August 9, 2013 Newsletter

WIN A $100.00 CABELA’S GIFT CARD!

One lucky person will win a $100.00 gift card to Cabela’s at the end of September! Each client, who sends new accounts during the month of September, will have their name entered into a drawing. At the end of the month, we’ll draw a name and, if it’s yours, you’ll win $100.00 to spend at the new Cabela’s in Green Bay (or a store near you)!

Agency Leaves Another Black Mark on the Debt Collection Industry

The Federal Trade Commission (FTC) fined Expert Global Solutions, and its debt collection subsidiaries (Transworld Systems Inc, NCO Financial Systems, Inc. and ALW Sourcing LLC), $3.2 million for violating the Fair Debt Collection Practices Act (FDCPA). The company violated the FDCPA by using unfair and deceptive practices including calling consumers multiple times a day, even after requests from the consumer to stop. In addition, the company called the workplaces of consumers that prohibited such calls, while also leaving messages about the debt with third parties.

This fine against Expert Global Solutions is the largest civil penalty ever obtained by the FTC against a third-party debt collection agency, but it is not the first time a subsidiary of theirs broke the rules.

In 2004, NCO Group, Inc., which is now a part of Expert Global Solutions, was ordered to pay $1.5 million to settle charges the FTC had brought against them. At that time, the company was violating the Fair Credit Reporting Act (FCRA) by reporting accounts to the credit bureau by using later-than-actual delinquency dates, which causes negative information to remain on a consumer’s credit beyond the reporting period permitted by the FCRA.

With more than $1.2 billion reported in revenue in 2011 from Expert Global Solutions, this $3.2 million fine is equivalent to a slap on the wrist. To add injury to insult, the company was also ordered to put procedures in place, in 2004, to follow the laws already in effect for all third-party debt collection agencies.

Our clients can be assured that Finance System of Green Bay, Inc. has a continuing program for compliance with all Federal and state rules and regulations relating to third-party debt collections.

Commercial Account Tracing

Previously, we brought you an article on the importance of good location information on a referral. The same is true for a corporation, a limited liability company or a DBA. Without good location or contact information, the likelihood of your account being collected dramatically diminishes.First, you must have the true and correct legal name of the entity for which you are collecting on. With this, you will be able to establish the name of the registering agent. The registering agent is the person who is listed to legally receive documents on behalf of the entity.

With the above information in hand, you can obtain a list of the “Incorporators,” as well as a list of the current “officers of the corporation” (i.e. board of directors). With this information, you are then able to contact more parties in attempting to collect the account or locate assets.

If there are no assets, the account becomes very difficult to collect on,unless, your company has a personal guarantee on the account. Personal guarantees protect your company by holding the signer personally responsible for the bill. We previously brought you a blog reviewing the importance of having a personal guarantee signed.

These items will help protect your company and help get you the money you are owed.

Upcoming Appearances

Apartment Association of Northeastern Wisconsin 2013 Tradeshow
September 11, 2013 at the Ramada Plaza Hotel – Ashwaubenon

HFMA 2013 Fall Conference
September 25-27, 2013 at the Heidel House – Green Lake

Fall 2013 Revenue Cycle Co-op Conference
October 3-4, 2013 at the Holiday Inn – Stevens Point

HFMA 2014 MEGA Conference
January 28-30, 2014 at the Kalahari Resort – Wisconsin Dells

Apartment Association of Southeastern Wisconsin Tradeshow
September 27, 2013 at the Potawatomi Bingo & Casino – Milwaukee

Wisconsin Apartment Association 2013 Tradeshow
October 11-12, 2013 at the Tundra Lodge Resort – Green Bay

Wisconsin Credit Union League Inc., Northeastern Chapter
January 23, 2014 at the Little River Country Club – Marinette