Today (2/23/12) is my 14th anniversary with The National List of Attorneys. They have been 14 wonderful years. Randy Nicola, Vice President, hired me as a part time employee during my first year in college. My job was to recruit law firms to be NL members. I worked just two hours a day, five days a week for the first two years, while I attended Bismarck State College and received an Associate of Arts degree.

When I moved 200 miles to Fargo, Randy was kind enough to allow me to work from home part-time, until I received my Bachelors degree in Child Psychology from North Dakota State University. I thought I wanted to be a school psychologist, because I love children. But I came to love my job with The National List, and so I began to work for them full-time after I graduated. I worked from my home in Fargo, ND, until my husband and I moved back to Bismarck in 2005. We wanted to be closer to family, and I was looking forward to working in the office again with my peeps!

Oh the wonderful peeps at NL!

Randy has been the best mentor anyone could ask for. He seems to know everyone and everything, and he is willing to share what he knows anytime I ask! Even after 14 years of working together, I’m still learning from him.

Jeffrey Zuck, President, is the most generous employer I know. He has a heart of gold, and he has his priorities straight. He treats everyone with respect and speaks from his heart. Another VIP at NL is my colleague, Leslie Herr.  I have worked side by side with her for more than 10 years. We have been through success and failure together time and time again. She is strong where I am weak, and together we get things done! Everyone on the NL staff is great to work with.

Then there are the peeps that I have the privilege of working with nationwide, our lawyer members and the subscribers that employ our lawyer members. I love learning about people and businesses and bringing them together. There are many interesting, knowledgeable and sophisticated people in this industry, many of whom I have become close friends with over the years. Thank you to all of my friends who have shared their knowledge and at least part of these 14 years of my life with me!

Sincerely,

Beverly Unrath
Director of Business Development
The National List of Attorneys
1-800-227-1675 Ext. 102
Direct Dial:701-425-0982

Collection of medical debt is a major consumer issue. A study by the Federal Reserve Board found that nearly half of all collection actions appearing on consumer credit reports are for collection of unpaid medical bills. Medical debt is different from other forms of debt, because it is usually incurred accidentally or faultlessly. People do not plan to fall ill or hurt themselves, and medical bills are often unavoidable. Medical debt is often treated with more sympathy than other kinds of debt, resulting in advice to patients that they should not try to convert it to credit card debt.

Medical debt is very difficult to collect. In a phone call on 2/16/12, Arthur Sanders, Managing Member of Mel S. Harris & Associates, LLC, reinforced the idea that medical debts have to be handled differently. He reminded me, “Many times credit card debt arises because of lifestyle, fraud, or economic issues, but unpaid medical debt most often comes from a big, unplanned bill that the debtor is unable to pay. These debtors are not usually people who have other debts.”

My call with Mr. Sanders centered on three major considerations:

1. Law firms that collect medical debt have to “educate the client about the reality of the situation. Discussions with clients are often harder than with the debtors. Most often, hospitals and doctors give us instructions to sue, because they aren’t profitable and need to collect every penny they can. But they don’t know the situation or if there is a personal element involved with the case. We have to be specific with the client as to where the case is going. We don’t usually sue if the debtor doesn’t have resources.”

2. Law firms have to assess the patients’ ability to pay. Collectors in Mr. Sanders’ firm first attempt to make a personal contact, to reach out to the debtors and determine their situation. Ninety percent do not return the call, but when they are able to speak to the debtor, and also through other means, they attempt to determine:Does the debtor have insurance? “There may be an insurance dispute or not insurance at all.”

• Does the debtor own property?
• Is the debtor employed? “Indigent people should not have cases referred to our office.”
• “Can the client show us a Social Security Disability Award letter? If so, we don’t sue. A hospital is supposed to get that information upfront. In  an ideal world, we don’t get those cases unless the hospital makes a mistake.”
• Are the medical bills the result of a workplace injury? “In such cases, Workman’s Comp is the remedy. Only bad will come of it if we don’t catch that.”
• Were the injuries the result of an auto accident that could be covered by the other driver’s insurance?

3. “Our people are Specifically trained in medical collections,” Mr. Sanders said. “They need to know who to talk to and what questions to ask, such as, ‘What position are you in financially?’  ‘Why didn’t the insurance company pay?’ They need to have expertise in dealing with insurance carriers. They need to be aware that a medical bill that began in the ER could be the result of a work-related accident. There could be a Language issue. The skill set is different from other types of debt collection.”

