2010 Newsletters

© 2009-2010 National Recovery Agency. All Rights Reserved.®

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VOLUME 5, ISSUE 8August/September- 20�0

Please turn to page �

NRA TodayThe Official Newsletter of National Recovery Agency

2007 ~ 2008 ~ 2009 ~ 2010

“A Responsible Revenue Recovery Company™”

Inside this issue:

Featured Article P.1

Industry News P.2

Agency News P.5

Delinquent Consumer Debt Leading Cause for Security Clearance Denials

September 3, 2010

Consumers should be aware that high levels of debt can impact not only their ability to get credit, but also a job. The Department of Defense does not like applicants for security clearance to have large debts, according to an analysis of their records.

People may have valid reasons for not being able to pay debt. Indifference or refusal to show a good faith effort to establish a payment plan or resolve the issue is not one of them and can cost you a job – at least with the U.S. Department of Defense and its contractors. A recent analysis by insideARM.com of cases before the DoD’s office that determines which Americans get access to classified information found that delinquent consumer debt is the leading cause for security clearance denials. Of the 107 cases adjudicated by the Defense Office of Hearings and Appeals (DOHA) in July, 53 involved financial concerns. Of those 53 cases, 36 were denied security clearance for the job.The applicants appearing before the DOHA administrative judges are seeking jobs that would put them in contact with classified information, specifically at private companies contracted to do work for the DoD. The agency also conducts similar hearings for 20 other federal agencies and departments and settles claims for military personal and DoD civilian employees, as well.Cases are brought to DOHA when an immediate decision cannot be reached on the status of an

application for access to classified information, thus necessitating a hearing. DOHA has adjudicated some 950 cases in 2010.Some of the security clearance denials by the DOHA seem obvious. For example, people who have defaulted on federal student loans or are in debt to the Internal Revenue Service with no plan in place to pay back the loan or taxes were denied clearance. Taxpayer dollars fund student loans and federal, state, and local government agencies and governments tend not to employ or retain workers who owe taxpayers. But failure to address private-sector consumer debt doesn’t sit well with the DOHA either. A 39-year-old employee of a federal contractor learned that fact when she was denied security clearance because evidence revealed a history of financial problems and about $32,000 in unpaid delinquent debts, despite being employed continuously since at least 1999.The DOHA judge adjudicating the case noted, “She did not present any documentary evidence of a good-faith effort to repay or otherwise resolve her indebtedness. There is insufficient evidence to explain, extenuate, or mitigate the security concerns stemming from

her history of financial problems.”Consumer credit checks are becoming a routine part of the job screening process more often with private employers, too.Robert Pickell, senior vice president of customer solutions for employment screening firm HireRight, Inc., said 32 percent of the respondents to its 2010 benchmarking survey indicated that they use check credits as part of their employment screening process. In a 2010 report on employment background checks by the Society for Human Resources Management, at least 50 percent of the respondents who conduct credit checks said they look at credit records as far back as seven years. And 64 percent of those

insideARM.com

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August/September 2010 Volume 5 Issue 8

INDUSTRY NEWS

Ask Dr. DebtConsumers seeking solutions to debt problems have a new

online resource through Ask Dr. Debt, a financial

education Web site that ACA International -- a nonprofit credit association unveiled.

“It’s essentially an online version of ‘Dear Abby’ for consumers with credit and

debt questions,” John Nemo, public relations director for ACA International, said in an e-mail. Nemo said visitors to the site will be able to search a

database of frequently asked questions and submit their own. Ask Doctor Debt also contains interactive tools

to educate consumers, such as budget calculators and a free personal financial

management Web course.

DID YOU KNOW ?National Recovery Agency

is PPMS, PCI-DSS andSAS-70 Type II Certified?

NRA IS LOOKING FOR GOOD EMPLOYEES!!

Florida Passes Amendments to Debt Collection Laws

August 21, 2010ACA International

Florida Senate Bill 2086 <http://www.flsenate.gov/cgi-bin/view_page.pl?Tab=session&Submenu=1&FT=D&File=sb2086c3.html&Directory=session/2010/Senate/bills/billtext/html/> recently passed imposing various regulations on debt collectors in the state. SB 2086:

* Creates new record retention requirements for debt collectors, and grants state regulators broader investigatory and enforcement authority including authority to levy higher administrative and civil penalties for noncompliance.

* Amends that state’s current requirement regarding informing a consumer of the assignment of his or her debt.

CDIA Action Update

August 2010www.CDIAonline.org

Data Integrity The House Financial Services Committee has passed H.R. 3421, the Medical Debt Relief Act. It would prohibit consumer reporting agencies from reporting paid medical debt to lenders. Senator Jeff Merkley (D-OR) is considering introducing a similar bill in that chamber. Action on either bill is uncertain since the legislative calendar is winding down in this election year. However, CDIA opposes legislative language that would prevent the reporting of complete and accurate data, thereby increasing the risk of properly underwriting loans.

Here is a copy of the bill: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h3421ih.txt.pdf

* Offers important clarification regarding methods collectors can use to determine the consumer’s local time zone and stating a collector may contact a consumer directly if the consumer’s attorney fails to respond to the debt collector within thirty days.

The bill is effective Oct. 1, 2010.

Sponsored by: THE WALL STREET JOURNAL

NRA RECOGNIZED AS:

Consumer Statistics for the First Quarter of 2010

All figures are quarterly, with the exception of unemployment data which is reported monthly. Changes in data are expressed in percent change from previous reporting period.

Source: LexisNexis

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INDUSTRY NEWS

SHRM respondents said if a credit check revealed a current outstanding judgment such as a lawsuit, it would affect their decision to withhold or withdraw the job offer. Forty-nine percent said accounts in debt collection would affect their decision to withhold or withdraw the job offer. Human resource experts said employers do credit checks to reduce or prevent theft, embezzlement or other criminal activity. In the case of the U.S. government, officials want to be sure an employee with access to classified information won’t be likely to divulge that information for a quick pay day. But Pickell said credit checks are not relevant to all jobs.“If you’re hiring someone in the accounting department, their credit background is job related. But if you’re hiring someone to work on a production line it isn’t relevant to the job and an employer probably should not be looking at it,” Pickell said.Many state lawmakers agree. The use of credit history reports for employment is allowed in most states. But Hawaii, Washington, Oregon and Illinois, have passed legislation since 2007 restricting how credit history investigations are used for employment purchases. And 20 states, plus the District of Columbia, introduced similar legislations this year, said Heather Morton, a legislative analyst with the National Conference of State Legislatures.Morton said state lawmakers are trying to balance employers’ needs to learn relevant information about a job applicant that may affect their business with consumers’ need to find employment and maintain financial privacy. But the issue is confusing and there are few resources for consumers that adequately address the negative impact of carrying large consumer debt burdens.ACA International Spokesman Mark Schiffman told insideARM.com that the

leading trade association for the accounts receivable management industry will step up its efforts this fall to make consumers more aware of its website, AskDoctorDebt.com. ACA is positioning the site as a tool to help consumers find answers to their questions about debt. While credit history may not factor into the application process for most job seekers, it may often play a role when seeking credit and buying or renting a home, Schiffman noted. “We are going to be more activity publicizing (AskDoctorDebt.com) through (mainstream) media, trade media and through our members,

encouraging them to use the website in their business and when talking with clients. Our goal is to encourage more folks to use it,” Schiffman said.Even if consumers put forth a good faith effort to clear their debts, the repercussions can linger, with most debts staying on credit reports for

seven years.The DOHA also appears to have little sympathy for victims of circumstance who fail to act to clear their name or remove the debt. One applicant alleged that her boyfriend charged $93,000 in debt on her credit card without her knowledge. He later died, leaving her liable for the bill. Though her ongoing payments towards a student loan showed a good faith effort in meeting some obligations, she was denied clearance for the job. The judge said she had income after expenses and she provided no evidence that she had established a payment plan or taken any concrete plan to resolve her debts. But the DOHA has shown a tendency to clear applicants who have wiped out or restructured their debt through bankruptcy, provided the agency was satisfied

that the applicant had since demonstrated better financial judgment. However, a 35-year-old employee of a federal contractor who, along with his wife, played the real estate market and sought relief through Chapter 7 bankruptcy had not showed a improved pattern of credit usage. The judge noted that the bankruptcy relief was granted in November 2009, but said the evidence showed the applicant has a history of financial problems and did not provide “full, frank and candid answers to questions about his financial record during the security process.”“Given the recency of the bankruptcy case and the surrounding circumstances, it is too soon to tell if applicant’s financial problems were purely situational, and it is too soon to determine if applicant is now conducting his affairs in a financially responsible manner,” the judge said.

Continued from page �

In a 2010 report on employment background

checks by the Society for Human Resources

Management, at least 50 percent of the respondents who conduct credit checks

said they look at credit records as far back as seven

years.

