Time for a bad debt humor break

CLIENT SATISFACTION

CLIENT SATISFACTION 

or from the client’s point of view “I can’t get no satisfaction…”

Many times by the time a claim is placed with a collection agency many things have already gone wrong from the client’s perspective. Additional costs, delays, litigation pitfalls and complexity…the last thing a client wants or needs is more confusion, delay, expense and overall frustration.

A collection agency’s mission should be one of providing a complete package of assistance to their clients in a professional and efficient manner while maintaining cost effectiveness. In addition, an agency should be available to answer all questions raised by a client and to assist them in any way possible that will lead to the “collectivity” of their claim (pardon the little advertisement there).

Client satisfaction should be paramount to all other concerns. Too many times a client may be told “advance your file another 30 days” with no further explanation. Likewise, they may be told that their file is out for service with the process server or is awaiting a preliminary hearing. What? What’s that? 

Why another 30 days?

Client satisfaction is of the utmost importance to a business that provides services. Only by recognizing what is essential to a client and by meeting their needs will you have a successful business enterprise. The converse can be detrimental to a growing business, for an unsatisfied client will likely look for service elsewhere. It is imperative in today’s very competitive collection business to have an effective way to measure client’s satisfaction and to continually enhance and improve where necessary.

Below are key in determining and improving your client’s satisfaction:

• ·      Communicate often with your client to determine if they are happy with your services and the manner in which you communicate with them.
• ·      Be open to both positive and negative feedback. Be willing to accept suggestions from your clients and see if their ideas fit into your business plan and will allow for improved client satisfaction.
• ·      Ask the hard questions – are they happy with the quality of your service; the availability of personnel to address their issues; the friendliness of the personnel; and most of all the knowledge of your personnel to address your client’s specific questions and issues.
• ·      Communicate your willingness to receive feedback from your client by perhaps providing incentives…discounts or reduced fees.

Clients must feel that they are as important to you as you are to them and that you ultimate goal is to provide them with complete satisfaction with your services.

                

Collectivity LLC

Tampa Debt Collection Agency

8875, Hidden River Parkway, Suite 300,Tampa, Florida, 33637 Telephone:813.792.8030 Fax: 813.792.8609 E-mail: mlevinson@collectivityllc.com

www.collectivityllc.com

Sunday, April 13, 2014

Court Costs in Debt Collection

COURT COSTS

Court House Costs

            While costs and procedures differ materially from state to state, attorneys will usually request sufficient sums to cover expenses for the filing fee, service of the summons and complaint, costs for the entry of judgment, writ of execution, abstract of judgments, the Marshal's or Sheriff's costs, etc. Court costs and Sheriff’s fees are established by law and, if the client prevails, are chargeable to the debtor. These costs are usually  advanced by the creditor. The cost advance requested is the average amount in the attorney’s experience that is required to process a case of this size from the filing of the suit through the recording of an abstract of judgment.  Should it become necessary to obtain a writ of execution or other process to enforce the court’s orders or judgment, additional cost advances may be required. If, in the attorney’s professional judgment, it becomes necessary for them to advance court costs to protect the client’s interests or to expedite the client’s action against the debtor, the client shall be expected to reimburse the attorney upon request. Where possible, most creditor right’s attorneys  will make every attempt to allow the client the opportunity to approve or disapprove such additional expenditures before they are incurred. Upon the conclusion of the case, the prevailing attorney submits an accounting of all costs expenditures to the court and they are included, together with statutory interest, in the amount of the judgment.  All such monies advanced by you are held in the attorney's trust fund.  Thus, at the conclusion of the case, an accounting will be provided from counsel and any unexpended costs will be refunded in full, as will any costs recovered from the debtor.  It is important to note that authorization to file suit by sending the documents and funds requested constitutes an assignment to the attorney’s law firm of any attorney’s fees awarded by the court and recovered from the debtor, which shall be in addition to other fees and commissions.  Should you have a signed valid contract with the debtor calling for the cost of collection, such is usually in addition to the above but does not cover any court awarded attorney fees. Note that the attorney’s normal contingent commission, excluding his suit fee and court costs, are paid for out of the percentage fee quoted to you by your professional collection agency for litigated matters.

