The FTC’s Big Data Report – How it Applies to You!

April 24, 2016 By Leave a Comment

Linda Straub Jones

Linda Straub Jones

The FTC released its report: “Big Data A Tool for Inclusion or Exclusion?” on January 6, 2016.  This report was assisted by a public workshop held by the FTC on September 15, 2014.   Since then there has been much discussion about whether or not “Big Data” is a good thing or not.  In my opinion, it depends on how it is used.   Which, by the way, is exactly what the FTC investigates in its report.

The report focuses on the USE of data, as opposed to the collections, analytics and storage of the data.  Those items were all covered in the FTC’s 2014 report entitled “Data Brokers: A Call for Transparency and Accountability; as reported in insideARM in May 2014 and can be found here.

As for the use of data being housed by big data companies, the FTC is quick to caution on everything that could go wrong with the access of that data, but they also mention several instances where big data analytics can be helpful to consumers, an example would be those consumers with thin or no credit files.

The report outlines several questions that businesses should consider prior to pursuing big data analytics as part of their process. The report is also very clear on proper use of data so as not to be exclusionary or discriminatory.  The Commission “encourages companies to apply big data analytics in ways that provide benefits and opportunities to consumers, while avoiding pitfalls that may violate consumer protection or equal opportunity laws or detract from core values of inclusion and fairness”. (Page v. of report)

Much of the report outlines actual uses of Big Data is today’s commerce, but then follows up with many instances regarding hypothetical situations where the use of that data could do harm to consumers.  What I found interesting is that they were quick to discuss the harm, real or perceived, but were not as quick to accept that without the use of big data, many of the consumers the FTC are trying to protect may not have received the benefit that the use of Big Data afforded them. The report cites the example of using big data analytics to predict that particular consumers are not likely to respond to a prime credit offer.

If big data analytics incorrectly predicts that particular consumers are not good candidates for prime credit offers that credit may never be offered to these consumers.  But I argue, what about the individuals that it DOES correctly predict for that prime credit offer.   For example;   If 300 people are granted credit that normally wouldn’t have been granted that credit because the creditor used big data analytics to market to those people, but 10 people did not receive that marketing because of that same big data analytics; doesn’t the good outweigh the harm?  Or are we to stop using those same analytics because of those 10 people, and miss out on the good it did the 300? Unfortunately, as with most other situations when dealing with data, there is no 100% perfect solution.

But data is not alone in this situation – there are many other situations where we can’t have 100% but we still try – for example there may not be 100% proof that a certain medication will cure a disease – but the vast majority will opt to take that medication if the chances are “good”.  This doesn’t mean that big data analytical companies aren’t constantly trying to improve the model so that they are getting closer to 100%.  So the issue really is, can we get close enough so that there is an acceptable level of performance?

The report also has an intriguing Appendix, which is the ‘Separate Statement of Commissioner Maureen K. Ohlhausen’. Commissioner Ohlhausen supports the report but also voices some cautions. In her statement she says “If we give undue credence to hypothetical harms, we risk distracting ourselves from genuine harms and discouraging the development of the very tools that promise new benefits to low income, disadvantages, and vulnerable individuals.” And she closes by stating that “[her] hope is that future participants in this conversation will test hypothetical harms with economic reasoning and empirical evidence.” (Page A-2)

The report itself outlines the laws that big data must abide by such as the Fair Credit Reporting Act (FCRA), Equal Opportunity Laws and The Federal Trade Commission Act (FTCA).  The Report focuses a great deal on the Equal Credit Opportunity Act (ECOA), and the various ways that big data could be used to exclude, cause disparate treatment or cause disparate impact to certain demographics. This seemed to be a general theme, with each section giving an overview of ways Big Data can be used for harm, but not an equally proportionate number of ways where Big Data could be helpful to consumers.

The report outlines many specific uses of Big Data and again, cautions companies when using big data so as to not harm consumers:

  • Increase educational attainment for individual students
  • Provide access to credit using non-traditional methods
  • Provide healthcare tailored to individual patients’ characteristics
  • Provide specialized healthcare to underserved communities
  • Increase equal access to employment

However, the report seems to have left out a very large use case of Big Data, which is debt collections.   It discusses use cases such as credit, employment, insurance, housing and other consumer eligibility decisions such as check authorizations or tenant screenings, but it does not mention the use of big data in the collections environment.