UPCOMING EVENTS

Keystone AAHAM MeetingKing of Prussia, PASeptember 21, 2010 Northeast UtilitiesCredit and Collections ConferenceAtlantic City, New JerseyOctober 6 - 8, 2010

National AAHAM Annual InstituteFort Lauderdale, FLOctober 13 - 15 , 201

American Cancer SocietyMaking Strides WalkCity Island, Harrisburg PAOctober 16, 2010

HFMA Annual InstituteAtlantic City, New JerseyOctober 20 - 22


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NEWS

Ramos bill would set criteria for reporting outstanding health care debt

Published: August 24, 2010Melissa Hayes/The Jersey Journal

Hoboken Assemblyman Ruben Ramos, Jr. plans to introduce legislation that would require health care providers to warn patients with outstanding medical bills before reporting them to credit agencies.

Hoboken Assemblyman Ruben Ramos Jr. will introduce legislation that would require health care providers to notify patients with outstanding debt before reporting them to a private collection agency or consumer reporting agency.

“Everyone has a responsibility to pay medical bills and debts and no one should escape or evade their responsibilities,” Ramos, a Democrat, said. “However, emergencies happen.

Sometimes unexpected medical costs are too much to pay all at once and good faith efforts are made. When these efforts are made, debt collectors shouldn’t be harassing people and threatening their credit history.”Ramos plans to introduce the bill when the Assembly is back in session.Under his legislation, health care providers would have to provide written notice at least 30 days before reporting a patient with an outstanding bill to a private collection agency.

The bill would also prohibit providers from reporting an outstanding balance to a consumer reporting agency until at least 45 days after the patient’s account has been referred to a private collection agency.

“This bill provides a lifeline for debtors to make their payments and not have it affect their credit,” Ramos said. “ At the same time, it also employs a measure of fairness to protect the interests of medical providers and debt collectors by allowing them to still pursue collections,” added Ramos.

Providers that violate the bill, if it becomes law, would be subject to penalties established by the commissioner of the state Department of Health and Senior Service or the director of the state Division of Consumer Affairs.

The Blood Drive has beenscheduled for:

Tuesday, November 2

Details to Follow in next issue of NRA Today

Please consider giving the gift of life

Cell Phone Only Use Hits New HighOf 24.5% In U.S.

InsideARM “Preliminary results from the July–December 2009 National Health Interview Survey (NHIS) indicate that the number of American homes with only wireless telephones continues to grow. One of every four American homes (24.5%) had only wireless telephones (also known as cellular telephones, cell phones, or mobile phones) during the last half of 2009—an increase of 1.8 percentage points since the first half of 2009.The percentage of adults living in wireless-only households has also been increasing steadily (see chart above). During the last 6 months of 2009, more than two of every nine adults lived in wireless-only households. One year before that (during the last 6 months of 2008), 2 of every 11 adults lived in wireless-only households. And 2 years before that (during the last 6 months of 2006), only 2 of every 17 adults lived in wireless-only households.

The percentage of children living in wireless-only households is also growing. In fact, for this population, the 4.6-percentage-point increase from the first 6 months of 2009 is the largest 6-month increase observed since 2003, when NHIS began collecting data on children living in wireless-only households.”

INDUSTRY

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AGENCY NEWS

NRA Client Website - A Success Our client website provides important information about our company and our accreditations.

NRA has designed the website to portray our company with an enhanced professional image and provide clients and prospective clients the information they need. We are excited to offer a more robust and user-friendly client-site to our clients as well as providing existing clients and prospective clients an opportunity to explore NRA’s services in more detail.

Check it out atwww.nragroup.com

NRA’s Counsel obtains MAP Membership Status

Elizabeth Rose, NRA’s Corporate Counsel has become a member of the Members’ Attorney Program (MAP) as of April 2010.

Members’ Attorney Program (MAP) provides members with resources—including up–to–the–minute legislative and case law information—to help defense, collection and in–house attorneys better represent their ACA member clients interests. In addition, through the state compliance chair program, MAP provides state units and their members with access to an attorney licensed to practice law in their state. Elizabeth attended the 14th annual MAP conference in July of this year in Washington D.C. in conjunction with ACA International’s Annual Convention and Expo.

Elizabeth Rose, EsquireNational Recovery Agency2491 Paxton StreetHarrisburg, PA 171111-800-360-9953 x [email protected]

“HULK” NRA’s Most Recent

Power House

National Recovery Agency recently added a Diesel Power Generator to address its clients concerns for continuity and disaster recovery. Running on 145 gallons of diesel fuel, the generator is able to provide power for 24 hours before having to be refueled (if power is lost or interrupted).

VIEW YOUR ACCOUNTS ON-LINE WITH “NAVIGATE”.WWW.NRAGROUP.COM

THIS IS A USER-FRIENDLY AND SECURE SITE THAT YOU CAN USE TO CHECK THE STATUS OF YOUR

ACCOUNTS, UPLOAD FILES AND MORE. NAVIGATE IS A CONVENIENT SITE FOR OUR CLIENTS.

FOR LOGIN INFORMATIONPLEASE CONTACT CLIENT SERVICES!

EMPLOYEE SPOTLIGHTAlonzo Hankerson currently holds the position of NRA’s Accounting Manager. He has been employed with NRA for nearly five years and is a member of NRA’s Management Team. He also volunteers as the Head Wrestling Coach of Bishop Mcdevitt’s Elementary Wrestling Team.

As part of NRA’s commitment to on-going training and leadership within the organization and the community, He will be attending the Community Leadership Series at Felicita Resort, starting on September 10th. A Retreat was conducted over a weekend and the program was carefully planned to provide individuals with 1) a foundation for interacting with the 42 members of the class; 2) an understanding of Leadership within the Harrisburg Area; 3) an understanding of the 9-month program; 4) the principles of Servant Leadership and Effective Community Service; 5) an overview of the history, demographics, challenges and current issues in the Capital Region.

The retreat weekend represents a 25-year tradition that removes leaders from their usual surroundings in order to open their minds to new opportunities.

NRA FILE TRANSFER VERIFICATION FORM

FILE NAME:

DATE OF TRANSFER:

CLIENT NAME:

CONTACT NAME:

CONTACT PHONE:

CLIENT NUMBER:

PLEASE SUBMIT THIS FORM [email protected]

If you have any questions, please feel free to call IT Supportat 1-800-360-9953 x 6736

PLEASE FORWARD THIS INFORMATION TO THE INDIVIDUAL WHO PLACES YOUR ACCOUNTS WITH OUR AGENCY.

Effective immediately, the following process applies to any and all clients who are referring accounts electronically to NRA. When referring an account file electronically, please use the format below to ensure timely download/upload of your data. It is suggested that you save this page and submit it with each electronic file.

PLACEMENT TOTALS

TOTAL NUMBER OF ACCOUNTS PLACED

DOLLAR VALUE OF ACCOUNTS PLACED $

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National Recovery places great emphasis on the importance of recovering our client’s portfolio. In addition to traditional methods of payment such as cash, money orders, personal, bank, and certified checks, we accept the following methods of debtor payment over the phone; as well as the ability to pay online at www.nationalrecovery.com.

Western Union/Quick Collect Credit AND DEBIT CardsMoneyGramBank Wire Check By Phone

•••••

METHODS OF ACCEPTABLE PAYMENT:

AGENCY NEWS

LET US “HOOK” YOU UP BY TURNING YOUR

OUTSTANDING DEBT INTO LIQUID CAPITAL.

1/800-360-9953 OR VISIT US ONLINE AT WWW.NRAGROUP.COM

call us today!!

INC 500/5000 Selects National Recovery Agency for the 4th Consecutive Year

August 27, 2010

INC 500/5000 Selects National Recovery Agency for the 4th Consecutive Year Americas Fastest Growing Companies

Americas Fastest Growing Companies

HARRISBURG, Pa., Aug. 27 /PRNewswire/ -- National Recovery Agency experienced 133 % Growth in the past three years and recovered over $165 million for its Clients. The dedicated Team of 270 employees has become the nationwide leader as the collection industries quality standard. /National Recovery Agency/- NRA is ACA (American Credit & Collection Association) Certified Agency, Certified as SAS 70 Type -II, Certification for PCI-DSS. NRA has won multiple awards nationally and regionally. The company is actively involved in community programs and extends support to many not for profit service organizations.

Steven C. Kusic, CEO of NRA said, “Maintaining high standards of quality for our employees in work performance and our commitment to 100% Client Satisfaction is the key to our continued success.”

Businesses can visit National Recovery Agency at http://www.nragroup.com

PASS IT ON:

Do you know someone who would like to receive our Newsletter?

We will be happy to include them on our mailing list. Go on-line at

WWW.NRAGROUP.COM and join now.

Questions or commentsabout the newsletter?

VISIT US AT:WWW.NRAGROUP.COM

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AGENCY NEWS

Hope starts with each and every one of us…and nothing can describe the hope that is inspired by walking with those who share a passion for defeating breast cancer. Breast cancer is a disease that affects women and men. We can do our part, by raising money, to help beat this disease!

There are expected over 6,000 walkers as this is the largest charity walk in Pennsylvania!

We have created a team called “NRA Group Collecting for a Cure” on the site: www.cancer.org/stridesonline. If you would like to JOIN OUR TEAM, please visit this site and register. If you do not have email access and would still like to participate, please contact, Kim Summerlot, Brad Huffman, Charlene Sarver, or Deb Sterling. One of us will register you.

