Collection News

NCO Group Reports Expanded Loss in Q3, But Bullish on Opportunity

2010-11-16T08:55:27-07:00

NCO Group, Inc., the world’s largest accounts receivable management firm, reported Monday a net loss of $33.5 million in the third quarter of 2010. But the company’s CEO told insideARM.com that current and new clients have indicated there will be plenty of opportunity for NCO in 2011 and beyond.

The Horsham, Pa.-based provider of ARM and other BPO services reported a net loss attributable to NCO of $33.5 million for the third quarter, an expansion of the $24.6 million loss it reported in the year ago period. Adjusted EBITDA was $33.3 million in Q3, down from $49.3 million in the third quarter of 2009.

NCO said that company-wide revenues were flat in the quarter at $370.5 million. The ARM division – which includes first and third party debt collection operations – accounted for $310.9 million of the company’s revenue in the quarter, up 1.1 percent from the same period in 2009. The company incurred $7.4 million of restructuring charges and a $7.1 million non-cash allowance for impairment of purchased accounts receivable portfolios in the quarter. The debt buying unit, Portfolio Management, reported revenues of $3.3 million, up from $2.3 million a year ago. But the CRM unit saw its revenues fall 17.4 percent to $65.5 million on a decrease in volume from clients.

“I think everyone in the industry, both on the ARM and CRM side, felt some pressure on volume (in the quarter),” NCO CEO Michael Barrist told insideARM.com. “But I think the good news is that we feel like we’re at the bottom of this right now. We’re seeing some good traction on the sales side and a level of stability in both volume and collectability.”

Barrist noted that most of the volume issues related to work in first party collections. Creditor clients did more insourcing of ARM functions in the second and third quarters of 2010 while undergoing a draw down of their lending portfolios, mainly due to increased credit standards and a cutback in consumer spending related to the recession. But Barrist believes that trend will reverse in the near term and into 2010. “Clients have said that they expect growth in their portfolios in 2011, leading to volume stabilization in 2011 and growth into 2012,” he said.

The Portfolio Management unit reported debt purchases of only $1.9 million in the third quarter of 2010, compared to $15 million in the year ago quarter. Through the first nine months of 2010, NCO’s debt portfolio purchasing activity has declined 77 percent when compared to 2010.

“We made a decision very early in the year that purchased portfolio was not going to be one of our lead markets going forward,” said Barrist. “Prices weren’t coming down enough to compel purchases. To go out and compete in the market with the pure play debt purchasers really doesn’t make a lot of sense for us.”

Barrist noted that Adjusted EBITDA, the best marker of the firm’s performance, will be stronger in 2011 than in 2010. But NCO is “cash flow positive in a pretty strong way” he said, noting that the company’s debt paydown for 2010 is ahead of projections.

ACA International to Participate in 2011 World Credit Congress

2010-11-16T08:55:27-07:00

ACA International President Martin Sher, IFCCE, has accepted an invitation to represent ACA at the third World Credit Congress & Exhibition, May 19-21, 2011, in Sydney, Australia.

"Participating in the World Credit Congress gives us the opportunity to discuss common credit and collection industry trends, opportunities and challenges with our counterparts from around the world," Sher said. "I look forward to participating and seeing many of ACA's international members at the event."

The World Credit Congress & Exhibition is a platform for exchanging ideas, knowledge and research, as well as being a forum for interaction between national and international credit professionals, risk management professionals, CEOs and business owners who are involved in the function of credit and collections. The aim of the event is to strengthen the credit culture, promote new information and explore advances in technology within the credit and collections industry worldwide.

For complete information, please visit http://www.creditcongress.com.

A Movement is Growing in the ARM Industry, and its Seeds are Discontent � Part II

2010-11-15T07:40:38-07:00

No minor response to my earlier blog at insideARM, including the traditional throwing of brickbats and compliments. I appreciated both, as they show the schizophrenic split within the collections industry as to how it needs to clean house and earn respect in both the business community and the general population.