SUIT FEE/RETAINER

            This is a charge by the attorney for the filing of suit and following through with litigation on your behalf.  Factors usually considered in determining the amount of the suit fee include: How much work counsel has to do in the way of drafting documents or rendering legal opinions; the attorney's past experience with the debtor; the nature of the action being undertaken; the size of the claim; is the claim disputed and what is the attorney's appraisal of the validity of the dispute; the expectations of whether the claim will necessitate a full trial on the merits.  Such fee is also required in the instance where counsel does not recommend suit but, as a matter of principle, the client has decided to proceed with litigation in any event.  In this scenario, the attorney charges a suit fee in order to assure himself of adequate compensation for his services knowing that the chances for recovery are negligible. Most suit fees are non-contingent and are advanced by the creditor at the time that the costs are submitted.  In other words, the attorney is entitled to the suit fee regardless of the outcome of the case.  Standard retainers are 10% of the amount of the claim; however, many professional collection agencies have negotiated with attorneys special arrangements depending upon the circumstances of the case.  In some instances, the suit fee may be totally contingent upon collection or a portion (usually 5%) of the suit fee will be non-contingent with the balance being contingent upon collection. In certain instances, an attorney may waive his suit fee entirely, but request an increased commission contingent upon collection. The standard in most cases is to advance a 5% non-contingent suit fee with the remaining being contingent upon collection.

The suit fee discussed above does not include prosecution of a contested matter requiring extensive depositions, discovery related court appearances, services rendered in connection with any appeal of the case or services rendered in connection with any Bankruptcy proceeding involving the Debtor other than the normal filing of a proof of claim; nor does it include the defense of a counterclaim or cross-action or the pursuit of ancillary or extraordinary remedies before or after judgment.  In the event a contest develops, or the Debtor files Bankruptcy, the attorney always reserves the right to request additional fees for additional services necessitated by the contest.  The amount of any additional fee will be commensurate with the services to be rendered and unless extraordinary circumstances arise, you will be informed of such and usually have an opportunity to halt all actions before such charges are incurred.  If a counterclaim or cross-action is filed in which you desire our attorney to defend on your behalf, the attorney reserves the right to do so at an hourly rate.  Once again, this is usually an agreed upon rate that is pre-approved by the client should the situation warrant such a defense.

                

Collectivity LLC

Tampa Debt Collection Agency

8875, Hidden River Parkway, Suite 300,Tampa, Florida, 33637 Telephone:813.792.8030 Fax: 813.792.8609 E-mail: mlevinson@collectivityllc.com

www.collectivityllc.com

Why is a witness necessary in a contested commercial claim?

 You have been advised by your collection agency to allow them to forward you claim to an attorney for litigation. You have also authorized the attorney to do so on your behalf.

By now you have analyzed the costs and time involved in proving up your case. 99% of the time the case is either settled before going to trial or a default judgment is entered on your behalf against the debtor. However, let’s assume that the debtor decides to retain counsel and contest the case.

In the typical case in which goods or services are sold to the debtor, a representative from the client’s accounting or credit department familiar with the books and records will be required. It is also possible that a sales person or regional representative may suffice as long as they have knowledge of your record keeping system.

In complex manufacturing cases, a knowledgeable manufacturer’s representative will be necessary to appear on behalf of the client if the debtor raises issues concerning warranties, or additional contractual terms (verbal)…thereby necessitating the need for the sales person to be available for rebuttal purposes.

A debtor has a right under our system of jurisprudence, to have the creditor prove their case. Whether that person is the credit manager or accounting personal, they must meet the traditional burdens of establishing and proving their case before shifting the burden to the debtor.

In order to have a valid case, you must prove:

1. You received an order from the debtor.

2. You and the debtor agreed on a price for the merchandise or service to be provided.

3. You delivered the merchandise or provided the service.

4. A demand for payment was made.

5. No payment has been received.

The person who is actually to testify will only be able to state facts known from personal knowledge or upon review of the business records with the knowledge of what he is reviewing. As long as a witness is credible you have now satisfied your burden of proof through the use of a witness.

                

Collectivity LLC

Tampa Debt Collection Agency

8875 Hidden River Parkway, Suite 300,Tampa, Florida, 33637 Telephone:813.792.8030 Fax: 813.792.8609 E-mail: mlevinson@collectivityllc.com

www.collectivityllc.com

Found an interesting Paper/Article

Good Morning everyone!

Debt Collection musings, humor, bric a brac...

Today falls under serendipity.  Serendipity is when you find an unexpected treasure that fills you with delight.

My serendipity today is in the form of a delightful article I literally stumbled across.  All I know about its authorship is that it was written by someone named Hoffman, and was written for St. Louis School of Law.

The article, in typical dull scholarly fashion is entitled

Recapturing the Congressional Intent Behind The Fair Debt Collection Practices Act.

I don't miss college for  its requisite dullness!