The walk costs you nothing but, a few sponsors and a few strides. You will see pink Contributions Forms around the offices that you can use to raise money from your sponsors. Your sponsors can also contribute online. As well, you will find a “bucket” that you can donate money in whether or not you choose to participate.

This is your chance to get involved! TEAM UP TO FIGHT BREAST CANCER!

How Do I Get Involved?

What: American Cancer Society’s Breast Cancer Walk

When: Saturday, October 16th

Where: City Island, Harrisburg PARegistration begins @ 7:45 a.m.

Contact Us: 800-360-9953

The Adopt-A-Highway program is an effective way to reduce litter and the overall cost of litter removal in Pennsylvania. NRA shows that they care about the environment by volunteering to clear a the intersection of Interstate 81 and Progress Avenue four times a year. NRA’s volunteers are provided with complete safety training as well as orange safety vests and highway warning signs to be used during litter pick-up.

Our most recent event occurred on Friday August 20th. With great appreciation, thank you to the following committee members for volunteering your time and dedication!

“Adopt-A-Highway offers NRA employees the opportunity to show their pride in our beautiful state by caring for the environment.

The Adopt-A-Highway Program in Pennsylvania has had more miles adopted

than any other state in the nation!

NRA Volunteers:

Brad Huffman, Committee Chair Ashton Novinger Kenneth Connor David Kell Lori Gutshall Emma Yingling

NAVIGATE WEBINARConducted by Trish Moritz,

Director Client ServiceOCTOBER 14, 2010 at 2:30

Must register by Thursday October 7, 2010 - REGISTRATION IS FREE!

Register via email to [email protected]

An invite and instructions for the Go To Meeting will be sent on

Friday October 8, 2010


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VOLUME 5, ISSUE �0October- 20�0


2007 ~ 2008 ~ 2009 ~ 2010


Inside this issue:


Industry News P.2

Agency News P.5

On September 13, NRA’s legal team participated in an ACA seminar called “Critical Components to Review in Creditor-Client Contracts.” We would like to share what we learned to assist our current and prospective clients in reviewing their customer contracts to facilitate collection and avoid litigation.1 Below are some tips and pointers.

Collection Costs, Fees and Interest 1) Each fee should be expressly referenced and allowed for within the original contract/agreement creating the debt. Examples would include attorneys’ fees, collection fees, service charges, interest and convenience fees. 2) Make sure any fees, interest or charges set forth in the contract are allowed by federal and state law. Various state laws prohibit certain fees and many limit interest amounts. 3) Why? a. Because the Fair Debt Collection Practices Act (FDCPA) prohibits: i. collecting any amount unless it is expressly authorized by the

1 Legal Disclaimer: This information is not intended to be legal advice and may not be used as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel.

agreement creating the debt or permitted by law ii. falsely representing the character, amount or legal status of any debt iii. communicating or threatening to communicate credit information which is known or should be known to be false b. The Fair Credit Reporting Act (FCRA) requires that the amount of the debt is accurate and complete. c. The Federal Trade Commission (FTC) limits the amount of allowable collection charges.

Default and Credit Reporting 1) Define the term “Default” in the original contract and make sure it is reasonable. 2) Make sure your practices and procedures are consistent with that definition. 3) Why? a. The FTC is focusing on time-barred debt. b. The FDCPA applies to accounts that are in “default” so it is important for that to be clearly defined. c. The FCRA dictates how long the information stays on a credit report, which is based on the date of delinquency (default). d. State statutes of limitation are based on the date the consumer defaulted on the debt.

Consent 1) Review your state’s laws regarding recording calls and put the consent language into the original contract that allows for it. 2) Original contracts involving medical debt or intake forms should include all the language required under the Health Insurance Portability and Accountability Act (HIPAA). 3) Include provisions addressing electronic payments, credit reporting, checking employment history, calling cellular phones, and receiving automated and prerecorded messages. 4) Why? a. The FTC requires consent to electronic payments. b. HIPAA requires medical providers to include consents regarding the disclosure of protected health information. c. The Telephone Consumer Protection Act (TCPA) requires consent to dial cellular phones using an automated dialer and/or

Tips and Pointers for Clients: Customer ContractsElizabeth Rose, EsquireOctober 15, 2010


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October2010Volume5Issue10

INDUSTRY NEWS










is PPMS, PCI-DSS andSAS-70 Type II Certified



prerecorded message. d. The FCRA does not automatically grant the right to pull a credit report without consent. e. State laws require certain consents regarding recording calls.Arbitration Provisions 1) Review and re-evaluate arbitration provisions. Establish whether it is actually beneficial. Ask whether you would rather have the option to litigate to collect defaulted debt. 2) If using an arbitration provision, understand what it says and confirm the rules chosen, the type of forum, the right to bring an action to court, the choice given to the consumer and other aspects of the provision itself are consistent and intentionally desired. 3) Make sure the choice of law is known and reviewed. 4) Why? a. FTC is recommending regulations regarding arbitration provisions. b. State laws will affect the choice of law provisions and choice of court. c. State agencies are bringing suits against arbitration forums that provide collection arbitration forums.

ConclusionSimple contract modifications and collaboration between the creditor and its collection agency can help to limit unnecessary litigation. Liability, however, can never be completely avoided if the contract is not supported by the proper practices and procedures.

Paid Medical Debt Relief Act of 2010Deletion of Paid Medical Debt HR 3421, the Medical Debt Relief Act of 2010, passed the House of Representatives on September 29 by a margin of 336-82. The bill would prohibit the reporting of paid medical debt by credit reporting agencies. CDIA raised concerns that the legislation is nothing more than sanctioned credit repair. The bill now waits on Senate action. CDIA is reaching out to key Senators regarding the bill.

Check us out atwww.nragroup.com

FDCPA Amendments Senator Al Franken (D-MN) introduced S 3888, “The End Debt Collector Abuse Act” on September 29. The bill proposes several amendments to the FDCPA. It focuses on purchased debt issues by calling for the inclusion in the validation notice of the name and address of the last person to extend the credit with respect to the debt being pursued. It also would increase the liability limits for violations of the FDCPA and prohibit collectors from seeking arrest warrants to collect debts. CDIA does not expect this bill to pass the 111th Congress.

COLLECTION TIP OF THE MONTH:

The more information you collect from your customer upfront, the more likely your agency will be successful later.

Continued from Page �


FILE NAME:

DATE OF TRANSFER:

CLIENT NAME:

CONTACT NAME:

CONTACT PHONE:

CLIENT NUMBER:





PLACEMENT TOTALS



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UPCOMING EVENTS

HFMA Annual InstituteAtlantic City, New JerseyOctober 20 - 22

November 10-12, 2010ACA’s Fall ForumWednesday-FridayChicago, ILacainternational.org/calendar

Florida Parking Association31st Annual Conference and Trade ShowDaytona Beach, FLDecember 1 - 3

INDUSTRY NEWS

PASS IT ON:Do you know someone who would like to receive our Newsletter?

We will be happy to include them on our mailing list. Go on-line atWWW.NRAGROUP.COM and join now.

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DBA MEMBER ALERTUPDATE REGARDING FLORIDA STATUTE § 559.715 NOTICE OF ASSIGNMENT The Florida Creditors Bar Association was able to defeat most of the burdensome proposals to amend the Florida Consumer Collection Practices Act. Discussions regarding changes to the Florida Notice of Assignment statutes resulted in an understanding that the section would not change. However, the section was changed and is effective October 1, 2010. DBA, ACA, the Florida Collectors Association, and the Florida Creditors Bar Association have attempted to obtain clarification from the Attorney General’s office to clarify that the amendment does not operate as a stay to collection activity, or at a minimum is only a 30 day stay on suit. The Trade Association may not be able to obtain this clarification until the new Attorney General is in office in January 2011 – due to the election cycle.

The new section reads as follows:Assignment of consumer debts. This part does not prohibit the assignment, by a creditor, of the right to bill and collect a consumer debt. However, the assignee must give the debtor written notice of such assignment as soon as practical after the assignment is made, but at least 30 days before any action to collect the debt. The assignee is a real party of interest and may bring an action to collect a debt that has been assigned to the assignee and is in default. Members are advised to review the Bill 2086, effective October 1, 2010, with their counsel. To view the Bill please click here.

This Alert is in no way intended to be legal advice and members are encouraged to consult with counsel of their choice.

NRA Book ClubNRA is offering its staff reading material that is meant to educate, train, and motivate. NRA’s staff is excited about being given the opportunity to enhance their knowledge in various areas of business.

