The PWCI event was hosted by Eltman Eltman & Cooper, and the theme was “Keep Growing.” The room was decorated with red linens and black bags containing packets of basil and recipes using basil for each attendee to take home and “Keep Growing.” Amanda Smith of Resurgent and Karol Berndt of Berndt & Associates in MI, both told heartfelt stories about their experiences in the debt collection industry and their growth—personally, professionally—and the growth of the industry as a whole.  One of my favorite moments was when Amanda Smith spoke about growth being inevitable. She glanced around the room and said, “Seriously, let me get a raise of hands by those who actually knew about this industry prior to working in it.”  It was a lighthearted moment that helped all of us realize we are all in the same boat—and growing.

In addition to informative sessions and great vendor exhibits, there were one-on-one meetings with firms and invitation-only client meetings. Many firms were recognized by their clients during the client meetings, and I want to spotlight some of those firms here:

InvestiNet, LLC

• 2013 Servicing Excellence Award:  Babcock & Wasserman, Co.
• 2013 Performance Excellence Award:  Protas, Spivok & Collins

TrakAmerica

• Strongest Audit: Love, Beal & Nixon
• Best Exception Reporting: Messerli & Kramer
• Best Overall Performance: Blatt, Hassenmiller, Leibsker & Moore

Harvest Strategy Group

• Partner of the year: Levy and Associates, LLC, Ohio
• Runner Up: Machol & Johannes, LLC,  Colorado
• 2^nd Runner Up: Law Offices of Timothy E. Baxter & Associates, PC, Michigan

Captial One: Customer Experience and Performance Leaders:

• Cohen      & Slamowitz
• Messerli      & Kramer
• Hunt &      Henriques 

NCO: Celebrated the accomplishments of:

• Michael J.      Scott, PC
• Machol      & Johannes, LLC
• Bierer      & Margolis, PA

Attending industry conferences is an added perk of my position. Society today has become so fast paced and is all about immediate answers. Face-to-face time with our valued attorney members and clients, and sitting amongst peers and connecting, whether it be over a meal or just a casual touch-base meeting, is a great opportunity. I’m also excited to report that my colleague, Katie Stromstad, and I got a little star struck during the conference when Chef Bobby Flay sat at our table in his famous restaurant, the Caesar’s Palace Mesa Grill (see photo).

Katie reports, “This was my first NARCA Conference. I was happy, excited and nervous to represent The National List of Attorneys. It was wonderful to finally put faces to names, and to introduce myself to our members and clients that I communicate with daily. I found a lot of value in attending the sessions, especially the Management and Audit and the CFPB session. As NL Director of Compliance, it is important for me to stay up-to-date on all the new compliance standards and requirements. I had great client meetings, and found it extremely valuable to be there. I can’t wait for the next one!”

If you have an interest in joining NARCA, I highly encourage you to do so. I would be happy to provide you with information about the benefits of joining.

NL has benefited greatly from providing this information as a service to our members and clients. Since the project started on Feb. 4, 2013, and as of April 23rd we’d had 405 additional people register on our website, and 26 requests for NL membership. We also heard that Patrick Lunsford, InsideARM editor, was very pleased with the number of hits the NL blogs published on their site received.

If you haven’t used this resource yet, we hope the following comments will encourage you to do so.

From Tina M. Ziegler, Director of Paralegal Division, on behalf of Stanley Hammerman of Hammerman & Hultgren, P.C regarding the White Paper he authored on collection law in the State of Arizona. Because I assisted him with this project, he asked me to comment on his behalf. When his paper was initially released, he received positive comments from other attorneys. I made a point of retrieving a copy of all of the White Papers to keep as a firm resource, both in electronic and paper format. Additionally, I was part of a nationwide webcast in late March speaking to other paralegals about collection law. I found the information to be very useful, as I could mention what applied in all of the states and give specific examples, instead of just talking about my knowledge of Arizona’s collection laws. I did refer my audience to your (NL’s) site and recommended that they retrieve copies of the White Papers as a resource for their firms. Further, we have had several clients with debtors who have relocated to other states and they have asked what remedies are available. I have been able to provide them with a copy of that state’s White Paper. Overall, this was a great project and will continue to serve as a resource for our firm. We were glad to be part of it. Thank you for including us.

