What is AR Management and Why Should I Care?

Not only the type of government, but whether there is sufficient government to uphold the rule of law

(news report on Somali pirates)

Government receivables are unique as they relate to the shared responsibilities of society

When Government agencies are stiffed on the billing who pays?

What makes some public agencies timid or neglectful in collecting their debt?

We all might complain about fines or fees, but dont we also expect them to be collected?

50,000 Foot Fly Over

Topics: WHY; HOW; WHAT and of Course WHO

ResultsCollecting More MoneyCollecting More Money FasterCollecting More Money Faster for Less Cost

Means (How to Do It)Restorative RecoveriesWritten communicationsTelephoningSkip tracingCredit reportingOther legal remedies

Stiffed on the Billing Why Should I Care?

Yale Law & Policy Review

The Collection Gap: Underenforcement of Corporate and White-Collar Fines and Penalties

By: Ezra Ross and Martin Pritikin

The modern administrative state depends in large part on fines, penalties, restitution orders, and similar sanctions. Contemporary policy assumes that the state, once it orders offenders to pay those sanctions, will collect them. This article suggests that we cannot depend on that assumption. Even where offenders are corporate or white-collar executives with the resources to pay, a fine imposed is in many cases not a fine collected. To the contrary, the available data shows a massive gap between penalties imposed on the books and penalties collected in reality.

.. existing scholarship has not seriously addressed what happens after the state orders offenders to pay these sanctions. Instead, the administrative enforcement literature has essentially ignored to what extent offenders actually pay the penalties imposed against them. This Article seeks to describe empirically, for the first time, the degree to which regulators follow through on enforcing corporate and white-collar fines and penalties.

Administrative agencies never collect the vast brunt of regulatory and criminal penalties. The U.S. Department of Justice, for example, has collected in recent years less than 4% of criminal penalties and fines it imposes.

The disconnect between enforcement expectations and enforcement reality extends to agency attitudes.According to scholars, regulators impose fines to deter misconduct, compensate victims, and generate government revenue. Ensuring offenders actually pay helps achieve those enforcement goals.

During a recession in which governments are slashing budgets, cutting back public services, and laying off workers, they are at the same time neglecting to recover huge sums from corporations and executives that have actually been found to have engaged in wrongdoing. Particularly in such an economic environment, one would expect a groundswell of support to push government agencies to improve their fine collection rates.

End of Excerpt from Yale Law & Policy Review

Stiffed on the Billing Why Should I Care?

The incentive problems that undermine a commitment to collections at the personnel and management levels of administrative agencies likely lie at the heart of undercollection. Page 507

Fines collected by agencies typically go to general coffers rather than to the collecting agency. Page 467

Stiffed on the Billing Why Should I Care?

Why Should I Care?

Very simply because society is relying on you to make it a functional reality!

50,000 Foot Fly Over

Topics: WHY; HOW; WHAT and of Course WHO

ResultsCollecting More MoneyCollecting More Money FasterCollecting More Money Faster for Less Cost

Means (How to Do It)Restorative RecoveriesWritten communicationsTelephoningSkip tracingCredit reportingOther legal remedies

Stiffed on the Billing HOW Should I Proceed?

Stiffed on the Billing HOW Should I Proceed?

Justly

Stiffed on the Billing HOW Should I Proceed?

Knowledgeably

Stiffed on the Billing HOW Should I Proceed?

Evenly

Stiffed on the Billing HOW Should I Proceed?

A Citizen Friendly Approach

Stiffed on the Billing HOW Should I Proceed?

With Equitable Process

Stiffed on the Billing HOW Should I Proceed?

Justly

How Do I Collect Justly?

What are the just tools, processes, and rules?Fair Debt Collection Practices ActFair Credit Reporting ActNo Preferential TreatmentAddress Any Complaints Head OnInvite Inspection and Transparency

Stiffed on the Billing HOW Should I Proceed?

Knowledgeably

How Do I Collect Knowledgeably?

How Do I Go About Learning and Developing?Define Success in Your Collections EnvironmentLearn to Measure What MattersDevelop A Review ProcessTap in to Best PracticesNever Stop Learning and Growing

Stiffed on the Billing HOW Should I Proceed?

Evenly

How Do I Collect Evenly?

What is Evenness in Collections?Get in Control of Your TimeDevelop a Written Credit and Collections PolicyDont Break Your Stride for ExceptionsUse a Systematic Process

Stiffed on the Billing HOW Should I Proceed?

A Citizen Friendly Approach

How Do I Make Collections Citizen Friendly?

