Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
MINUTES - 05161995 - 1.41
TO: 'BOARD OF SUPERVISORS contra Nancy L. Bischoff, Director FROM: Of.fi6ce of Revenue Collection- Costa May 10, 1995 r - s Jaunty qfjl� .,4 DATE: Contract for Collection Services �sra•�� rt`r SUBJECT: SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTION APPROVE and AUTHORIZE the Director of the Office of Revenue Collection to execute contingency contracts with Alliance Credit Services, .National Recovery Control and J. J. MacIntyre for collection services. The contracts are for May 1, 1995 - April 30, 1996 and are renewable on an annual basis. FINANCIAL IMPACT No negative financial impact as the contracts are contingency contracts. Contingency fees are between 27% and 33% of gross collections. Use of the ti agencies will augment the collection efforts of the Office of Revenue Collection and generate additional revenues. REASONS FOR RECOMMENDATION Approval of the contracts will allow the County to assign delinquent accounts that the Office of Revenue Collection has exhausted all reasonable collection efforts and where the debtors have no assets. The three agencies are being recommended for contract to provide greater flexibility and a basis for comparative analysis of performance. Attached is each agency's documentation of good faith efforts. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD MMITTEE ' 4 APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Office of Revenue Collection CC: ATTESTED PHIL BATCH OR,CLEF{K OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY ,DEPUTY f f MA'-r703-1995 09: 17 FROM COUNTY ADMIN. TO 54490 P.02 �c 847 R�incon Avenge Livermore, CA 94550 J. . Ma��n e Co. (510) 447-3232 • (510) 447-0113 FAX AMMAY 4, 1995 Collection Agencies CONTRA COSTA COUNTY `. NANCY L. BISCHOFF 651 PINE ST, 11TH FLOOR MARTINEZ, CA 94553-1229 OUR GOOD FAITH . EFFORTS TOWARDS THE GOAL OF WBE/ MBE ARE AS . FOLLOWS: I HAVE CONTACTED OUR ACCOUNTING FIRM GIELOW & DAVIS 510 734-6600, OUR LAW FIRM LAW OFFICES OF CLARK GARENjFOUND NEITHER OF THEM TO BE QUALIFIED. I CONTACTED THE SAN FRANCISCO HUMAN RIGHTS COMMMISSION AND SPOKE WITH JAMES FIELDS AT 415 554 9693- HE LOOKED THROUGH HIS REGISTRY AND FOUND ONLY ONE .BUSINESS WHO COULD POSSIBLY BE OF SERVICE TO ME A&M ASSOC PO BOX 4600191 SF . CA 94146 415 550 8572 - I SPOKE WITH PETER ALIVES AT THIS COMPANY HE SAID THEY REALLY DON'T DO BUSINESS RELATED TO COLLECTIONS. I CONTACTED PORT OF OAKLAND, CONTRACT COMPLIANCE OFFICE IN OAKLAND 510 272 1390 I SPOKE WITH CONNIE, WHO. HAD ONLY ONE POSSIBLE COMPANY LISTED BAY AREA BUSINESS GROUP AT 510 261 9040 I HAVE YET BEEN ABLE TO HAVE ANYONE ANSWER THE PHONE. I HAVE CONTACTED LOS ANGELES TRANSPORTATION COMMISSION AT 213, . 244 6333 I SPOKE WITH MATT WHO SAID THEY ONLY REPLY BY .SENDING A COPY OF THEIR REGISTRY WHICH HE .... IS SENDING ME TODAY, APRIL 28, 1995.. I HAVE CONTACTED SBA AT 415 464 7885 L/M ON JULIA CARPENTER'S VOICE MAIL AS WELL AS BACKED UP WITH A LETTER. I HAVE CONTACTED CITY OF OAKLAND COLLECTIONS DEPT. I SPOKE WITH A MAN WHO SAID THAT COLLECTIONS ARE HANDLED THERE BY CENTRAL COLLECTIONS, I LEFT MESSAGE ON DEBRA EDGERLY'S ,VOICE MAIL. I HAVE CONTACTED OUR INDUSTRY ASSOCIATIONS BY TELEPHONE CALIFORNIA ASSOCIATION OF COLLECTORS 1451 RIVERPARK DR SACRAMENTO CA 9:5815 916 929 2125 I SPOKE WITH JENNIFER. WHO TOLD ME THAT THEY DON'T KNOW OF AGENCIES THAT ARE MBE OR WBE CERTIFIED AND REALLY HAS NEVER TRACKED THAT TYPE 00 INFORMATION. I HAVE CONTACTED OUR NATIONAL INDUSTRY ASSOCIATION, AMERICAN COLLECTORS ASSOCIATION 4040 W 70TH ST MINNEAPOLIS MN 55493-0106 612 928 8000 AND SPOKE WITH DAVID MOEN' EXT 240 WHO ASSISTS . IN REP'S AS WELL AS PAT CLARIN EXT 135 WHO WORKS IN MEMBERSHIP, THEY. ARE COMPLETELY UNAWARE OF MBE OR WBE STATUS OF INDUSTRY MEMBERSHIP. MRY-08-1995 09: 19 FROM COU,ITY ADMIN. TO 34490 F.03 i i I SENT BY CERTIFIED LETTER ON APRIL 28, 1995 TO CALTRANS PUBLICATION UNIT AT 1900 ROYAL OAKS DR, SACRAMENTO CA 95818 FOR A LIST OF MINORITY AND OR WOMEN BUSINESS ENTERPRISES; JULIE CALLED ME UPON RECEIPT ON 5-2-95 SAID SHE WOULD FAX ME WHICH SHE DID, AN ORDER FORM TO FILL OUT AND SEND BACK WITH THE PUBLICATION I AM INTERESTED IN. I SENT BY CERTFIED LETTER ON APRIL 28, 1995 TO CALTRAN8 SUPPORTICE SERVICES, YOLANDA HARPER CALLED ME UPON RECEIPT OT 5-4-95 FROM 510 271 8040 SAID SHE WOULD WALK MY LETTER TO THE PERSON WHO COULD POSSIBLY HELP ME AND POSSIBLY GET A LIST OUT TO ME BY 5-5-95. I AM FINDING IN THE INDUSTRY OF COLLECTIONS, OUR COMPANY IN PARTICULAR DOES MOST, IF NOT ALL OUR JOBS WITHIN OUR OWN COMPANY, VERY SELDOM EVER FOWARDING OUT BUSINESS, UNLESS OF COURSE IN THE REALM OF COLLECTING AN ACCOUNT IN A STATE THAT REQUIRES LICENSING WHERE WE ARE NOT YET LISCENSED. BECAUSE IT IS IMPORTANT TO US AND IS OUR DESIRE TO WORK FOR CONTRA COSTA COUNTY, AND YOU DO NOT RECOGNIZE THE ORGANIZATION WHO HAS CERTIFIED US AS "WBE" WE ARE APPLYING FOR CALTRANS CERTIFICATION. i WE ARE ALSO LOOKING AT OUR CURRENT VENDORS WHO COULD POSSIBLY BE CERTIFIED "MBE" AND OR "WBE" CERTIFIED. WE DO HAVE A CURRENT VENDOR WHO IS WOMAN OWNED HOWEVER WE ARE NOT YET SURE OF THEIR CERTIFICATION. WE WILL ALSO REVIEW THE INFORMATION THAT WE WILL BE RECEIVING FROM THE COMMUNITY ORGANIZATIONS THAT WE HAVE INQUIRED WITH FOR POSSIBLE "WBE" AND OR "MBE" COMPANIES WITH WHOM WE MAY BE ABLE TO ESTABLISH A WORKING RELATIONSHIP. WE HOPE OUR EFFORTS ARE SUFFICIENT AND WILL LEAD US INTO A WORKING RELATIONSHIP WITH A CERTIFIABLE MBE/WBE COMPANY. I HAVE ENCLOSED A COPY OF OUR AFFIRMATIVE ACTION POLICY AS WELL AS COPIES OF INFORMATION REQUESTED AND RECEIVED IN OUR EFFORTS TOWARD GOAL ACCOMPLISHMENTS. SINCERELY, QHELLY ATRICK GENERAL MANAGER, LIVERMORE OFFICE On:-1 o r, .,,,.- .. ...,.,.,r.1 Ili 1+r-„ 1 I n fi ti i r C,.- STATE ,STATE OF CALIFORNIA-STATE AND CONSUMER SERVICES AaENCY PETE WILSON Gavema DEPARTMENT OF GENERAL SERVICES �W OFFICE OF SMALLAND MINORITY BUSINESS 1531 1 STREET.SECOND FLOOR SACMMENTO, CA 958142018 C,/( March 30, 1994 SUPERSEDES PIN #492760 JUNE 23, 1993 LETTER QUICK SORT INC 100 RYAN INDUSTRIAL CT SAN RAMON CA 94583-1527 Dear Businessperson: •� '�!s ; The Office of Small and Minority Business (O� /I ) c. tiQ ` )ly yes your firm's small 1. i i 4�{•.K business certification request effective 06,=1�-9lh his certification enables your firm to URF: the fi°(� hidding prefere' . 'flay°n.'s ate overnr.n!et contracts according to the bmatl tSusiness;t'rocurement 4 � �'ti�.rac Act. ROMif of status may occur any time the OSMB deems appropriaf�� q)te smell bustg0h certification is ONLY applicable to the following mdUs,try group{s :;within the desig dted business type(s): Business Type(s) Industry-Group(s) Description Service: (ix)(c) Business Services/Mailing, Photocopying and Blueprint Services 1. Current small business certification status requires: A. Annual submission of the following items: 0 Notarized 'Affidavit of Income' (Al) form (enclosed) for the applicant and each affiliate in lieu of Federal Tax Returns (FTRs). The Al must be submitted at the conclusion of each firm's tax year and Is only valid for 90 days. If the FTRs cannot be provided within 90 days, submit a photocopy of a valid Federal Tax Extension for each FTR filed. • SIGNED FTRs as submitted to the Internal Revenue Service (IRS) for the applicant and each affiliate. 8. Written notification of any change of address, signed by an owner/officer. C. ALL changes in business name, structure or ownership require completion of a new Std. 812 (formerly OSMB Form 11). 