From Scott E. Wortman, Esq., Partner, Mel S. Harris and Associates, LLC, Author, New York

Partaking in this wide-ranging project created by the National List has brought this firm increased exposure and a variety of valuable opportunities. It’s been really wonderful receiving comments from people as far as Tokyo, and exceptionally humbling engaging in memorable conversations initiated by some of the top legal minds in our industry. Rather than narrowly focusing on this firm, it is important to point out that the initiative and diligence by The National List in organizing these comprehensive papers has been and will continue to be a tremendous service to the industry. In consideration of this and the fact that the laws and rules of each state are not static, I am hopeful that these Papers will continue to evolve.

NL Follow-up Blogs

As state laws change, watch for follow-up blogs with updates. The first one, “Do Try This at Home! Passage of Bill gives UT Collection Lawyers easier access to DWS information,” appeared on InsideARM 4/18, with a link to a longer “How-To” piece on our website. It’s a good read, whether or not you would like your state to pass a similar bill. (Utah’s Bill is the first of its kind!) We have also published follow-ups on bills in Tennessee (positive) and New York State (negative).

From David Lehew of Action Financial, regarding Tennessee Bill
I found it amazing to see some good news about debt collecting in my Inbox. Nice work for getting the scoop. Obviously Kelly Dicken and Ron Cunningham deserve great credit.

We want to hear from you! We would still like to get feedback, not only from our member authors but from any of our readers who have used information from the papers on any of the state laws. Please add a comment to this blog or email a comment to info@nationallist.com.

By Marti Lythgoe, NL Editor

If you haven’t already reserved your FREE copy, this is your FINAL reminder!

The Directory will be mailed only to those who specifically request one. If you want to receive a free printed copy of the Directory in the mail, you must pre-order it by clicking here before the May 17th deadline.

Enter your contact information, click on “Yes. Reserve my copy today!” and Submit.

For those of you have previously responded to our reminder emails, THANK YOU!

If you have any questions, please feel free to contact us at 800.227.1675 or via results@nationallist.com.
The National List of Attorneys

By Marti Lythgoe, National List Editor, and Scott Wortman, Esq., Partner at MSH. 

When I saw “New York Assembly Passes Debt Collection Bill; Also Lowers Statute of Limitations” on insideARM 4/25/13, I immediately contacted Scott Wortman, at Mel S. Harris & Associates, LLC and the author of the NL White Paper on NY Debt Collection Law, and asked for an interview. I knew he wouldn’t be happy about the implications of this bill, and I was sure he would have some very interesting things to say about it. He did! What follows are some of the questions I asked him and his candid, outspoken responses.

What is the main purpose of the bill? (Titled the “Consumer Credit Fairness Act”)

That depends on who you ask. Some consumer advocacy groups would say that the purpose behind the bill is to broadly protect consumers from unscrupulous debt collectors. There is also an assertion by the Bill’s sponsor, Judiciary Committee Chair Assembly Member Helene Weinstein that “This bill… helps to address the long-term impact of economic abuse, including identity theft, which is often suffered by domestic violence victims at the hands of their abusers.”

From my perspective, the bill’s intended focus does nothing to stop only unscrupulous debt collectors, nor does it mention a tangential link between any of the proposed changes to the CPLR (Civil Practice Law and Rules) and victims of domestic violence. As a person who used to work in the social service field, my heart goes out to all victims of both emotional and physical abuse, but there is no nexus between this bill and protecting victims of domestic violence. Rather, the bill relates to (1) the veracity of records when filing a complaint and filing for a judgment on default; and (2) improved notice of litigation for consumers. However, the Bill fails to address these issues in a reasonable manner. Instead, it effectively eliminates any collection of receivables. It does this by creating impractical standards and regulations that cannot be overcome by simply amending internal policies and procedures. More importantly, reading this bill from the standpoint of a consumer, it paradoxically impairs those consumers the Act purports to assist by making it impossible for them to improve their credit rating and qualify for loans.

How will the Bill “significantly restrict the use of the legal collection channel”?

