Executive Change: Collection Agency MRS BPO Adds Chris Repholz as COO

MRS BPO, LLC, an industry leader in financial services, healthcare, cable, utilities and telecommunications debt recovery is happy to announce the addition of Chris Repholz as the company’s new Chief Operating Officer. Chris brings with him over 20 years of call center and collections experience, specializing in credit card, telecom, and mortgage debt collections.

“Chris shares our belief that if we serve the needs of our clients first and do well by them, that we will do well as an organization ourselves,” said Saul Freedman, Co-Owner and CEO of MRS BPO. “He understands that the days of aggressive collection tactics are long gone and that in today’s collections environment, providing a positive consumer experience is equally as important as obtaining payment.”

In addition to his strong dedication to a consumer-friendly approach to accounts receivable management, Chris believes in the power of analytics for effective debt recovery.

“While this will always be a people business, analyzing data is also critical for telling the whole story,” said Repholz. “Understanding and utilizing analytics is an essential piece of the accounts receivable management puzzle. The key is to marry the data with reality.”

Jeff Freedman, Co-CEO of MRS, believes Repholz’s extensive industry experience will greatly benefit both MRS and their clients.

“I couldn’t be more excited about Chris joining the MRS team,” Freedman said. “Whenever you can add an industry-veteran to your management staff, everyone benefits. Chris will be a great addition to our executive leadership and will better position us to meet the needs of our clients in a wide range of industries.”

Founded in 1991, MRS has served the accounts receivable management needs of companies within the Healthcare, Banking, Financial, Government, Student Loans, Telecommunications, and Utility sectors for over 23 years.

“What attracted me to MRS was their unique ability to offer clients a blend of performance and industry-leading recovery rates, while remaining dedicated to industry compliance and a positive consumer experience,” said Repholz. “What also drove me to MRS was their forward-thinking, innovative nature and cutting edge technological capabilities. I am very proud to be joining such a well-respected organization and look forward to bringing my years of experience and expertise to their management team.”

MRS BPO, LLC is a full service accounts receivable management firm based in Cherry Hill, New Jersey. The company’s unique combination of experience, technology, and compliance management processes allows them to provide industry-leading debt recovery solutions while enhancing their client’s brand and reputation. For more information on MRS BPO, LLC, visit them online at http://www.mrsbpo.com.

Executive Change: Collection Agency MRS BPO Adds Chris Repholz as COO
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Capio Partners Chairman Jim Richards Named President-Elect of ACA International

Capio Partners is pleased to announce that company co-founder and board chairman Jim Richards has been named president-elect of ACA International for the 2014 – 2015 association year.  Founded in 1939, ACA International brings together more than 230,000 professionals representing third-party collection agencies, asset buyers, attorneys, creditors and vendor affiliates.

Mr. Richards began his career in the collections industry with GC Services in 1973, and over the years rose through the ranks finally becoming vice president of operations at GC.  In 1990 Mr. Richards became president of Medaphis Services Corporation where he heralded in a new era of growth before leading the sale of Medaphis to NCO Group in 1998.  In 1999 Mr. Richards co-founded Attention, LLC that grew to become the largest secondary collection agency in the U.S. and eventually became West Asset Management.  After leaving West, Mr. Richards co-founded Capio Partners in 2008 and in six short years cultivated the company into the largest, healthcare-exclusive, debt purchaser in the country.

“I expect to unify the industry by first bringing together the many agencies who are not currently part of this fantastic association and develop a large agency group within ACA to band together in our fight for fair legislative, regulatory and judicial issues facing our industry” says, Jim Richards, president-elect of ACA International.

“As our industry continues to evolve, Jim Richards will bring president-elect passion, experience and leadership to reinforce our standing as the leading association in the credit and collection industry”, said ACA International CEO Pat Morris.

Capio Partners provides revenue cycle solutions for some of the nation’s leading healthcare providers and hospital systems, converting uncollected receivables into cash. Capio’s Complaintless Collections™ model helps optimize healthcare revenue cycles through best practices that focus on educating and advocating for our clients and their patients, while remaining fully compliant with industry regulations. With a 40-year track record in the healthcare receivables industry, Capio Partners delivers results. Capio is headquartered in Atlanta, Georgia with operations outside Dallas, Texas.