2. Upon being awarded a state contract, your firm can participate in the Prompt Payment Act Program. Submit the following to the OSMS to receive a rubber stamp: A. A written request to the OSMB for the rubber stamp; Contzra Costa County M13E/WI E CONTRACT COMPLIANCE PROGIzAM Affirmative Action Office 651 Pine Street, Martinez, CA 94553 510/646-4106; FAX 510/646--4098 LETTER OF INTENT 'rO PERFORM AS AN MBE/WBE SUBWNSULTANT/SERV'ICE PROVIDER Name of Prrme Consultant/Service Provider 2. Nameof Project 3. Project Nuwber 4. The undersigned will performs work in connection with the above project as (check one) sole proprietorship corporation , partnership joint venture Please attach your MBE/WBE certification letter or certificate if available. 5. Check one of the following: MBE Subconsultant WBE Subconsultant MBE Service Provider WBE Service Provider MBE Other _ WBE Other Describe Describe 6. The undersigned will perform the following described work in connection with-the above project (specify in detail the partieWar work items or parts to be performed: ��1iYt� ��fUi��j ' Q��SOr•fi'1'rt� I �.t'Loc�.i n� 7. Total Bid to Prune Consultant/Service Provider: $ S 00 i � Signature sition,/Title Date 9. 1 auro Name of Person Completing This Form 10. d-, �0 (-+, - .— Qj� MBE/WBE Company Name Phone Number un FAX Number (t/Z/9]) 1•ir.Y-05-95 FRI 12 :55 ROADRLjr4NLk �. - _.- <<;6 F. 03 J � � oy ` � oa s -•� C� � a vi 1 b ` � b ✓ M O w Y M M � u I S O b N� • � � d M c W p i w ✓� � � (.• a«v i IC f. � M :� + •' Ix N H W R. Z PG y 8 c 5 0 0 a0 a r„ • .a> w n .°a o z �°E� • wg 0 Ile 11 z K PC q pq M V Vci + a q p� J ✓ • j u d � � • K w V P1 w 113 Y Z a V Y • M « oG U ra Z U V b K O M r^ y 4 Q y � � • � ow« w a S = :� •� � •� any;y M 0 •NATIONAL RECOVERY CONTROL MAY 4, 1995 "People And Service You Can Count On!" CONTRA COSTA COUNTY MBE/WBE CONTRACT COMPLIANCE PROGRAM AFFIRMATIVE ACTION OFFICE 651 PINE ST . MARTINEZ , CA 94553 DEAR NANCY: ALTHOUGH WE ARE NOT CERTIFIED AS A WBE CORPORATION, NATIONAL RECOVERY CONTROL IS A WBE COMPANY BASED ON THE SPLIT OF STOCK : LORI HUMPHREY- 510 TODD HUMPHREY- 490 ALSO, IN YOUR FAX OF APRIL 25TH, YOU INDICATED THE ABOVE IS NOT ADEQUATE AND NATIONAL RECOVERY CONTROL HAS TO SHOW DUE DILIGENCE IN FULFILLING THESE REQUIREMENTS/ AND OR FILL OUT THE MBE/WBE FORM. I HAVE CALLED ALL OF OUR SUPPLIERS AND ONLY ONE HAD ANY TYPE OF CERTIFICATES . YOUR FORM IS FILLED OUT WITH THE COPIES OF THE WBE AND MBE FORMS ATTACHED. THE OTHER SUPPLIERS I CALLED WERE; WESTONE PHONE SERVICE, HAYWARD, 510-887-7111 WBE NOT CERTIFIED COPIES WEST, FREMONT , 510-657-9713 , MBE BUT NOT CERTIFIED. MINUTEMAN PRESS, FREMONT , 510-656-2551 THE ENVELOPE CO . NOW EAST BAY ENVELOPE AND FORM CO . , SAN FRANCISCO, 415-543-6980 GOLDEN PACIFIC, (STATIONARY) , PETALUMA, 707-763-9944 JACKIE VENDING, HAYWARD, 510-785-1517 MOST OF OUR OTHER SUPPLIERS ARE LARGE NATIONAL COMPANIES LIKE TRW, EQIIFAX, ACCESS AMERICA, AND OUR COMPUTER COMPANY OUT OF MUNCIE, IN. , ONTARIO SYSTEMS . WE CERTAINLY HOPE THIS WILL SHOW THE DUE DILIGENCE YOU NEED ALONG WITH THE FILLED OUT FORM AND CERTIFICATES . WE CERTAINLY WANT TO CONTINUE WORKING WITH YOU AND CONTRA COSTA COUNTY. WE ARE, "PEOPLE AND SERVICE YOU CAN COUNT ON! " S RELY, i OH LAGRANT XE UTIVE VICE PRESIDENT 46177 WARM SPRINGS BLVD., FREMONT, CALIFORNIA 94539 510-651-9500/ FAX: 510-623-6958 O 1 E� O Q U U) � U W z O 4 N U W a U w W U2 0 ) o . > fi w . o Q 4 � �i d" �i � � • a o � . A 4 5 07 W ro 0 • c > c w 33 aP. d < o 41 4 0 • CL M G U ✓ a, r1 'x. N x •u � > cz a 6 •w S O W ? a C4 4 w `n � • e oG N >41 CLI w d 4 O N n W> F Baa U � • ,. 4 4t j~ W wu v u t « i o DA\ Q x a :OS H •• n. � v) V ( Z Q T •+ u o c N Y O "0 8 a 4 Q o ys w 4 th acod Q tfy, � o • , • G H >s m a • +' T ' It U O! w zft • ✓ 9 4 Q w • . GCc < Q w • C co T R ti a n p m • c wen ✓ N > r r C17"1 w i � wEn r r 4� $ 0 • 31 JAI > a .y � 4 ✓ C N , • tyo � W C� ^ �� u ✓ o �{ `" a ' �� Fj f; � U O M •N�+.ui (L R .rot o z i30 tJ n .. a CCCCCCCC,C TTTT DEPARTMENT OF TRANSPORTATION CCCCCCCCC TTTT Division of Civil Rights CCCC TTTTTTTTTTTTTT CCCC TTTTTTTTTTTTTT 1120 N Street, Room 2500 CCCCCCCCC TTTT Sacramento, CA 95814 CCCCCCCCC TTTT TTTT (916) 654-4576 TTTTTTTTT CALTRANS Certification Number: CT-006557 HISPANIC --- * CERTIFIED PROGRAMS --- MALE SMBE DBE Certifying Agency: CALTRANS PARTNERSHIP Expiration Date: 11-01-1995 Contact Person: PAUL L. CASTRO (408) 943-0707 Attention: PAUL L. CASTRO PACIFIC INTERACTIVE NETWORK P.O. BOX 610428 SAN JOSE, CA 95161-0428 Iw fovL Chief, Division of Civ: Rig-Ws -----Post in Public View----- --- CERTIFICATION MUST BE RENEWED ANNUALLY --- It is your responsibility to: - Apply for Recertification on a Timely Basis. - Review this notification for accuracy and notify Caltrans in writing of any necessary changes. -----Preferred WORK LOCATIONS----- 01 ALAMEDA 07 CONTRA COSTA 27 MONTEREY 34 SACRAMENTO 38 SAN FRANCISCO 41 SAN MATEO 43 SANTA CLARA 44 SANTA CRUZ -----Preferred WORK CATEGORIES and BUSINESS Types----- C9901 MISC SERVICES - CALTRANS SE E4310 U. S. POSTAL SERVICE SE I7330 MAILING, REPRODUCTION, ST SE I7380 MISC BUSINESS SERVICES SE * Only certified DBE's may be utilized to meet Federally funded contract goals. Only certified SMBE or SWBE's may be utilized to meet State funded contract goals. Only certified CFMBE or CFWBE's may be utilized to meet Century Freeway contract goals. i I � J+( •'�,� ;tj .�f �f }������ �/ r�oz' t,�'° �� � �.�;.,.,..'I'll�; J{+(�j� {��}t,�'"z� �' lllj4 �rtl s r'�7 � _ �� �• L t•- �'� � �{' s�.. f tt,'.tI t"�� ,: [ �{�1f�L�rl'� s °fa�� j y� �, t �cee.szOrJeee��oe�oeceosoor✓r,aemoeAerrar,naer9coeoor.�eonor'ecr.eoao o�et000rJ�ooao9ocmnaccaA�noeocr7 r7n come ncae�eonnar7cr7ononAei�� �'�,`j i . ^�c,�lK f bl 13 3� ` •' — 3 X ytl j A � vo + { Ni , \ IF A • I� � �� { OT may'► ,�`.' .'" <a 2x1, F7ii[dJW'iOWO3Td:t WWII W'iAOWW'JWWWWWWfI iaP�tlWWGOWWO%W!i J'J'J.i f1WW 1�!)iW iWti f14133(ifil lJ!d Wt3W7fJ Aa ii]d[II1fJt� Ji ... ,i lJ�. L R t � ♦ K t ✓r t �J�IPiJ�;A"��.1tr� �..4 S� -,. cry-'t✓A.�1`��'�-`v�5 -�� : \ �������^a'� . � " 'dJ"��'�j� � r:1r`� \ � �`l�„s,"'q;.�}YYks Y{��Ys�✓'� ,�•►�.i' � �(�i� ��/"`?�r �j�t���'FI v�t '� ��� � '•''�.,. 6� ('�t Ytti:� r�t i y`° F�fit���w i�i+?off!` 1 �i`� \1�^},?{f� gl; TO: `—�O..RD OF SUPERv .IRS JR iSrector Contra Nancy L. Bischof D FROM: office of Revenue Collection Costa May 10, 1995 ":loop County DATE: ... Contract for Collection Services UU,... SUBJECT: SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTION APPROVE and AUTHORIZE the Director of the office of Revenue Collection to execute contingency contracts with Alliance Credit Services, National Recovery Control and J. J. MacIntyre for collection services. The contracts are for May 1, 1995 - April 30, 1996 and are renewable on an annual basis. FINANCIAL IMPACT No negative financial impact as the contracts are contingency contracts. Contingency fees are between 27% and 33% of gross collections. Use of the agencies will augment the collection efforts of the Office of Revenue Collection and generate additional revenues. REASONS FOR RECOMMENDATION Approval of the contracts will allow the, County to assign delinquent accounts that the office of Revenue Collection has exhausted all reasonable collection efforts and where the debtors have no assets. The three agencies are being recommended for contract to provide greater flexibility and a basis for comparative analysis Of performance. Attached is each agency's documentation of good faith efforts. CONTINUED