, when discussing UK collections (through ECPG’s Cabot Credit Management subsidiary) the company reported that they had encountered an opportunity in the fourth quarter to reinvest some general cost savings back into Cabot’s legal collections practice.

In short, it seems to be clear that litigation will continue to be a significant portion of the company’s strategy going forward.

Finally, the discussion of recent forward flows and the divestiture of a company that was just acquired 3 years ago seems to be a clear message to the market that the company is focused on business that will generate higher returns.

Encore Capital Group Announces Financial Results for Q4 and Full Year 2015
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Accounts Receivable Management

Filed Under: News

Commercial Collection Agency Placements up 32%, Reports Commercial Collections Agencies of America

February 28, 2016 By Leave a Comment

In the fourth quarter of 2015, commercial (business to business) accounts placed with Commercial Collection Agencies of America agency members increased a substantial 32.4% over third quarter 2015, according to the Commercial Collections Agencies of America’s fourth quarter and year-end report. The dollar amount of accounts placed rose by over 6.5%. The average-sized account placed for collection in 2015 ranged from just above $2,400 to slightly above $3,100.

“The increase is not surprising, as the third quarter usually registers the lowest placement figures of the year, while fourth quarter placements increase to accommodate year-end bad debt write-off policies,” reports Commercial Collections Agencies of America Executive Director Annette M. Waggoner.

The expanded study also provided an analysis for the pre-recession period through current day. At the outset of the recessionary period, 2007-2008, agencies reported an increase in the number of accounts placed and the dollar amount of accounts placed, followed by a sharp dip from 2010-2013 for both indices. In 2014 and 2015, there were slight increases in both.

“If we look back on the state of economy over the last year, the modest increases in number of accounts placed and dollar amount of accounts placed are simply explained: the slow pace of the economic rebound exacerbated by the weakness of the manufacturing sector, Waggoner adds. “We recognize that the current economic environment has an impact on sales, accounts receivable and delinquencies and not until we see a significant expansion in accounts receivable portfolios will we see notable increases in account placements.”

 

Commercial Collection Agency Placements up 32%, Reports Commercial Collections Agencies of America
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Accounts Receivable Management

Filed Under: News

Disclosures and Debt Collection: The Mini-Miranda and the FDCPA

February 28, 2016 By Leave a Comment

Mike Bevel, insideARM/CPF

Mike Bevel,
insideARM/CPF

We recently posed a question to Compliance Professional Forum members regarding disclosures on letters:

“Do people put the Mini-miranda on letters that are not attempts to collect?”

Specifically, we were looking for benchmarking information. Do agencies take a different tact depending on the nature of the letter? Do some letters get different mini-Miranda disclosures, or are there variations?

One thing to keep in mind: “mini-Miranda” is industry jargon. A search of the FDCPA for that phrase won’t pull up any hits. It’s a shorthand way to refer to the disclosure obligations contained in 1692e(11):

[The following shall be considered false, deceptive, and misleading:]

“(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action.”

CPF Editorial Review Board Member John Bedard of Bedard Law Group suggested:

Often missed by collectors is the importance of this section having two distinct obligations – one obligation to disclose certain information in the initial communication and another distinct obligation to disclose certain information in subsequent communications.  The jargon used by collectors i.e. the “Mini-Miranda” is most often used to refer collectively to both obligations.  Most of the time it makes sense to do that.

It may not always appropriate to include both disclosures in a communication to a consumer.  For example, when sending a consumer written confirmation that their payment is received and there is no longer a balance due (which communication is presumably a subsequent communication) the collector is not required to include the disclosure “This is an attempt to collect a debt and any information obtained will be used for that purpose.”  The reason is because (1) it is not an attempt to collect a debt, and (2) the FDCPA does not require it because the confirmation letter is not the initial communication with the consumer.

Thoughts from readers would be absolutely appreciated. And if you’re worried about confidentiality, you can email me privately: mbevel@insidearm.com. Are you currently putting the (e)11 disclosure on all communications, or are you being selective? How are you auditing to make sure the right disclosures go on the right letters, and how quickly can you fix it when things go wrong?

 

Disclosures and Debt Collection: The Mini-Miranda and the FDCPA
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Accounts Receivable Management

Filed Under: News

Executive Change: Harvest Strategy Group, Inc., Appoints New Senior Vice President of Recovery

February 28, 2016 By Leave a Comment

Harvest Strategy Group, Inc. announced today the addition of Rodney Fortune as a member of its executive management team. He will assume the role of Senior Vice President. After four successful years at Harvest, SVP Ron Bernstein has decided to fulfill his interests in the non-profit sector.

With nearly twenty years in the ARM industry Fortune brings a wide range of operational and network management expertise. As Senior Vice President, Fortune will be responsible for Harvest’s recovery division and management of the network of law firms and collection agencies.

“I am honored to join an organization that is deeply dedicated to the success of its clients, collection partners and staff. The company is positioned for tremendous growth and I look forward to expanding our involvement in the industry,” said Fortune.  “Harvest Strategy Group has built a company that is intensely focused on using technology and analytics to deliver the best possible results for our clients.”

CEO David Ravin added, “We are a company without egos, where data and results are king. Rodney bringing this type of mindset to the table will truly complement our leadership team.”

Fortune most recently served as Executive Director, Network Performance for Frederick J. Hanna & Associates. Prior positions include Chief Operating Officer for Crown Asset Management, LLC, and Director of Operations for Riexinger & Associates, LLC.

About Harvest Strategy Group

Harvest Strategy Group, Inc. is a recognized leader in national collection solutions that deliver best in class results for their clients, which include leading banks, finance companies, credit unions, debt buyers and medical debt servicers. Utilizing a highly selective national network of collection attorneys and agency partners, HSG’s model is driven by ProScore™, a proprietary legal recovery scoring model. HSG’s account management team work with its recovery partners to ensure zero defect compliance and maximum recoveries are realized.

For more information on Harvest Strategy Group, please contact:

David Ravin | davidr@harvestsrategygroup.com | (303) 531-0631

Rob Yarmo | rob.yarmo@harveststrategygroup.com | (416) 669-5490

Rodney Fortune | rodneyf@harveststrategygroup.com | (303) 531-0648

Executive Change: Harvest Strategy Group, Inc., Appoints New Senior Vice President of Recovery
http://www.insidearm.com/daily/collections-jobs-news/executive-change-harvest-strategy-group-inc-appoints-new-senior-vice-president-of-recovery/
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