collections best practices

We call it the art of collections. You’ll call it money in the bank.

Thousands of clients nationwide

Hear from our happy customers

“It has been a pleasure working with American Agencies over the last several years. Our shool district is one of the largest in the country, and it’s important to have your company as our partner. Your staff is very helpful, considerate and always good to work with.”

—San Diego City Schools

o Cost to Collect (50%)o Poor Results (8% national average)o Loss of Controlo Money Paid to Agencyo Inadequate Reporting & Informationo Unprofessional Tactics

Barriers to collection outsourcing

Deliquency 3 mo. 6 mo.

Turn over to contingency agency for 40–50% fee

Traditional approach

In-house efforts: letters, statements, phone calls

Waiting costs you money

American Agencies approach

Deliquency 3 mo. 6 mo.

Phase 2: Intense recovery on proven contigency

Phase 1: Early recovery for less than $13/account

1. Those who intend to pay but need 3rd party nudge

2. Those w/out $ but willing to set up payment plan

3. Those who never intend to pay

Phase 1 separates your delinquent accounts

o Professional 3rd party demands

o All money paid directly to you

o No Expiration

o Fixed fee rates (avg $13 per customer)

o Fully automated system that you control

o Credit reporting statements

o Gauranteed results

Phase 1 demand services

80% of all deliquent accounts assigned to collection agencies are collected by letters.

—American Collectors Association

Best kept collections secret

First “courtesy” notice (Day 1)

o “A possible oversight on your account...”

o “American Agencies reports consumer credit information to credit bureaus...”

o “This is an attempt to collect a debt”

o Your customers are instructed to pay YOU!

Second notice (Day 11)

o Tougher language

o “…To date, neither we nor our client have any record of your payment.”

o “American Agencies reports consumer credit information to the credit bureaus”

Lack of response notice (Day 21)

o “Our records reflect that your delinquent account remains unresolved.”

o “American Agencies reports consumer credit information to the credit bureaus”

Final notice (Day 31)

o “Is there a reason your account remains unpaid...”

o One last chance to pay

American Agencies A Collection Company

2158 W. 190th Street Torrance, CA 90504 (866) 961-9600

FINAL NOTICE

2/14/04 BRUCE SMITH 5034 MAIN ST. ANYTOWN, US 46226 Client Ref No: F456900 Agency No: 011-198734; 4 BALANCE DUE: $450.00 Dear Bruce Smith, The purpose of this letter is to notify you of our intentions regarding your debt. We will be reviewing your account to determine further collection efforts Ignoring this matter will not solve the problem or make it disappear. We hope that you will review your position regarding this debt and demonstrate your willingness to resolve it by sending payment in full to: YOUR COMPANY 1553 VAN NUYS BLVD., STE. 100 LOS ANGELES, CA 92260 ATTN: SUSAN JONES Your prompt payment in full will allow us to terminate any further collection efforts by American Agencies. Sincerely, John C. Leland Collection Manager

“Thank you” letter

o “Our client requested that we contact you and extend their thanks and appreciation for your willingness to resolve your account with them.”

American Agencies A Collection Company

2158 W. 190th Street Torrance, CA 90504 (866) 961-9600

FINAL NOTICE

2/14/04 BRUCE SMITH 5034 MAIN ST. ANYTOWN, US 46226 Client Ref No: F456900 Agency No: 011-198734; 4 BALANCE DUE: $450.00 Dear Bruce Smith, The purpose of this letter is to notify you of our intentions regarding your debt. We will be reviewing your account to determine further collection efforts Ignoring this matter will not solve the problem or make it disappear. We hope that you will review your position regarding this debt and demonstrate your willingness to resolve it by sending payment in full to: YOUR COMPANY 1553 VAN NUYS BLVD., STE. 100 LOS ANGELES, CA 92260 ATTN: SUSAN JONES Your prompt payment in full will allow us to terminate any further collection efforts by American Agencies. Sincerely, John C. Leland Collection Manager

o Contingency fee collectionso No collection – no chargeo Customers treated like customerso Collectors trained on your accounts o Full fraud & legal departments

Credit reporting gets you paid

o Not all collection agencies report to credito Negative credit can stay on file up to 7 yearso Debtors may have difficulty obtaining credito Debtors’ employment opportunities may be hindered.o Debtors may have difficulty obtaining favorable payment terms

American Agencies utilizes multiple online skip tracing resources in both a real time look up and in a batch mode to locate business owners and/or to properly identify the correct business entity. We access over 400 million records and proprietary information on over 40 million individuals and businesses..

Skip tracing

o Mutual reporting with credit bureauso Enduring collection effortso Awareness of credit moves within 24 hourso Knowledge of customers’ shopping effortso Agencies who just pull credit reports only know what’s available at the time of their request.

Improved credit monitoring

Submit new accounts and access on-demand reports of payments, status updates, customer notes, etc.

Better recovery with our website

Let us show you how we can recover your profitsLet us show you how we can recover your profits

Call now:Call now:866-961-9600866-961-9600americanagencies.com