Yes, it’s possible…but not with lip service, nor with the agencies wringing its hands over the “few bad apples” that bring on the bad press. Or its associations/supportive websites/lobbyists pointing out the good the industry does while complaining about “deadbeat” consumers hiding behind “regressive” laws.

It’s going to be done by people getting serious about balancing legitimate debtor needs, social sensibilities, long-range benefits and business realities. It’s going to motivated – perhaps even furthered – by the buzz and activity in Social Media.

As part of researching this article, I visited scores of credit and debt-related groups on LinkedIn to both get a sense of what is being said by and about our industry and to post comments and discussion subjects of my own. Sobering.

In relation to the insideARM blog outlining the travails of Six Sigma credit Black Belt Linda Almonte (“Follow Directions Or Be Fired! A Debt Professional’s Dilemma,” Nov. 2) the responses at LinkedIn were decidedly in favor of her taking a stand…even though it meant her firing and responding by filing a wrongful termination suit.

Such as from a European collector and business owner, The Netherlands: “The whole concept of debt purchase and the so-called legal ‘righteousness’ behind it, is one of the things that is inherent to the system which we have created...like it or not, this is actually a fundamentally wrong perception which belongs to the pre-crisis world. Debt Purchase can be pretty lucrative...but the underlying price we pay could be very high...a certain risk that the system may implode...if the once-able-to-cope-with-daily-life victims of all this mess may reach a critical level.” - MW

From a Sales Solutions Analyst, U.S.: “This is tough. I am a wife and mother of three. My income is needed in my household. However, I need to be able to live with myself, and my own conscience for the rest of my life. Integrity isn’t what it used to be...the lines of honor have been almost wiped away. I can honestly say that if I was put in that position I would be forced to walk away...I am glad to know that there are people out there who will still stand up for what is right despite the consequences.” - AR

A credit services marketer, U.S.: “Linda, you are my new hero.” - JC

Project Manager, Financial Services, UK: “JPMorgan Chase has manifestly failed to see your potential and are the weaker for it. You are an example to us all.” - MS

Tea Consultant and Freelance Writer, U.S.: “Eye opening, and certainly gives debtors no incentive to pick up the phone and talk to a debt collector: why risk affirming a debt that may not be yours, particularly since neither the original creditor nor the debt buyer can really know if it is yours?” - LP

Attorney and General Counsel, U.S.: (After having visited the Holocaust Memorial it affected my view of this article...) “With a world full of people who declined to risk their lives to save the lives of others, is it really any surprise that it’s the rare person willing to risk her professional life to save the financial lives of others? That being said, I do a lot of work with young people. I’m beginning to observe a shift among the teens and twenties from moral relativism closer to moral absolutism. ‘If it’s wrong, I WILL take risks to prevent or change it.’ I wish I had an opening. I would hire a person of her demonstrated ethical standards in a heartbeat. I hope that lots of other potential employers have the same sense.” - RB

Well, Industry? Do we need more people like this?

I found it heartening, and affirming, the respect that people both inside and outside this industry have for someone who demonstrates backbone. But, not everyone felt that way.

In my posting for the ACA International Group, only two people responded out of 700 members. One applauded it, and the other disputed the article and my writing of it by declaring, “How do you know what happened at Chase? Those who can -- do. Those who can't -- criticize. Get a job!”

Well, I have a job. Apparently, it is to cause our industry to talk about the things they don’t want to talk about. Credential-wise, I can offer up thirty-plus years in this industry as a consultant, training, outsourcer and collector. I “can,” I “do,” and, I am qualified to “criticize.” Another voice or two...

A Chief Financial Officer – International, Australia: “The long run consequences of doing the wrong thing would have been much worse that the short term consequences...and I include in that the ability to ‘live with yourself’ and with the decisions you make.” - CH

CFO/Controller/VP Finance – U.S.: “I have made the same choice as Ms. Almonte twice in my career and I applaud her. I also will emphasize that it is extremely damaging to your career as you are painted as the bad guy and people think you did something wrong. It's called shooting the messenger.” - RB

Reinsurance, Insurance, Commercial Litigator and ADR Specialist, U.S.: “I find it mindboggling that sophisticated, large companies occasionally do stupid things like this, and when they do, it is hard to feel sorry for them. These stupid things occur not because big business is inherently bad -- it's not -- it's because large corporations act through a complex web of individuals, and sometimes one hand doesn't know what the other hand is doing...I'm sure the company has invested in an able group of lawyers to represent it in the case. But I hope they are also investing in better internal management and controls, not to mention public relations.” - PL

Or, do we need more people like this?