FEATURED BOOK:

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INDUSTRY NEWS

A slanted look at debt collectionBy WILLIAM G. COTTRELL / Star TribuneOctober 17, 2010 It has been frustrating to read “Hounded,” the Star Tribune’s series about the consumer debt collection industry. The series is basically a one-sided editorial, reflecting the writer’s view of what goes on in that world. These slanted articles focus on the exceptions rather than the rule; often shade the truth, state the law incorrectly, and provide isolated stories of horrible mixups, then imply that these things happen all the time. The articles also use statistics to imply that debt collection is on the rise, ignoring the fact that consumer debt and delinquencies have been on the rise for years and are a huge problem in our culture. The articles barely touch on credit card abuse and fraud and instead focus on a few collection agencies and lawyers who may be too aggressive in collecting debts. As an adjunct professor for 11 years at William Mitchell College of Law, where I taught a course on creditor-debtor law, and as an attorney with

28 years in the business of collecting debts and representing debtors, I know something about the topics covered in these articles. Readers should be made aware of the following: 1 Only a judge can issue a bench warrant for someone’s arrest. The judge ordinarily will have had a hearing, and the person subject to the bench warrant will have been personally served with a court order compelling appearance at the hearing. In my experience, the judge will not issue the bench warrant if the person shows up in court. Believe it or not, some people ignore every collection letter, lawsuit and court order and fail to even attempt to honor their obligations, hoping that the debt collector will give up. Only after they are arrested for disobeying a judge’s order will they finally provide some cooperation. These bench warrants are not limited to the collection industry. Any person involved in any lawsuit must obey court orders or face contempt of court. Ask Denny Hecker. 2 Debtor’s wages and bank accounts cannot be seized by creditors without due process of law. Only licensed attorneys, who can be disbarred and/or sued if they violate the law, can use these methods.

It is true that if a debtor does not respond to a lawsuit within 45 days, the creditor’s attorney can serve legal papers to freeze the debtor’s accounts. However, the debtor is provided with easy-to-read forms allowing them to claim that the funds in the account are exempt from garnishment if from any type of government assistance, and even a person who has been out of prison for less than six months can exempt the funds in the account. If the creditor does not agree with the claimed exemption, it is the

creditor’s attorney who will have to schedule a court hearing and let the judge decide. 3 Twenty-five percent of a person’s wages can be garnished, but the same exemption form can be used to prevent that from happening. If a person’s income is low enough, even less can be garnished. 4 Bill collectors and law firms are not allowed to “hound” debtors. Federal and state laws prevent the harassment of debtors. The federal law is the Fair Debt Collection Practices Act, which allows debtors to write one letter to the law firm or collector and all collection efforts must halt with the exception of lawsuits. If the debtor disputes the debt, the debtor can insist that the creditor’s attorney or the collection agency provide proof of the validity of the debt or halt collection of the debt. If you want to read more about it, simply Google the FDCPA. It is a rigorous federal law that imposes large fines and sanctions as well as an award of attorney fees if the law is violated. Debtors can tape-record phone calls; they can have a third party listen to the phone calls, and they can easily find an attorney to file a lawsuit for any violation. As one of the articles in the series pointed out, a whole industry has sprouted wherein lawyers try to catch the collector making a mistake, and even technical violations are litigated. For example, I sent one single demand letter to a debtor and was sued because, unbeknownst to me, the debt was not owed. That one letter cost me $2,000 to settle the case.


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NEWSAGENCY

Tips to CombatConsumer Complaintsby Patrick LunsfordSeptember 1, 2010

Complaints from consumers recorded by the Federal Trade Commission regarding third party debt collection agencies increased 185 percent from 2007 to 2009.

It is important for collection agencies to guard against the impact of frivolous complaints and directly address serious ones. Here are some steps ARM companies can take to protect themselves against complaints: • Obtain correct location information from skiptracing efforts – calling the wrong party over and over can result in a “harassment” complaint. • Always verify identity when on a call (SSN, DOB, etc.) When you encounter incorrect contact information, confirm it and remove it from your system or flag the ac-count as potentially having incorrect contact info. • Always stay calm – Never get baited into raising your voice or saying something you shouldn’t. • Managers: record all calls – if a consumer files an incorrect complaint against your firm, have evidence to support your claim. In addition to providing a valuable backstop against complaints and lawsuits, call recordings make excellent training tools. • Collectors: remember that you are being recorded. • Structured compensation programs should include bonuses for compliant behavior. One metric could be a running tally of calls without a complaint that resets annu-ally. • Managers: fire verified repeat offenderswithout hesi-tation, and regardless of collection performance. • Collectors: expect to lose your job over verified complaints, regardless of collection performance.

EMPLOYEE SPOTLIGHT NRA’s Director of Client Services, Trish Moritz is a graduate of Shippensburg University. She has been employed with NRA for more than 15 years and is an instrumental part of the NRA Executive Committee. As the Director of Client Services she leads well trained professionals who are ready to assist our clients. In addition to her participation within NRA’s Community Caring Programs, she is very active in her community. Trish is a Troop Leader for the Girls Scouts of America. She volunteers yearly for the Children’s Miracle network Telethon, and is a Director of Youth Ministries. She lends her time to FOOSE Elementary School by donating books and reading to children.


THIS IS A USER-FRIENDLY AND SECURE SITE THAT YOU CAN USE TO CHECK THE STATUS OF YOUR

ACCOUNTS, UPLOAD FILES AND MORE. NAVIGATE IS A CONVENIENT SITE FOR OUR CLIENTS.


Changing Seasons Changing Lives!

The Fall Blood Drives have been scheduled for:

Tuesday, November 2, 2010from 12:30 p.m. to 3:30p.m. at the Paxton Street

office

Thursday, November 11, 2010 at the Crossgate Drive office

from 1:00 p.m. to 4:00 p.m.

Signup sheets have been posted next to the time clocks

Please consider giving the gift of life!



•••••


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AGENCY NEWS

On October 16th, National Recovery Agency stepped up in supporting the largest charity walk in Pennsylvania - “Making Strides toward a world with more birthdays”. NRA collected more than $ 2,758.00 in supporting the American Cancer Society’s Breast Cancer Walk.

“NRA Group Collecting for a Cure”

Hope starts with each and every one of us… Breast cancer is a disease that affects women and men. Are you willing to join the cause?

TEAM UP TO FIGHT BREAST CANCER!

FTC Seeks To Clarify Federal Law On “Deceased Debt” Collections Collections & Credit Risk | Monday, October 4, 2010 By Darren Waggoner

The Federal Trade Commission wants public comment on a proposed policy statement clarifying when the FTC will take action under the Fair Debt Collection Practices Act and the FTC Act against companies trying to collect the debts of deceased consumers. In collecting these debts, the FDCPA generally allows collectors to contact only the decedent’s spouse, or the executor or administrator of the decedent’s estate. State probate laws since the FDCPA was enacted in 1977 have expanded the types of individuals authorized to pay a decedent’s debts from assets in the decedent’s estate - beyond the categories expressly permitted under the FDCPA. In the proposed enforcement policy statement issued today for public comment, the FTC seeks to reconcile the law’s requirements with state probate law developments. The proposed policy statement provides guidance

about what collectors must do to identify persons with whom they may communicate about paying the decedent’s debt without improperly revealing the debt to others. In addition, the statement emphasizes that, in communicating with someone who is authorized to pay the debts from assets of the decedent’s estate, collectors must avoid creating the misleading impression that the person is personally liable or could be required to pay using his own assets or assets held jointly with the decedent. The proposed statement notes that to avoid this misleading impression collectors may have to disclose that this is not the case. The FTC, under the proposed statement, would not take legal action alleging that a collector violated the FDCPA by communicating about the decedent’s debts with the decedent’s spouse, the executor or administrator of the decedent’s estate or anyone else who is authorized to pay the debts from assets in the decedent’s estate. The FTC is accepting public comments on the proposed policy statement until November 8. Comments should include the reference “Deceased Debt Collection Policy Statement.” Collections & Credit Risk is interested in hearing from collection industry participants about this issue and the FTC’s proposed statement. Contact Darren Waggoner, editor, at 815.463.9008 or by e-mail at: [email protected]

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5 If debts are overwhelming, a person can file for bankruptcy and have most of the debt discharged. In any industry, there will always be a few who disregard the laws. It is unfortunate that the Star Tribune decided to cause so much confusion and concern. Our own Sen. Al Franken has now introduced legislation to curb collection abuse, based on this series of articles. Why would a powerful senator propose changes in the laws of this country based on the writings of a couple of journalists who decided it would be interesting to run a one-sided series on debt collection? Maybe if the paper chose to run a series on the trillion-dollar federal deficit, the senator would sponsor legislation to balance the budget.

Continued from page 5

In order to be eligible, nominated com-panies had to show revenues of at least

$500,000 in each of the fiscal years ending 2007, 2008, and 2009. Eligible companies had to be for profit entities headquartered in Adams, cumberland, Dauphin, Lancaster, Lebanon, Perry or

York county.

AGENCY NEWS


�

VOLUME 5, ISSUE ��November- 20�0


2007 ~ 2008 ~ 2009 ~ 2010


Inside this issue:


Agency News P.2

Industry News P.6

Better Business Bureau Changes RatingMethodology, Benefiting Debt Collectors

The Council of Better Business Bureaus has confirmed to ACA International that it has adopted and implemented a revision to its ratings methodology regarding the definition of “customer.” This change, while not specific to the debt collection industry, will have a positive impact on the ratings of ACA members who are also members of their local Better Business Bureau.

