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.