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ACPAC Supports Congressman Cory Gardner in Senate Race

October 4, 2014 By admin Leave a Comment

ACA International’s Political Action Committee continues to track close races in the upcoming election and seek bipartisan political partnerships with legislators.

Matt Laws, an ACA member and president and CEO of Wakefield Associates in Morgan, Colo., recently requested support for U.S. Rep. Cory Gardner ’s (R-Colo.) Senate campaign from ACA’s Political Action Committee.

Gardner is currently a member of the House Energy and Commerce Subcommittee on Communication and Technology, which has jurisdiction over the Telephone Consumer Protection Act.

He also was one of several Congressional representatives who spoke during a Capitol Hill luncheon at ACA International’s Legislative Conference in May in Washington, D.C. The speakers overall focused on several of their initiatives, including as oversight of the TCPA.

Republicans have set the goal to earn a Senate majority in the November election and are confident math and history are on their side. Democrats have held the majority in the U.S. Senate for nearly eight years.

ACPAC has been tracking the tight races in the House and Senate very carefully and a GOP majority would mean major changes as there would be a swap in who controls powerful Senate committees.

The mission of ACPAC continues to be to create a powerful bipartisan political partnership among ACA, its state units and all 3,500 members to protect the credit and collection industry from legislative and regulatory risk.

There is no more effective way to cement a good relationship with a potential lawmaker, than to participate in his or her election or re-election campaign. ACA International’s Federal Affairs staff looks forward to working with the membership to continue to deliver the message about the positive economic impact and job opportunities our members provide.

ACPAC works to support and enhance the effectiveness of ACA International’s lobbying and political advocacy efforts. For more information, contact ACPAC Director Rae Ann Bevington at Bevington@acainternational.org or (202) 547-2670.

ACPAC Supports Congressman Cory Gardner in Senate Race
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Accounts Receivable Management

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Affinity Global Acquires Leading Edge Recovery Solutions

October 4, 2014 By admin Leave a Comment

In a move to strengthen its U.S. Accounts Receivables Management position, Affinity Global has acquired the business of Chicago-based recovery specialists Leading Edge Recovery Solutions, LLC. The terms of the acquisition agreement were not made public.

Leading Edge Co-Founder, President and CEO Bryan Lubeck and Co-founder and CTO Derrick Crews will stay on with the new company.

“This is a great day for both of our companies. Leading Edge gives us a turn-key U.S. collections contact center with a reputation for recovery excellence and client brand protection. And we offer their customers a more diversified service offering with respect to contact center solutions and strategic geographic centers”, said Affinity Global CEO Daniel Elmalem.

“Having come to know Leading Edge over the years as a competitor, we always had a healthy respect for their ability to perform. The like-mindedness of the two companies with respect to values and performance excellence makes this an exciting announcement,” said Jeff Carew Affinity Global President.

Bryan Lubeck added: “We are excited to join the Affinity Global family, and look forward to the mutual benefits our larger North American presence will bring to our customers.”

The deal closed October 1st, and for customers of both companies, it will be business as usual.

Affinity Global is one of North America’s leading providers of multi-national customer management solutions specializing in customer contact, first party receivable management, and third party recoveries. Affinity Global helps Fortune 500 companies create profitable, sustainable connections with their customers. With offices in Canada, the U.S., U.K. and Panama, Affinity Global employs over 1,700 people worldwide.

Affinity Global Acquires Leading Edge Recovery Solutions
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Accounts Receivable Management

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Collection Complaints Fall in August, But More Claim Debt is Not Theirs

October 4, 2014 By admin Leave a Comment

The total number of debt collection complaints published by the CFPB in August fell by more than eight percent compared to July. But the percentage of complaints specifically claiming that the “debt is not mine” jumped from the previous two months. Complaints about medical debt also increased in the month.

In August, the CFPB published 3,169 consumer complaints related to debt collection. This was down from the more than 3,400 complaints published in both June and July.