Some of the more troubling ways the Bill restricts the use of legal collection channels are as follows:

• The imposition of an absolute, unassailable, evidentiary qualifier prior to moving forward with a lawsuit and at time of possible default by defendant. This includes, but is not limited to, a contemporaneous, account-level affidavit from the original creditor of all the facts constituting the debt, even though the account has been charged off and subsequently sold by the original creditor. The purchaser of the receivable can’t sign it, and they can’t go back to the original creditor for present-day information that wouldn’t be in the original creditor’s possession. They can’t go back and they can’t go forward. This provision alone completely eliminates the possibility of any debt purchaser ever meeting the criteria for entering a default judgment in the State of NY.

• Compelling the debt buyer to itemize principal versus interest and other charges made by the original creditor. By definition, the principal is representative of all the charges, payments and interest from the last time the account had a zero sum balance, or when it is legally and statutorily charged off from the original creditor.  The vast majority of these accounts involve revolving credit, on which interest is always accruing on different amounts at different points in time. This bill does not take into account that there are numerous federal regulations governing the rules of charging off debt and that a purchaser of a distressed receivable can rely on the records provided by the original creditor without the successor having to recreate, redo and re-formulate every single transaction from date of opening to charge off.

• Requiring hard copy contracts and written instruments that never existed in order to simply commence litigation, irrespective of all federal law to the contrary. The vast majority of these contracts and instruments are produced electronically.

• Singling out this industry to allow for the preservation of jurisdictional defenses by a consumer defendant in perpetuity, which means that a Process Server would have to be available to testify at every trial, notwithstanding whether the defendant previously raised the defense of lack of personal jurisdiction.

What will be the effect of cutting the statute of limitations from 6 to 3 years?

• This bill eliminates the right to collect voluntary payments beyond the statute of limitations, even though this right is expressly recognized by the Federal Trade Commission. New Yorkers would be left with no way to repair their credit history in the time period between the expiration of the statute of limitation (historically used solely for litigation purposes) and the 7 ½ year reporting period on credit reports as prescribed by the Fair Credit Reporting Act.

• This portion of the bill will have the unintended consequence of extinguishing the rights of consumers who want to improve their credit, while severely limiting the availability of credit to those who most depend upon it. By cutting the statute in half, rather than creditors attempting to work with consumers in financial distress, the bank or creditor will be forced to file suit probably two years into the process, in order to obtain judgments that have a 20-year limitation period. Parties should be allowed to work it out and not forced to move to the court system so quickly.

Do you agree with Speaker Sheldon Silver, who said, “There is an epidemic of unfair debt collection lawsuits in New York State….This bill would institute several measures to address these abusive debt collection practices and combat this menace”? Why or why not?

I agree with the Speaker that unscrupulous and unethical debt collectors have no place in this industry. It is commendable that New York is attempting to address this issue. However, the alleged collection epidemic is actually a fiction, and the method and manner in which the Bill attempts to address this and other issues go well beyond the stated purposes of this Act. As someone specializing in creditors’ rights defense litigation, I can unequivocally state that the vast majority of lawsuits our clients are forced to defend against are either based on contrived attempts at leveraging various statutory fee-shifting provisions, or on alleged technical violations of the law, not on claims of harassment and abuse. Unfortunately, this Bill treats all debt collectors in a monolithic and punitive manner, not just the very few bad apples.

What are your firm and other debt collectors in NY doing to prevent this bill from being passed by the Senate and signed into law by the Governor?

Mel S. Harris and Associates, LLC and various other firms and attorney groups have taken a proactive approach. New York attorneys, agencies and various trade groups (DBA, ACA, etc.) are attempting to work with elected officials and state leaders to better inform and educate them about our industry, thereby mitigating the myths and distortions that abound. We will continue to work with our Representatives and are confident that a common understanding can be obtained.

What are the chances of it being signed into law?

I am far from a political expert, and I can’t prognosticate as to the outcome of this bill. There are so many variables at play, many of which are behind the scenes and out of my view. However, it should be noted that some form of this bill has been sponsored every year since 2009 and has even previously passed through the assembly only to be defeated in the Senate. This year, due to the makeup of the Senate we are more concerned, but we are hopeful that reasonableness and fairness will once again prevail.

What advice would you give to help prevent passage of a similar bill in another state?

My advice is to definitely make your trade groups aware of any adverse potential legislation, and to also take your own initiative and form appropriate synergetic collaborations with your peers and others in the industry or related industries. Also, don’t be shy about standing up for this vital industry, and don’t assume that your elected officials are necessarily antagonistic to the industry, simply because they may be under-informed. Talk person-to-person with your representatives. There’s always common ground.