Manager, Credit & Collections – U.S.: “Linda’s responsibility was to the Bank. When I was doing undergraduate work I had a...professor walk into class on the first day and open a window and toss a book on Business Ethics out the window. He stated that you represent the firm that you work for and unless what you are doing is in violation of the law your primary responsibility is to the FIRM. Linda should have quit and kept her mouth shut. She is just fueling the fire against the ARM/DEBT buying industry. For the record, I have little or no respect for the whistleblower mentality. If you advise your superior of your concerns and they are ignored you have two choices, shut your mouth or find another job. Simple.” - JS

Simple, is it? I would love to hear more of everyone’s thoughts as to how simple it will be to change course in this industry. If we don’t decide our future, external forces surely will.

Tracesmart Sales Director Joins 2010 Debt Collection Awards (UK) Judging Panel

2010-11-15T07:40:38-07:00

Tracesmart's sales director, Chris Rothwell, has joined a host of industry leading professionals on the judging panel at this year's Debt Collection Awards.

Held at The Nottingham Belfry Hotel, on 18th November, the award scheme is the only event to specifically celebrate the achievements of those working in the debt collection industry. In its fourth year, the ceremony marks the efforts and talents of teams and individuals within this highly challenging sector.

With a wealth of financial services experience behind him, Rothwell brought his inside knowledge to Tracesmart ten years ago and helps develop its range of services aimed at the collections industry and public services sector. Originally heading up Tracesmart's in-house tracing team, his sharp business acumen and commitment was recognised by the company's directors and he was appointed to the board; charged with leading the sales team and strengthening Tracesmart's position in the marketplace.

Speaking of his place on this year's panel of judges, Rothwell commented: "It is an honour to judge the merits of teams and businesses within the debt collection industry. Having joined Tracesmart to head up the tracing division, the collections industry is one that I am extremely au fait with; I understand the expertise that is required to enjoy success within this tough business sector."

Tracesmart provide online solutions to the collections industry, helping businesses with address data cleansing, and tracing people. Its new intelligent tracing tool, TraceIQ, is also sponsoring the Trace Team of the Year award. Giving businesses the means to locate the information they are looking for in a swift manner, the product fits well with an award which promotes excellence in tracing.

Elaborating on his company's involvement with the award ceremony, Rothwell added:"I am extremely proud of Tracesmart's involvement with this year's awards; it's a great honour. I feel that being asked to participate in the essential judging process, alongside some of the biggest names in the industry, highlights how far Tracesmart has come."

About Tracesmart
Established in 1999, Tracesmart Ltd is a leading provider of consumer intelligence services. It specialises in the provision of both online tracing and identity verification. Prominent in the collections, pension tracing, legal and financial sectors, Tracesmart's cleansing and tracing solutions are employed by a growing legion of businesses ranging from SME to FTSE 100 companies.

<<< Return to Newsletter

A Movement is Growing in the ARM Industry, and its Seeds are Discontent

2010-11-11T09:15:42-07:00

It would be a tongue-in-cheek understatement to say that many members of the collections industry are a bit sensitive to perceived criticism. They should be – there’s a lot of it going around and it is quite wearing.

For starters, how about Julie Brill of the FTC standing before the attendees of the annual ACA International meeting in July of this year in which she basically told them, "You are either with us, or you are against us," when it comes to ensuring ethical and legal practices. (She also announced the release of a 71-page study titled "Repairing a Broken System" which details a preponderance of evidence that consumer rights are being trampled by debt collectors.)

Then, we have the every-other-day editorials excoriating the bill collector. In USA Today last month: "Firms Employ Questionable Techniques." And, the "Hounded" series by the Minneapolis Star Tribune, also in October. And, "No Shows Allows Debt Collectors Lacking Evidence to Win Court Cases" in the Scripps-Howard newspapers way back in December 2009.