The Consumer Response complaints database only lists complaints submitted to the CFPB that companies have had an opportunity to respond to, and does not include complaints referred to other regulatory agencies, complaints found to be incomplete, or complaints that are pending with the consumer or the CFPB.

The CFPB’s complaints wizard steps consumers through the submission process with standardized fields on each screen.

First, consumers must choose which type of debt led to the collection complaint. The most common debt type in August was “Other,” as it is every month. The “Other” category covers debts stemming from telecom, health club memberships, cable service and other similar accounts.

In August, 28.4 percent of debt collection complaints were classified as “Other,” up from the 27 percent reported in both June and July. “Unclassified” debt types – in which the consumer made no choice – comprised another 21.7 percent in the month, with Credit Cards accounting for 21.2 percent of collection complaints, essentially flat from previous months.

But complaints about medical debt jumped to 14.1 percent of all debt collection complaints in August, up from 12.3 percent in July and 11 percent in June. Complaints about payday loans, in contrast, were down in August, to six percent from an average of eight percent in the previous two months.

Consumers are then asked what issue led to the complaint. There, they are given a choice of six pre-set issues. Once that selection is made, a menu of sub-issues appears based on the primary issue selected.

For months, the sub-issue of “Debt is not mine” has been trending upwards. In August, it took a big leap, accounting for 28 percent of all collection complaints, compared to 25.2 percent and 25.4 percent in June and July, respectively.

Another sub-issue with an upward trend is “Right to dispute notice not given,” a letter violation that has long been a favorite among plaintiffs’ attorneys. This sub-issue accounted for 4.5 percent of complaints in August, up from 3 percent just two months prior.

On the other side of the trend, complaints about call volume and collection agencies not giving enough information to verify the debt showed steady downward movement through the summer.

Collection Complaints Fall in August, But More Claim Debt is Not Theirs
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Accounts Receivable Management

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Intrum Justitia to Acquire Danish Telecom Debt Collection Agency

October 4, 2014 By admin Leave a Comment

European ARM firm Intrum Justitia announced today that it is acquiring Advis A/S, a leading debt collector in Denmark. Advis is a market leader in the telecom sector, with a good presence also in the media and utility segments.

The acquisition is expected to be completed in October. The purchase price payable at closing is $24.6 million on a cash and debt-free basis.

Advis has about 60 employees and 2013 revenues of about $9.7 million. During 2012 and 2013, the company reported annual revenue growth of close to 20 percent, with EBITDA margins of about 22 percent.

“This transaction is in line with Intrum Justitia’s strategy of strengthening our credit management business through acquisitions. Through Advis A/S, we will broaden our Danish customer base, gain access to data in new client segments and improve efficiency in operations through economies of scale,” said Lars Wollung, President & CEO of Intrum Justitia.

Intrum Justitia to Acquire Danish Telecom Debt Collection Agency
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Accounts Receivable Management

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Compliance Management Systems: a Process, not a Product

October 4, 2014 By admin Leave a Comment

From conferences to sales pitches to webinars — it’s pretty likely that at some point you’ve seen the phrase “compliance management system” or its acronym CMS. (This can get confusing in the debt industry, since CMS can also stand for Contact Management System and Complaint Management System.)

Compliance Management Systems are required by the CFPB for collection agencies of all sizes. In fact, the CFPB has been very clear that organizations can build and scale a CMS that matches the size and complexity of their organization, while addressing the unique risks inherent to the company’s collections or services. A small company’s CMS does not have to be identical to that of a large-market participant. The goal is to get to the same end-point: Follow all the necessary regulations to a ‘T’ and treat consumers with respect.

There are some in the industry who believe that a CMS describes a software platform — an out-of-the-box, one-and-done solution that can be purchased, installed, and you’re done.

Of course, it’s not that easy. And if you’re talking to a vendor who seems to be suggesting otherwise, you’re talking to a vendor who is more interested in separating you from your money than in engaging your company in compliance.

This is a two-part post appearing on the Array Services Group blog. Read the rest of Part 1 here.

Read Part 2 here.