One of the measures the BBB uses to rate companies is the number of complaints versus the size of a business. In the past, this was based on the number of customers the business serves—not on the number of consumers contacted. For debt collection agencies, ratings were skewed due to this definition of “customer.” Under the BBB’s new definition of “consumer,” debt collection agency size will now be based on the number of customers served and the number of consumers it contacts each year.

The following language is a direct citation from BBB communication with ACA:

“Customers” are those persons/entities that fall into one or more of the following categories:

October 25, 2010 InsideARMPress Release

October 25, 2010

• Consumers who purchased a product or service from the business; or • Consumers who entered into a contractual relationship with the business; or

• Consumers who directly received services from the business, or were contacted by the business with a demand for payment of money owed, ONLY IF the BBB generally accepts complaints from those consumers against this type of business.

Note: The above definition is intended to include debtors who are contacted by a collection agency if the BBB generally accepts complaints from debtors against collection agencies.

BBB has formally announced the policy change to each of its local presidents but the change cannot be automatically implemented. This new rating methodology will only go into effect when an ACA member contacts their local BBB to update their company profile.

Contact your local BBB and update your profile to ensure your company size is based on the number of customers you serve and the number of consumers you contact each year.


3 OBTAIN STATE OF NEVADA COLLECTION

MANAGER CERTIFICATION! Congrats to:

Charlene SarverAshley WilliamsYvonne Cooper

2


November2010Volume5Issue11

UPCOMING EVENTS

Florida Parking Association31st Annual Conference and Trade ShowDaytona Beach, FLDecember 1 - 3

AGENCY NEWS

FEATURED BOOK: NRA Book ClubNRA is offering its staff

reading material that is meant to educate, train,

and motivate. NRA’s staff is excited about being given the opportunity to enhance their knowledge in various

areas of business.

DECEMBER 2010

We here at NRA would like to extend a warm welcome to Brenda Milovich. Brenda recently accepted the position of Controller with NRA. She is a graduate of Penn State University with a BS degree in Professional Accountancy, and is a licensed CPA in the Commonwealth of PA.

Currently, she is President of the South Central Chapter of the PSPA (Pennsylvania Society of Public Accountants); other memberships include: AICPA (American Institute of CPAs), PICPA (PA Institute of CPAs), and NSA (National Society of Accountants).

Brenda resides in Lebanon, PA with her husband, Ed, and their German Pinscher Haley. She and her husband are both private pilots and enjoy flying our Grumann airplane on the weekends. We attend Zion UMC in Myerstown, PA where she serves on the Stewardship and Finance committee and the Endowment Fund committee.

WELCOME ABOARD BRENDA!. WE ARE HAPPY TO HAVE YOU!

Employee Spotlight

Mary Neubold 8 YearsWanda Boal 5 YearsStephanie Ebersole 5 Years

Keystone Chapter AAHAM MeetingGrantville ~ Holiday InnDecember 9, 2010


FILE NAME:

DATE OF TRANSFER:

CLIENT NAME:

CONTACT NAME:

CONTACT PHONE:

CLIENT NUMBER:




Effectiveimmediately,thefollowingprocessappliestoanyandallclientswhoarereferringaccountselectronically to NRA. When referring an account file electronically, please use the format below to ensure timely download/upload of your data. It is suggested that you save this page and submit it with each electronic file.

PLACEMENT TOTALS



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THIS IS A USER-FRIENDLY AND SECURE SITE THAT YOU CAN USE TO CHECK THE STATUS OF YOUR ACCOUNTS, UPLOAD FILES AND

MORE. NAVIGATE IS A CONVENIENT SITE FOR OUR CLIENTS.




•••••


AGENCY NEWS

It is that time of the year again…National Recovery Agency’s food drive begins! Every year NRA partners with the Central Pennsylvania Food Bank to promote a company-wide food drive.

Each year, food donations to the Central Pennsylvania Food Bank bring in millions of pounds of items. Many of us have expressed your desire to give back to the community...this is our chance!

You can help your local food bank too. Non-perishable items like these are the most valuable:

• Canned tuna• Canned meats and stews• Soup• Peanut butter• Canned fruits and vegetables• Packaged meals• Packaged pasta and rice• Canned and dried beans• Pure fruit and vegetable juices• Baby food, cereal and formula (must be within code date)

Please remember that the Department of Health requires that all cans have labels and that packaged goods must be factory-sealed, in good condition, without rust or severe dents. Health laws also prohibit the distribution of home-canned or home-packaged foods.

National Recovery Agency’s goal this year is 500 pounds of food!

National Recovery Agency will be closed

November 25th thru 28th in observance of the Thanksgiving Holiday

Have a Safe Holiday Season from NRA!

The ACA Professional Practices Management System (PPMS™) is a business management systems model designed and offered exclusively through (ACA). PPMS™ introduces collection agencies to industry specific business practices and procedures that, once implemented, lead to the operation of an efficient, fiscally sound, ethically responsible and legally compliant organization. To achieve and maintain PPMS™ Certification status, collection agencies must complete four steps: training, implementation, documentation and renewal. PPMS™ certification is a comprehensive process and, to this day, less than 100 agencies globally share the unique distinction of being PPMS™ certified by ACA International.

NRA EARNS RE-CERTIFICATION FOR PPMS!

5



AGENCY NEWS

IngredientsCrust3/4 cup whole-wheat pastry flour (see Note)3/4 cup all-purpose flour1 tablespoon sugar1/4 teaspoon salt2 tablespoons unsalted butter3 tablespoons canola oil3-4 tablespoons ice water

Filling1 15-ounce can unseasoned pumpkin puree1 teaspoon ground cinnamon1/2 teaspoon ground nutmeg1/4 teaspoon ground ginger1/4 teaspoon ground cloves1/4 teaspoon salt1 14-ounce can low-fat sweetened condensed milk2 large eggs, lightly beaten

Preparation

1.To prepare crust: Whisk whole-wheat flour, all-purpose flour, sugar and salt in a medium bowl. Melt butter in a small saucepan over low heat. Cook, swirling the butter, until it’s light brown, 30 seconds to 1 minute. Transfer to a small bowl to cool. Stir in oil. Slowly stir the butter-oil mixture into the dry ingredients with a fork until the dough is crumbly. Gradually stir in ice water, adding enough so the dough holds together and feels moist. Press the dough into a flattened disk.

2.Overlap 2 sheets of plastic wrap on a work surface, place the dough in the center and cover with 2 more overlapping sheets of plastic wrap. Roll the dough into a 12-inch circle. Remove the top sheets and invert the dough into a 9-inch pie pan. Press the dough into the bottom and up the sides of the pan. Remove the remaining plastic wrap. Fold the dough under at the rim and crimp or flute the edge (see Tip).

3.Position rack in lower third of oven; preheat to 425°F.

4.To prepare filling & assemble pie: Whisk pumpkin, cinnamon, nutmeg, ginger, cloves and salt in a medium bowl until well combined. Add condensed milk and eggs and whisk until smooth. Pour the filling into the prepared crust.

5.Bake the pie for 15 minutes. Reduce the oven temperature to 350° and bake until the filling is set and a knife inserted in the center comes out clean, 35 to 40 minutes more. (Cover the crust edges with foil if they are browning too quickly.) Let cool completely on a wire rack before serving.Tips & Notes

•Note: Whole-wheat pastry flour is milled from soft wheat. It contains less gluten-forming potential than regular whole-wheat flour and helps ensure a tender result in delicate baked goods while providing the nutritional benefits of whole grains. Both are available in large supermarkets or natural-foods stores (or online from bobsredmill.com or kingarthurflour.com). Store in an airtight container in the freezer.

•Tip: To crimp pie crust, use one hand to pinch/flute the edge of the crust between your thumb and side of your index finger.

Per serving: 292 calories; 9 g fat (3 g sat, 5 g mono); 53 mg cholesterol; 22 g added sugars; 7 g protein; 3 g fiber; 174 mg sodium; 482 mg potassium.Nutrition Bonus: Vitamin A (137% daily value).

Holiday Pumpkin Pie from our home to yours...

** Pumpkin Puree

1. Preheat the oven to 350 degrees F.2. Split the pumpkin in half and seed it.3. Remove the stringy fibers by scraping the insides with a metal spoon.4. Place the two halves cut side down in a roasting pan along with 1 c. water.5. Bake the pumpkin until meltingly tender, about 90 minutes.6. Scoop the flesh out of each pumpkin half.7. Puree in a food processor fitted with a metal chopping blade.8. Use as needed.

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INDUSTRY NEWS

COLLECTION TIP OF THE MONTH:

Train the customers from the inception of the relationship. Explain due dates and collection policies to new customers as soon as the first payment becomes one day past due.

Consumers Are Paying Less on Monthly Payments than Three Years Ago:ExperianNovember 12, 2010 Press Release

Costa Mesa, Calif. — Experian®, the leading global information services company, released its insights today on average monthly payments of the top 25 metropolitan areas. The study found that nationally, consumers are paying $903 per month on their bills, which could include a combination of credit cards, auto loans and leases, and mortgages—a decrease of two percent in the last three years.