Most importantly, speak up and be proud to be a member of this essential industry that serves as a primary foundation for economic freedom and liberty and is fundamental to continued economic stability.

By Marti Lythgoe, NL Editor; and Kelly Dicken, FKSC Attorney

 “There is currently some unique legislation that is before the General Assembly of TN that will benefit debt buyers and banks in TN if it is passed in the next few weeks,” Attorney Kelly Dicken of Finkelstein, Kern, Steinberg, & Cunningham, P.C. (FKSC) told NL for the blog published by InsideARM on 4/3/13. I kept in touch with her, and when the Governor signed TN SB Bill 224/HB 443, she generously granted me an interview. What follows are some of the questions I asked her and her candid responses.  

What prompted proposing/drafting the Bill?

Over the last few years, there has been a dramatic increase in Federal and state lawsuits surrounding the collection of debt in TN. One prominent issue is the claim of false affidavits. At issue is whether a debt buyer can file an affidavit under TN sworn account statute, if the debt buyer was not the originator of the documents used to establish the debt (ex: charge-off statements).

A further problem for debt collection in TN has been the increased use of the double-hearsay objection that, in many jurisdictions, has been used to keep out business records of debt buyers. Although TN has adopted the Federal hearsay exception 803(6), which allows for the admittance of business records as evidence, the TN courts have remained silent regarding the reliability of acquired records of the creditor, thus enabling the exclusion of these records in trial. As a result, debtors who simply said, “I don’t remember what I owe” could get away with not paying their debt, because the proof/paper was inadmissible as evidence.

This “loophole” in the TN law allowed an increasing number of consumers to “work the system.” The spirit of the law behind the 803(6) hearsay exception is to allow records that are relied upon by the business into evidence. The Federal Courts have recognized the validity of this and have addressed the issue of acquired records. Drafting this Bill was our attempt to eliminate the loophole by bringing the TN standard regarding the admittance of acquired business records up to the Federal standard.

What is the main purpose of the bill?

The Bill redefines “Business Records” to include “Acquired Records”—both purchased records and records involved in a contractual relationship. This Bill is not anti-consumer. Allowing the records in as evidence in a trial cuts off no consumer rights. He/she may still bring any defense before the court, and any legitimate defenses will still prevail. This Bill simply removes the loophole in the TN law that was being exploited by some consumer attorneys and defendants. Acquired business records can now come in, so that the judge can rely on evidence admitted from both parties when ruling in a trial, which is what the law intended.

Who will it benefit?

Banks benefit because it increases the value of paper to be sold. Those buying debt know that they have a better chance of collecting on the debt. Additionally, bank employees now can testify to the validity of their own records that have been generated by a management company but incorporated into the bank’s business records. Debt buyers benefit from a decrease in unnecessary litigation and related costs. We think the Bill will do away with false affidavit claims and double-hearsay objections, as the debt buyer’s custodian of records can now testify as to all of the creditor’s records, whether they were acquired by the creditor or are their own records.

Did your firm help to draft the Bill &/or support lobbying efforts in any way?

FKSC (Ron Cunningham and I) spearheaded and did the main drafting of the bill. We did our own lobbying, appearing before all the members of the TN House and Senate Committees. We were assisted by Thomas Norris, Jr., and Bill Shick. Thomas helped to edit the Bill throughout all the revisions, as well as to draft a memo explaining the need for this legislation. He attended several meetings with us and helped educate us on the legislation process. He is very knowledgeable, and has authored two books on TN law. He is “of counsel” with The Law Offices of Barry J. Gammons, PLLC. Bill is an attorney with Buffaloe & Associates, PLC, and is the Chairman of the Creditor Rights section of the Tennessee Bar Association. He also helped with revisions to the bill, as well as meeting with our Senators and Representatives. We could not have completed this process without the help of these excellent attorneys.

Was passage of the Bill a long process? What did it involve?