Collections agencies, collection law firms, debt buyers and creditors collection departments use big data and big data analytics every day, and must be very careful in the use of that so as not to cause harm to consumers.  The same harm that is mentioned by the FTC in their report could result in collectors improperly using big data in their daily Decisioning activities.

For example, if a collector is on the phone with a consumer, and uses a skip trace, or a contact and locate type of web site to pull up data on the consumer which will help them in their talk-off they should be careful what type of data they are using.   They should also be certain that the data and the company they are receiving it from is following proper regulations surrounding that data.  Especially if the data being pulled will help the collector decide whether or not to offer a settlement, and how much that settlement should be, or to help decide what a monthly payment arrangement should be, or any other type of discussion during the talk-off which may be either beneficial or detrimental to the consumer.  If data is used during that Decisioning conversation, that data is covered under the FCRA and should be treated as such.  If that data is misused, it could definitely cause disparate impact to the consumer.

Overall, the FTC’s report is a good wake-up call for those using big data, and for those who may not think they are using big data, but are.  It’s a great opportunity for everyone in our industry to take a second look at the data they are using, where they are getting it from, and whether or not they are using it correctly.  There can be a fine line between the proper and improper use of data, and the FTC is obviously going to be watching closely to make sure not only big data companies are properly collecting, analyzing and storing their data; but also companies using that data are properly using it.

The FTC’s Big Data Report – How it Applies to You!
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Marketplace Lending Leader Says His Market Should Embrace Sophisticated Collectors

April 24, 2016 By Leave a Comment

Is the online lending industry growing up? One fintech CEO suggested as much last week at LendIt 2016, the online lending industry’s big annual conference in San Francisco. And that maturity may well rest on the industry’s ability to confront collections and regulation.

Renaud Laplanche is the founder and CEO of Lending Club, one of the largest companies in online lending space and the number one originator of personal loans in the US. In his keynote address, Laplanche told conference goers that the industry in general, and Lending Club in particular, have moved into a maturation stage – and a significant part of that stage involves grappling seriously with collections and regulation.

The conference packs thousands of fintech entrepreneurs and investors into a cramped, downtown conference space. They go for the side-meetings, big-name speakers, bold proclamations and major strategic announcements. (Will, for example, Lending Club enter the Chinese market? Answer: maybe.) But, as Laplanche noted, the industry isn’t all about audacious business plans and venture capital (VC) money anymore. In fact, as VC investment in fintech continues to subside, the biggest players in the online lending industry have to undergo a period of maturation, standardization and consolidation, Laplanche argued. Specifically, Laplanche pointed to collections and regulation as necessary pieces of a larger plan – a way for online lenders to establish themselves as a trusted financial partners.

Laplanche devoted a section of his conference keynote to collections and, specifically, what he and Lending Club have done with the company’s collections function in order to make the company a little less susceptible to delinquency risk.

Lending Club has established what “we consider a best practice,” Leplanche said, a practice that specifically involves a collections and care skill set.

Lending Club has a small in-house collections team and a much larger staff devoted to customer care. The company has started to cross-train customer care staff with the in-house collections team in order to make sure that the larger, care-devoted staff can shift into collections mode if delinquencies start rising fast.

Lending Club plans to “increase collections intensity in the early stages of delinquency, when care and collections are most impactful,” Leplanche said.

Embracing Regulation

Laplanche did not confine his comments to collections, of course. In his wide-ranging comments, he did touch on another subject of interest to the collections space: regulation. His view of regulation was not typical for a financial services executive. In fact, Laplanche called for what he characterized as a healthy, positive engagement with regulation.

The regulatory headlines are not full of good news for financial services, but if you dig a little deeper, you’ll see regulators telling the online lending industry many positive things, Laplanche argued. “They’re encouraging innovation and being consumer friendly. They recognize the positive impact the industry has on consumers, in making credit more widely available and in making transactions more transparent.”

His stance with regard to regulators and regulation might be considered counterintuitive. The industry is of course already subject to a lot of regulation, he noted, but what the online lending industry can use is more engagement and oversight.

“What gets lost in the noise is that the unsecured loans we make to consumers are already subject to consumer lending regulations and other types of regulations, from TILA/RESPA to the FDCPA,” he said. “Regulators have enforcement powers and we’ll see them exercise those powers. But this is welcome. We can use more supervision and more consistent enforcement. We can use more oversight from regulations. This is a good thing. This cooperation [with regulators] will only help us generate more trust.”