The noise on the blogosphere is even more strident, and there are few friends or supporters to be found. Social Media has become even more insistent, emotional and instant in its criticisms than any fleet of newspapers could hope to be.

The industry's own web spokespeople, namely www.insideARM.com, take note all this and are replete with alarming news and calls to action. Almost unanimously, these outlets and industry executives are wringing their hands over the "unfair generalizations" in which a "few bad apples" are the source of the negative press.

(insideARM.com has gone so far as to publish a public relations whitepaper called: The 5 Steps to Protecting Your Good Image: How to Avoid Being Tarred and Feathered Because You’re a Debt Collector, which I heartily recommend you read. I know it is good; I contributed to it.)

Individuals and agency owners in the debt collection business complain their already-tough job is made worse by a consumer culture comprised of people who will not pay their bills – "entitled" to stiff their creditor. It's their fault.

Out of all this, something good is growing.

That good is in the dawning realization that this industry needs to clean itself up, that a new code of ethics consistent with today’s financial realities and social matrix must be formulated, and that a new and more respectful way of dealing with "debtors" (remember – the ones once called valued customers) must emerge.

Based on what I have learned to date, the industry’s betterment can only be an inside job.

By way of working to bring my book -- Written Off – America and Americans -- into existence since early 2010, I deliberately set about to see my industry -- our industry -- with new eyes in order to create a survival handbook for both debtors and creditors.

I approached this task from the "Wisdom of Crowds" perspective -- you may want to Google that phrase -- and I reached out via Social Media to poll all parts of the connected world – LinkedIn, Facebook, Twitter, etc., to secure a 360-degree circle of feedback. At some points in time, it felt more like a circular firing squad...with me in the middle.

This is how powerful social media is, and can be, for this industry.

I wrote what turned out to be a controversial blog for insideARM.com about a matter of public record: a lawsuit by a former Chase Bank employee, Linda Almonte, claiming wrongful termination. The source was a New York Times article called "Debt Collectors Face a Hazard: Writer's Cramp." It took the debt selling and purchasing industry to task for robo-signing affidavits as part of a lawsuit-mill to get debtors into court.

The article referenced Ms. Almonte in her role as a team leader over advisers, analysts and managers at JPMorgan Chase in which she was responsible for preparing a debt portfolio for sale. Some 23,000 delinquent accounts with a face value of $200MM, were to be sold off at roughly 13 cents on the dollar, which would realize a net of $26MM for the bank.

But, "We found that with about 5,000 accounts there were incorrect balances, incorrect addresses...even cases where a consumer had won a judgment against Chase, but it was still part of the package being sold," she told The Times.

She flagged the defects, which were shrugged off by her manager, contacted senior counsel at the company, and within days found herself out on the street.

When I published my blog, "Follow Directions or be Fired!" last week, I got considerable – and actually quite supportive – response from the readership. Tellingly, most preferred "anonymous" to the use of their actual names.

People within the insideARM.com family, the ones not defending business-as-usual approaches or blaming the consumer for being deadbeats, can be seen wanting change – real change, and they expressed that desire in comments on the blog. To wit:

"It might be best for a few to show the courage of Ms. Almonte." - An observation.

"Hip Hip Hooray for Linda. She did the right thing, but unfortunately is out of work. However, I suspect not for long when others hear this story." - Anonymous.

"The Company (and company) only wants to seem compliant when an audit rolls around. Props to Linda for standing up for what is right and doing her job with integrity." - Anonymous.

"I spent many years in the forward flow arena and the integrity of the portfolio was first. We made money later." - JB

One attorney responded strongly:

"The connection between Ms. Almonte’s situation and the current market crisis is right on the mark. After Enron collapsed, GE Capital’s then in-house counsel, Nancy Barton, asked “Where were the lawyers?” Answer: the lawyers were there, aware and some pointed out the red flags consistent with their ethical and corporate responsibilities but were quickly shot down (if not fired) by those in power...