Mr. Sanders concluded, “We (law offices) are a Last resort. By the time the file reaches us it has been through an agency first, or the collection department in a hospital. We don’t put medical claims on the dialer. We try to make a personal contact. If a debtor ignores our calls or we can’t find something indicating a basis for non-payment of the debt, we have to get a judgment. In New York, a judgment is good for 20 years. We still might not get paid.”

Other tips and warnings you might want to consider come from “How to Collect Payment on Medical Bills,” by Richard Morgan, eHow Contributor:

• Keep a copy of all correspondence relating to the payment collection attempt. If you send any correspondence, always send it through the post office via registered mail.
• Setting up payment plans will improve your chance for successful collection.
• Keep in mind that many people are embarrassed over not being able to pay a debt owed. Be sympathetic to the situation, but remain firm.
• Remain calm and polite when dealing with the client. Losing your temper can result in harassment charges being filed against you, making it more difficult to collect payment on the medical bill in the future.
• For most medical debts, there is a statute of limitations. Depending upon the state, the period of time can vary from five to 10 years. Check with your local State’s Attorney General to determine the statute of limitations for your state.

by Nancy Lender, The National List of Attorneys

Getting back to the Conference…..

Beverly reports, “I noticed several trends:”

• The mood was positive. Business is good for most NL’s debt buying customers. More evidence that the debt buying industry is strong and growing was the news in ARM.com immediately following the conference, “Enore Capital reports surge in profit and revenue close to $500 million in 2011.”
• Many debt buyers are diversifying from credit card portfolios to student loans, auto deficiencies and medical collections.
• Law firms are expanding into neighboring states. Clients are asking reputable debt collection firms to expand into states where they are having trouble finding contingency fee collection firms to suit their accounts. For example, Fulton Friedman & Gullace are now in Arizona, California, Washington DC, Florida, Illinois, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Tennessee, Texas and Virginia, Javitch, Block and Rathbone are now in Ohio, West Virginia, Texas, Kentucky, Indiana, Tennessee and Ragan & Ragan are now in New Jersey, Vermont and Delaware. 

Kacey adds, “This industry is definitely about relationships, and having the “face time” that this conference offers is so important. Although we are consistently staying in contact with NL clients and members, conferences are an amazing time to re-connect with friends in the industry. What I love most is the opportunity to match the needs of our clients to the strengths of our law firm members. Being able to meet a new client, identify their needs and then walk them over to a law firm member practicing in the state where they need assistance is so great. Clients, exhibitors and attorneys welcomed the opportunity to visit with me and explain in detail their part in the debt purchasing process. “Knowledge is power!”

Regulation was a hot topic of discussion . Beverly attended the Professional Women in the Collection’s Industry Network meeting. Jason Kaster, COO of Unifund Group, talked about the impact the regulatory environment will have on debt buyers and issuers in 2012. His main points included:

• The increased scrutiny in the industry as a whole will have a wide impact, depending upon a company’s current business practices.
• It is up to each entity to focus on the accuracy and validity of the information they use by working with the issuers to secure better information, as outlined in ACA International’s blueprint for modernization.
• Harassing phone calls represent 50% of FTC complaints. The number of individuals acting immorally or illegally is small in comparison to the millions of actual contact attempts. Those who resell must hold each other to a high standard in the secondary markets. The number of complaints can be mitigated by focusing on those who are recognized association members, and by performing due diligence on buyers and their business practices.
• Data security is vital. Become SSAE 16 and PCI compliant and have more issuers require these assurances in order to transact business.
• The regulatory focus on banks has led to decreased availability of paper for many agencies and debt buyers. Establishing solid practices for vendor management and resale will reward the entire industry

For a somewhat casual report of the conference, see Phillip Duff of Lighthouse Consulting in his unique video. He covers everything from what was going on in the hotel bars, to his take on the lack of industry confidence, to how attendees were asking “Where’s Waldo [the debt]?”

Share your thoughts on DBA events by leaving a Reply at the bottom of the page.

by Nancy Lender

from Beverly Unrath

ACA Fall Forum Session Promotes Audits

“It’s a good idea to investigate third-party collection vendors [agencies or law firms] that are collecting on your accounts,” commented Thom Majka, Director of Business Development for DebtNext Solutions, LLC, during an ACA Fall Forum session entitled Outsourcing Collections: Compliance and Auditing Collection Agencies.  