Compliance Management Systems: a Process, not a Product
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Accounts Receivable Management

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Simon’s Agency, Inc. Breaks Ground On New Facility in Preparation for Expansion

October 4, 2014 By admin Leave a Comment

Simon’s Agency, Inc. is proud to announce that it broke ground on its brand new building on August 27th. The 5,000 Sq. Ft. facility will be located across the street from Wegmans in a brand new commercial development at 4938 West Taft Road, Liverpool, N.Y.

Local construction firm, Rich & Gardner, has been contracted to complete the work with a targeted move-in date of December 15th. Local companies will also be used to provide additional services such as office layout, furnishing & décor, as well as technology and security services.

Once Simon’s has moved into the new facility it will allow the company to start hiring additional employees almost
immediately. Simon’s has doubled in size in consecutive 4 year periods and is poised to do so once again in 2016 with this latest move to a larger facility. The new facility will allow for a mixture of at least 50 full and part time employees to work for Simon’s Agency in Central New York. These employees will be phased in over a 30-36 month period.

The new office will also provide for an increased capacity to handle more accounts as Simon’s territory expands into Downstate New York, Long Island, Pennsylvania, New Jersey and Connecticut.

For owner, Phillip M. Bova, the future couldn’t be brighter, “The last decade has represented the largest growth we have sustained over the years, but it pales in comparison to where we are heading over the next ten years. A changing landscape with regard to technology, in particular the internet, has allowed Simon’s to grow beyond the scope I had imagined possible and now it’s time to reinforce this technological advancement with a new facility that can house the employees we will need to sustain this growth into the future. As a business owner, it’s imperative to reinvest in your own success and that’s exactly what we aim to do with this project.”

President/Owner, Phil Bova and VP of Operations, Tim Buckles stand in the construction area of the future facility on September 5, 2014.

New Logo, Website & Blogs

To better reflect its position as a regional collection agency throughout the Northeast USA, Simon’s Agency has completed a rebranding effort by officially launching a new logo and web site. Using a similar color palette it was able to transform its existing logo which depicted its slogan as a roadway “turning red to black” into what it feels is a tighter and stronger representation of its brand.

Additionally with the help of local web design firm, ACS, Inc., Simon’s was able to launch a far more detailed and responsive web site (www.simonsagency.com) which outlines its services more effectively and gives its clients
direct access to its Client Reporting System and integrated file placement system, which it began rolling out this summer.

To complement this internet presence they have also launched three blogs (www.turningredtoblack.com,
www.simonscares.com, & www.appliedrecoveryscience.com) which aim to educate its clientele on various subjects related to billing and collections and updated their social media presence across Facebook, Twitter, LinkedIn, Google+ and YouTube.

Simon’s has also joined CenterState CEO, the region’s leading business organization, to provide enhanced opportunities to network with prospective local clients as well the top tier of Central New York’s political and business leaders.

Simon’s Agency, Inc. is a Central New York collection agency that leverages state-of-the-art technology, one-on-one client relations and the vast experience of its management team and multi-lingual collection staff to recover its clients’ outstanding receivables. Born from a handful of medical clients in 1965, the agency today serves over 400 healthcare industry professionals and groups as well as hundreds more clients in other professional industries.

Simon’s Agency, Inc. Breaks Ground On New Facility in Preparation for Expansion
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Accounts Receivable Management

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Class Action Explores Door Hangers as Collection Communications Under FDCPA

September 27, 2014 By admin Leave a Comment

A federal judge last week certified a class action that accuses a mortgage services company of violating the FDCPA by leaving a message on a door hanger for a consumer to call a specific number. The note made no mention of the debt, although it was left specifically for that purpose.

U.S. District Judge Joan Gottschall in the Northern District of Illinois granted certification on Sept. 17 in Simpson v. Safeguard. The main issue is that the door hanger messages did not identify who left them or that the communication was in connection with a debt.

The plaintiff claims that Safeguard Properties LLC left five messages hung on the door knob of her home between Oct. 8, 2012 and Feb. 1, 2013. The property was attached to a mortgage for which Safeguard was the servicer and that the mortgage holder claims was delinquent (Simpson denies that she was even behind on payments).