The 4-month-long process was a great learning experience. It was very costly, if you consider all the time our firm put into it. However, because of the positive impact this Bill will have on our clients, the cost was worth it. We realized how critical it is, when trying to pass a bill, to get face time with every Senator and Representative and explain the Bill to them one-on-one. We were pleasantly surprised to find that if we gave them enough notice, they would work us into their days. As they are very busy, we learned to send the Bill before meeting with them so they could review it. Then, when we met with them, we summarized the Bill and explained the need for it and its anticipated impact. The concerns they expressed were valid. They didn’t want the Bill to adversely affect anyone, and they wanted to understand why the current process was a problem, why it hadn’t been corrected before. They were happy to learn about the reduced costs and that a loophole in the system would be closed by the Bill. The Legislators and the Governor are very pro-business. They want TN to be a place where businesses want to come. They could see that the Bill would help the economy.

Is this the first time that a bill of this nature has been submitted in TN? Have other states tried it?

To our knowledge, this is the only bill of its kind in the country.

Are there any obstacles that attorneys will have to face when the Bill takes effect? What is your firm doing to be prepared to use this new “tool”?

Certain judges will undoubtedly put up some resistance. Ron Cunningham, the President of the Tennessee Creditors Bar Association, is overseeing the development of a Brief outlining how this statute impacts the current law surrounding business records in TN. After the statute is enacted on July 1, 2013, TCBA members can submit this brief to the judges when a trial arises. We are also adapting our current 902(11) affidavit and corresponding filings to reflect the language in this statute. It is our hope that the TCBA members can use these tools to more successfully litigate cases on behalf of their clients in TN. We want to have a united front on how these cases are presented.

What additional advice would you give to a law firm trying to pass a bill like this in another state?

We quickly realized how easily something could be opposed. We got opposition from some sources that later supported us once they understood what we were trying to accomplish. We had to negotiate. Our advice is to work out any opposition and be willing to compromise. Don’t make enemies. Make friends.

There has been a lot of new resistance, a lot of negative legislation passed against banks and creditors in the last 2-3 years. Our industry as a whole has been under a lot of scrutiny.  As attorneys, it’s critical that we be watchdogs, lobbying against negative legislation and proposing and/or advocating positive legislation. At FKSC, we are doing both. We believe that, ultimately, the changes will be very positive. At FKSC, it is our belief that we should always be conscious of doing excellent work in the most ethical way possible, and that by doing so, our firm, our employees, our clients, our customers, and our industry will be better because of it.

Kelly concluded by graciously adding, “If anyone is interested in finding out more about the process we went through to get the Bill passed, feel free to contact me (Kelly Dicken) or Ron Cunningham at 865-525-0238.” To read the entire Bill, click here. The white paper on TN Debt Collection Law, can be found on The National List of Attorneys website under Legal Resources.

This blog was published first on InsideARM.com on April 30, 2013.

“Many companies base their dialing solution choice on trends or misinformation,” says Ray Fowler, IAT Sales & Marketing Director. “Those same companies might later find their choice was too expensive or restrictive. It might lack the security control vital for their inventory requirements or be too much work for their limited IT staff to maintain. The result is often wasted employee and monetary resources.”

In what comes across as a genuine effort to provide the unbiased information needed to make a cost-effective, productivity-enhancing choice of system types, IAT SmartDial wrote and offers a free white paper entitled, “Site-Premised vs. Cloud-Based: A Guide to Choosing the Right Dialer.” You can believe Randy Cooper, President & CEO, when he says, “IAT is uniquely impartial towards any dialing solution, and this white paper reflects that.”

The in-depth paper addresses the factors collection managers and agency owners must consider in order to make an informed decision when the big question changes from “Should I use a dialer?” to “Which dialer technology should I use?” Choosing between site-premised systems (hardware set up at your facility) vs. a cloud-based solution (accessing an off-site dialer through a secure Internet connection), or a hybrid combination of both requires that you know something about each option.

Site-Premised Solutions

The day-to-day operation of a self-contained system is under your management. While many smaller companies find a site-premised system to be an affordable fit for their business, companies with considerable predictive dialing needs are ideal candidates. This is also a good option for businesses whose top priorities are compliance and control. Because all the equipment stays onsite under your control, sensitive information never leaves your facility. Resource allocation (i.e., phone lines) and cost considerations (i.e., system size, add-on modules, maintenance, infrastructure, etc.) are also addressed.