Smart employees know that speaking out will likely lead to termination and subsequent litigation frequently leads to lengthy unemployment. Silencing through severance payments, which are virtually always accompanied by employer-required releases, only perpetuates the problem. So, under the circumstances, what can be done to encourage more 'whistle blowing?'" - NB

I repeat NB’s last question – what can our own industry do to encourage people to speak out, at minimum, or provide them a whistle blowing avenue, at worst? As another (anonymous) contributor put it:

"What we need is more leadership, more courage to stand up for what we believe in, without fear… If more people followed (Linda’s) example, maybe we could change the way things are to the way they should be."

And, others pointed out the obvious downsides of not acting responsibly.

"Another point not mentioned, and equally important, is that by selling bad paper, Chase increases the pressure on our industry from angry consumers and the plaintiff’s bar. Even if Ms. Almonte is successful in the suit, Chase has caused damage to the rest of us in the industry." - Anonymous.

"Listen to what Linda has to say with an open mind. I had the misfortune of questioning why bad debt loans were being sold to a specific company rather than by a bid process. I was told to either go along or leave in so many words. Eventually, the failure of the purchasing company and their affiliated loan commitments to the bank were one of the primary reasons for the sale of this mid-western bank." - Not alone.

To be continued...

I didn’t stop with the insideARM.com family on the particular story/post. I featured a similar piece at my own website, www.WrittenOffAmerica.com, as well as trained my sights on the LinkedIn population and its scores of groups dedicated to debt collection.

I will share the remarkable – and sometimes testy – responses I got by way of this effort in my next blog.

Until then, I would appreciate hearing more from my fellow travelers in our field of credit and collections. Is there a change in the air? Are we ready to approach our work differently? If so, in what ways, and what will it take for this industry to remove the tarnish?

See you in the blogosphere...

The Intelitech Group Introduces New Training System for Debt Collectors

2010-11-10T08:53:10-07:00

Vancouver, Wash. - The Intelitech Group, a business consulting practice and technology solutions provider for the collection industry, recently announced the launch of a new method to train and interact with collectors. Elevate! teaches proven principles to collectors, supports and develops collection coaches, and is supported by an evaluation system that ensures collectors apply what they learn.

“Elevate! forms the basis of a complete training process or serves as a compliment to an already established program,” says The Intelitech Group’s Senior Partner Doug Gregg. “This interactive training system ultimately supports the human side of the equation.”

Elevate! also incorporates CollectorTalk!, an easy-to-use computer-based training tool that builds interpersonal skills through simulated debt-recovery scenarios. The innovative CollectorTalk! technology ensures that skills learned in the classroom are completely and consistently transferred to job performance—allowing collectors to practice the skills they need to effectively negotiate with debtors.

In the ever-changing collections environment, it is crucial for collectors and coaches to receive the best, most current training possible. The Intelitech Group, along with experts from across the collection industry, evaluated thousands of collection calls and discovered similar skill sets amongst the very best collectors. Using these core competencies, The Intelitech Group designed interactive online training courses for an entire collection team to learn and adopt. Four weeks of intensive boot camps are offered to introduce a new collector to the industry or take a veteran to the next level.

The Advanced Coaching Techniques (ACT) Series allows coaches the opportunity to learn collection skills. They will also be provided with insights into interpersonal communication, theories of motivation, effective monitoring skills, and much more. Coaches from across the country will have the opportunity to interact in meaningful ways and receive the direct attention of mentors from The Intelitech Group.

For more information on Elevate!, visit www.intelitechgroup.com or www.ARMEDnet.com.

About The Intelitech Group
The Intelitech Group provides consulting and technology solutions to help collections agencies achieve optimal results. Leveraging industry expertise and market intelligence with the latest technology innovations, The Intelitech Group brings extensive industry knowledge, insights and practical tools to help agencies delve deep into all facets of the organization to measure, analyze and implement results-oriented solutions. Contact the Elevate team at 360-260-9780 or elevate@intelitechgroup.com.