The study also reveals that Washington D.C., Seattle and Baltimore top the list with the highest average monthly payments with Washington D.C. coming in at 42 percent higher than the national average. Cities with the lowest payments include Cleveland, Tampa and Pittsburgh.

Results ranked by highest to lowest by average monthly payment amounts are detailed below: Metropolitan area Average monthly payment Difference from national average:

1. Washington, D.C. $1,285 42% 2. Seattle $1,135 26% 3. Baltimore $1,133 25% 4. Boston $1,105 22%

5. Denver $1,104 22% 6. San Francisco $1,098 22% 7. San Diego $1,076 19% 8. Sacramento $1,045 16% 9. Los Angeles $1,024 13% 10. Chicago $1,017 13% 11. Philadelphia $1,011 12% Minneapolis $1,011 12% 12. New York $989 10% 13. Atlanta $986 9% 14. Dallas $970 7% 15. Phoenix $957 6% 16. Portland $948 5% 17. Cincinnati $920 2% 18. Houston $889 -2% 19. Columbus $888 -2% 20. St. Louis $886 -2% 21. Miami $867 -4% 22. Detroit $832 -8% 23. Cleveland $812 -10% 24. Tampa $791 -12% 25. Pittsburgh $763 -16%

“The trend we’re seeing is that consumers have lower payments, indicating both proactive deleveraging by consumers and tighter limits from lenders and certainly consumers are making fewer major purchases such as homes and cars than they were a few years ago,” said Michele Raneri, senior director of analytics, Experian. “There are many ways to manage and develop a positive credit score and good payment habits. Paying bills on time is generally the single most important contributor.”

Belowaresometipstotakeintoconsiderationwhenmakingamajorpurchase:

•Get your credit report. Before approving your request for a home loan, mortgage lenders review your credit report. If you review your credit report in advance, you’ll see yourself from a lender’s perspective.

•Be prepared. When lenders review your credit report, they evaluate how much you already owe, how much unused credit you have available, how prompt you are in paying your debts and whether you’ve recently applied for new credit.

•Count your savings. To buy a house, you generally need a down payment in the range of 5 percent to 20 percent

of your new home’s purchase price, depending on your credit risk. You also need money for closing costs and be sure to set aside extra funds for emergencies. If you spend everything on your down payment, you’re statistically more likely to lose your new home to foreclosure sometime in the future.

•Make your payments. How much you borrow, how much you owe and when you pay become a part of your credit history. When you apply for new credit purchases, other lenders will review this history. Late payments can stay on your credit report for up to seven years, can keep you from buying another house or can make it more expensive to buy a car. A good credit history proves that you manage your finances well. It lets you enjoy using credit at your convenience and at a lower cost.For more information on managing credit, visit http://www.experian.com/credit-education/credit-information.html.

For more information on average debt levels per consumer in the top 20 metropolitan areas and credit card trends please see Experian’s previous studies, Experian ranks top 20 major US metropolitan areas by average debt per consumer and Experian provides insight into credit card trends of the top 20 major metropolitan areas.

Methodology

The data was pulled and analyzed by Experian Decision Sciences using a statistically relevant sampling of Experian’s File OneSM consumer credit database. Credit files analyzed had all personal identification informa-tion removed. They then were filtered through Premier AttributesSM, the credit industry’s most robust, accurate and comprehensive set of credit at-tributes that provides consumer data at the most granular level, facilitating enhanced modeling opportunities. Experian’s credit study data score av-erages are based on VantageScore®.

For more information, visit http://www.experianplc.com.

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INDUSTRY NEWS












Facebook Friend or Foe? Debt Collectors Explore Online InformationNovember 15, 2010 Press Release

November 15, 2010

Anyone who has ever carried an overdue debt knows how important it can be to stop creditor harassment. But times once were that the perpetual nuisance

came in the form of rude phone calls at odd hours or a blizzard of intimidating letters. In our Web 2.0 world, consumers who are facing debt problems must also be wary of the availability of information about them on the Internet, particularly via such popular sites as Facebook and MySpace.

As the economy has worsened and financial problems have escalated, collection agencies have increasingly brought a bounty hunter’s mentality to their henchman’s task. Motivated by the promise of big profits for collecting debts often purchased for pennies on the dollar, debt collection companies have found that much can be learned about individuals by looking at their profiles, or snooping after information posted by friends and family on blogs and other public sites.

Debt collectors generally use interactive online resources in three


distinct ways:

•Determining a person’s whereabouts, or confirming suspicions about a person’s specific location, particularly when trying to contact someone with a common name•Obtaining clues about an individual’s actual financial situation by looking for evidence of travel, major purchases or other spending habits•Posting directly in a public forum to humiliate and harass a person in front of peers and family

For the most part, the first two strategies are legal. But publicizing a debt to shame a debtor implicates Arizona consumer protection laws as well as the federal Fair Debt Collection Practices Act (FDCPA). When things get this bad, it’s time to take control.

Protecting one’s own privacy is very important regardless of whether or not you expect to be tracked down by a collection agency for unpaid debts. Everyone with a Facebook account or other interactive online profile should be completely familiar with their personal privacy settings, and individuals who anticipate legal action should be especially careful. Always remember the best advice you got in childhood: don’t talk to strangers.

PASS IT ON:Do you know someone who would like to receive

our Newsletter?

We will be happy to include them on our mailing list. Go on-line at

WWW.NRAGROUP.COM and join now.



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NEWSINDUSTRY

23% of Identity Theft Cases are Discovered by Collectors

According to the FTC, of the roughly 1.8 million new identity theft cases each year, about 23 percent are discovered by debt collectors making contact. You’re welcome, America!

Third Party Debt Collectors an Important Partner in the Recovery of Government-Owed Debt October 28, 2010 Press Release October 28, 2010

MINNEAPOLIS - ACA International, the leading voice for the debt collection industry, is pleased to learn of the September 2010 Government Accounting Office (GAO) report reinforcing the value debt collectors provide American taxpayers in the collection of unpaid taxes to the Internal Revenue Services (IRS).

In 2009, when the IRS moved to stop using private debt collectors, ACA vehemently opposed the move based on the same findings as the GAO: “IRS’s comparative study of the PDC program (private debt collection) was not soundly designed to support its decision on whether to continue contracting out debt collection.”

“Debt collectors provide a very important public service to taxpayers by returning billions of uncollected fines, fees and taxes to federal, state and local government,” said ACA International CEO Rozanne M. Andersen, Esq. “Collecting these government-owed tax dollars reduces the need for future tax increases, keeping more money in the pocket of hard working America consumers.”

In 2009, third party debt collectors recovered $788 million of the reported $30.9 billion owed to the federal government, not including the Internal Revenue Service. From 2006-2009, the last year the IRS used third party debt collectors, $80 million in unpaid taxes was returned to taxpayers.

More than 43 states currently use third party debt collectors to help recover delinquent receivables. In 2009 the National Association of Counties reported that local governments had more than $40 billion in uncollected taxes and fees for which they were using third party debt collection firms to recover. Typically, third party debt collectors recover an estimated 15 percent of government debt; or approximately $6 billion to local government taxpayers.

“We applaud the support Senator Charles Grassley has shown regarding private debt collectors working on behalf of the IRS. We hope he continues his efforts and look forward to working with him and other Members of Congress to renew this important initiative that once allowed $80 million to be returned to the federal government,” said ACA International President Martin Sher.If a consumer is contacted, talk with the debt collector to verify or dispute the debt; never allow yourself to be threatened or harassed; and visit www.askdoctordebt.com to find reliable information about debt collection and consumer rights.

ACA International, the Association of Credit and Collection Professionals, is the comprehensive, knowledge–based resource for success in the credit and collection industry. Founded in 1939, ACA brings together more than 5,000 members worldwide, including third–party collection agencies, asset buyers, attorneys, creditors and vendor affiliates. ACA International establishes ethical standards, produces a wide variety of products, services and publications, and articulates the value of the credit and collection industry to businesses, policymakers and consumers. For more information about ACA International, visit www.acainternational.org.


�

VOLUME 5, ISSUE �2December- 20�0


2007 ~ 2008 ~ 2009 ~ 2010


Inside this issue:


NRA Contributes to PA Food Bank P.2 NRA Donates to Local Toy Drive P.3

Bankruptcy Filings Drop P.5

Are your Collectors at Risk? P.6

By Rachel Fields | December 02, 2010

Maintaining accounts receivable is necessary to improve your billing process. Daria Semanyshyn of Advanced Medical Practice Management discusses four steps to audit your A/R and catch problems in a timely fashion.

1. Run monthly A/R reports. Ms. Semanyshyn says your billing management should run monthly reports and maintain a spreadsheet that recaps monthly charges and payments, month-end aging buckets, average days in A/R and A/R over 90 days. “Within a few months, you should be able to determine your center’s norm and positive and negative trends,” she says.

She says monthly reports are essential to a healthy A/R, as any increase in aging buckets, average days in A/R or A/R over 90 days should be addressed immediately. “Don’t wait another month to see if things stabilize,” she says. “More often than not, changes to these numbers indicate problems.”