The insideARM perspective

There are two major takeaways from Laplanche’s comments from last week.

First, as the online industry continues to mature and consolidate, the major players within it, including Lending Club, may likely see larger portfolios, bigger market share and an increasing need to handle collections skillfully and effectively. Every day, the online lending industry needs collections expertise more and more. And some collections firms have already responded to this need.

Second, the Lending Club CEO suggests that online lending firms may benefit quite a bit by welcoming regulatory engagement and by actively working to meet regulators’ standards for consumer-friendly products and services.  This, again, is not a popular sentiment in the more traditional corners of the financial services space, where opinions on regulatory action focus largely on the onerousness and unintended consequences of new regulations and regulatory action.

Could Laplanche’s advice apply to collections firms, too? Absolutely. The line between customer care and collections has been blurred.  Consumer friendly customer engagement really is and how it works.

insideARM believes that most reputable players in the ARM industry have already moved in the direction suggested by Laplanche. Regulators in general, and the CFPB in particular, began pushing collections firms to adopt a kinder, consumer-friendlier stance years ago. The ARM industry responded by rethinking and redesigning strategies, hiring, recruiting, training, and compensation plans.

Unfortunately, stories about non-compliant behavior make for more salacious news than a story about compliant, consumer friendly activities.  Additionally, stories like last week’s account of the FTC action against Commercial Recovery Systems remind us that not every ARM firm has embraced the consumer friendly approach discussed above. As an industry we need to applaud the right behavior and condemn the bad behavior.

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Frost-Arnett Growth Prompts Expansion, Headquarter Relocation to New Facility

April 24, 2016 By Leave a Comment

Continuing the Discussion

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Summary Judgment Granted Against Dallas Debt Collector for Bad Behavior

April 17, 2016 By Leave a Comment

On April 7, 2016 a Judge for the United States District Court, Eastern District of Texas, granted a motion for Summary Judgment against a Dallas-based debt collector, Commercial Recovery Systems, Inc. (CRS), and its owner Timothy L. Ford, in a Federal Trade Commission (FTC) enforcement action.

The court granted injunctive relief against the collection agency based on the numerous Fair Debt Collection Practice Act (FDCPA) and Federal Trade Commission Act (FTCA) violations committed by the firm’s collectors.  The court also held that injunctive relief against the collection agency’s president was appropriate due to his management position and his day-to-day involvement in the collection agency’s operations.  Finally, the court found the collection agency’s president liable for civil penalties for his collection agency’s FDCPA violations because he had the authority to control the company’s collection practices. A copy of the order can be found here.

The Complaint in the case, United States of America v. Commercial Recovery Systems, et.al. (Case No. 4:15-CV-36), was originally filed on January 20, 2015. It alleged the company regularly engaged in the following conduct:

  1. False Claims that Calls Are on Behalf of an Attorney or Judicial Employee
  2. False Litigation Threats
  3. False Garnishment Threats

The Complaint alleged the conduct violated the FTCA by engaging in deceptive Attorney, Litigation, and Garnishment Representations in Violation of Section 5 of the FTC Act.

The Complaint also alleged the conduct violated the FDCPA by False or Misleading Representations in Violation of Section 807 of the FDCPA.

The order shows that in February 2013 the company had entered into Stipulation and Final Agency Order with the Colorado Attorney General to resolve multiple violations of the Colorado Fair Debt Collection Practices Act.

The order also notes that in November 2013, CRS sought bankruptcy protection under Chapter 11. Defendant Tim Ford, CRS’s President, Director, and majority shareholder, testified in CRS’s bankruptcy proceedings that the company’s insolvency resulted, in large part, from a number of Fair Debt Collection Practices Act (“FDCPA”) lawsuits brought by private litigants.

Shortly before filing the Chapter 11 bankruptcy, the company employed approximately 300 employees, but downsized in 2013 to employing approximately 80 collectors.

On December 18, 2015, the FTC filed a motion for summary judgment against all defendants. No response was filed by CRS or Ford.

Editor’s note: A motion for summary judgment is based upon a claim by one party (or, in some cases, both parties) that contends that all necessary factual issues are settled or so one-sided they need not be tried. The summary judgment is appropriate when the court determines there no factual issues remaining to be tried, and therefore a cause of action or all causes of action in a complaint can be decided upon certain facts without trial.