How Can I Set Up Citizen Friendly Collections?Put Yourself in the Other Persons ShoesExpect the Best of PeopleEducate, Counsel, and Advise for THEIR sakeKnow the Various Reasons People Do Not PayNever Assume the WorstCustomer Service is before a problem Damage control is after a problem has occurred

Stiffed on the Billing HOW Should I Proceed?

With Equitable Process

What is Equitable Process in Collections?

How Can I See Equitable Process in Collections?Are the Right People Paying?Are the Lawful Payers Being Well Represented?Is a Clear and Helpful Example Being Set?Are Those Out of Compliance Held Accountable?Are the Tax Payers Being Well Represented?Is the System Free of Favortism?Are Justice and Mercy in Balance?

50,000 Foot Fly Over

Topics: WHY; HOW; WHAT and of Course WHO

ResultsCollecting More MoneyCollecting More Money FasterCollecting More Money Faster for Less Cost

Means (How to Do It)Restorative RecoveriesWritten communicationsTelephoningSkip tracingCredit reportingOther legal remedies

Stiffed on the Billing

WHAT can be done?

Stiffed on the Billing

WHAT can be done?

Define Success

Stiffed on the Billing

WHAT can be done?

Optimize Processes

Stiffed on the Billing

WHAT can be done?

All That Should Be Done, Is Done

Stiffed on the Billing

WHAT can be done?

Employ Economy of Scale When Helpful

Stiffed on the Billing

WHAT can be done?

Define Success

You Get What You Measure

You Get What You MeasureYour Receivables Dashboard

Value of a Dashboard

Research in human psychology and crisis case studies have shown that even when the public doesn't know where a crisis is headed, if they are able to have confidence in the process, heart rates drop, physical stress is reduced, and emotional upset is calmed. Kaulkin Media

What Are The Deliverables in Receivables?

Do No HarmCollect More MoneyCollect More Money FasterCollect More Money Faster for Less Cost

Instruments on your dashboard should tell you the following:

Citizen Friendly - ProvenCollecting More MoneyCollecting More Money Faster Placement to Receipt of CashCollecting More Money Faster for Less Cost

Do No Harm DashboardCitizen Friendly 100%100% Transparent Process Complaints at Zero to None

Recovery Rate% of Total Batch Recovered% who Respond % Fully Worked

Time from Placed To Receipt# Months for RecoveryCash Flow Path to Your Hands Decay of Collectible Value

Collection CostNet Back$ Paid to Collection Agency % Cost to Collect

Million Dollar MountainOne million in receivables are represented by this mountain. This is YOUR money, owed and past due.

Million Dollar MountainCherry Picked Accounts Identified for collectionsThe rest of your receivablesTypical Collections Approach

Million Dollar MountainThese accounts are worked intenselyThese accounts, not worked or lightly worked, deteriorate by at least10% per month. This loss is the hidden cost of typical approaches to collectionsTypical Collections Approach

Restorative RecoveriesRestore Communication Debtor to CreditorThey Reconcile Amount OwedBoth Parties Recover

Restorative Recoveries100% Worked SystematicallyDirect Pay to AgencyFixed Fee Provides ROI

Restorative Recoveries100% Worked SystematicallyFastest to MoneyMinimum 400% ROI

Collecting More Money

Collect More Money

Collect More MoneyCollect More Money

Collect More MoneyCollect More MoneyCollect it Faster

Collect More MoneyCollect More MoneyCollect it Faster Collect it for Less Cost

Do No Harm DashboardCitizen Friendly 100%100% Transparent Process Complaints at Zero to None

Collect More Money

Use a Systematic Process

Start30 to 60 Days DelinquentMonth 1Month 2Month 3Month 4Letter 1Day 1AuditDemandBad CheckOptional LetterDay 30Employment VerificationLetter 2Day 30MailgramLetter 3Day 42Strong DemandLetter 4Day 56Attorney DemandLetter 5Day 70Final DemandCredit ReportingDay 100

Telephone Predictive DialingSecondary PhaseSkip Tracing

Collect More Money

Have a Written Credit and Collections Policy

Collect More Money

Have a Written Credit and Collections PolicyWhat do you do at 30 days? 60 days? 90 days?