2. Enforce follow-up procedures. Once your billing or A/R manager has identified problems in your A/R trends, he or she should follow an established policy to make a record of the error. Ms. Semanyshyn says these policies should include “making notes in your billing system describing the action to correct the claim.” The notes should include reference numbers, names and date from your contact with the insurance company.

3. Review unpaid claims. Every month, your billing supervisor should review every unpaid claim to make sure staff members are following up on correcting and appealing claims. “This should be done as a normal monthly routine to ensure accountability of the work your staff is performing,” she says. If you audit staff follow-up practices on a monthly basis, you will be able to catch poor performance or claims that have fallen through the cracks in a timely fashion.

For ASCs without the resources to conduct routine audits, Ms. Semanyshyn recommends conducting a staff audit at the first sign of spiking aging buckets or an increase in average days in A/R or A/R over 90 days. “This is why keeping a spreadsheet with monthly numbers is so important,” she says.

4. Maintain a list of “top 20 reasons a claim denies.” Ms. Semanyshyn says her staff keeps an A/R error log that lists the top 20 reasons a claim denies. “From every step of the revenue cycle, reasons for rejects and denials are checked off on this log,” she says. The “top 20 list” is an important managerial tool because the A/R supervisor can determine where the cause of denials and rejects lies. If a specific staff member is frequently responsible for claims and denials, she says they should be held accountable for those mistakes and let go if performance does not improve.

4 Crucial Steps for Auditing Your Accounts Receivable

A Year of Excellence NRA STAR OF THE YEARChris Bowen, Supervisor

TEAM PLAYER OF THE YEARCraig Andrus, Collection ManagerStevenson Pierre, Team Lead

EXCELLENCE IN CUSTOMER SERVICEMichael West, Acct. RepresentativeShaonte Alexander, Acct. Representative

COMMUNITY CARING COMMITTEEAmy Friend, Computer Programmer “NRA Toy Drive” Emma Yingling, Accounting/HR Assistant “Bowl for Kids Sake”

Thank you to each one of you for your excellence and dedication to NRA and

its success!

2


December2010Volume5Issue12

AGENCY NEWS

FEATURED BOOK: NRA Book ClubNRA is offering its staff reading material that is meant to educate, train, and motivate. NRA’s staff is excited about being given

the opportunity to enhance their

knowledge in various areas of business.

A New Year gives New

Opportunities to make a Difference

The First Blood Drive of 2011 has been scheduled for:

Tuesday, January 11, 2011 from 12:30 p.m.

to 3:30 p.m. at the Paxton Street office

& Thursday, January 13, 2011 at the Crossgate Drive office from 1:00 p.m. to

4:00 p.m.

Sign up sheets have been posted next to the time clock

Please consider starting the New Year off by year giving the gift of life

Sponsored by:THE WALL STREET JOURNAL

Stephanie IckesNicola BennettShanee RossDenise WashingtonShana PorterMary VanHornMiranda CadeChristina AlbrightMarilyn Snipes

Adrienne AllenRonald GuringoCathleen TalalaiTyler BradleyBrittney JacksonJohn ClouserRonnell SanfordTanya W Rodkey

National Recovery Agency Contributes to Food Bank

Every year NRA partners with the Central Pennsylvania Food Bank to promote a company-wide food drive.

Each year, food donations to the Central Pennsylvania Food Bank bring in millions of pounds of items.

The Central Pennsylvania Food Bank distributes more than 15 million pounds of food and grocery products every year to more than 500 soup kitchens, shelters, and food pantries in 27 central Pennsylvania counties. These agencies directly feed thousands of hungry families throughout central Pennsylvania.

While National Recovery Agency’s goal this year was to collect 500 pounds of food, it employees contributed nearly 700 pounds in food and monetary donations to the PA Food Bank.

In addition, employees were given a raffle ticket for each donation made. Congratulations to Cathy Talalai and Melissa Rice who were our raffle drawing grand prize winners!!

Thank you all for your contribution and a job well done.

Jerry Livingston 4 YearsTheresa Bell 3 Years

COLLECTION TIP OF THE MONTH

For our clients and prospects:

One very important debt collection tip is to make sure all your customer agreements and contracts clearly state that you intend to include and pass on the costs for any collections onto the customer.

UPCOMING EVENTS

DBA InternationalThe Mirage Hotel & CasinoLas Vegas, NVFebruary 8 - 10, 2011

FEBRUARY 2011

Members of National Recovery Agency’s staff will be attending a two day seminar on December 8th and 9th at the Hilton Garden Inn Harrisburg East. The seminar will cover both the Fair Debt Collection Practices Act and the and the Professional Training Collection Techniques (PTCT). These are full day seminars. NRA believes that its staff will benefit from these seminar’s and find them very informational, exciting and fun. Each individual will be given the PCS (Professional Collection Specialist) exam shortly after these seminars which upon passing the exam, will receive their ACA certification certificate.

FDCPA and PTCT Training Seminar

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AGENCY NEWS

National Recovery Agency, a Pennsylvania-based collection and accounts receivable management company, today announced that the Company and its employees donated approximately $1,000.00 in toys to local children.

“The ultimate success of this program depends on the generosity of National Recovery Agency staff and their donations.” Said Steve Kusic, CEO of National Recovery Agency. It’s heartbreaking to think that some kids have so little and to put a twinkle in a few of their eyes is worth the effort. Once again, we are very proud of the charitable spirit of National Recovery Agency employees. Their deeds have demonstrated their sympathy for those less fortunate many times this year.

The goal of the Volunteer of America Toy Drive is to deliver a new toy at Christmas, a message of hope to needy children. We know from the smiles on children’s faces and the appreciation from their parents, that the simple gift of a shiny, new toy - something that many take for granted, can make a tremendous difference in the life of a child.

The Company, is also an active supporter of the United Way, Big Brothers/Big Sisters, March of Dimes, PA Food Bank and many other local charities.

In addition, employees were given a raffle ticket for each donation made.

Congratulations to Elizabeth Matriccino and Craig Andrus who were our raffle drawing grand prize winners.

The Gift of Giving... NRA donates to Toy Drive

National Recovery Agency recently completed an upgrade to its Sophos Email Appliance ES1100. This will benefit both NRA Group, LLC and its clients by providing a secure method to transmit (via email) any and all sensitive consumer data. The upgrade will allow users with external email capability to send outbound email messages in a secure manner by encrypting the contents of the message along with any attachments. It will be the recipients responsibility of such message(s) to register a personal and confidential password in order to unlock the encryption.

NRA Upgrades Email Appliance

Twas the night before end of month, when all throughout National Recovery, Not a collector was resting, not even for

Chinese delivery. Auto pays were written with high anticipation, In hopes we meet all of our expectations.

The collectors were nestled all snug in their stations,While making their calls with great anticipations.

And Shell in his office and Steve on the floor,As we all run around as though we’re preparing for war.

When out on the floor there arose such a chatter,I sprang from my desk to see what was the matter.

As I threw opened the door I heard Kim’s booming voice say, “We need at least ten more payments before the end of the

day!”Every department was in a tizzy to finish

While the hours on the clock slowly diminish.

Payment Processing, posting and posting awayAs fast as they can with no time to delay.

Each Client Service Rep settled at their desksReady to comply to each client requests.

IT department is on the guard and ready for troubleTo send out ole Andrew to help on the double.

Data Entry, them too, just entering away.A lot has to be done before the end of today.

With each collection manager high their gameCalled out and shouted each collector by name.“Now April, now Brittney, now Austin, and Amber

Let’s go Brandi, go Charles, go Carson and Summer.Stay on the phones to make your next call.

Collect away, collect away, collect away all!”

Outside I go for a quick little breakTwo puffs of my cigarette is all I did take

When flying in the parking lot quick as a flashHolding my breath, preparing for a crash

A little ole driver so lively and quickI knew in a moment it must be Steve KusicBack to my desk without anytime to spareI hung up my coat and pulled up my chair

As I sat at my desk with my hand on my headSoon gave me to know I had nothing to dread.

For my work was all done and my day is complete.I had conquered this today without a defeat.

As things finally quieted and gradually slowed down.Steve entered his office and plopped down with abound.

He spoke not a word, but went straight to his work,After opening his emails, he turned with a jerk.

Slowly turning around in his chair.He said out loud for everyone to hear,“Let everyone prepare to do this again

For there is only four weeks until next month’s end.”

Written by: Cathy Talalai, NRA Client Service Representative


FILE NAME:

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CONTACT NAME:

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Braunschweig v. Banco Serv.

MAPbulletin November 5, 2010

Damages should not be awarded for technical violations of the FDCPA where no real harm occurred.Braunschweig v. Banco Serv., No. 2009AP2716, 2010 WL 3984659 (Wis. Ct. App. Oct. 13, 2010).

The defendants refused to pay the plaintiffs for work performed on their home. The plaintiffs retained a law firm to collect the debt, and eventually filed suit. The defendants filed a lawsuit against the law firm claiming the firm violated §§ 1692e(11) and 1692g(a) of the Fair Debt Collection Practices Act (FDCPA) by not including required disclosures in the Notice of Intent to File Claim for Lien served on the defendants.