<<< Return to Newsletter

ConServe Named to Rochesters Top 100 List

2010-11-10T08:53:10-07:00

Fairport, N.Y. – Continental Service Group, Inc., d.b.a. ConServe was selected as one of Rochester N.Y.’s Top 100 Fastest Growing Companies, ranking 24th on the list. The Rochester Top 100, now in its 24th year, ranks privately held companies based on three most recent years of revenue growth. Companies must have at least $1 million in revenue for each of those years, and rankings take into account both dollar and percentage growth.

“We are truly honored to receive the Top 100 ranking from the Rochester Business Alliance and the accounting firm of KPMG LLP,” said Mark E. Davitt, President of ConServe. “This recognition demonstrates our employees’ ongoing commitment to not only meeting, but exceeding our Clients’ service and performance expectations.” Mr. Davitt attributes his continued ranking on the list to several key factors. “It has been our investment in people, technology, and in building and maintaining our Client relationships that have ultimately charted our consistent growth.”

ConServe employees and Mr. Davitt received the award at a formal luncheon at the Rochester Riverside Convention Center in Rochester, N.Y.

ConServe was the 2009 recipient of the Rochester Business Ethics Award, was listed on the 2009 Inc. Magazine’s 5000 fastest growing companies and has been named a Rochester Top 100 company 8 times.

About ConServe
ConServe is a leading provider of accounts receivable management and collection services specializing in customized solutions for colleges and universities, state guaranty agencies, and the U.S. Department of Education. ConServe’s intense focus on customer service and the utilization of advanced technologies has helped ConServe achieve outstanding returns for its Clients.

ConServe was ranked #1 form 2004-2010 on the small business collection contract with the U.S. Department of Education. ConServe is the only small business contractor to have earned this very competitive distinction more than seven times with the U.S. Department of Education. In 2009 ConServe was promoted to the elite student loan collection contract in the unrestricted business size category.

ConServe has also achieved the ACA International Professional Practices Management System (PPMS) certification. Currently less than 1% of the more than 6,000 collection agencies nationwide offer the benefits of this certification to their Clients. This designation is the collection industry’s standard for quality management.

ConServe was the 2009 recipient of the Rochester Business Ethics Award, was listed on the 2009 Inc. Magazine’s 5000 fastest growing companies and has been named a Rochester Top 100 company 8 times in the last 10 years.

Visit ConServe online at: www.conserve-arm.com.

<<< Return to Newsletter

Two Days Left in Drive, Vet-Owned Tech Lock Closes Gap for Vets Charity with Largest Donation to Date

2010-11-09T08:14:01-07:00

ARMing Heroes (www.armingheroes.org), the accounts receivable management industry’s non-profit dedicated to serving U.S. military veterans (hence “ARM” in “ARMing”), has announced that Tech Lock, Inc., (www.techlockinc.com) has made the largest donation to date toward the organization’s First Annual Veteran’s Day Charity Fundraising Drive (“the drive”).

Tech Lock itself is a Service Disabled Veteran-Owned Small Business (SDVOSB) that provides a variety of compliance management and innovative IT services. One such solution that Tech Lock will be putting to work for ARMing Heroes for the remainder of 2010 is the company’s Holistic Data Security Gap Assessment service offering. As a sign of Tech Lock’s commitment to this cause, the company has committed to donating an additional $1,000 for each and every Holistic Data Security Gap Assessment that clients sign up for between now and December 31, 2010.

Tech Lock Chief Security Officer Todd Langusch stated, “This is an extremely important cause and one that definitely hits home for Tech Lock. I encourage all to take 2 minutes and read the Vet Facts page on www.armingheroes.org. The men and women of our armed services have sacrificed a great deal for us and should not have to face such arduous financial and employment challenges.”

“As a result of the SAS 70 going away June 15, 2011, we have seen a large increase in our signature product, Tech Lock Certified, which includes a Holistic Data Security Gap Assessment,” says Todd Langusch. “Organizations will have a choice to donate $1,000 themselves, or Tech Lock will make the donation on their behalf after receiving payment for services. I can see no better way to take an annual client and creditor requirement, which some organizations do not look forward to, and leverage it for such a great cause.”