Collect More Money

Optimize Stages of Recovery

Traditional 2-StepCollection ProcessLate AccountDay 75Day 240Step 1- Internal CollectionLetters, Calls, Invoices, etc.EffectiveIneffectiveStep 2-Contingency

Recommended 3-StepCollection ProcessLate AccountDay 75Day 195Step 1- Internal CollectionEffectiveEffective for 3rd PartyStep 2- Early Out/Fixed FeeStep 3-Contingency

Collect More Money

Be Ready to Negotiate

Collect More Money

Be Ready to NegotiateFirst Payment

Collect More Money

Be Ready to NegotiateFirst Payment40%

Collect More Money

Outsource the RIGHT Tasks

Restorative Recoveries3Recovery1Restoration2Reconciliation

Start30 to 60 Days DelinquentMonth 1Month 2Month 3Month 4Letter 1Day 1AuditDemandBad CheckOptional LetterDay 30Employment VerificationLetter 2Day 30MailgramLetter 3Day 42Strong DemandLetter 4Day 56Attorney DemandLetter 5Day 70Final DemandCredit ReportingDay 100

Telephone Predictive DialingSecondary PhaseSkip Tracing

Faithfulness Works in Three Ways!It works, because we work, and you can see our works!

Faithfulness Works!It is effective. A faithful and equitable process is better in every way. It stresses compliance, and recovers more money faster for less cost. Randomness is randomly effective. Faithfulness works!

Faithfulness Works! It works and it works hard. A faithful process works every account in the same systematic way. Every account placed, WILL be worked. Working each and every account is a sustainable, transparent, and verifiable means of resolving every case to the maximum extent possible.

Faithfulness Works! These "works" are faithfulness works. It works, because as we work, these are works of faithfulness. Send a series of fully compliant letters - each a work of faithfulness. Make a series of fully compliant phone calls. Skip trace with a system that tracks the untrackable. Credit report to incentivize payment and to protect other creditors from fraud. Works of faithfulness characterize system's components.

Collecting More Money FASTER

Collect More MoneyFASTER

Do No Harm DashboardCitizen Friendly 100%100% Transparent Process Complaints at Zero to None

Collect More MoneyCollect More Money

Collect More MoneyCollect More MoneyCollect it Faster

Collect More MoneyCollect More MoneyCollect it Faster

Collect it for Less Cost

Collect More Money FASTERCollect More MoneyCollect it Faster

Collect it for Less Cost

Collect More Money

Use a Systematic Process

Start30 to 60 Days DelinquentMonth 1Month 2Month 3Month 4Letter 1Day 1AuditDemandBad CheckOptional LetterDay 30Employment VerificationLetter 2Day 30MailgramLetter 3Day 42Strong DemandLetter 4Day 56Attorney DemandLetter 5Day 70Final DemandCredit ReportingDay 100

Telephone Predictive DialingSecondary PhaseSkip Tracing

Collect More Money Faster

WHY?Its What WorksJustice Delayed is Justice Denied

Collect More Money Faster

HOW?

Collect More Money Faster

HOW?Dont Let the Exception Become the Rule

Collect More Money Faster

HOW?Dont Let the Exception Become the Rule[Move now on the clear cases]

Collect More Money Faster

HOW?

Collect More Money Faster

HOW?Find and Eliminate Unnecessary Tasks

Collect More Money Faster

HOW?

Collect More Money Faster

HOW?Decide WHEN you will work on them and then do it

Collect More Money Faster

WHAT?

Collect More Money Faster

WHAT?Clarify and Notify

Faithfulness Works in Three Ways!It works, because we work, and you can see our works!

Faithfulness Works!It is effective. A faithful and equitable process is better in every way. It stresses compliance, and recovers more money faster for less cost. Randomness is randomly effective. Faithfulness works!

Faithfulness Works! It works and it works hard. A faithful process works every account in the same systematic way. Every account placed, WILL be worked. Working each and every account is a sustainable, transparent, and verifiable means of resolving every case to the maximum extent possible.

Faithfulness Works! These "works" are faithfulness works. It works, because as we work, these are works of faithfulness. Send a series of fully compliant letters - each a work of faithfulness. Make a series of fully compliant phone calls. Skip trace with a system that tracks the untrackable. Credit report to incentivize payment and to protect other creditors from fraud. Works of faithfulness characterize system's components.

Collect More Money Faster

WHAT?

Collect More Money Faster

WHAT?Remind and Advance

Collect More Money Faster

WHAT?

Collect More Money Faster

WHAT?Use the tools faithfully and consistently

TAKE ACTION SOONERBEFORE:RESULTS$4968BEFORE:$4968/MO BEFORE: AGE OF CLAIMS 180-400

TAKE ACTION SOONERAFTER:RESULTSEXCELLENTAFTER:$18,842/MO AFTER: AGE OF CLAIMS 75-150

TAKE ACTION SOONERBEFORE:RESULTS$4968BEFORE:$4968/MO BEFORE: AGE OF CLAIMS 180-400

TAKE ACTION SOONERAFTER:RESULTS$18,842INCREASE379% AFTER: AGE OF CLAIMS 75-150

Start30 to 60 Days DelinquentMonth 1Month 2Month 3Month 4Letter 1Day 1AuditDemandBad CheckOptional LetterDay 30Employment VerificationLetter 2Day 30MailgramLetter 3Day 42Strong DemandLetter 4Day 56Attorney DemandLetter 5Day 70Final DemandCredit ReportingDay 100