Cloud-Based Solutions

An ideal solution for companies that focus on IVR messaging and that work with older paper, such as debt buyers, third-party collection agencies and collection attorneys, cloud-based services provide unlimited dialing resources. Add-on features may be part of the service (i.e., cell phone scrubbing, call recording, analytics). The dialer encrypts all data before sending it, but if you’re concerned about control over your data, ask about vendor security. Resource allocation is also a consideration. Some vendors provide predictive dialing technology that automatically adjusts dialing resources in real-time, based on factors such as agent talk-times, hit rates and pacing. The biggest draw is the flexible price tag.

The Hybrid Solution

The hybrid solution merges site-premised and cloud-based dialing, which means you manage hardware within your facility and have the ability to access a cloud dialer when needed. Hybrid dialing options are ideal for companies that do a lot of predictive dialing but also have fluctuating or seasonal IVR needs.

Additional Information

The white paper also contains a chart that shows what you can do with a $500, $2,000 or $40,000 budget and one that compares site-premised with cloud-based on considerations such as capital investment, scalability, security, infrastructure, setup, maintenance and return on investment.

A Utah-based company, IAT SmartDial provides compliance capable cloud-based, site-premised and hybrid dialing solutions for ARM organizations of all sizes and varieties. “We understand that the best dialing solution is different for everyone, which is why we provide them all. IAT offers each company a tailored solution.” If you’re looking for facts that will help you determine which solution is really the best for you, regardless of the vendor, you’ll have a good start when you download this free white paper.

Blog by Marti Lythgoe, NL Editor; based on the white paper by IAT SmartDial

Former Chicago Mayor, Richard M. Daley, spoke about his time as Mayor and shared some highlights of Chicago. The Young Members’ Section (YMS) provided very educational sessions including: “The Ethics of Marketing with Social Media” and “The Triadic System is Alive and Well.” They also held a great offsite event for YMS members. The CCAA (Commercial Collection Agency Association) provided some great educational sessions including: “Super Elastic Plastic: How to Avoid the Big Wham-O of Credit Card Fees,” “Time Management for Collection Specialists and Lawyers: How to Keep Up with Email, Master Your To-Do List, and Work Productively,” and much more.

In speaking with Erin Brereton, CLLA Marketing and Communications Director, she noted: “We premiered a number of new programs this year at the CLLA Chicago Convention — including the “Public Speaking Boot Camp,” a “Marketing and Social Media Ethics” session and the first-ever Women In Collections Networking Tea, which received a very positive response. We were thrilled to partner with PWCI (Professional Women in the Collection Industry) to co-host the event and to offer our meeting attendees a chance to connect in a new way.”

I represented NL and was personally involved in introducing the PWCI to CLLA. I asked the CLLA if they would assist in jointly hosting a networking event. They graciously accepted and provided one speaker, Lorna Walker (an attorney of ours from Sweet & Walker, PC). I asked Annette Waggoner, Executive Director of the CCAA to speak. Both women spoke about how they have personally been involved in the industry over the years, about their successes and their struggles. I started the event off by explaining what PWCI is and what they’ve accomplished in the industry since their inception 2006. Predetermined discussion topics got the women at each table talking about the struggles women face in this male-dominated industry and gave an opportunity to provide advice to women just entering this industry.

I am so happy that PWCI was received so well. I firmly believe in the value of this network and have personally benefited so much from it. A PWCI event provides amazing networking opportunities at every conference it’s involved with. The organization provides mentoring programs within the collection industry, and it recently has extended its reach to call centers, as well. It is an amazing resource for professional women. I was very excited to introduce PWCI to the CLLA, and be at the forefront of making it an annual networking event at their conferences. To learn more about PWCI, go to http://pwcinetwork.com/about_us.html

Overall, the CLLA Conference was a great opportunity to see familiar faces and friends and to network with fellow professionals. It was a busy but professionally rewarding conference for me. I encourage National List Members who haven’t attended a CLLA Conference to do so in the future.

By Kacey Rask, National List Account Executive

You have two other places to go to learn more about every state’s laws and the firms and authors who wrote about them — InsideARM.com and here on The National List Website. See below for a teaser about the papers published 4/8 – 4/16, and a short introduction to the authors and their firms. Remember, you must be registered on the NL Website in order to download the entire white paper. Registration is free and easy.

The National List would like to thank all of our member attorneys who participated in this project. We encourage debt collection industry professionals to take advantage of this valuable resource. 

