Centralized Business Solutions Company is now utilizing Credit Manager; an on-line credit reporting soft ware that allows a prompt automated credit reporting processing service, that is fast and accurate.We at Centralized Business Solutions Company are committed to enhancing our system to better serve our clients. We will continue to up-date you on our continued progress.

Roughly $164 billion in consumer loans go delinquent annually. Credit issuers can expect to collect just a fraction of what is owed-about $22 billion. And as much as 35% of that will go to collection agencies. With tougher economic times, the amount of bad debt will no doubt increase.

The key is locating the account holder… Currently, 35% of delinquent debtors move annually. Some form of skip-tracing is required on half of all accounts received for collections, resulting in a recovery rate of only 15% to 35%.

The Solution:

Centralized Business Solutions Company has just implemented the cutting-edge in skip-tracing technology with access to more than 20 billion records from some 400 sources covering recent relocation to historical addresses dating back 30 years. Dramatically improving the ability to obtain up-to-date contact information delivering verified addresses and phone numbers at least three times more often. Resulting in more cash back to our clients..

Bad Debt Recovery Proposal

Centralized Business Solutions Company
6973 Promway Avenue, NW
PO Box 2818
North Canton, OH 44720
J Bracken 330-494-9494, extension 330
1-800-261-6120

The mission of Centralized Business Solutions Company [CBSC] is to provide exceptional service in recovering the assets entrusted to us by our clients. To consistently achieve this, CBSC will:

• Continue to achieve recoveries higher than our competitors.
• Achieve excellence in servicing the needs of each individual client.
• Consistently maintain the highest level of ethical standards.
• Insist on fair treatment for all employees in a challenging work environment in which they have equal opportunity to achieve their individual goals.
• Maintain our commitment to quality and continue to improve collection processes along with the quality of service provided for our clients.

Centralized Business Solutions Company is pleased to have the opportunity to introduce our professional bad debt recovery service. In this proposal, CBSC will demonstrate a commitment to your company that features a uniquely qualified management/collection team, state of the art systems and technology, and a dedication to providing the best in customer service. CBSC’s officers and staff pledge is that if given the opportunity to represent your company, our resources will be applied to assure that your goals are achieved.

Collection Procedures

Work on new account referrals begins on average, within 48 hours of account receipt when our system mails a demand letter. The first phone attempt is usually made within five days of the account placement. Accounts with good phone numbers are attempted at least every ten days. No answers, busies, and messages left on recorders are followed up within one to two days. Accounts not reached during the day are scheduled for evening and Saturday call attempts.

Additional notices are sent on accounts where phone contact has been unsuccessful but mail return has not occurred. Accounts with bad phone numbers, no phone numbers, or mail returns are skip-traced. Data supplied by our clients with the account placement is also researched for skip-trace clues including all can-be-reached numbers, toll numbers, if available, and any other numbers noted on the file.

CBSC’s policy is to encourage debtors to establish equitable payment plans as quickly as possible. Therefore, we do cooperate closely with Consumer Credit Counseling Service [CCCS] offices.

Our collections software system can easily accrue daily interest at whatever rate specified by our client. When authorized to do so by our clients, CBSC will add interest to accounts and, if collected, will retain our normal contingency fee and pass the difference on to our client.

When an account’s check is returned to us NSF, we so note in the system. This causes the account to be scheduled for immediate work. The check will be automatically re-deposited. Where allowed, we do add a handling fee and continue collection effort. Should an account dishonor three checks to us, we will require any future payments to be in the form of a cashier’s check or money order.

We do not rely heavily on collection notices because our experience is that most clients will have already sent several statements and letters which have not prompted payment and, therefore, ours would be similarly ignored. However, our collectors have several notices available for use. The first notice is system-generated the day the account is entered. A second notice is sent within twenty days if there has been no interim contact with the debtor and if the first notice was not mail-returned.

For each CBSC client, we establish and agree upon mutually acceptable work standards regarding the specific steps and time frames to be followed during the collection process. When a collector has completed all required action items on an account and deems it uncollectable, the account is then passed to a manager for review. If the manager agrees that all efforts have been exhausted and no assets have been identified, the account is suspended.

Policy on Disputes and Debtor Complaints

CBSC is very sensitive to complaints and we work hard to minimize them. The nature of the business, however, is such that some complaints will occur. Disputes are generally accusations that the debt – or some portion of it – is not owed. Complaints are generally accusations against the collector. In either event, our first step is to immediately stop collection activity. In the case of disputes, collectors pass the account to a supervisor who attempts to resolve the dispute with the debtor, given the information we have on file. If this is not successful, we then contact the client. We find that most disputes can be resolved by simply providing the debtor with a detailed statement of the account. Complaints against CBSC or one of our collectors are taken very seriously. Part of our training program requirement is extensive knowledge of the Fair Debt Practices Act.

In order to minimize our collector complaints, we assign points to a collector against whom there has been a complaint. Twenty points accumulated in a 90-day period is cause for termination.

How Long Do We Work the Accounts?

Accounts are worked until all required action items on an account – as agreed to by CBSC and the client – are completed. When a collector has completed all required action items on an account and deems it uncollectable, the account is then passed to a supervisor for review. If the supervisor agrees that all efforts have been exhausted and no assets have been identified, the account is suspended.

Management Information Systems

Our management information system is quite flexible, permitting us to remit to clients as required. Most of our clients prefer monthly remittance.

Our standard remittance reports include the following information:

• Date payment was posted
• Debtor name
• Client number
• Amount paid to CBSC
• Amount paid direct to client
• CBSC-earned commission
• Remaining balance debtor owes
• Amount due client

Our standard set of client reports is as follows: Acknowledgment, Remittance Statement, Cancellation Report, and Client Inventory.

Summary

Any collection agency can pick up the phone and send a letter. But how they communicate with the debtor and how they persuade the debtor to pay – including finding alternative sources of financing – once they make contact is what sets one agency apart from another. CBSC sets its self apart from its peers.

CBSC is dedicated to building a team of professionals that will be encouraged to view their jobs as long-term careers where they can achieve their individual goals and potential. As we look to the future, we will continue to add innovative ideas and programs to obtain our vision of becoming a leader in the collection industry.

We are confident that we can out-perform the competition and that this will further enhance our reputation. This, in turn, will allow us to continue to add new clients. Thus our stated mission: to provide exceptional service in recovering the assets entrusted to us by our clients.