 

Capio Partners Chairman Jim Richards Named President-Elect of ACA International
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Louisiana Looking for Collection Agencies to Work for New State Office

The Louisiana Department of Revenue issued a Request for Proposals Thursday for debt collectors to work for the state’s new Office of Debt Recovery. ODR would be part of the Department of Revenue, and would be responsible for the collection of delinquent debts on behalf of state agencies. While ODR staff will be the primary collection officers, contracted agencies would provide debt collection services on an as-needed basis.

Not only will contractors have the opportunity to collect delinquent state debts for ODR, but they will also have the ability to sue consumers. According to the RFP, “litigation for collection purposes shall be initiated only upon prior written approval of LDR,” and the collection agency would have to pay for all litigation expenses.

All out-of-state accounts will be original assignments. This means collection agencies working with ODR would have to be licensed in Louisiana and in the state(s) where these accounts exist, if that state requires debt collectors to be licensed. In-state accounts may be original, or the Louisiana Attorney General’s Office may have handled them in the past.

In order to qualify for this new contract, collection agencies must:

  • Provide the last three consecutive years of audited financial statements
  • Submit the names and addresses of banking and lending institutions it uses to conduct business and obtain loans.
  • Include a statement which attests that it has and shall continue to comply with the Louisiana Collection Agency Regulation Act (LCARA). In select alternative cases, collection agencies can submit a statement which outlines and explains the reasons why it’s not required by law to comply with LCARA.

“Outside collection agencies will receive a fee over and above the amount that they collect on behalf of participating state agencies,” said Byron Henderson, Public Information Director for the Louisiana Department of Revenue. “Collection agencies’ fee percentage is not established yet for service to ODR, but current fees for similar work provided to the Department of Revenue range between 15 and 18 percent.”

ODR will pay for this bigger cut to collection agencies through a 25 percent administrative fee that will be added on to the consumer’s existing debt. Henderson says it’s too soon to predict how much money ODR will be able to collect.

Proposals are due September 1. After that, contracts arising from the RFP are tentatively scheduled to run from December 2014 until December 2017. However, last week Louisiana Secretary of Revenue Tim Barfield said ODR wouldn’t be fully operational for another three years.

The state plans to issue a second RFP in mid-August for an automated collection system for ODR.

Louisiana Looking for Collection Agencies to Work for New State Office
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Capital One and Three ARM Firms Agree to $75 million TCPA Settlement

In what is being touted as the largest TCPA settlement ever, Capital One and three collection agencies have agreed to pay $75.5 million into a settlement fund to end litigation in a combined class action. The agreement admits no wrongdoing on the part of the companies for allegedly using autodialers and/or pre-recorded messages in calls to cell phones without the consumers’ express consent.

The cases began as separate TCPA actions against credit card issuer Capital One and three collection agencies: Leading Edge Recovery Solutions, Capital Management Services, and AllianceOne Receivables Management. The cases were consolidated into one action since the ARM firms were collecting on behalf of Capital One.

According to the settlement agreement signed by all parties in mid-July and preliminarily approved this week, Capital One will pay $73 million into the settlement fund with the ARM companies collectively paying some $2.5 million. Up to 30 percent (around $22.5 million) of the settlement fund will go to pay the consumers’ attorneys with the five lead plaintiffs receiving no more than $5,000 each. The amount to each other member of the class is currently unknown as the class is defined as:

“All persons within the United States who received a non-emergency telephone call from Capital One’s dialer(s) to a cellular telephone through the use of an automatic telephone dialing system or an artificial or prerecorded voice in connection with an attempt to collect on a credit card debt from January 18, 2008, through June 30, 2014, and all persons within the United States who received a non-emergency telephone call from a Participating Vendor’s dialer(s) made on behalf of Capital One to a cellular telephone through the use of an automatic telephone dialing system or an artificial or prerecorded voice in connection with an attempt to collect on a credit card debt from February 28, 2009, through June 30, 2014.”