ON ATTACHMENT: -YES SIGNATURE: 61,;�� -RECOMMENDATION OF COUNTY ADMINISTRATOR -RECOMMENDATION OF BOARD 4MMITTEE' APPROVE -OTHER SIGNATURE(S): ACTION OF BOARD ON fVr� Q 16 CIL5 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ASSENT ► AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Office of Revenue Collection .cc: ATTESTED Yy)--4 - 9 9 PHIL BATCHOR' - ,C_ dK'OF THE BOARD OF aLE SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) By �SL 0- r_ 4 'A QQ DEPUTY H. 1 THE BOARD OR SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on _April 11, 1994 by the following vote: AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson, Bishop HOES: None ABSENT: None ABSTAIN: None sasxxaaaxaaaaasaaasassassaasssssx-sasscaaaaaxaasaaaxxaaaxaaaasaaaaaxaaxaaxxxxx SUBJECT: Quotations for Revenue Collection Services The Clerk advised the Board that a total of eight quotations for revenue collection services were received in the Office of the Clerk of the Board. The quotations were opened in Room 108 of the County Administration Building at 11:45 a.m. this day. The companies submitting the quotations are: 1. J. J. MacIntyre Co. , 847 Rincon Avenue, Livermore, California 94550; 2 . California Service Bureau, 68 Mitchell Blvd. , San Rafael, California 94903 ; 3 . J&L Collection Services, Inc. , 2121 E1 Camino Real, Suite 404, San Mateo, California 94403 ; 4 . National Recovery Control, 46177 Warm Springs Blvd. , Fremont, California 94539; 5. Far West Collection Services, 2700 Ygnacio Valley Road, Suite 325, Walnut Creek, California 94598; 6. Alliance Credit Services, Inc. , 5500 Redwood Road, Oakland, California 94619; 7 . Transworld Systems Inc. , 1155 Ellis Street, San Francisco, California 94109; and 8 . Recovery Systems, Incorporated, 5776 Stoneridge Mall Road, Suite 170, Pleasanton, California 94588. The Board ACKNOWLEDGED RECEIPT of the eight quotations as referenced above and REFERRED them to the Director of Revenue Collections for evaluation and recommendation to the Board. I hereby certify that this Is a true and correct copy of an action taken and enterod On the minutes of the cc: Director, - Office of soar+M supanrt n on the data shown. Revenue Collections ATTESTED; County Administrator PHIL BA CHELOR,Clerk of the Board Auditor-Controller of Supervisors and County Adminis!ritor Deputy SEAL •. Std ,��c� Qont • ! h, d b-s-0- w. t CUs ti C4UN GrV~2 yb� OFFICE OF �. REVEiVUE �OLLECTIOiV 3 COLLECTION.SERVICES R: ,. .. _PROPt?SAL _ 2= �nf®rination Submitt d r :Tc&I C®L ECTIDl1�S` RKIC�' � INC. Z X 21 l/j��� TIIT1 j�)�f1 ® {A{j�j ,fff,S'T'E 4Q4 �L Yl:.�. BLL.`:C d...J.R40 - s8 i r.• .r r# + e : erer--a ee Is A;Cor?zraait east, l +�t o d W: z Contra Costa County OFFICE OF REVENUE COLLECTION COLLECTION SERVICES PROPOSAL Information Submitted By J&L COLLECTION SERVICES,, INC. 2121 ,x. EL CAMINO REAL, STE 404 SAN MATEO, CA 94403 1 1 Where Service Is A Commitment, Not A Word TABLE OF CONTENTS I. INTRODUCTION page 2 II. SPECIFICATIONS FOR COLLECTION SERVICES page 3 III. AGENCY ORGANIZATION page 9 IV. OPERATIONAL PROCEDURES AND POLICIES page 10 V. QUALITY CONTROL page 21 ' VI. SERVICES page 22 VII. DATA PROCESSING page 23 VIII. REFERENCES page 24 IX. INSURANCEPa9 e 25 X. ASSOCIATIONS page 26 XI. FEE SCHEDULE page 27 ' XII. SUMMARY page 28 ' XIII. EXHIBITS page 29 A. ORGANIZATIONAL CHART B. CLIENT SURVEY ' C. REMITTANCE STATEMENT D. ACKNOWLEDGMENT ' E. HISTORY REPORT F. CLIENT INVENTORY REPORT G. ' CANCELLATION NOTICE I. INTRODUCTION AL Collection Services, Inc., appreciates the opportunity to present this information to you. We hope the information contained herein will enable you to make a favorable determination regarding the advantages of using AL as your collection ' agency vendor. In today's climate of public awareness, it is imperative that your choice of agencies represent you in an ethical and diplomatic fashion. As a matter of policy, AL represents each client in a manner consistent with their philosophies, procedures and needs. We specialize in the handling of medical receivables, employ only professional experienced bi-lingual medical account representatives and utilize state of the art computerization. ' Our client-oriented collection personnel and support staff have been carefully selected for proper attitudes and temperaments and are thoroughly trained and supervised to insure'they are constantly maintaining your good image. AL's unique collection system follows a comprehensive due diligence checklist of activity, comprised of experts at all phases of the collection process, assuming full and total responsibility on all accounts assigned. " Where Service is a Commitment, Not a Word " 2 11. SPECIFICATIONS FOR COLLECTION SERVICES SPECIAL CONDITIONS 1. Accounts to be collected. 1 J&L agrees to accept for collection any and all delinquent bills, judgments, claims, and accounts assigned to it by the County in accordance with the provisions of Section 26220, 26221, and 26222 of the California Government Code ( hereinafter accounts ). 2. Contract Period. J&L agrees the contract shall commence on May 1, 1995, for an initial term until June 30, 1996, and shall be automatically renewed under like terms from year to year thereafter subject, however, to the rights of modification and termination contained in the general conditions. 3. License and Bond Requirements. J&L shall furnish a bond in the sum of$ 10,000 payable to the County and executed by ra corporate surety licensed to do business in the State of California for the faithful performance of the terms and conditions of the contract. ' 4. Remittance and Notice of Collections. J&L shall transmit to the Office of Revenue Collection for deposit in the County Treasury: (a) remit all collections of checks made payable to the County of Contra Costa no later than 72 hours from date of receipt. This is subject to change by agreement by both parties. (b) all other collections received during the month are to be transmitted no later than the 1 Oth calendar day of the following month. (c) the county shall immediately notify J&L of each collection received directly from the debtor by the County when the collection was of an account previously assigned for collection. 3 5. Settlement Statements J&L shall submit to the Office of Revenue Collection a settlement statement no later than the 10th calendar day of the following month on forms approved by the Office of Revenue Collection which shall consist of an itemized list showing total receipts collected for each account for the proceeding month and the age of the account for iwhich the payment was received. These settlement statements shall include: (a) the total amount of collections received; this shall consist of all of the collections transmittable to the County Item 4. (b) the total interest received. (c) the amount of the commission payable to J&L for its collection service. (d) the total amount of collections to which the County is entitled under this agreement. This shall consist of the amount collected and transmittable under this agreement less J&L's commission. 6. Payment of J&L's Fees. J&L shall submit written demands for payment. These demands shall be made on County Demand Form D-15 and in the manner and form prescribed by the County. J&L shall submit the demands for payment no later than 30 days from the end of the month in which the contract services upon which such demand is based were actually rendered. Upon approval of payment demands by the Office of Revenue Collection, they shall be forwarded to the Auditor-Controller for payment of the sum of the fees and the commissions described in Item 5 (d) above. 