ACA Members can find an article based on the session that contains more information about the auditing process at http://www.acainternational.org/assetbuyers-auditing-collection-partners-22057.aspx

National List of Attorneys Screening Is Important First Step

National List attorneys are carefully screened in a number of ways to ensure a profitable and safe match with clients. Work standards, account placement volumes, technology, security, and financial requirements are all considered. Even though The National List (NL) does not do an onsite audit or a financial audit, as a client, you have access to additional resources available through our Alliance Partnerships that can help you feel even more secure about where you place your claims.

Alliance Partner Provides Added Value and Security

Over the past four years, DebtNext, a NL Alliance Partner, has performed over 200 operational field audits on the industry’s leading collection law firms and agencies, for the leading companies in the debt buying, utility, telecommunications and healthcare industries.

“It’s not what you expect, it’s what you inspect,” Majka, said. “We want to highlight the strengths of a vendor, pinpoint some weaknesses and grow revenues for everybody. It is important to get a feel for a vendor’s strengths and weaknesses.” Majka thinks that, “All forwarders need a review/audit process of their vendors. Depending on their infrastructure they need to have someone internally manage the process or outsource the process.”

Many National List forwarders audit the law firms they work with on an annual basis. “Developing a cost-effective auditing process validates and holds a law firm accountable,” Majka said. “DebtNext educates and encourages all of its clients to use NL services to find representation, and helps them to better understand the value of the NL, their insurance and customer service. [By performing audits,] we also act as an industry resource to the NL and its members.” The National List and DebtNext complement each other. Both companies offer services that lower cost while increasing revenue opportunities, and providing safeguards for compliance issues.

Mutual Clients Finds “Strength in Partnerships”

The National List and DebtNext have several mutual clients who are industry-leading debt buyers. The clients trust the vendor recommendations, service and insurance provided by The National List. Technology and supporting services offered by DebtNext are crucial in the management of their vendor teams and the millions of dollars that they place for collection. These partnerships help to provide protection for the financial assets of the participants and minimize risk.

Majka’s final words in the ACA ariticle: “You’re trusting millions of dollars with your outside collection vendors. Why wouldn’t you want to develop a formal program to ensure they’re protecting your company’s best interests?”

The National List recommends DebtNext products and services. To learn more about how they can help your business through these perilous times, contact Thom Majka directly at tmajka@debtnext.com  or by phone at 330-665-0400 ext 104.

by Beverly Unrath, Director of Business Development, The National List

This presentation focuses on the fast changing legal landscape regarding what account records and assignment documents must be produced by a debt buyer when filing a lawsuit to convert a defaulted debt account into a money judgment.  Mr. Canter will also address procedures to insure that court affidavits will withstand “robo-signing” allegations now commonplace with consumer advocates and state regulators.

Many state legislatures and courts have significantly changed procedures for collecting purchased debt accounts through litigation in wake of the Federal Trade Commission’s 2009 Report on debt collection litigation, which carried the ominous title “Repairing a Broken System.”  Mr. Canter’s talk will help those in the debt buying industry better understand how debt buyers can adapt to state court requirements and how to ensure that future business opportunities are pursued in a manner that facilitates collection of purchased accounts through litigation.

The National List encourages all who will be at the DBA International Conference, February 7-9, 2012, to attend Mr. Canter’s session. We plan to include additional information on this topic in our April eNewsletter. The Las Vegas Conference includes three days of educational programs addressing timely topics of importance to third party debt purchasers. I hope to see you there.

by Beverly Unrath

This need inspired The National List to create CreditorsRightsLawFirms.com (CRLF), a   premier, online, nationwide directory of experienced creditor’s rights attorneys. As an extension of The National List® of Attorneys and a “sister website,” CRLF has deep roots in the collection industry.

Do you need a Creditors’ Rights Law Firm?

Whether you represent a Fortune 500 company or a collection agency, are a collection attorney or a credit grantor, CRLF can connect you with an experienced attorney to represent you in suits related to creditors’ rights.

The professionals listed on the CRLF site are experienced in collection laws and litigation. They can expertly represent your company in bankruptcy proceedings and provide compliance counseling in all types of collections matters. In short, CRLF is your best source for legal representation regarding creditors’ right. To find the right attorney for you, go to www.CreditorsRightsLawFirms.com now.

Are you a law firm looking for more Creditors’ Rights clients?

There are currently 75 attorneys listed on the site. The National List is offering a listing for $199/year to the first 100 attorneys who sign up. You can also pay by the month. The fee for the next 100 attorneys will be $299/per year, so don’t miss this opportunity to be listed, if your specialty falls into one or more of the following categories: creditors’ rights, commercial litigation, FDCPA Defense, FCRA defense, Truth in Lending Act and/or class action defense.