Although it is short, Spencer feels that the paper adequately covers the laws governing debt collection in VT, “of which there aren’t many.” He told us that because VT is an “old state,” many of the laws have been on the books for decades and not revised to meet changes in the way business is conducted today. Vermont does not require creditors, collection agencies, debt buyers, or Vermont-licensed attorneys to be specially licensed, registered, or bonded in order to engage in debt collection.

Dominion Law’s roots in the collection industry date back to 1977. Since then, they have emerged as a leader in the field of debt recovery and provide state-wide litigation service and coverage throughout Virginia, North Carolina, Maryland and D.C. Virginia does not impose special licensing or bonding requirements for collections entities, and doesn’t have any heavy or harsh regulatory or enforcement history. Peter told us, “Empathy is key to doing the best job for the client.”

The Law Offices of Karin A Bentz, PC, is located in St. Thomas. The firm, founded in 1993, is a general trial and appellate practice, with about 20 percent of the practice dedicated to debt collection for the last 20 years. Karen tells us, “There are few local statutes addressing the collection of debt in the U.S. Virgin Islands. Collection of consumer debts is addressed by the Territory’s prohibition on unfair trade practices, including deceptive and unconscionable trade practices.”

Dellwo, Roberts & Scanlon has represented clients in Eastern Washington for over 50 years. The firm practices in all areas of civil litigation. Robert has been a member of the firm since 1984. He also has been a volunteer firefighter for 22 years. A potentially very significant case with regard to the collection of debt is presently pending before the Washington State Supreme Court.  We invited Robert to keep us up-to-date on what happens in this case.

In recent years, A&O has developed strategies and efforts designed to better front-load collection results for clients. Jamie has worked in the debt collection industry since 1991. He warns, “Through ads and news stories, the average WV debtor has a greater awareness of his consumer protection rights. The office of the WV Attorney General spends considerable resources targeting out-of-state creditors who attempt collection efforts within the state borders without proper licensing and bonding.”

Shane includes many interesting examples of case law in his paper. For example,  “In Wisconsin it is well settled that when a debtor makes a payment on a credit card, the payment not only tolls the statute of limitations, but also sets it running anew from the date on which the payment was made.” He has learned, “In a volume practice like collections, reputation is everything. We should all be mindful of representations made not only in court, but when dealing with opposing counsel and pro se debtors off the record, as well.” 

Larry W. Harrington is owner of Harrington Law Firm, P.C. The firm provides pre-legal collection, litigation, and post-suit collection in all twenty-three Wyoming counties. He points out to us, “WY has relatively low court costs. New court rules require cases under $50,000 to be brought to judgment in seven months. Because of the transient nature of many Wyoming debtors, the applicable limitation period requires a determination of the residence of the debtor at the time the cause of action accrued.”

By Marti Lythgoe, NL Editor

Remember, you must be registered on the NL Website in order to download the entire white paper. Registration is free and easy. 

Creditors need to know that South Carolina is a Right to Cure State. Failure to properly send a Notice of Right to Cure to a Debtor at least 20 days prior to repossessing a piece of collateral can give rise to a cause of action for conversion against the Creditor. This applies to secured and unsecured loans. S. Nelson Weston, Jr., a shareholder at the firm, is certified as a specialist in debtor, creditor and bankruptcy law by the South Carolina Supreme Court. Adam S. Tesh has practiced in the area of consumer debt collections for 12 years. His practice of law is 95 percent dedicated to debt collection.

Breit Law Office, P.C., was founded by Donald H. Breit in 1975 and steadily grew into a leading collection practice in the state. The author, David L. Edwards, specializes in collection law, contract disputes, and a wide variety of commercial transactions. “South Dakota imposes sales tax on attorney’s fees, which is not unique, but often an important consideration for creditors to keep in mind,” David told us. From the paper we learned that in South Dakota, there is no special licensing or bonding requirement to practice in debt collection. SD’s garnishment law is more restrictive to creditors garnishing wages than the federal law.

Since their inception in the 1930s, Finkelstein, Kern, Steinberg, & Cunningham, P.C. (FKSC) has practiced in many different areas. For over 50 years, the firm has been a recognized leader in the legal collection industry. Kelly Dicken is Executive VP of FKSC, and additionally serves as Secretary for the TN Creditor’s Bar Association and Director/Chairwoman of the Legislative Committee. TN is an ‘appearance’ state that requires the presence of an attorney at all legal proceedings. TN also allows the Plaintiff to take a voluntary dismissal, commonly referred to as a ‘nonsuit,’ up to two times on the same cause of action.”