7. interest Charge on Accounts. J&L shall not charge interest on any assigned accounts, unless allowed by law. Interest shall be charged at the rate permissible by law based on the unpaid balance at the end of each year. However, the charging of interest to any account may be waived by J&L if it is determined that the circumstances justify such action. Interest received shall be treated in the same manner and be subject to the same agency fee as the principle received on assigned accounts. 1 4 8. Deceased or Absent Debtor. When it comes to the attention of either the County or J&L that the debtor is deceased and an estate has been opened in his name, or that the County prior to the date of the assignment of the account had a lien against any of the debtor's real property, J&L shall return such accounts and shall be entitled only to a commission on such sums as have been collected on the account by J&L at that time. If the debtor has taken up residence outside the County, the account shall remain with J&L. 9. Uncollectible Accounts. J&L shall report each quarter to the Office of Revenue Collection all claims or accounts deemed by it to be uncollectible and such report shall contain a brief statement of the reasons. All accounts determined to be uncollectible shall be returned to the Office of Revenue Collection by an automated process within 30 days of such determination and J&L shall have no rights to a commission for any sums thereafter collected upon these accounts. In the event J&L makes recommendation to the County for reactivation of an account previously believed to be uncollectible and, therefore, returned to the County, the County may once again assign such account to J&L. J&L shall be entitled to its commission for any sums thereafter collected upon such accounts. 10. Aging Reports J&L shall provide, on a quarterly basis a report showing aging of outstanding account balances. 11. J&L's Attorneys No compensation shall be paid by the County for the services of any attorney employed by J&L nor shall any attorney so employed be deemed to represent the County. 5 12. Reassigned Accounts and Legal Services of the County Counsel. Wit is mutually agreed between J&L and the County Counsel that it would be in the best interest of the County that a suit or other legal process with respect to an account be brought by the County Counsel in the name of the County, the account shall be returned to the County for that purpose. If the account is returned the account or claim shall not be deemed an uncollectible account and J&L shall not be entitled to its commission on the account thereafter collected less expenses of collection and attorney fees of the County Counsel. 13. Compromise Settlement or Cancellation of Indebtedness. If J&L or a County department determines that the collection or enforcement of a claim would result in undue hardship to the debtor or his dependents or that for some reason of law or fact the County's right to recover is in doubt, J&L or County department shall report such facts to the Board of Supervisors through the Office of Revenue Collection with a recommendation for a compromise settlement or cancellation of the indebtedness. 14. Credit Data for County Departments. J&L shall provide such information to the various County departments as may be requested by the Office of Revenue Collection and/or the County Auditor-Controller for the purpose of adopting procedures by which there can be obtained proper credit data concerning a debtor or potential debtor. 15. Control of Accounts. (a) J&L shall bill the debtor for the full amount owed on the debtor's account. (b) For accounting and auditing purposes, J&L shall maintain a control account and segregation of County accounts from non-County accounts. 6 16. Maintenance and Examination of AL's Records. L shall maintain accurate current books of accounts in accordance with generally J& 9 Y accepted standards of good accounting practice. Such books of accounts shall consist of primary and subsidiary records, which shall be maintained for a period of five (5) years except that all records of accounts reduced to judgment shall be maintained for 10 years from date of judgment. The Office of Revenue Collection or County Auditor- Controller, without advance notice, shall be permitted to examine the records, books, and other data in the possession of J&L pertaining to the collection of accounts assigned under the terms of this contract. 17. Compliance with Regulations and Reassignment of Accounts on Termination or Loss of License. J&L `s activities shall conform with Fair Debt Collection Practices and all applicable- laws and regulations. Upon the termination of the agreement or any extension thereof all accounts and judgments, including those in the process of litigation are to be reassigned to the County upon notification. The County may, at its option, allow J&L to continue to service accounts which are in the process of collection. i18. Indemnification. J&L shall defend, save harmless and indemnify the County and its officers, agents and employees for all liabilities and claims for damages for death, sickness or injury to persons or property, including without limitation, all consequential damages, from any cause whatsoever arising from or connected with the operations or the services of J&L hereunder, resulting from the conduct, negligent or otherwise, of J&L, its agents or employees, the County, its agents or employees, or any other person or entity. 19. Insurance. During the entire term of this contract and any extension or modification thereof, J&L shall keep in effect insurance policies meeting the following insurance requirements. It is the responsibility of J&L to provide evidence of policy renewals. Failure to provide evidence will result in the County withholding payment of demands. 7 (a) Liability Insurance. AL shall provide a policy or policies of comprehensive liability insurance, including coverage for owned and non-owned automobiles, naming the County and its officers and employees as additional insureds, with a minimum combined single limit coverage of$500,000 for all damages because of bodily injury, sickness or disease, or death to any person and damage to or destruction of property, including the loss of use thereof, arising from each incident or occurrence. (b) Workers' Compensation. AL shall provide the County with a certificate of insurance evidencing workers' compensation insurance coverage for its employees. (c) Fidelity Bond. Before receiving compensation under this agreement, AL will furnish the County with evidence that all officials, employees, and agents handling or having access to funds received or disbursed under this agreement, or authorized to sign or countersign checks, are covered by a Blanket Fidelity Bond in an amount of$100,000. If such bond is cancelled or reduced, AL will notify the County immediately, and the County may withhold further payment to the agency until proper coverage has been obtained. Failure to give such notice may be cause for termination of this agreement, at the option of the County. (d) Additional Provisions. The policies shall include a provision for thirty (30) days t, written notice to County before specified coverage. Said policies shall constitute primary insurance as to the County, the State and Federal Governments, their officers, agents, and employees, so that other insurance policies held by them shall not be required to contribute to any loss covered under AL's insurance policy or policies. Not later than the effective date of this Contract, AL shall provide the County with a certificate(s) of insurance evidencing the above liability insurance. 