In the Summary Judgment Order the Honorable Amos L. Mazzant, United States District Court Judge made a number of findings supporting his decision, including the following:

  1. FDCPA compliance training at CRS was virtually nonexistent, and some collection groups were more FDCPA-compliant than others.
  2. CRS noted that it administered an FDCPA compliance test to all new employees. However, some former employees do not remember any FDCPA training for new hires. According to them, newly hired employees were on the floor collecting the day they were hired.
  3. Part of CRS’s response to the FTC’s discovery requests was the production of a hard drive containing audio recordings of thousands of calls made by CRS collectors between November 1, 2012 and March 21, 2013. Given the volume of recordings, FTC listened to a random sampling of 300 calls to determine whether the database contained any FDCPA violations. The best evidence of CRS’s repeated abusive and deceptive collection tactics, discussed in detail below, is contained in those recordings.
  4. The most common misrepresentation employed by CRS collectors was impersonating attorneys, attorneys’ staff, or judicial employees. Of the 300 random calls analyzed, 77 included such impersonations. In these call recordings, collectors described themselves as attorneys or calling on behalf of attorneys or a law firm, such as by claiming that they were calling from “the Law Offices of CRS and Associates.”

Injunctive Relief

Judge Mazzant ultimately determined that the record provided more than ample evidence to support the allegations in the Complaint; that CRS debt collectors repeatedly and routinely violated the FDCPA; and thus the FTC Act, in multiple ways. The court found that “based upon any one of the numerous violations proven, CRS is liable for injunctive relief.”

The court found:

“Based upon the summary judgment evidence, the Court finds that Ford, as President and owner of CRS, not only played a role in formulating the policies and practices that resulted in the violative acts, but in fact actually set the policies of his company. As the President, he had the authority to fire or otherwise discipline his employees for employing deceptive debt collection tactics. Because he failed to respond to Plaintiff’s First Set of Discovery Requests to Defendant Ford, pursuant to Federal Rule Civil. Procedure 36(a)(3), he has now deemed to have admitted them. Thus, Ford has admitted that he was aware of complaints filed by consumers with the Better Business Bureau and the Federal Trade Commission regarding CRS collectors, that he participated in responding to FDCPA brought against CRS, and that he had the authority to control the debt collection practices of both CRS offices. Therefore, Ford, by virtue of his management positions and his day-to-day involvement in the company’s operations, is subject to injunctive relief.”

Individual Liability

The FTC had also moved for summary judgment asserting that Ford should be held liable for civil penalties.  The court found:

“The summary judgment record establishes that Ford was the sole owner and President of CRS up until November 2013. He received daily updates on the company and represented the company in negotiations with government investigations…… Thus, Ford had the authority to control the company’s collection practices. Therefore, Ford is liable for civil penalties for FDCPA violations by CRS.”

The amount of the civil penalties will be determined at a subsequent trial.

insideARM Perspective

This case should be a sobering reminder to all senior executives in the ARM industry, both at credit grantors and at vendors.

Per the summary judgment order, CRS was, at one time, an agency with 300 employees. The company was not a debt buyer. The company was strictly a third-party servicer for credit grantor clients. There were no allegations in the complaint that the company was calling consumers on bogus or phantom debts. The company was apparently representing legitimate clients.

insideARM is not aware of the company’s former client base. But, assuming all of the findings to be true, it is absolutely mind-boggling that those legitimate clients did not identify the behavior that was occurring. How was the behavior not identified in client audits? Were the clients auditing the company? Was there ever even a site visit? The behavior could have been easily identified during a site visit.

The behavior that was identified is appalling. How it developed and continued is beyond belief. The allegations in the complaint and the findings in the summary judgment order are a checklist of behavior that cannot be allowed at any ARM company.

It will be interesting to see what type of civil penalty will come out of the trial.  The court’s order noted that Ford “drew a salary of up to $200,000 per month from the company until its bankruptcy.” Apparently, running a non-compliant operation can be quite lucrative. It is likely the FTC will seek a very significant civil penalty.

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Have You Been Sued by Todd Bank?

April 17, 2016 By Leave a Comment

This post originally appeared on the blog of Klein Moynihan and is re-published here with permission. The article was co-authored by David O. Klein and Joshua Wueller.