But more than the monetary awards, the settlement notes that “The Parties agree that the core relief under the Settlement is Capital One’s business practice changes.” It was noted that Capital One has already “developed and implemented significant enhancements to its calling systems designed to prevent the calling of a cellular telephone with an autodialer unless the recipient of the call has provided prior express consent.”

All of the companies involved “deny all material allegations contained in the Master Complaint. Defendants specifically deny that they used automated dialers or prerecorded voice messages to call Plaintiffs or potential class members without their prior express consent; that they violated the TCPA; and that Plaintiffs and potential class members are entitled to any relief.”

The plaintiffs noted in their memorandum in support of the approval of the settlement that it is the “largest settlement cash sum—by far—in the 22-year history of the TCPA — $75,455,098.74 — into a settlement fund.”

The settlement must still meet customary formal approval, including class notification and qualification. The final approval hearing is scheduled for December 2, 2014.

Capital One and Three ARM Firms Agree to $75 million TCPA Settlement
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What the Showtime Rotisserie Slogan Can Teach Us about Marketing

Jennifer Szumiesz

Jennifer Szumiesz

We have all heard “set it and forget it” chanted through the crowd during the Ronco Showtime Rotisserie infomercials. While the slogan works great for that product, the same cannot be said for a marketing campaign. In order to be successful with any branding, lead capture, thought leadership, or exposure initiatives, you should not set up the program and then forget about it.

You need to measure your efforts every step of the way. Measuring gives you the ability to make smart and informed decisions, and have your time and money be well spent.

So how do you measure your different initiatives? And how long should you test them before you can determine if they are worth the continued effort?

1. ADVERTISING (online & eNewsletter)

Measure: The benefit of advertising on a web-based outlet is that you can easily track the clicks and referrers that your campaign receives. Simply create an account on goo.gl or bit.ly to develop a shortened URL. Then, use that URL as the link in you advertising campaign. Once the campaign is live you can refer back to your account to see the progress that has been made. Also, some companies like insideARM.com make it even easier by providing monthly advertising reports that tell you the exact impressions, clicks, and CTR that you campaign received.

Length: The amount of time that you run an advertising campaign really depends on the amount of exposure that is taking place within that timeframe. If you plan to run one ad for one day, sure you will get exposure, but you are wasting your money. The rule of seven is one of the oldest marketing concepts but it certainly isn’t outdated. It states that your prospect should see your advertisement at least seven times before they remember your company and ultimately buy your offering. For this reason you should plan to run at least a solid two months of advertising before determining whether or not it is worthwhile to continue to pursue.

2. BLOG

Measure: Whether you have a blog on your site or on another one in the industry, make sure that you have Google Analytics added on your company website. This is important because it allows you to look at things like: Pageviews (how many people read each of your blog posts so you can pinpoint which topics are of most interest to your readers), Traffic Sources (how readers are getting to your blog whether it is via search, social media promotion, an email, etc.), Average Time on Page (how engaged the readers are with your posts – typically the longer the better), and New Visitors vs. Returning Visitors (if there is a shift in returning visitors it could be an indicator that people are finding your content useful and are coming back).

Length: As a test we suggest publishing consistent content (at least two blogs per month) for at least three months. This gives your readers a chance to recognize the valuable content you are providing so that they come back to read more, and for you to also receive the search benefits of adding the new copy.

3. EMAIL

Measure: Before you send a large eBlast (to hundreds or thousands of people) consider setting up a landing page that is a match with the eBlast offering. Within that landing page you can track how many people are really interested and have taken action by accessing that landing page, filling out a form, etc.; you can measure the responses. And of course, you want to look at the analytics provided by the email service provider you used. Look at the unique open rate to see how compelling your subject line and preview text was, look at the clicks that occurred to see what hyperlinks were most popular, look at the amount of unsubscribes to determine if the offer was well received, etc.

If you are sending emails on a smaller scale, other than seeing if the recipient responds via phone or email, two of the tools mentioned in last month’s spam filter blog post can help.

Length: There are so many factors that determine whether or not an email was successful (day and time sent, subject line, offer, CTA, button placement, colors used, etc.). At insideARM.com we recommend that you do not send the same eBlast more than twice. And on that second send, try switching up the subject line so that it is not a complete duplicate. The key is to ensure that you have a compelling messaging with each eBlast and that you continually test your sends to see what works best for your company – one email will simply not tell the whole story.