8 III. AGENCY ORGANIZATION J&L Collection Services, Inc., was formed February 1990, a California corporation. The officers and stockholders are Donald R. Johnsen, President, and Kenneth M. LaMont, Vice President/Secretary ( see organizational chart, exhibit A ). BACKGROUND OF PRINCIPLES Donald R. Johnsen, President, has 25 years collection agency experience. He has conducted several training seminars throughout the U.S. on collection techniques, including situations/ rebuttals, skiptracing, and selection of personnel. His career in the collection agency industry, included, the maintenance of several city, state, and federal governmental contracts. Some of these contracts include, California Department of Highway Patrol, United States Department of Human Resources, City of Fremont, New York City Parking Violation Bureau, New York State Franchise Tax Board, Arizona Public Utilities. Kenneth M. LaMont, Vice President, has extensive hands-on medical receivables management experience. His experience includes 7 years with a major national collection agency and 7 years as Inpatient Manager for St. Mary's Hospital and Medical Center in San Francisco. His understanding of medical collection management from both the provider's perspective as well as the patient's perspective has provided our clients a superior collection service. LICENCES J&L maintained an active license with the State of California until the state no longer required such licensing ( Bureau of Collection and Investigative Services/Sacramento sunsetted; ceased to exist ). J&L maintains a business license with the city of San Mateo, expiration date, 3-31-95. LOCATION J&L is located at 2121 S. EI Camino Real Suite 1215 San Mateo CA 94403. Our telephone number is 415-574-6006, fax telephone number, 415-574-2985. 9 IV. OPERATIONAL PROCEDURES AND POLICIES (THE J&L ADVANTAGE) We have determined, that to be the best in the collection industry, we must place a great deal of stock in the following areas. o Selection o Collection Techniques o Training o Quality Control o Motivational Incentives o sophisticated technology PERSONNEL (Advantage 1) It has been said that "a company is only as good as its worst employee." J&L recognizes this fact and only hires those candidates that have met high pre- employment standards and qualifications. This is done, in part, by administering a behavioral analysis questionnaire, prior to the interview, directed to evaluate the the applicant's probable compatibility to the collection agency industry. Our questionnaire was developed over many years of 1 hiring and developing collectors and utilizes common traits noted in existing long term successful personnel. This is particularly important in communicating with today's debtor, in that, debt has become an acceptable way of life, requiring collectors to have outstanding verbal and problem solving capabilities. In addition, our compensation package far exceeds the industry average thereby attracting and encouraging long term employees. The most important element of our success has been our training program. 10 TRAINING (Advantage 2) It's not enough, just to employ the most qualified personnel, to be the best in the industry, you must have a training program to further enhance their talents. The vast amount of turnover in the collection agency industry is attributed to poor hiring, lack of training and preparation to be successful. This is why we have placed such a premium on training, training and more training. Many members of our staff are required to attend periodical training seminars to stay abreast of new technology and methods pertinent to their function or position. We pride ourselves in having the most thorough, comprehensive training program in the industry. As a matter of fact, several of our clients have requested a copy to use in their own facility! Selection and Training =Results i 1 1 1 i / 11 lection each c representative mandatory After se a count p sentative is required to complete a m d tory 7 day training program consisting of video tapes, computer training, classroom training and workbook. A new employee's training includes, but not limited to, the following subjects: o The Fair Debt Collection Practices Act and other laws regulating collection activity. o Company policies, including the confidentiality of information. ' o The characteristic behavior of debtors. o The art of motivating debtors to pay. o Developing information to assist the collector in suggesting payment sources to the debtor. 1 o Maintaining complete and accurate historical information. o The importance of proper follow-up. o Polishing collection techniques. o Work habits, daily procedures, and work standards. o The art of skiptracing, including skiptracing by telephone and mail. Ongoing monthly training workshops are conducted to ensure maximum proficiency. 12 1 COLLECTION TECHNIQUES (Advantage 3) All accounts are entered into the computer within 24 hours from receipt. Any information supplied by the client such as contact in case of emergency, last known employer, collection notes, etc., are entered into specially designed fields for later review. i Our computer system will automatically match new accounts with our existing data base for other accounts using name, telephone number, social security number, address, to aid in the collection process. ACCOUNT TREATMENT SPECIALIZATION: We have found, over many years of research, that the average collector, either excels in the art of negotiation, skiptracing, or third party billing and follow up. Rarely does the collector become an expert at all three essential aspects of the collection process. ' It is for this reason, we have segregated the collection process into specific units of responsibility, comprised of personnel who are experts at there given function. "Account Specialization" Our collection system has been programmed to automatically assign accounts to a specific department depending upon information known and provided by our client. For example, all accounts without a good contactable number to reach the debtor, would automatically be referred to our skiptracing department for handling. 1 Our "account treatment specialization "process significantly increases the rate of recovery as well as reduces the time period to resolution. 13 Budgeting/Liquidation Curve: To maintain client satisfaction and agency superiority, we have programmed our collection system to create monthly budgets based upon a sophisticated formula ( liquidation curve ). The design of this system is to budget our account representatives based upon actual monthly assignments versus liquidation levels by age of assignment. EXPECTED LIQUIDATION / BUDGETING CHART 25000 EXPECTED LIQUIDATION 20000 El BUDGET FOR COLLECTORS y 15000 10000 5000 0 _Ut 1 1 1 t 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL MONTHS iThe above referenced chart example, is of one monthly assignment of $100,000.00. J&L expects to recover 22% of that month's assignment. Through our experience, we know based on client type, how much should be collected on a monthly basis to reach that goal. This month's assignment is then added to other prior month's to capitulate a total monthly budget requirement (not shown). 