Butch warns creditors that “Texas is a debtors’ haven.” TX exemptions regarding garnishment and writs of execution are numerous and generous compared to other states. His “quick review” of exemptions includes: Wage Garnishment – Not allowed for creditors, but allowed for child support claims; Bank Garnishment – Allowed, but not as to funds that can be traced to an exempt source; Homesteads – Generally 100 percent exempt, except for: purchase money liens, liens for work on the property, and taxes; Automobiles – Generally 100 percent exempt from the claims of third-party creditors.

Gregory M. Constantino is founder and president of Constantino Law Office. He regularly speaks on FDCPA and Collection Law matters. Gregory begins his paper by telling us, “Utah’s legal and regulatory environment is unapologetically “pro-business.” Utah is a state that believes in the summary enforcement of contract rights. Utah’s laws reflect that belief. For example, Utah does not have any usury laws, and will enforce any agreed upon rate of interest.” It would seem that the state slogan, “This Is Still the Right Place,” could easily apply to debt collection.

Additional papers published to date include Vermont, Virgin Islands, Virginia, Washington.

By Marti Lythgoe, NL Editor

On the same day that the paper was published, a blog about the author and the firm he/she represents appeared on InsideARM.com. You can go here to read the full blogs and follow the links below to read the papers. Remember, you must be registered on the NL Website in order to download the entire white paper. Registration is free and easy. 

Brian worked as a collector while going to college. Working as a debt collection attorney for 10 years has “reinforced the idea of empathy, and that the ability to see things through the eyes of others can have a lasting impact in how we conduct ourselves as the representatives of creditors.” He enjoys working with the “tremendous team we have assembled at JB&R.” Brian warns creditors, “Ohio has a ‘borrowing statute’ regarding which state statutes of limitations (SOL) apply. If a cause of action accrued in another state and that state’s SOL has passed, the SOL in Ohio is also deemed to have expired.

Hood & Stacy, P.A. has offices in Oklahoma and Arkansas. For more than thirty years, the firm has served the needs of clients in the areas of creditor bankruptcy, commercial and retail collections, mortgage foreclosures, landlord-tenant relations, corporate business, wills, probates, and real estate. Nicholas advises creditors, “Oklahoma is mostly a rural state that has a large number of courts for its population. Each county in Oklahoma, and even judges within the same county, operates independently, and therefore debt collection cases often require an approach that is unique to that county or judge.”

Tom and Paul advise creditors collecting in Oregon that, “Arbitrators and judges require chain of titles and solid document verification of debt before judgments are awarded,” and, “Any Judgment can last up to 20 years, so have patience.” From the paper we learn l that, “One trap for the unwary pertains to landlord tenant residential cases. If a claim is brought on the lease such as for unpaid rent, it must be filed within one year. If the claim is for common law damages to the premises, the statute is six years.” The paper contains many other interesting facts pertaining specifically to debt collection law in Oregon.

Gordon & Weinberg, P.C. law firm is the successor to Pepper, Gordon, Breen & Weinberg, P.C., which has roots dating back to 1928. They specialize in commercial and consumer collections and have provided statewide coverage in PA and NJ for over 50 years. Fred warns creditors, “There are many procedural difficulties in Pennsylvania, no wage garnishment being the most significant. However, bank garnishments are permitted. Finding a banking asset may be the best post-judgment remedy available.” Also, collection agencies, collectors, and debt buyers do not need to be licensed in PA. 

Hodosh, Lyon & Hammer have clients that place hundreds of cases monthly, as well as clients that place only a few each year. They handle a broad variety of cases: retail, commercial, and medical collections. Neill thinks creditors should know, “The courts are in Rhode Island are ‘Old School.’ Everything remains on paper. Records are not available on computer, nor can they be searched that way. If you need a court document, expect to take a drive to the courthouse.” He affirms, “The vast majority of both the bar and the debtors I interact with are wonderful people. Some are just at a difficult point in their lives.”

Additional papers published to date include South Carolina, South Dakota, Tennessee and Texas.

By Marti Lythgoe, NL Editor