After you run your tests and gather the measurements, use that information to determine whether the channel is worth your continued effort.

There are so many different channels out there for achieving your marketing goals. If there is a channel that you are taking on and aren’t sure how to measure it, let us know in the comments section and we will offer some advice!

 

What the Showtime Rotisserie Slogan Can Teach Us about Marketing
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Executive Change: Coast Professional Announces David Den Houten as Chief Compliance Officer

Coast Professional, Inc. (Coast) has promoted David Den Houten to Chief Compliance Officer. Mr. Den Houten has served as Coast’s Vice President of Compliance and General Counsel since late 2013. He has been responsible for spearheading the organization’s ongoing efforts to maintain its extensive compliance and licensing requirements, as well as managing the legal aspects of the company.

The announcement was made by Brian Davis, CEO of Coast. “David’s expertise has been an invaluable addition to Coast, and his innovative thinking will continue to aid the growth and strategic direction of our firm,” said Mr. Davis. “His formidable understanding of the legal issues that affect the collections industry has only enhanced our commitment to our clients, helping Coast deliver ethically sound, borrower-friendly collection programs to the hundreds of higher education clients that rely on Coast to recover their debts.”

Mr. Den Houten has more than 14 years of experience as an attorney in the collection industry, and is an expert in the complexities of compliance. He has built a reputation in the industry for his expertise in overseeing corporate compliance.

David Den Houten

David Den Houten

“David is the perfect choice for this role,” said Everett Stagg, President and Partner of Coast Professional. “He has proven himself to be an admirable leader since joining our firm, and has provided invaluable insight into the multifaceted aspects of compliance. We are pleased to add him to our executive team.”

Mr. Den Houten received his undergraduate degree from Grand Valley State University, and his Juris Doctor from Wayne State University. He is a member of ACA International, the National Association of Retail Collection Attorneys, and the American Bankruptcy Institute. He is admitted to the Bar in the states of New York and Michigan.

Coast Professional, Inc. focuses exclusively on the collection of educational receivables. Coast provides collection services to over 200 campus-based colleges, universities, and guaranty agencies, and is a top ranking small business contractor for the U.S. Department of Education. Since 1976, Coast has worked closely with clients to increase recoveries by assisting borrowers in resolving their financial obligations. Coast’s focus on education is exemplified by superior recoveries, excellent service, and dedication to treating borrowers with courtesy and respect. www.coastprofessional.com

Executive Change: Coast Professional Announces David Den Houten as Chief Compliance Officer
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Executive Change: Account Control Technology Welcomes Valerie LaBarba as Director of Project Management

Account Control Technology, Inc. (ACT), a national leader in delivering debt recovery and business process outsourcing solutions, is pleased to announce that Valerie LaBarba has joined the company as Director of Project Management. LaBarba will assist the workflow of long-term projects designed to help the company build a competitive edge while delivering world-class support to clients and consumers.

“As ACT expands our solutions in business process outsourcing, Valerie will ensure major initiatives meet deadlines and stakeholder requirements,” said ACT’s Vice President of Quality Assurance Dave Noll. “Her experience in call center operations and technology implementation will prove invaluable in keeping ACT’s projects on task.”

LaBarba comes to ACT with more than 20 years of call center, customer support and project management expertise. Before joining ACT, she worked at Farmers Insurance, serving in call center operations and product development roles. There, she managed deployment of significant technology releases, coordinated implementation of a claims system across 41 states, and managed vendor relations to identify processes that contribute to corporate efficiency.

“ACT has some exciting initiatives underway, and I am happy to be a part of the team,” LaBarba said. “It’s great to be with a growing organization so committed to developing technology and processes that will deliver exceptional service for both clients and consumers.”

LaBarba holds an MBA as well as a bachelor’s of science degree in management.