14 r r ACCOUNT REPRESENTATIVES: These individuals follow a prepared script designed to fact find and develop information to resolve the debt. Each A/R follows our basic collection policy which states: We will require each individual to pay in a manner consistent with their ability to repay their debt. We will always keep in mind the human rights of the debtor and will allow no unreasonable demands to be made or implied In order to determine the debtor's true ability to pay the debt, we will compare information given to us by the debtor with his/her credit bureau profile. Based upon this information, we will require the debtor to pay the debt in the following manner: o Payment in full. o A down payment, with the balance to be paid in installments. o Installment arrangements with no down payment (must be approved by management ). r To maximize our efforts to contact each debtor, to resolve the debt, our account representatives work the following work schedule. 11:30 a.m. to 8:30 p.m. Monday-Thursday 8 a.m. to 5 p.m. Friday 8 a.m. to 12 noon, Saturday, prior to the end of the month. 1 The average experience level of our account representatives is 5 years. r Professional account representation 15 1 i 1 SKIPTRACERS: All accounts assigned without a good contactable residence telephone number and or place of employment telephone number are immediately referred to a "dedicated" skiptracing department. We have found that the difference between average recovery performance and outstanding performance is determined by the number of skips located. It is for this reason that a comprehensive due diligence checklist is performed to effect location. Some of which is indicated below but not limited to: o Review of all client file information. o Credit Bureau report; all trade information investigated. o Previous Employers. o Tax Assessor Office. o Voters Registration. o Utility Companies. o Neighbors. o Professional and Trade Associations. Credit Bureau Scoring: All accounts are evaluated using a sophisticated formula of 42 different criteria to determine the most collectable accounts. These accounts, then, receive a more rigorous intensified collection activity approach. This results in not only greater recovery patterns but also puts the recovered dollars in our client's hands at a faster rate from date of assignment. ' Retrieval of nearbys (neighbors) are retrieved electronically via modem through a company called Metronet. 16 Metronet is a data base company which gives us access to over 100 million households ' throughout the United States (The F.B.I. uses their service). We can access the following: o Head of Household o Dwelling type o Address o Date of birth of head of household o Phone number o Other household members o Length of residence o Date of birth of other household members In addition, we have programmed into our stem approximately 120 000 telephone p 9 system, pp Y � P ' numbers of the most commonly called organizations used in the skiptracing process, by city, throughout the entire United States. Such organizations are, but not limited to, the following: ' o Tax Assessor o Town clerk o Post Office o Utility companies o Voter Registration o Major Employers o Offices of vital statistics "Dedicated skiptracing department" 17 INSURANCE DEPARTMENT: Should our account representatives discover insurance coverage, the account is transferred to a insurance specialist for billing and telephone follow up. Our insurance specialists have developed and maintain, excellent rapport with several insurance company representatives, which helps improve the turn- around time to payment. ' LEGAL: After exhausting all means of voluntary collection, a thorough asset investigation is performed to qualify each account (minimum balance of $ 300.00) for ' litigation. As a matter of policy, AL will request approval and authorization from the client to initiate the legal process. Upon approval all accounts are referred to the law offices of Eskanos and Adler, offices located in northern and southern California, specializing in creditor's rights and recovery actions. Eskanos and Adler are compensated based upon a flat fee per account basis. Monthly follow up is maintained through the entire process, from the process server to execution of judgment. Eskanos &Adler Branch Office 5500 Redwood Rd. 5813 Uplander Way Oakland, CA 94619 Culver City, CA 90230 510-531-1800 213-410-1180 In addition, we belong to the American Lawyers Association which gives us access to over 5,000 participating member attorneys throughout the United ■ States. 18 CUSTOMER SERVICE: All inquiries received from our clients are handled by our ' Customer Service Department. In addition, customer service, acts as a liaison between our account representatives and our clients in requesting necessary ' documentation to resolve the debt. A dedicated customer service"hot line" number will be provided, to give you immediate access to a customer service representative to answer any questions regarding the status of accounts, statements, cancellation of an account or provide any other ' information needed. Client meetings are encouraged and are normally scheduled at least once a month, usually at remittance time. These meetings can cover a wide variety of topics including: liquidation percentage, special reports, changes in operational procedures, changes in listing procedures, or anything else requiring discussion. If time does not allow for sufficient coverage of these topics, clients may schedule a meeting at any time ' convenient to them. Periodically, our clients will receive a "client survey' questionnaire. This questionnaire is designed to better understand your needs and to also provide vital feedback on our services ( see exhibit B ). We will help provide necessary support to prepare your accounts for assignment. All customer service representatives report directly to the President of our company to ' ensure complete client satisfaction. " Where Service is a Commitment, Not a Word " 19 • All mail is opened in the presence of two people and immediate) BOOKKEEPING. p p p p Y ' date stamped. Two manual tapes are run for internal audit purposes. Payments are stamped with an endorsement restricting their negotiation to deposit only to the client trust account. Each payment is processed on the day which it is received, and is deposited that day in the client trust account with an automated deposit ticket generated for audit purposes. A daily summary trust report is maintained to include all ' payments received. Every walk-in payment is receipted. Direct payments are taken by our Customer Service Representatives. Statements are prepared weekly, bi-weekly, ' monthly or a specific schedule that meets our client's request. A monthly audit is conducted by a private certified public accountant to ensure compliance with state and federal regulations. ' Stephen I. Cohen Certified Public Accountant 330 Primrose Lane. Burlingame, CA 94010 415-343-4988 REPORTING: J&L has full report capability including the ability to design any custom reports necessary. We can provide full recovery and actuarial reporting at any time. The following are samples of reports supplies. ' o Remittancet t S a ement (Exhibit C) o Acknowledgment Statement (Exhibit D) o History Report (Exhibit E) o Client Inventory Report (Exhibit F) ' o Cancellation Report (Exhibit G) "Accurate, detailed