Telephone Predictive DialingSecondary PhaseSkip Tracing

Collecting More Money Faster FOR LESS COST

Collect More Money FasterFOR LESS COST

Do No Harm DashboardCitizen Friendly 100%100% Transparent Process Complaints at Zero to None

Collect More MoneyCollect More Money

Collect More Money FasterCollect More MoneyCollect it Faster

Collect More Money Faster FOR LESS COSTCollect More MoneyCollect it Faster

Collect it for Less Cost

To Lower Collection Costs

Use a Systematic Process

Start30 to 60 Days DelinquentMonth 1Month 2Month 3Month 4Letter 1Day 1AuditDemandBad CheckOptional LetterDay 30Employment VerificationLetter 2Day 30MailgramLetter 3Day 42Strong DemandLetter 4Day 56Attorney DemandLetter 5Day 70Final DemandCredit ReportingDay 100

Telephone Predictive DialingSecondary PhaseSkip Tracing

Collect More Money FasterFOR LESS COST

Two approaches:

Collect More Money FasterFOR LESS COST

Two approaches: Cost cutting

Collect More Money FasterFOR LESS COST

Two approaches: Cost cutting Productivity of assets

Collect More Money FasterFOR LESS COST

Two approaches: Cost cutting Productivity of assets

To Lower Collection Costs

Total Cost of Ownership

To Lower Collection Costs

What is THE most expensive component in debt collection?

To Lower Collection Costs

What is THE most expensive component in debt collection? TIME

To Lower Collection Costs

What is THE most costly behavior in debt collection?

To Lower Collection Costs

What is THE most costly behavior in debt collection? NEGLECT

To Lower Collection Costs

A clich because it is so helpful and true:

To Lower Collection Costs

A clich because it is so helpful and true:An ounce of prevention is worth a pound of cure

To Lower Collection Costs

An ounce of prevention is worth a pound of cureThats 16 to 1

To Lower Collection CostsKnow the Value

Oregon audit median return rate for collection costs was over eight dollars for each dollar spent. Yale Law and Policy Review: Page 498 fn 299

To Lower Collection CostsSeize the Day!

GAO ..average delay between entry of judgment and lien filing was 639 daysYale Law and Policy Review: Page 489

To Lower Collection CostsDo the Math!

Netback IS the key. Heres how to calculate: Recovery rate collection cost = netback

To Lower Collection CostsDo the Math!

NETBACK3% Recovery Rate33% Cost to Collect2% Netback

To Lower Collection CostsDo the Math!

NETBACK20% Recovery Rate50% Cost to Collect10% Netback

To Lower Collection CostsDo the Math!

NETBACK30.3% Recovery Rate5.78% Cost to Collect28.55% Netback

To Lower Collection CostsWe Have Found

Optimize Each Stage30-75 days: work internally75-120 days: fixed fee method120 days+: sort into categories

Who Should Care?

All Citizens, Financial Decision Makers, Elected Officials, Finance Officers, Budget Directors, Billing Managers

Who Gets it Done?

Compliance Professionals

50,000 Foot Fly Over

Topics: WHY; HOW; WHAT and of Course WHO

ResultsCollecting More MoneyCollecting More Money FasterCollecting More Money Faster for Less Cost

Means (How to Do It)Restorative RecoveriesWritten communicationsTelephoningSkip tracingCredit reportingOther legal remedies

Faithfulness Works in Three Ways!It works, because we work, and you can see our works!

Faithfulness Works!It is effective. A faithful and equitable process is better in every way. It stresses compliance, and recovers more money faster for less cost. Randomness is randomly effective. Faithfulness works!

Faithfulness Works! It works and it works hard. A faithful process works every account in the same systematic way. Every account placed, WILL be worked. Working each and every account is a sustainable, transparent, and verifiable means of resolving every case to the maximum extent possible.

Faithfulness Works! These "works" are faithfulness works. It works, because as we work, these are works of faithfulness. Send a series of fully compliant letters - each a work of faithfulness. Make a series of fully compliant phone calls. Skip trace with a system that tracks the untrackable. Credit report to incentivize payment and to protect other creditors from fraud. Works of faithfulness characterize system's components.

Research in human psychology and crisis case studies have shown that even when the public doesn't know where a crisis is headed, if they are able to have confidence in the process, heart rates drop, physical stress is reduced, and emotional upset is calmed. Kaulkin Media

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