In addition to not properly disclosing that the communication was in connection with a debt, Simpson claims that no validation notice was sent after initial communication, also an FDCPA violation.

But Safeguard contends that the FDCPA does not apply to the company as it is not a debt collection agency. The firm’s argument states that it is hired by mortgage companies to inspect foreclosed and abandoned homes and assist with evictions. As part of its field agent services, it also performs “contact attempt inspections” such as leaving door hangers asking the recipients to call.

Gottschall did not decide on the legal merits of the case last week, writing “whether Safeguard violated the FDCPA…will inevitably involve some individualized inquiry.” But she certified that the suit met the requirements for class certification. It will be interesting to follow the case and see if yet another form of communication falls under the FDCPA.

Class Action Explores Door Hangers as Collection Communications Under FDCPA
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Accounts Receivable Management

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NARCA Submits Response to CFPB Consumer Narrative Proposal

September 27, 2014 By admin Leave a Comment

The National Association of Retail Collection Attorneys (NARCA) has provided a response to the Consumer Financial Protection Bureau (CFPB) proposal to make consumer narratives public. The response joins with numerous other organizations in making with a series of recommendations for improving the proposal. The full response can be found here.

The CFPB published a proposed policy statement describing its plans to disclose data from consumer complaints about financial products and services in 2013. The federal agency then began the process of gathering public comment on the proposal.

“We commend the CFPB for its efforts to provide a transparent and level playing field for both consumers and creditors,” said Joann Needleman, president of NARCA and a member of the CFPB Consumer Advisory Board. “We are in agreement with the agency that providing consumers with the both sides of the story will help educate consumers on responsible financial management.”

Highlights of NARCA’s recommendations include:

The CFPB go beyond just verifying a relationship between the consumer and a creditor, instead making efforts to confirm the accuracy of a consumer complaint before publishing it. In the last few months the courts have cited the standards for accuracy called for in the Fair Debt Collection Practices Act (FDCPA). NARCA believes those same high standards of accuracy should apply to the CFPB and the database.

Allow companies to post narratives regardless of whether a narrative has first been posted by a consumer. The current proposal only allows companies to post a narrative only if it is in response to consumer narrative. If a consumer opts to provide only a complaint but no narrative, a company is prevented from responding, meaning consumers reviewing the complaint will only be getting one side of the story.

Consumers should be allowed to amend their narrative at any time in the process. The current proposal provides that consumers may withdraw their consent to have their narratives posted at any time. Consumers’ opinions may change as they get a creditor response to their complaint or inquiry. Allowing consumer to amend their original inquiry or comment would further the stated CFPB goal of providing the full story.

The database should allow consumers the ability to post complimentary narratives. The Current proposal provides no mechanism for consumers to post narrative compliments about their interaction with a creditor. The CFPB should add this functionality to its database since positive comments are just as helpful in consumer decision-making as negative comments.

“We believe these recommendations will support the CFPB’s goal of protecting consumers by helping to educate them on financial best practices and we look forward to continuing our productive relationship with the CFPB,” said Needleman.

NARCA is a not-for-profit trade association comprised of more than 600 law firms and in-house counsel engaged in the practice of debt collection law. Attorneys employed by NARCA member law firms are committed to the fair and ethical treatment of all participants in the debt collection process. They are required to practice law in a manner consistent with their responsibilities as officers of the court and must adhere to applicable state and federal laws, rules of civil procedure, state bar association licensing and certification requirements and their respective rules of professional conduct.

NARCA Submits Response to CFPB Consumer Narrative Proposal
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Accounts Receivable Management

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Congressman Lacy Clay Visits ACA’s D.C. Office for Campaign Fundraiser

September 27, 2014 By admin Leave a Comment

U.S. Rep. Lacy Clay (D-Mo.) returned to ACA International’s office in Washington, D.C., on Sept. 24, 2014, for a fundraiser in support of his re-election campaign. Clay also visited the office in June this year for a similar event organized by ACA’s Political Action Committee, which works to support and enhance ACA’s lobbying and political advocacy efforts on behalf of members.