Here's the link

https://docs.google.com/viewer?url=http%3A%2F%2Fwww.slu.edu%2FDocuments%2Flaw%2FPLR%2FArchives%2FPLR29-2_Hoffman_Article.pdf

This person, professor ?  student?  has managed to capture the essence of the intent of the FDCPA, and how it has been misused.  They have captured the integrity and necessity of the debt collection industry, and given appropriate caution to the strong arm tactics that are an embarrassment to our industry.

All in all, I think I could have written this paper when I was in school.  It is about the need for a new paradigm in debt collection.  The dead beat debtor is for the most part a minority of the actions we are involved in.  Most are honest hard working folks, that have fallen behind, and need our help to get back on track.  Debtors treated firmly, and with respect.

My hats off to this person "Hoffman".   We seem to be of the same belief system that the debt collection agency profession is a vital part of the economic ecosystem.  That old school strong arm tactics need to be addressed, and buried, and never appear again, that debt collection laws and practice need to reflect a more enlightened attitude toward the three parties involved.  The creditor, the debtor, and the debt collection professional.


Thanks for this refreshing read, and if you are tracking who links to your article, ping me back.  I would love to make your acquaintance.


Till Next Time.


Mark.

Collectivity LLC

Tampa Debt Collection Agency

8875, Hidden River Parkway, Suite 300,Tampa, Florida, 33637 Telephone:813.792.8030 Fax: 813.792.8609 E-mail: mlevinson@collectivityllc.com

www.collectivityllc.com

The New Debt Collection Industry Paradigm

When we started this blog, I promised a blend of opinion, humor, news, and "bric a brac" related to the debt collection industry.

Today, I'd like to spend a brief moment reflecting on the nature of the debt collection industry.

There is a glass half empty and a glass half full perspective, but whatever side of that fence you sit on, there is no denying, the collection industry is under a massive change in terms of regulation.

We look at the  huge change in legislation in our industry a few different ways.

1.  Abusive Debt Collection Promises, are an abomination and an embarrassment to the legitimate debt collection industry.  For the good of the industry, these "goons" have to be stopped.  Therefore, the massive volume of debt collection legislation we are facing, is good.

2.  Pendulums Swing.  We believe that the volume of massive changes in regulation have caused the pendulum to swing so extremely in favor of debtors, that legitimate debt collection businesses are being forced out of business, like Dolphins caught in a Tuna Fishing net.

3.  People have a moral obligation to Pay Their Debt.  The extension of credit by small and medium sized businesses is one of the backbones of building our economy.  It strikes us that there is much more attention put on protecting those who have borrowed without an ability to pay back, and far too little emphasis put on protecting those small businesses that can't pay their own bills, because someone can so easily get out of paying.

4.  It is too easy to get out of paying a debt, and the penalty for small to mid sized businesses for collecting on a debt 'improperly" are too stringent.  Let's say I'm a small business owner, maybe a contractor that grinds and polishes cement floors.   And I do a job for a few thousand dollars, where the client decides not to pay.   One miss-step in how I communicate with that customer, and all the sudden, I can find myself in court, facing not only  not getting paid, but possibly, maybe probably facing punitive fines.  Is that right?  I did the work and just want to be paid for it, and now as the provider of credit.. I'm forced to court for trying to collect the debt?

5.  Now, more than ever, the debt collection industry needs fresh new ideas.  Now, more than ever, small to mid sized businesses need to partner with a debt collection agency.  Now more than ever, debt collection agencies need a solid footing in law.. not just collections practice.  Now more than ever, debt collection agencies need an understanding of human psychology, and rely on persuasion, not duress to collect debts on their clients behalf.   Now more than ever, the debt collection industry is poised for a rebirth into a more vibrant industry as the old guard falls away.

This massive swing in debtors protection, will give birth to a new and more dynamic debt collection industry.  The skill and mastery of a debt collector in the coming months and years will be invaluable in making sure that the business owner gets paid, and not only gets paid, but stays out of legal trouble trying to collect on past due debts on their own.  The debt collection agency of tomorrow will have people with backgrounds in law, and psychology.  This industry will become a more efficient engine, working smarter to protect the rights that seem to have been left behind, the rights of the business person that extended credit in good faith, and is now struggling to get paid.

Of course, it is those fundamental beliefs that spawned Collectivity, LLC.   I am an attorney, licensed to practice in Florida.  I have a background in psychology, and I've been working with creditor and debtors to resolve collection issues for more years that I perhaps care to admit to.   It is my firm belief in the need for an agency to not only collect, but to protect the creditor from their own collections efforts that drives me to create this new agency, Collectivity LLC.  It is my firm belief that people should pay what they owe, and people that have difficulty doing so, should be treated firmly, but with respect.

We look forward to working with you and your debt collection needs.  We are a national collections agency, and focus the majority of our efforts here in our home state of Florida.