The circuit court determined the law firm violated §§ 1692e(11) and 1692g(a) by failing to provide the disclosures, but declined to award statutory damages to the defendants because the court accepted the firm’s bona fide error defense. The circuit held the attorney acted in good faith and no real damages were incurred. The court asserted because the violation was merely a technical violation and no real harm occurred, statutory damages did not need to be awarded. Additionally, in a separate order the circuit court determined the defendants were not entitled to recover attorney’s fees and costs under §1692k because they were not awarded any actual or statutory damages.

On appeal the defendants asserted summary judgment was issued prematurely because discovery had not been completed, and contended they should be awarded damages and attorney’s fees. The appellate court affirmed the circuit court’s decision holding the

INDUSTRY NEWS

November Consumer Bankruptcy Filings Drop 13 Percent from OctoberPosted by Collections Recon December 2, 2010

Alexandria, Va. – U.S. consumer bankruptcy filings totaled 114,587 nationwide during November, a 13.3 percent drop from the 132,173 total consumer filings recorded in October, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC).

While the November consumer filings represented a decrease from the previous month, they represented a 2.2 percent increase from the November 2009 total of 112,152. Chapter 13 filings constituted 29.6 percent of all consumer cases in November, a slight decrease from October.

“The drop in consumer filings from October is perhaps a positive step that the deleveraging of the U.S. consumer may be underway, after years of expanding consumer debt,” said ABI Executive Director Samuel J. Gerdano. “Still, we anticipate that there will be nearly 1.6 million consumer bankruptcy filings by year end.”

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,600 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

Identity Theft Facts * The number of U.S. identity fraud victims rose 12 percent to 11.1 million adults last year, the highest level since the survey began in 2003.* The average fraud resolution time dropped 30 percent to 21 hours.* Nearly half of fraud victims now file police reports, resulting in double the reported arrests, triple the prosecutions and double the percentage of convictions in 2009.* The number of U.S. identity fraud victims increased 22 percent in 2008 to 9.9 million adults. However, the total annual fraud amount jumped just 7 percent to $48 billion* Women were 26 percent more likely to be victims of identity fraud than men in 2008.* 71 percent of fraud incidents began occurring in less than one week from when the data was first stolen, up from 33 percent in 2005.* Lost or stolen wallets, checkbooks and credit and debit cards made up 43 percent of all ID theft incidents in which the method of access was known.* Arizona leads the nation in identity theft complaints per 100,000 people. In 2008, the state had 149 complaints about ID theft per 100,000 people.* South Dakota has the fewest identity theft complaints per 100,000 people in the nation. In 2008, the state had 33.8 complaints about ID theft per 100,000 people.* Brownsville-Harlingen, Texas, is the metropolitan area with the largest number of ID theft complaints per 100,000 people.

avoidance of awarding fees on mere technical violations was consistent with the goals set forth by the FDCPA, because the Act was not intended to create a “cottage industry for the production of attorney fees.”

Accordingly, the circuit court’s decision was affirmed and no costs were awarded to either party.

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INDUSTRY NEWS













Are Your Collectors a Data Security Risk?August 3, 2010

Hackers are the biggest threat to personal and financial information. But employees that handle sensitive data can also run afoul of the law if they succumb to temptation.

by Gary JensenSkills World, LLCAugust 3, 2010

Three things we hear a lot about these days: the FTC, Twitter, and data security. This past June, a settlement brought the three together in what was the FTC’s first consent agreement with a social networking company involving allegations of inadequate protection of customer data.

The FTC placed specific focus on two security lapses that occurred in 2009 when hackers were able to take administrative control of a micro-blogging site by obtaining weak administrative passwords. As a result, users’ private data was accessed and a few fake “tweets” were sent, including a message from Fox News and then president-elect President Obama. (If you are on Twitter and follow President Obama, you may recall receiving the message about a chance to win $500 in free gasoline.) The settlement prevents Twitter from misleading users over its data security policy for 20 years and requires an independent audit every other year for the next 10 years. You can read more about the Twitter settlement here.When most people think of data security breaches their mind instantly paints a picture of a hacker--some person sitting somewhere in the world surrounded

by a dozen computer monitors working feverishly to guess passwords. While some data breaches do happen that way, such as what happened with Twitter, companies who think that investing in a strong firewall is enough to keep the bad guys out have already missed the boat. Not that there is anything wrong with a strong firewall, it’s just that some bad guys might already be inside. While it has been over a decade since some of the initial privacy laws like GLBA and HIPAA were enacted, there is still much cause for concern, especially when it comes to employees who may not have the knowledge, or heart, to comply with data security rules and regulations.

Guess The Year Look at the following data breaches as reported by the Identity Theft Resource Center. Can you guess the correct year that these breaches occurred? Was it 1997, 2006, or 2010?• An employee used a skimming device to scan the magnetic strip from the credit cards of nearly a dozen customers. • A call center employee for one of the nation’s leading banks stole account holders’ names, dates of birth, and addresses and tried to sell the information. • A social services worker used the personal information over more than 150 clients to obtain $1 million in improper tax refunds. • The owners of a New York company used the identities of more than 100 ex-employees to get nearly $100,000 worth of illegal unemployment benefits. • At least two employees provided customer credit card information to a scammer who was posing as a police officer. • Boxes containing hundreds of personal records were left outside a doctor’s office. • An email containing private data was accidently sent to the wrong recipient. • A man stole information from customers at his mother’s dry cleaning shop. • Social security numbers were included on address labels affixed to letters. • A medical center employee accessed social security numbers of fellow employees to receive hundreds of vouchers for use on Amazon.com.What do all these 10 breaches have in common? First, they were all reported in 2010, so if you guessed any other year, sorry but you missed the mark. Second, not one of these breaches involved a

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NEWSINDUSTRY

hacker breaking through a company firewall. You will also notice that each of these breaches fell into one of two categories: Malicious intent (theft, forgery, etc.) or accidental disclosure (lack of knowledge or simple human error).

Making Headlines Picture a company making the following headline in a national newspaper: Employee at XYZ Collection Agency Steals Credit Card Information from 1,000 Customers.Now ask yourself these three questions:

1. How would clients view this?2. How would the public view this?3. How would competitors view this?

Most would probably wonder, “What kind of people are they hiring over there?” or “Why did it take so long to catch on?” Obviously, employee theft and dishonesty can have a damaging effect on a company’s bottom-line, but it can also cripple its reputation. By creating a comprehensive strategy, one that addresses a screening process for potential bad apples and also includes an educational component, companies can reduce risk associated with employee dishonesty and lack of knowledge.

Screening For Bad Apples Barring strip searches on the way in and out of the office, it may be impossible to prevent all data security breaches. We have all read the news story about the employee with a 20-year tenure who suddenly goes “bad” and embezzles thousands from company coffers; even the federal government recently had tens of thousands of classified documents leaked by a member of the military. While that may be true, one of the best ways to deter employee theft and dishonesty is to prevent a bad apple from being hired in the first place. Here are a few tips to consider: Verify Past Employment History – Many candidates stretch employment dates to show stability and hide

gaps in work history. They also tend over-inflate responsibilities and titles. Some candidates even go so far as to list companies that they never even worked for. Always call those references, and always verify employment history.

Conduct a Criminal Background Check – For a reasonable fee, agencies can easily obtain a candidate’s criminal history. If the candidate has had prior convictions for theft, forgery, or fraud, there is an increased risk of a repeat offense. In fact, some clients require background checks on their third-party agencies’ employees. Beware: Some states are adopting a “ban the box” law which removes the criminal conviction question from the application. It does not mean that the conviction is swept under the rug, but it does mean that candidates with convictions will have a chance to explain themselves in more detail.Pull a Credit Report – The information contained in a credit report can be an indicator of a candidate’s level of responsibility, however, some state laws have stipulations on accessing credit reports for employment purposes.Double Check Those Credentials – Did the candidate actually receive his or her college degree? With more and more employers requiring a degree, more and more candidates are lying on their resumes.Put it in Your Ad – If the company conducts drug or background screening, it is a wise idea to say so in

the job posting. It will prevent many bad apples from trying to get in the basket.When putting together a screening strategy make sure it is consistent from one candidate to the next to prevent any claim of discrimination. A good human resources attorney can help set up a proactive offense while reducing your risk of being sued in the process. You might also consider reviewing the SCORE article How to Prevent Employee Theft for additional tips.

Tying it All TogetherCertainly there is a price tag attached to using these tools, and accessing them may require the candidate’s consent, but can companies really afford not to do some type of preliminary screening given the heightened security requirements and scrutiny on the industry? Are companies so desperate to fill seats with any warm body that walks through our door that they will risk their company’s brand and put clients at risk?

PASS IT ON:Do you know someone who would like to receive our Newsletter?

We will be happy to include them on our mailing list. Go on-line atWWW.NRAGROUP.COM and join now.



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2010 Newsletters

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Transcript of 2010 Newsletters