reports you can count on " 20 V. QUALITY CONTROL There is an old adage that states management is 15% instruction and 85%follow up . ' Every aspect of our operation is controlled by standard operating procedures which require weekly and monthly written supervisory review. Each and every account representative receives weekly and monthly supervisory ' reviews to ensure maximum efficiency and production. ' These reviews are placed in their personnel file and play a vital role in determining promotions and future salary increases. The following pages are sample forms of the review process utilized by AL. o Daily A/R review form. o A/R monthly file review form. o Skiptracer file review form. o Complaint prevention meeting form 1 21 r DAILY REVIEW A/R NAME DATE PRODUCTIVITY NUMBER OF ACCOUNTS A/R REQUIRED TO WORK DAILY ACTUAL NUMBER OF ACCOUNTS WORKED DIFFERENCE + OR - i SECTION OF FILE REVIEWED (PRM, GDN, ATY, POE, SKP, ETC.) NUMBER OF ACCOUNTS REVIEWED (MINIMUM OF 1 1 5) STANDARD OPERATING PROCEDURES AND POLICIES ' IS A/R USING PROPER STATUSC ODES? Y N IS A/R USING PROPER ACTION CODES? Y N IS A/R USING AND SENDING LETTERS EFFECTIVELY? Y N IS A/R USING PROPER "TO WORK AGAIN' DATES? Y N ' IS A/R USING "TIME WIP" EFFECTIVELY? Y N IS A/R WORKING SECTIONS OF FILE AT APPROPRIATE TIMES? Y N IS A/R PROBING FOR INFORMATION ON "LEAVE WORDS"? Y N IS A/R GETTING COMPLETE INFORMATION ON PROMISES? Y N IS A/R SETTING UP BEST POSSIBLE ARRANGEMENTS? Y N REVIEWED FILES FOR FOLLOW- UP COMMENTS: r ' MANAGEMENT A/R SIGNATURE ACCOUNT REPRESENTATIVE MONTHLY FILE REVIEW A/R NAME MONTH FILE ACTIVITY 1. IS A/R WORKING MINIMUM REQUIRED ACCOUNTS PER DAY? REQ (REVIEW DAILY REVIEWS AND DETERMINE AVG FOR MONTH) AVG 2. IS A/R FOLLOWING INSTRUCTIONS FROM DAILY REVIEWS? Y N 3. IS A/R WORKING FILE INTELLIGENTLY? (FILE SMART) Y N SECTIONAL ANALYSIS ' PROMISE 1. (A) IS A/R GETTING COMPLETE INFORMATION? Y N (B) IS A/R REQUESTING URGENCIES? Y N (C) DO PROMISES SHOW APPROPRIATE HOLD DATES? Y N (D) IS THERE AN APPROPRIATE MIX (BIF, DWNPMT, PPA)? Y N GOOD NUMBERS/POE'S 2. (A) IS A/R PROBING FOR ADDITIONAL INFORMATION? Y N (B) IS A/R DETERMINING BEST TIME TO CONTACT? Y N (C) IS A/R USING 'TIME WIP" EFFECTIVELY? Y N PTC 3. (A) IS AIR USING PROPER HOLD DATES? Y N (B) IS A/R GETTING COMPLETE INFORMATION? Y N ' (C) IS A/R PURSUING UNPAID PORTION OF BALANCE? Y N ATY 4. (A) IS A/R USING PROPER HOLD DATES? Y N (B) IS A/R USING ATY "NO RESPONSE" LETTER? Y N ' 5. MISCELLANEOUS (EXPLAIN) 1 ACCOUNT REPRESENTATIVE SKI PTRA CER FILE ACTIVITY 1. IS AIR USING PROPER STATUS CODES? Y N 2. IS AIR USING PROPER ACTION CODES? Y N 3. IS A/R USING PROPER "WORK AGAIN" DATES? Y N 4. IS A/R CURRENT ON WIP LIST? Y N 5. IS AIR MEETING DAILY'PRODUCTIVITY REQUIREMENTS? REQMT AVERAGE DIFFERENCE + OR - STANDARD OPERATING PROCEDURES AND POLICIES ' 1. IS A/R USING AND SENDING LETTERS EFFECTIVELY? Y N 2. IS A/R FOLLOWING DUE DILIGENCE BASED UPON BALANCE? Y N 3. IS A/R CALLING MOST EFFECTIVE SOURCES ON CR/BUR'S? Y N 4. IS A/R DEVELOPING LEADS FROM NEARBYS? Y N 5. IS A/R GETTING MULTIPLES ON UNCOMMON NAMES? Y N 1 6. IS A/R DETERMINING OWNER OF PROPERTY? Y N 7. IS A/R ATTEMPTING CONTACT WITH IJUS AND APT MGR'S? Y N 8. IS A/R DEVELOPING INFORMATION FROM PAST EMPLOYERS? Y N 9. IS A/R IMAGINATIVE IN USING OTHER POSSIBLE SOURCES? Y N COMMENTS: MANAGEMENT DATE ACCOUNT REP DATE I� ' COMPLAINT PREVENTION MEETING IT IS EXPECTED AND OUR POLICY STATES THAT ALL CONTACTS WITH DEBTORS AND OR THIRD PARTIES, BE HANDLED IN A PROFESSIONAL BUSINESS LIKE MANNER. WE WILL TAKE A DIM VIEW OF ALL COMPLAINTS AND INSTITUTE ' DISCIPLINARY ACTION WHEN DEEMED NECESSARY. IN A EFFORT TO MINIMIZE AND OR ELIMINATE COMPLAINTS ALTOGETHER, MONTHLY MEETINGS ARE CONDUCTED TO DISCUSS SPECIFIC CAUSES AND PROVIDE EDUCATION TO PREVENT THEM IN THE FUTURE. SUBJECT "DEBTOR CALLS IN UPSET' APPROACH : (1) GIVE THE DEBTOR AN OPPORTUNITY TO AIR IT OUT. DO NOT TRY TO TALK OVER THE DEBTOR'S CONVERSATION. IN OTHER WORDS, KEEP QUIET TILL THE DEBTOR CALMS DOWN. (2) DETERMINE THE PROBLEM. GET ALL THE FACTS. (3) FIND THE SOLUTION. DOCUMENT ALL INFORMATION. ■ (4) REFER UNRESOLVED ACCOUNTS TO ■ MANAGEMENT IMMEDIATELY!! r ' I HAVE ATTENDED THE ABOVE REFERENCED COMPLAINT PREVENTION MEETING AND UNDERSTAND THE PROPER APPROACH TO BE TAKEN. ACCOUNT REPRESENTATIVE DATE VI. SERVICES 1 In addition to traditional collection activities, we offer several other programs geared to increasing cash flow. These programs can be tailored to meet your specific needs. 1 Pre- Collection Letter Series o designed to your specification. ro combination letter series and/or telephone treatment. o money generated to you or handled by us. ' rams Early-Out Programs 9 o low contingency fee and/or low flat fee per account. o combination letter series and/or telephone treatment. Insurance Follow-up Programs o low contingency fee and/or low fee per account. o re-billing and telephone follow-up ( commercial and Medi-Cal ). Payment Plan Management Program o monthly payment reminders o timely telephone follow-up. Small Balance Programs o low contingency fee for early-out accounts. o telephone and letter activity. Training Seminars o classroom instruction o work-books, hand-outs, final examination. 22 VII. DATA PROCESSING J&L utilizes one of the most sophisticated automated collection systems in the industry (CUBS;Columbia Ultimate Business Systems) featuring electronic skiptracing and credit bureau retrieval. Columbia Ultimate Business Systems 5500 N.E. 107th Ave. Vancouver, WA 98662 The CUBS system provides extremely flexible collection and reporting capabilities based upon user defined parameters. It manages the collection process automatically. Ongoing support is provided for 365 days per year. CUBS is the most utilized collection system in the state of California. Every six months, software enhancements are provided based upon user requests, to maintain industry superiority. Assignment of accounts can be accepted manually, by magnetic tape or via modem. Predictive Dialing( Quantum II ) All accounts with a telephone number are immediately processed utilizing the Quantum II predictive dialing system. This system was developed by Columbia Ultimate Business Systems and is considered by many the most sophisticated predictive dialer on the market. 23 i VIII. REFERENCES CONFuDENT6AL Saint Rose Hospital South Valley Hospital ` 27200 Calaroga Ave. 532 Race St. Hayward, CA 94612 San Jose, CA 95126 Joann Hamilton Nancy Kon Director Collection Supervisor 510-782-6200 408-280-5660 Mt. Diablo Medical Ctr. Good Samaritan Hospital 1800 Sutter St. 532 Race St. Concord, CA 9452 San Jose, CA 95126 ` Grace Sanders Nancy Kon Director Collection Supervisor 510-603-8010 408-280-5660 San Jose Medical Ctr. Citibank Credit Services 532 Race St. 7920 NW 110th St. San Jose, CA 95126 Kansas City, MO 64153 Nancy Kon Steve Beranek Collection Supervisor Vice President 408-280-5660 816-420-1378 American Medical Response-West Palo Alto Med. Foundation 1393 S. Seventh St. 2450 Watson Court. San Jose, CA 95150 Palo Alto, CA 93912 Florence Koga Cheryl Jacobson Collection Supervisor Collection Supervisor 408-295-0175 415-812-3877 Saint Mary's College Crescent Jewelers P.O. Box 4200 2201 Broadway Moraga, CA 94575 Oakland, CA 94612 Trish Wilson Jim Dinse 510-631-4393 510-874-7697 24 1 , ST. ROSE HOSPITAL 0 27200 CALAROGA AVENUE•HAYW ARD,CALIFORNIA 94545-4383 510-782-6200 FAX 510-785-1118 April 22 , 1993 Don Johnsen President ' J & L Collection Services , Inc . 