Be listed in the collection industry’s leading online directory of creditors’ rights defense attorneys. Sign up here today!

Watch for stories of cases won by CRLF attorneys coming soon On the N List and on the CRLF Blog!

          by Nancy Lender, The National List

I like to have something to do almost every minute of the day. Sitting around doing nothing quickly makes me bored and just a bit irritable. When my To-Do List is done, I’m not entirely sure what to do with the extra 10 minutes.

Same thing happens at work. When things get slow, my enthusiasm wanes. I find myself watching the clock…a lot. As soon as I get a big project, I’m back on my feet and ready to go, no longer thinking about how many minutes until I can go home.

How often do your agents get stuck in “clock watching” mode? When they’re doing the same thing all the time, and have a lot of lag time between tasks, it’s easy to want to watch the clock. Plus, it’s difficult to stay focused, happy and productive.

Take their minds off the clock with productivity-boosting technology. Use dialing technology to keep agents busier and focused on collecting debt, not on the clock.  Below are three suggestions on how to do it.

1. Focus your agents’ time on the most lucrative, high balance calls. Keep your agents talking and collecting on the best accounts by using both predictive dialing and IVR messaging technology.

• Predictive dialers keep agents consistently talking with a minimal wait time between calls, so they just concentrate on talking and collecting. When an answering machine is detected, have the dialer leave an automated call-back message; the dialer can do it just as well as an agent, and it frees up your agents to talk to live contacts.
• When leaving a message is sufficient, use IVR Messaging instead of your agent. IVR Messaging is great for reminder calls or any kind of routine calling, as well as for collecting low balance accounts and scrubbing lists for wrong numbers or bad numbers. Your agents can then concentrate on making the calls that collect the most money.

2. Center training on what agents are saying and best practices. Concentrate on training all your agents to be as successful as your best agent. Use monitoring and coaching technology to help them improve their collecting skills, both in real-time and for future calls.

• Monitoring, coaching and conferencing are ideal for training agents on the fly or for handling difficult situations. Listen to agents’ calls live and interject when it’s necessary. You can set up the system so that only the agent can hear you helping them on the line, or select conference mode and everyone can chat together.
• Training is easier when you have a record of what your agents are actually saying. Use call recordings to listen to what your best agents are doing, and then teach your other agents to do the same thing.

3. Keep agents talking to the most productive accounts; don’t be afraid to change it up! Use your dialing technology to assign each agent the types of accounts that best fit their skill set. When a list isn’t performing the way you’d hoped, quickly change your lists and try something new.

Use these suggestions to keep your agents busy collecting and not busy watching the clock.

Done with this blog post!

Is it time to go home yet?

  by Kendra Fugal, Marketing & Communications Coordinator, IAT              

The National List’s quarterly newsletter, to be published on January 18^th, will include an informative article that can help you get started on an analysis of the specific types of insurance you need to safely and profitably do business in the debt collection industry. If you aren’t a subscriber, you can become one by filling out this short form.

By reading the article, you can brush up on your knowledge of:

• Professional liability
• Internal crime policies
• A Certificate Holder
• An Additional Insured
• A Loss Payee
• How The National List helps you meet client requirements

Don’t miss out on this and every quarter’s free NL eNewsletter! Subscribe here, and it will be delivered to your Inbox. Find out about industry news and helpful tips you might have missed by checking out the NL eNewsletter Archive.

The eNewsletter is just one more way that The National List of Attorneys gives exceptional service to member attorneys, clients and anyone who does business in the debt collection industry. If you have ideas for future articles or would like to be a contributor, please leave us a comment, and we will contact you.

by Nancy Lender, National List

Today we are pleased to announce 2 very lucky winners from among the 43 people who entered. They are:

1)     Harlen Martin, Director of Business Development, with LegalStream, Inc, Overland Park, Kansas

2)     Tim Harris, Collection Manager, with Harris Beach PLLC, Rochester, New York

Both winners will be first time attenders  to the NCCR Conference, and they are very excited to attend. Congratulations to Harlen and Tim!

We would like to thank all those who entered the drawing. We hope you are able to make it to the NCCR Conference in spite of not being a winner this time!

We encourage anyone who attends to send us a blog post sharing your experience at the Conference and what you learned that would be of interest to others in Credit & Collections Industry.

by Nancy Lender