Clay is serving his seventh term and is a senior member of the House Financial Services Committee, which continually focuses on oversight and accountability at the Consumer Financial Protection Bureau.

He has encouraged credit and collection industry professionals and ACA members to attend the career fair he hosts in St. Louis each year.

As the election approaches, advocacy on issues important to the credit and collection industry is important. There is no more effective way to cement a good relationship with a potential lawmaker than to participate in his or her election or re-election campaign. ACA’s federal government affairs staff looks forward to working with ACA members to convey the positive economic impact and job opportunities our members provide.

ACPAC works to support and enhance the effectiveness of ACA’s lobbying and political advocacy efforts. For more information, contact ACPAC Director Rae Ann Bevington at Bevington@acainternational.org or (202) 547-2670.

Congressman Lacy Clay Visits ACA’s D.C. Office for Campaign Fundraiser
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Accounts Receivable Management

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BFrame Announces Cloud Infrastructure Partnership

September 27, 2014 By admin Leave a Comment

BFrame today announced its partnership with QTS to supply a processing environment for government entities. QTS’ Federal Cloud is designed to meet FedRAMP and FISMA requirements. This Infrastructure as a Service (IaaS) is a physically-isolated cloud and housed in one of the world’s largest and most secure data centers BFrame will leverage QTS’ best-of-breed technologies and networking for better performance and security. Combining BFrame’s web-based application with QTS IaaS enables BFrame federal customers to leverage cloud computing for their recovery operations while meeting or exceeding compliance requirements.

“An increasingly sophisticated hacking community and heightened public awareness of data security risks has led to more comprehensive security and privacy requirements on firms collecting on student loans. With our relationship with QTS we can assure our customers that their underlying cloud infrastructure meets or exceeds these requirements,” said BFrame CEO Eric Bentz. “Our goal is always to keep our customers both effective and fully compliant and the QTS partnership is evidence of that.”

The QTS Richmond data center is designed to meet federal requirements. This fault tolerant site features two on-site substations delivering 110MVA, redundant power and cooling and on-site fuel storage. The site is configured with access to a broad range of global and national providers of local, fiber and internet connectivity. Regional fiber connectivity provides fully protected diverse routes to Culpeper and Northern Virginia. The facility itself is secured with K-12 delta vehicle barriers and fencing, 24×7 visitor screening, extensive security monitoring and card access, biometric fingerprint and iris can identification systems.

QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services and a leader in security and compliance. The company offers a complete, unique portfolio of core data center products, including custom data center (C1), colocation (C2) and cloud and managed services (C3), providing the flexibility, scale and security needed to support the rapidly evolving hybrid infrastructure demands of web and IT applications. With 12 data centers in eight states, QTS owns, operates and manages approximately 4.7 million square feet of secure, state-of-the-art data center infrastructure and supports more than 850 customers. QTS’ Critical Facility Management (CFM) can provide increased efficiency and greater performance for third-party data center owners and operators. For more information about QTS, please visit www.qtsdatacenters.com, call tollfree 877.QTS.DATA or follow us on Twitter @DataCenters_QTS.

Founded in 1990, BFrame is a leading provider of collections and accounts receivable management software for collection agencies, debt buyers and credit grantors. The BFrame Recovery Management System is rock-solid hosted or licensed software that is easy to implement, easy to use and easy to pay for. Its feature-rich browser interface provides a powerful, flexible and user-friendly front-end to an industrial strength debt collection and recovery management system. System modules include collections, recovery, agency management, buy/sell management and SQL query tools. More than 3,000 collection and recovery agents use the BFrame system in daily collection operations, with approximately 20 million accounts processed each day. For more information, or to request a personalized product demonstration, visit the BFrame web site at www.bframe.com, or email sales@bframe.com.

BFrame Announces Cloud Infrastructure Partnership
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Accounts Receivable Management

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