Thanks for letting me bend your ear.  Have a great week.


Mark.

Debt Collection Services Florida

Welcome to Collectivity, LLC, debt collection services for all of Florida.

Collectivity is a "new" kind of Debt Collection Agency, one that employs old fashioned values, and new technology to provide a different kind of experience for both you, and the people that owe you money.

The bottom line is that the collections industry has developed a black eye.  There is enormous new legislation, and more coming down, that make the collection of debts far more difficult.  The likelihood that an individual small to mid sized business will be even able to keep up with the new laws is at best slim. 

We have a few decades experience in this industry.  We use psychology and process to create a debt collection process that is unique in the industry.  Our goal is to not only collect on your debt, but to do so in a way that is entirely within the confines of new regulation, and in a way that is conducive to you keeping your clients as clients, not ostracizing them over a past due balance.

Listen to what one of our clients had to say.  He was concerned, being from a small town, what would happen when he called in the collection agency.   His experience is not unusual, we collected what he was owed, and preserved his relationship with his customers.

Collectivity, LLC, give us a call.

Mark

Ups And Downs of Commercial Debt Collection

The Commercial Collection Agency Association has released industry trend analysis for Q4, 2013.

What they found was a consistent drop (5.7%) in the number of Business To Business Collections accounts placed with collection agencies, but a consistent rise the the dollars placed (4.13$) with collection agencies.

In other words, fewer, but larger accounts in the B2B Debt Collections world Q4, 2013.

We were very ready to hear this news, as the year (2013) has been in overall decline.   The collection industry declined 11.5% over the volumes reported in 2012.


Similar declines, soft years, were see in 2009, 2010.  This is a business decline we have seen before and have seen again.

It may seem like an odd time to launch a new debt collection agency in Tampa with an overall soft market.  It is our belief that in tough times is when opportunity knocks the loudest.  The classic stereotype debt collector is being steadily legislated out of business.  We are not unhappy to see them go.

A new breed of tech savvy collection agencies, with solid old fashioned values, and a firm grasp on the psychology of debt collection is on their way to fill that gap.  Collectivity, LLC  is there, bringing to the industry old fashioned values, and modern technology.

Contact us now about your debt collection needs in Tampa, Florida, or anywhere in the country.

Collectivity LLC

Tampa Debt Collection Agency

8875, Hidden River Parkway, Suite 300,Tampa, Florida, 33637 Telephone:813.792.8030 Fax: 813.792.8609 E-mail: mlevinson@collectivityllc.com

It's the client partnership... not the software!

Going through the Debt Collection Industry's Journals is one of the things we do to keep up to date on changing debt collection laws, changing collection strategies, and the general state of our industry.

We got a bit of a Valentines Day Present  with a very insightful article on Feb 14 in Inside ARM.

I'd like to share a snippet with you, and then our reflections.

“Last year confirmed an important lesson I’ve learned over and again during my more than 20 years in the collection industry—the software an agency uses isn’t the most important ingredient to success. What matters most is the partnership and joint efforts we engage in to bring about a lift our clients’ bottom lines. Ultimately, we help our clients succeed through partnerships built upon an unwavering commitment to know them and understand their needs.”

That's the framework that Collectivity is built on,   Old Fashioned values.  Forging a relationship with our clients, and not breaking the relationship between our clients and their debtors.   Gone are the days when the collector screaming on the phone is an acceptable model, and we are glad to see them gone.  Gone are the days when your software or your autodialer can trump a calm rational voice working with your debtor.

Personal skills, personal service, dedication to your clients, respectfully treating the debtor.  These are the hallmark of the new collection agencies.

While our industry is being hammered left and right with enough scandal to make us look like the average politician (yes sarcasm and humor intended), our firm, Collectivity, welcomes the change.  The minority bad collection firms erode the credibility and huge value of the quality firms.

Collectivity, however does stand in two places, the first is Old Fashioned Values, the second though is modern tools.   We believe in using technology to work for us, and work towards the best tools possible to make sure that we execute on your debt collection with maximum efficiency, we meet the myriad of reporting requirements, and effective collect the money you are owed.    This sits, however behind our first pillar of our business... Old Fashioned Values.

Give us a try we are in Tampa Florida, and focus on Florida Debt Collection, but also service clients and collect from Debtors all over the country.

Call today, find the difference Old Fashioned Values make to the quality of your debt collection efforts.

Collectivity LLC

8875, Hidden River Parkway, Suite 300,Tampa, Florida, 33637 Telephone:813.792.8030 Fax: 813.792.8609 E-mail: mlevinson@collectivityllc.com