ARM companies are subject to several Federal and state laws that require data security and protection of consumer information. In addition, ARM companies that store, process, or transmit credit card information must comply with the Payment Card Industry Data Security Standard (PCI DSS). A Holistic Data Security Gap Assessment from Tech Lock will identify potential risks to the business and can be used to meet client and creditor requirements for annual third party assessments.

Two Days Left! Drive to End 11/11 at 11 PST

The drive began at 8:46 AM EST on Saturday, September 11, 2010, and will conclude at 11:00 AM PST on Veterans Day, Thursday, November 11, 2010. The starting time coincided with the anniversary of the first attack on the World Trade Center in 2001, while the ending time coincides with the anniversary of the official cease fire at the end of World War I, a date later adopted for use as Veterans Day in the United States.

The goal of the drive is to raise $10,000 or more and disburse most or all of the funds in time for the holidays, both directly to veterans who have applied for aid and indirectly through in-kind donations to one or more large national veterans’ charities on behalf of the ARM industry.

Right now, you can make a tax deductible donation that will help needy U.S. military veterans. Donors interested in making a difference in the lives of veterans can send a check or money order payable to “ARMing Heroes” to P.O. Box 353, Collingswood, NJ 08108 or can also click here to visit the ARMing Heroes website to make an online donation.

Comment on this story below if you are reading it online, and make a pledge for a donation in the comments section. Tell the world why you support this cause, including the name of your company, and let us know how we can contact you for the donation. Tell us if you’d like to become a Force Multiplier, too (those who commit to raising $1000 from other sources). These commitments can also be made directly at www.armingheroes.org.

All donations are tax deductible. All donors will be recognized (where permitted) on the ARMing Heroes website and will be updated in December with information on how their donation specifically helped a veteran or veterans.

About ARMing Heroes
ARMing Heroes was founded and began operating in March, 2009. The organization’s mission is to serve the needs of U.S. military veterans, including their spouse and children. ARMing Heroes fills a charitable niche by linking people identified with employment, credit, and financial counseling needs with the accounts receivable management industry, an industry uniquely poised to help in these areas. Persons interested in volunteering their time and others interested in applying for benefits or pledging other forms of support are encouraged to contact the organization at www.armingheroes.org.

<<< Return to Newsletter

ACA of Texas Announces Contribution and Support of ARMing Heroes

2010-11-09T08:14:01-07:00

LINDALE, Texas -- The American Collectors Association of Texas, a professional association whose membership is comprised of Texas collection agencies, collection attorneys, and vendor affiliates, proudly announces its support, both professionally and monetarily, to ARMing Heroes.

ARMing Heroes is a not-for-profit foundation that is working to assist veterans with their transition back to civilian life. It accomplishes this mission by directly connecting veterans with companies in the accounts receivables management (ARM) industry, to provide veterans with opportunities in all aspects of debt related issues.

"We believe in ARMing Heroes and its efforts to support the military service men and women who have so honorably served our nation," said ACA of Texas Executive Director Tom Morgan. "Veterans too often come home from battle and face difficult financial challenges, in addition to the physical and emotional wounds they incurred as a result of their selfless service to our country."

According to ARMing Heroes, the organization uniquely positions the ARM industry to help veterans with finding job opportunities, job training, business development mentoring, financial counseling, direct grants, and debt reduction and elimination (No Debts for Vets).

Founded in 1942, the 180 member American Collectors Association of Texas serves as the voice of the collections industry in Texas on legislative and regulatory issues, and sanctions ethics, professional conduct and compliance with federal and state law. ACA of Texas is committed to advocating and preserving the general welfare and interest of our members, clients, and consumers. For more information, visit www.texascollectors.com.

Members of ACA of Texas are also members of ACA International, the Association of Credit and Collection Professionals. ACA is the comprehensive, knowledge-based resource for compliant, professional, and successful operations 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 high ethical standards, and produces a wide variety of products, services, and publications, as well as articulates the value of the credit and collection industry to businesses, policymakers and consumers. For more information about ACA International, visit www.acainternational.org.