David O. Klein

David O. Klein

The Federal Communications Commission (the “FCC” or “Commission”) is currently seeking comment on whether it should establish a bright-line rule for telephone lines in residential homes that are used for business purposes.  The petition prompting the FCC’s request was filed by Todd C. Bank – a lawyer and established class action plaintiff who is making a name for himself throughout the telemarketing industry by virtue of his liberal use of the Telephone Consumer Protection Act (“TCPA”) to bring class action lawsuits.

In the past two years alone, Mr. Bank has filed a dozen such TCPA class action lawsuits in New York State against a variety of sellers and telemarketers.

What should you do if you have been sued by Todd Bank?

Todd Bank’s Petition and the FCC’s Request for Comment

On March 31, 2016, the Commission issued a Public Notice seeking comment on Mr. Bank’s Petition.  The Petition requests that the FCC define a residential telephone line as any phone line that is provided as “residential” service by the telephone service provider, regardless of whether the phone number is listed publicly as a business number or otherwise used as such.

If granted as requested, Todd Bank’s Petition could greatly diminish the practical scope of the TCPA’s well-established business-to-business exemption, which expressly allows telemarketers to make certain telemarketing calls to businesses.  Limiting the business-to-business exemption would undoubtedly be of great benefit to Mr. Bank and other TCPA plaintiffs.

How to Avoid a TCPA Lawsuit

There are clear best practices that can be implemented to minimize the risk of becoming involved in a TCPA lawsuit.  In the telemarketing industry, perhaps more than any other, a penny of prevention truly is worth more than a pound of cure.

Sellers should confirm that their telemarketing partners are taking proper steps to maintain compliance with the TCPA and its implementing regulations.  Likewise, telemarketers should ensure that they have proper protocols in place to both ensure their own compliance, as well as to ensure that their affiliates are compliant with the TCPA.  Above all, it is critical to work with experienced telemarketing counsel before the launch of any campaign in order to implement the practices and procedures necessary to prevent making telephone calls or delivering text messages that violate the TCPA.

What should you do if Todd Bank or any other TCPA plaintiff sues you?

The failure to quickly identify the defenses available to TCPA class action lawsuits may result in sellers and telemarketers alike finding themselves on weak footing when defending the claims brought against them.  Therefore, it is critical to engage counsel knowledgeable in the intricacies of these complex issues in order to minimize the expense of defending such suits, whether brought by a formidable litigator such as Mr. Bank, or other TCPA plaintiffs.

The key to successfully and promptly disposing of a TCPA suit is retaining counsel that understands the nuances of the TCPA and related telemarketing regulations and case law. Over two decades of extensive experience with the aggressive defense of telemarketing lawsuits has allowed us to formulate arguments informed by the most effective legal theories related to TCPA claims, positioning our clients to achieve favorable resolutions.

If you are interested in this topic, have been sued or contacted by Todd Bank, or are otherwise the subject of a TCPA lawsuit, please e-mail us at info@kleinmoynihan.com, or call us at (212) 246-0900.

The material contained herein is provided for information purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney.  Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.

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Value Recovery Group Announces Acquisition of Regional Adjustment Bureau, Inc. (RAB)

April 17, 2016 By Leave a Comment

COLUMBUS, Ohio – Value Recovery Group, Inc. (VRG) is pleased to announce that Regional Adjustment Bureau, Inc. (RAB) has joined the Value Recovery Family of Companies. VRG is a diversified financial services and management consulting firm focused on financial advisory, project finance, program management, and optimizing the value of underperforming assets through collection and restructuring strategies.

RAB has over 44 years of Accounts Receivable Management experience in the Education, Retail, and Banking Industries.

“The union of these two firms establishes a high standard for client recovery performance and service, said Barry Fromm, Chairman and CEO of VRG and its portfolio companies. We are excited to integrate our resources into a wider and deeper service offering for Education, including Guaranty Agency, Campus, and Private Loan recoveries, as well as for our Retail and Banking clients.”

RAB, headquartered in Memphis, Tennessee, will work with VRG using Columbus, Ohio as a branch office, continuing to expand its national client base. The RAB acquisition bolsters the collections platform of VRG by increasing capacity and diversification of its services and client base.

This is the second acquisition by VRG in the last year. In June 2015, VRG acquired Scully Capital Services based in Washington DC, to further expand its government consulting and financial advisory business platform. This business platform is now presented under the name of Archetype as a branding umbrella for its combined financial services and management consulting offerings.  