Account Control Technology, Inc. is a leader in providing consultative debt management, collection, call center and business office solutions for education, government, commercial and consumer entities. Established in 1990, ACT has been recognized as an Inc. 5000 fastest-growing private company for the past seven years running. The company serves clients nationwide from five office locations: Bakersfield, California; Woodland Hills, California; Mason, Ohio; Dallas, Texas; and San Angelo, Texas. For more information, call 800-394-4228 or visit www.accountcontrol.com

Executive Change: Account Control Technology Welcomes Valerie LaBarba as Director of Project Management
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Washington Lawsuit Scrutinizes Use of Prosecutor’s Seal on Debt Collection Letters

A federal class action lawsuit in Seattle alleges that a collection agency used the King County prosecutor’s seals on debt collection letters to consumers, while failing to disclose that the letter was from a collection agency and not a law enforcement office. The plaintiffs say they received seemingly official letters from Bounceback; the letters included threats of “criminal charges,” “criminal prosecution” and jail time if consumers didn’t pay the amount of the debt and more than $180 in fees.

It’s already clearly established under the Fair Debt Collection Practices Act that debt collectors can’t threaten consumers with fines, criminal prosecution or jail time if they don’t pay their debts. But in this specific case, Bounceback was able to use the county prosecutor’s seal on these collection letters because it participates in a “check enforcement program.” County prosecutors rented out the prosecutor’s seal and letterhead to Bounceback in exchange for a cut of the collection fees, the lawsuit alleges.

“Bounceback enters into contracts with prosecutors purportedly permitting it to operate in the prosecutor’s name, and it pays the prosecutor a fee for each successfully collected check,” the complaint states. “Prior to Bounceback initiating its collection activities, the local prosecutor neither conducts any investigation of a particular check writer, nor makes any individualized determination regarding either probable cause or the likelihood of prosecuting a check writer who does not pay the Bounceback fees and participate in the ‘Diversion Class.’”

This isn’t the first time Bounceback has been involved in a check enforcement program in the Pacific Northwest. The Missouri-based collection agency was being considered by the Multnomah County District Attorney’s Office in Oregon for its check enforcement program. But in June 2013, Oregon Governor John Kitzhabersigned into law SB 525, which ended the state’s check enforcement program, effective January 1, 2014.

Bounceback Inc., and its parent company Stone Fence Holdings, are not members of the collections industry trade group ACA International.

Privatized check enforcement programs were launched around the country in the late 1980s, but didn’t come to Washington until around 2000. Currently, approximately 300 prosecutors’ offices nationwide – nine of which are in Washington – take part in the program. In 2013, the Washington legislature tried to pass a bill prohibiting the practice in the state.

Washington Lawsuit Scrutinizes Use of Prosecutor’s Seal on Debt Collection Letters
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Louisiana Developing Office of Debt Recovery Through Private-Public Partnership

Louisiana Secretary of Revenue Tim Barfield told the state Cash Management Review Board Thursday that the state’s new Office of Debt Recovery (ODR) is on schedule to be fully operational within three years. ODR will be an automated, centralized debt collection office that provides collection services for state agencies. It will include a suite of debt collection tools and will work with the Office of the Attorney General and outside collection agencies to perform collection services.

In order to prepare for ODR’s launch, the state is developing a request for proposals for an automated collections system. Deputy Secretary of Revenue Jarrod Coniglio said the RFP should be released by mid-August.

“Today, we’re working with manual processes,” Coniglio said. “The automated system will be fully scalable, and will allow ODR to increase its workload with a minimum of additional human resources.”

Collection tools already in use by ODR include the state tax refund offset from the Louisiana Department of Revenue and a federal vendor payment intercept program that allows ODR to collect final debt from payments owed to companies doing business with the federal government who have exhausted their due process. ODR will also use financial institution data match (FIDM) that allows it to identify and levy final debt payments from the bank accounts of debtors who have exhausted their due process. Already, 82 percent of financial institutions have signed up for participation in the FIDM program, which covers an estimated 90 percent of deposit accounts in the state.

“ODR has already implemented its electronic debt registry, significantly expanded use of an existing collection tool, implemented two new collection tools and has begun collecting debts,” Coniglio added.

The Louisiana Legislature created ODR to assist state agencies in collecting overdue debts determined to be “final debt,” after exhausting all other administrative and legal due processes. ODR will be part of the Louisiana Department of Revenue, and it will use new tools to identify and collect final debt payments on behalf of those agencies.