<<< Return to Newsletter

SquareTwo Financial's L. Heath Sampson Named a "Top 25 Most Influential Young Professional"

2010-11-09T08:14:01-07:00

DENVER, Colo. – SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announced chief financial officer L. Heath Sampson as one of ColoradoBIZ Magazine’s “Top 25 Most Influential Young Professionals.”

Sampson, who joined SquareTwo Financial in 2009, recently led the company’s successful development and completion of a $475 million financing package. He came to Colorado in 1991 from Calgary, Alberta, after earning a Division 1 hockey scholarship from the University of Denver, and began his financial career in 1996 after graduating from DU, which in 2006 recognized him as the “Young Alumnus of the Year“ for the accounting profession. Sampson is also a coach for children in hockey and soccer and has been involved in the United Way and the Western Union Foundation.

“I want to congratulate Heath on this well-deserved recognition as a ‘Top 25 Most Influential Professional,’” said Paul A. Larkins, CEO and president of SquareTwo Financial. “From the moment Heath’s feet hit the ground here at SquareTwo, he’s been a tremendous asset for both the financial expertise he brings to our organization and his role in community. He successfully led SquareTwo Financial’s public bond offering earlier this year during a challenging economic environment, which helped position us for growth and created new jobs in Colorado. I’m pleased that Health is being recognized for achievements we are privileged to see every day.”

To select the Top 25, judges viewed more than 150 nominations of professionals younger than 40 and chose individuals based on their professional achievements and involvement in the community. The magazine announced the Top 25 in its October issue and recognized the Top 25 individuals at a celebratory dinner.

“It is an honor be named one of the Top 25 Young Professionals in Colorado. It is a very exciting time in my career,” Sampson said. “I enjoy coming to work every day because I’m surrounded by smart, hard-working, innovative colleagues. Their passion and drive pushes me to be my best. Without them, I would not have been able to achieve what I have at this point in my career.”

About SquareTwo Financial
SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

<<< Return to Newsletter

Debt Collection Agency Founder Featured in China Daily

2010-11-09T08:14:00-07:00

NEW YORK - Direct Recovery Associates Founder, Richard Hart, was quoted extensively in an article in China Daily, "Climbing Mountains To Collect Debt," discussing the increased credit and debt collection demands that exist between the US and China. As more businesses in the US and elsewhere trade with Chinese companies, there is a growing need for debt collection services in China. This increased need represents a significant growth opportunity for Direct Recovery Associates, which has established relationships with clients and collection law firms in China.

"Ten years ago, you didn't see many claims collect out of China. Nowadays, they are very common," said Richard Hart, general manager at Direct Recovery Associates, an international debt collection agency based in California.

Hart estimated that the company's debt collecting activities in China have gone up by 20 percent each year. He cites the financial crisis and the Internet as primary factors. "The barrier in doing business internationally is breaking down," said Hart. "In the past, no business would have been conducted without a letter of credit. Funds were held in trust. Now, companies starved for business are willing to sell goods without any claims. They are more willing to do business with companies they have never worked with before."

Obviously China is an enormous country, but aside from geography, the other challenge is China doesn't have the same legal structure other countries have. Hart is quoted as saying, "Logistically, collecting debts from Chinese companies can be a problem. If debtors in US refuse to pay, we can file a lawsuit to make them pay. In China, they don't have a legal system in place most of the time. It can be challenging if the debtor is in rural China or remote cities. But in bigger cities in China, you can file a lawsuit," said Hart.

Read More: http://www.directrecovery.com/direct-recovery-associates-inc-founder-featured-in-china-daily.html

The complete China Daily article can be found at: http://www.chinadaily.com.cn/usa/2010-10/15/content_11414735.htm

For more information, call 800-200-2442 or visit www.DirectRecovery.com.

About Direct Recovery Associates, Inc.
Direct Recovery Associates, Inc. is a debt collection agency specializing in collecting commercial and professional service claims throughout the U.S. and internationally. Their collectors and attorneys pride themselves on their persuasiveness, persistence and professionalism, the secret to Direct Recovery's high success rate and unusually high level of client satisfaction.