Headquartered in Columbus, Ohio, VRG was founded in 1993 and supports 12 Federal Agencies, including the Department of Energy, Department of Transportation, U.S. Army, Department of Treasury, U.S. Environmental Protection Agency, Export-Import Bank of the United States, FDIC and the Department of Education.

For More Information Please Contact:

Jim Benjamin, Senior Vice President @ 614-519-5348 cell phone
Bob Pugh, Vice President of Sales @ 901-233-0135 cell phone

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Government Contract Compliance Experts to Host Panel at Larger Market Participant Summit

April 17, 2016 By Leave a Comment

WASHINGTON, District of Columbia – As the buzz around the insideARM 2016 Larger Market Participant Summit grows, conference registrants and those considering registering who have interests in government and higher education markets should consider the breakout session entitled Best Practices in Gov’t & Higher Ed Contracting Compliance: A New Era in “Getting it Right.” This session will be held on Friday, April 22, 2016, and will discuss current and proposed regulations affecting government and higher education contractors, including best practices in areas to include:

  • The Service Contract Act;
  • The proposed rule exempting Federal debts from general prohibitions in the Telephone Consumer Protection Act (TCPA) against calling cell phones using autodialers;
  • Equal Employment Opportunity Commission and Office of Federal Contract Compliance Programs issues;
  • Federal subcontracting regulations for prime and subcontractors;
  • IRS Publication 1075, Tax Information Security Guidelines for Federal, State and Local Agencies;
  • The role of compliance in gaining clients in these markets; and,
  • Other audience-driven topics.

Moderators will include Larry Laskey, Vice President & General Counsel at Windham Professionals, Timothy M. Sullivan, President of HS Financial Group, and Nick Bernardo, Managing Member of Fed Cetera.

Mr. Laskey has been active in the industry for over 19 years. Since October 2010, he has worked in his capacity as an attorney to help Windham implement changes affecting the student loan industry, providing concise analyses of new and pending laws, regulations and interpretations. Larry has developed strong working relationships, particularly within the student loan industry, assisting in the development of manuals and related materials implementing administrative processes unique to federal student loan programs, and participating in the federal negotiated rulemaking process.  Larry is a member of the ACA International’s Members Attorney Program. He is a subject matter expert and frequent conference presenter in areas such as the FDCPA, TCPA, Higher Education Act and privacy rights. Windham Professionals is a U.S. Department of Education (ED) Private Collection Agency (PCA), and also has experience on numerous state and local government contracts.

Mr. Sullivan, also an attorney, serves as collections special counsel to the Ohio Attorney General. In this capacity he has extensive experience handling non-bankruptcy and bankruptcy collections matters involving dozens of different State departments. HS Financial Group also serves as a Federal subcontractor on the ED PCA initiative.

Mr. Bernardo assists in the operation of Fed Cetera, a business development organization whose purpose is to promote the Fed Cetera Network, a group of more than 50 mainly small businesses seeking to participate on Federal contracts as subcontractors.  Mr. Bernardo consults with prime contractors and subcontractors on compliance topics related to Federal subcontracting, while advising small businesses on how best to access Federal subcontracting opportunities.

About Windham Professionals

Windham Professionals innovates, improves and advances our client’s business through Business Process Services that span the entire order-to-cash life cycle while providing cost reductions and increased efficiencies. Windham also provides exceptional customer contact services that extend customer loyalty and grow revenues. Our focus on experience, knowledge and teamwork start with each and every employee and extend through our long-term relationships with our clients.  Established in 1982, Windham is based out of Salem, New Hampshire with offices located throughout the United States.

About HS Financial Group

HS Financial Group and its affiliated law firm are performance-driven, certified Veteran-Owned Small Businesses that have earned a reputation for Professional, Ethical, and Excellent debt collection services. Based in Cleveland, Ohio, HS Financial Group is an existing U.S. Education Department subcontractor. We feature extensive student loan and government collections experience. Since 2000, our collection specialists and full staff of legal and administrative support personnel have been dedicated to ensuring that our clients receive superior service. We strive for quick and efficient recovery of your delinquent accounts and we maintain a personal working relationship with every client, and will do the same with you.