 

Louisiana Developing Office of Debt Recovery Through Private-Public Partnership
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Executive Change: CFPB Enforcement Attorney Appointed Affirm Chief Compliance Officer

Affirm today announced it has hired Consumer Financial Protection Bureau Enforcement Attorney Manuel (Manny) Alvarez as its first chief compliance officer and general counsel.

The appointment coincides with Affirm naming investment partners Keith Rabois, from Khosla Ventures, and Jeremy Liew, from Lightspeed Ventures, to the new financial services technology company’s board of directors.

Affirm was started in 2012 by Max Levchin, co-founder of the digital payments giant PayPal; Jeff Kaditz, formerly chief data officer of gaming company, ngmoco; and Nathan Gettings, co-founder of Palantir, the go-to company for mining massive data sets. They started Affirm on the belief that the current FICO-based credit rating system is not working for many consumers.

The announcements today come just weeks after Affirm launched its new Split Pay service that lets online merchants offer consumers simple installment payment alternatives at checkout. With Split Pay, online shoppers can spread a purchase across multiple months. Split Pay interest rates start as low as six percent, depending on a shopper’s payment history, the dollar amount being financed and the number of installments.

“Consumers often don’t understand the fees or interest they pay on a revolving account. That has to change,” said Alvarez. “Affirm’s commitment to delivering honest and transparent financial products totally aligns with my long-standing commitment to consumer protection.”

In his new role at Affirm, Alvarez will oversee and manage the company’s regulatory compliance program and related actives to prevent illegal, unfair or deceptive conduct. He will also take charge of liaising with regulators and Affirm’s service providers.

Alvarez was one of the earliest enforcement attorneys at the CFPB where he investigated and civilly prosecuted violations of federal consumer financial laws. He served as lead attorney in CFPB v. Castle & Cooke Mortgage LLC, et al., the first-ever enforcement action of the Mortgage Loan Originator Compensation Rule under Regulation Z. He also liaised with other federal and state regulators, trained housing advocates on the new mortgage servicing standards, and supported several bank examinations.

Before joining the CFPB Alvarez served as a Deputy Attorney General in the Consumer Law Section of the California Attorney General’s Office.

“Banks today are stuck in the 1950s in so many ways,” said Levchin. “Manny’s history of consumer advocacy and regulatory knowledge will be essential as Affirm reimagines financial services from credit cards to deposit banking.”

New Board Members A partner at Lightspeed Venture Partners since 2006, Liew’s current investments include Snapchat, Whisper, LivingSocial, Bonobos, Kixeye, PetFlow, Slice, The Honest Company and Zest Finance. He was also responsible for several successful Lightspeed investments including Playdom (acquired by Disney), Flixster (acquired by Warner Brothers), Kongregate (acquired by GameStop) and Serious Business (acquired by Zynga).

Rabois began his career in the technology industry as a senior executive at PayPal (acquired by eBay) and subsequently served in influential roles at LinkedIn and as chief operating officer of Square. As a board member, Rabois guided Yelp and Xoom from inception to successful initial public offerings. Simultaneously, he also invested in other like-minded entrepreneurs with early stakes in YouTube (acquired by Google), Yammer (acquired by Microsoft), Palantir, Lyft, AirBnB, Eventbrite and Quora.

“The industry knowledge, insights and business building knowhow that Keith and Jeremy bring to Affirm are truly priceless,” said Levchin. “Having them on our board only makes our vision for financial utilities loved by consumers all the more attainable.”

About Affirm Affirm is reimagining financial services — from credit cards to deposit banking. Starting with an amazingly simple, new way to get affordable financing at the online point of sale, Affirm lets shoppers pay for purchases across multiple months with transparent, fairly-priced fees built into every payment, and boosts conversion and basket size for eTailers at less than the cost of credit cards. Created in 2012 by PayPal Co-founder Max Levchin, Palantir Co-founder Nathan Gettings, and former Chief Data Officer of ngmoco, Jeff Kaditz, Affirm is based in San Francisco. To start working with Affirm go to affirm.com.

Executive Change: CFPB Enforcement Attorney Appointed Affirm Chief Compliance Officer
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