About Fed Cetera

Fed Cetera helps companies in the collection industry pursue opportunities with the Federal government.  Federal PCAs have strong incentives to give a portion of their core collections work to qualified small businesses.  Companies working with Fed Cetera to pursue subcontracting opportunities recently surpassed $50,000,000 in total billings for their work provided as subcontractors to ED PCAs.

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Encore Capital Renews Commitment to Financial Literacy as a National Partner of Jump$tart

April 17, 2016 By Leave a Comment

SAN DIEGO, Calif., — Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, announced it has renewed its commitment to Financial Literacy as a national partner with Jump$tart Coalition® for Personal Financial Literacy. Jump$tart is a Washington, DC-based not-for-profit organization that seeks to improve the personal financial literacy of students in pre-kindergarten through college.  Encore Capital Group joined Jump$tart as a national partner in 2014.

“Jump$tart is a perfect partnership for Encore’s Global Corporate Social Responsibility Program, which is committed to supporting economic empowerment through education” said Sheryl Wright, Encore Capital Group’s Senior Vice President of External Affairs, “Every child should have a strong foundation of financial knowledge so that they can understand and manage economic responsibilities as an adult. We are thrilled to support Jump$tart in their efforts to prepare students for life-long financial success.”

Encore Capital Group is an international specialty finance company that partners with US and international consumers to repay delinquent debt. The company’s success is fueled by its demonstrated commitment to supporting consumers’ financial recovery and community engagement. In 2011, the company unveiled the industry’s first and only Consumer Bill of Rights, which codifies its commitment to respectful consumer treatment and was recently expanded to strengthen consumer protections. Encore also supports a global Corporate Social Responsibility program, which seeks to provide economic empowerment to consumers and communities through education, job training and basic support services. Encore supports volunteerism through its Corporate Social Responsibility program and the company will engage with Jump$tart through community events in addition to its national partnership support.

About Jump$tart
The Jump$tart Coalition is a Washington, DC-based not-for-profit organization that seeks to improve the personal financial literacy of students in pre-kindergarten through college. Jump$tart’s nearly 150 national partners and 51 affiliated state coalitions work individually and collectively to educate and prepare our nation’s youth for life-long financial success. Jump$tart is the original promoter of April as Financial Literacy Month and publisher of the National Standards in K-12 Personal Finance Education. For more information about the Jump$tart Coalition, go to http://www.jumpstart.org/or follow us on Facebook and Twitter @NatlJumpstart. Please visit our website for more information about April – Financial Literacy Month.

About Encore Capital Group, Inc.
Encore Capital Group is an international specialty finance company that provides debt recovery solutions for consumers across a broad range of assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers.

Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com.  More information about the Company’s Cabot Credit Management subsidiary can be found at http://www.cabotcm.com. Information found on the company’s or Cabot’s website is not incorporated by reference.

Encore Capital Renews Commitment to Financial Literacy as a National Partner of Jump$tart
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DBA International Announces Todd Lansky as Board President

April 17, 2016 By Leave a Comment

Yesterday, DBA International announced Todd Lansky as President of the DBA International Board of Directors, David Paris as Secretary and added Amy Anuk as a Director. Todd replaces Patricia (Trish) Baxter who submitted her resignation earlier in the week. Baxter, who has been a member of the Board since 2013, made significant contributions for the betterment of the association and the industry during her tenure.

The DBA Board of Directors acted swiftly and responsibly to fill the vacancy left by Baxter, electing Todd Lansky to fill the President position for the remainder of the 2016/17 term. Lansky is the Managing Partner and Chief Operating Officer of Resurgence Capital, LLC, with offices in Illinois, Wisconsin, Minnesota and California. He has been with Resurgence since its inception in 2002 and has managed more than 300 portfolio purchases.  Lansky has served as a DBA International Board Member since 2013, most recently serving as Secretary. He has been active as a chair or co-chair of numerous DBA committees including Membership, New Markets, Editorial, Legislative Fundraising, State Legislative and the Federal Legislative Committee. He is also a member of many national debt collection and legal trade organizations and co-founded the Creditors Bar Coalition of Illinois.

“I’ve had the pleasure of working with Todd on Federal and State Legislative initiatives for more than three years,” stated Kaye Dreifuerst, DBA Past President and President of Security Credit Services, LLC. “Todd clearly understands the critical issues at hand for both the small debt buyer as well as the large debt buyer and is a great advocate for our Industry. His integrity and ability to look at an issue from all angles is evidenced by the respect he garners amongst members, regulators and the larger industry.”

With this change, long-serving Board Member David Paris will move into the Secretary position. With more than 25 years’ experience in the Receivables Industry, Paris has worked with market participants of varying size including debt buyers, collection agencies and law firms. He has developed meaningful and lasting relationships with DBA members and is dedicated to the debt buying industry. Paris is the Director of Business Development at Jefferson Capital Systems, LLC.

Additionally, Amy Anuk, Senior Vice President of Business Development at Encore Capital Group, was elected to the Board as a Director. Recognized as an industry leader who is passionate and committed to continuously improving the reputation, health and viability of the debt buying sector, Anuk brings more than 14 years of experience to this role with a focus on the purchasing process. She served on the inaugural task force responsible for the creation and launch of the DBA International certification program, and chaired the Standards Sub-committee responsible for writing the first version of the Standards, and was elected to Chair the Certification Council in 2014 and 2015.

The 2016/17 DBA International officers are:

  • President – Todd Lansky, Resurgence Capital, LLC
  • President Elect – Mark Naiman, Absolute Resolutions Corp.
  • Past President – Kaye Dreifuerst, Security Credit Services, LLC
  • Treasurer – Irwin Kirschenbaum, KMT Group, LLC
  • Secretary – David Paris, Jefferson Capital Systems
  • Director – Marian Sangalang, The Bureaus, Inc.
  • Director – Phillip Stenger, Capital Alliance Financial, LLC
  • Director – James Mastriani, Velocity Portfolio Group, Inc.
  • Director – Adam Parks, Lismore Holdings, LP
  • Director – Amy Anuk, Encore Capital Group

“I look forward to continuing to serve the DBA membership and have every confidence that the talent and leadership of the Board of Directors and our dynamic and committed volunteer members will continue to position the industry for a vibrant future,” noted Todd Lansky. “I believe we will see the dividends from years of dedication, passion, and hard work when we come together as an association to celebrate our 20th anniversary next year.”

On the cusp of its 20th Anniversary, the DBA International Board looks forward to a productive year with the CFPB, State Legislative initiatives, advances in certification, expanding markets and collectively moving the industry forward together.

DBA International Announces Todd Lansky as Board President
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Coming Soon to a Call Center Near You – 2016 Best Places to Work in Collections

April 17, 2016 By Leave a Comment

Tim Bauer

Tim Bauer

Registration for the 9th annual insideARM  Best Places to Work in Collections program opens in early May.

Last year I wrote a blog about this program. I lamented the lack of participation at any of the companies I had worked at in the past. I echo those comments today — I wish I had been more enlightened when I was still running an ARM company.

Margins in the ARM industry continue to be squeezed. The biggest expense item for any company is labor, and those costs are inflated by employee attrition.

The industry averages 100% employee attrition every year. 

100 Percent attrition is extremely costly.  To recruit, hire and train 100 percent of the size of your labor force each year is a tremendous expense burden. Just a 10-20% reduction on that attrition number can have a positive impact on margins.

Employees that love their job, love coming to work, and love the “Place” they work are more like to stay on the job. I may not have majored in calculus or accounting, but I can handle simple math. The more people you have that stay, the lower your attrition. The lower your attrition, the lower your costs. The lower your costs, the higher your margins.

The process is pretty simple.  It may take a little time, but I think the time is well spent. 

  1. Employers complete a questionnaire on workplace policies, practices, philosophy, systems, benefits, and demographics. It can take about 8 hours to gather all of the info for this questionnaire – but hey, if it was totally simple, it wouldn’t produce meaningful results – and if you register early, you’ll have months to pull it together.
  2. Employees are asked an in-depth set of questions — you choose online or via paper format; either way it takes about 10-15 minutes for the employee to complete.

There is no cost to participate (there is a nominal fee if you choose paper surveys). You get a free overview of your results. You can buy a detailed results report, which we encourage. It’s not that expensive. In fact, it’s invaluable. This is how you’re going to learn what you need to improve.

insideARM makes no profit on this program. We do it simply because we think it’s important.

I encourage every ARM company to take advantage of this great opportunity to learn what your employees really think.  They are the ones driving your revenue. Feedback from firms that have participated has always been very positive.

Be on the lookout for the upcoming announcement or click here now to pre-register.

 

Coming Soon to a Call Center Near You – 2016 Best Places to Work in Collections
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