2121 S. E1 Camino Real 1 Suite 404 San Mateo, CA 94403 Dear Don, We have recently completed a year in working with your company and are very pleased with our working relationship. Your collection results have been good and you have been responsive to our needs . Feel free to use us as a reference to other medical providers requiring collection services . Keep up the good work ! Sincerely, Suzanne offman Director of Patient Accounting 6. OVERALL EVALUATION: , EXCELLENT SATISFACTORY UNSATISFACTORY COMMENTS: 1 CORRECTIVE ' ACTION: 1 MANAGEMENT DATE ACCOUNT REP DATE , BAY RIDGE HOSPITAL & COUNSELING CENTERS April 2 , 1993 \� Don Johnsen President J & L Collection Services , Inc. 2121 S. El Camino Real Suite 404 San Mateo, CA 94403 Dear Don, Thank you for you help and personal involvement in resolving our delinquent accounts . I particularly appreciate being able to pick up the phone and get an instant update on the status of our accounts. We look forward to working with J & L for many years to come. Thanks again for the quality service and collection results. Sincerely, Christina Cole Collection Supervisor j� 1600 Gordon St. Redwood City, CA 94061 .JA l r,1 gAA_A 1 1A 4 AMERICAN MEDICAL RESPONSE WEST March 21, 1994 Don Johnsen President J & L Collection Services, Inc. 2121 S. El Camino Real, Ste 404 San Mateo, CA 94403 Dear Don, I want to thank you and your Medi-Cal billing staff in providing us a quality service. We have found that your billers have recovered a greater percentage of dollars than other agencies we have used. Feel free to use me as a reference to any medical provider who requires billing services. -� Sincerely, Florence O. Koga Manager, Patient Accounting November 14, 1994 Don Johnsen Mike LaMont J&L Collection Servicesz 2121 S. El Camino R,=-=i Ste 404 San Mateo, CA 94403 Dear Don & Mike, I want to thank you for ae good work you have done in your efforts to collect delinquent accounts for Good Samaritan Health Systems ( San Jose Medical Center, Good Samaritan Hospital and qcuth Valley Hospital ) over the past 4 years. Feel free to use me ass a reference for any other medical providers requiring collectiOn services. I wish you both and J&L Collection Services continued success. Sincerely, Caro! Altmann 4. 77� PALO ALTO MEDICAL FOUNDATION HEALTH CARE RESEARCH EDUCATION April 16, 1991 Don Johnsen President J & L Collection Services, Inc. 2121 S. El Camino Real, Suite 404 San Mateo, CA 94403 Dear Don: I want to take this opportunity to thank you for your efforts and services this past year. Your staff's assistance in helping us prepare our receivables for system conversion was greatly appreciated. The collection script and procedures your collectors utilize help eliminate complaints and also maximize collection results. In addition, your partner, Mike LaMont, has been very helpful in offering advice in regards to billing and collecting on special accounts. His background and expertise in medical billing and collection technique is a real plus in using your services. I would recommend your company to any clinic or medical facility requiring collection services. Sincerely, Cheryl Jacobson Health Care Division/Palo Alto Medical Clinic:300 Homer Avenue,Palo Alto,CA 94301-2794,(415)321-4121 -7 =L D= PACMED 1393 South Seventh Street • P.O.Box 50001.San Jose,CA 95150-0001 408/295-0175 FAX 408/295-1688 January 8, 1991 Don Johnsen President J & L Collection Services, Inc. 2121 S. El Camino Real, Suite 404 San Mateo, CA 94403 Dear Don: We have been very pleased with our working relationship with you, Mike and your staff. Your collection results have been very good! We also appreciate your collection assistance in working with our staff on accounts prior to collection. ,. Should you need a recommendation for any other ambulance company that requires collection services, feel free to use us as a reference. Sincerely, 1` Maureen A. Tobin Director, Patient Business Services The PacMed Companies: Medevac SCV/Paramedical Services • San Jose Ambulance • Community Ambulance Care-A-Van PacMed Paramedics • PacMed Critical Care Transport �- GOLLEC,F �GJ/wNUM Fj���� r � K, } SAINT MARY'S COLLEGE OF CALIFORNIA MORAGA, CALIFORNIA 94575 (415) 376-4411 BUSINESS OFFICE X863 January 17, 1991 Don Johnson President J & L Collection Services, Inc. 2121 S. E1 Camino Real Suite 404 San Mateo, California 94403 Dear Don, I want to take this opportunity to thank you for your efforts and services this past year. Your collection results were outstanding. I have also found your customer service friendly and Iresponsive to all my needs. It is particularly refreshing to work with people who really care. I would highly recommend your company to any one requiring collection services. Thanks again, �% UJ L�- , - Trish Wilson Collection. Manager EUREKABANK.. Consumer Loan Department June 8, 1993 P.O.Box i88o San Mateo California 9440z Tel 415.358.6335 Donald R. Johnsen, President J&L Collection Services, Inc. 2121 South E1 Camino Real, suite 404 San Mateo, CA 94403 Dear Don: Thank you for sharing your company with me today; and the walk down memory lane. Please convey my. appreciation to both Mike and Thelma for their exceptional presentations to me. Of the numerous agencies I've worked in and with, I must say J&L offers one of the most professional environments I have seen. At this point there has not been a final decision concerning future assignments. However, I can say that I will certainly keep you in mind regarding any future changes, regardless of the magnitude. Sinc y; le Mors , Manager Risk Man ement 430M3E3K i4'Jill�ellsc ,illi! d �lLal'��3 I�( 6450 Via Dei Oro 3 mail Address F.O. Boz 49027 m Son Jose, CA 95161-9027 Loss Prevention (408)365-2675 April 26 , 1993 Ms. Thelma J . Hampton Vice President Marketing J & L Collection Services , Inc. 2121 S. E1 Camino Real , Suite 404 San Mateo, CA 94403 Dear Thelma: I would like to take this opportunity to thank you for your professional expertise in dealing with some of our -more difficult restitution accounts. It has been beneficial to have a knowledgeable source to contact when the need arises. The restitution accounts turned over to J & L have been expediently handled and we have had excellent results in payment. Thank you to you and your staff . I am looking forward to the continued profitable association with J & L. Sincerely , man A. Donahue Office Manager , Loss Prevention Dept. Orchard Supply Hardware CITICORP©CREDIT SERVICES Citicorp Credit Services,Inc. A subsidiary of Citicorp 1810 Gateway Drive San Mateo,CA 94404 September 21, 1994 Don Johnsen, President J & L Collection Services 2121 S. El Camino Real Suite 404 San Mateo, CA 94403 Dear Don, We have been very please with our working relationship with you, Mike and your staff. Your collection results have been favorable and you have been responsive to our needs. The addition of your auto-dialer system has increased recoveries and improved liquidation rates. Feel free to use us as a reference to other banks and financial institutions requiring collection services. I look forward to a long and mutually beneficial relationship. Sincerely, Y Ray Jacques Agency Manager Raymond M.Jacques Agency Manager National Agency Management (415)378-1000 Palo Alto Medical Clinic Health Care Division Palo Alto Medical Foundation Board of Governors Neurology Plastic and Reconstructive Surgery R.Hewlett Lee,M.D. George Perlstein,M.D. Harvey Lash,D.D.S.,M.D.' Chairman Joseph R.Lacy,M.D. Morton R.Maser,M.D. David Druker,M.D. Barbara D.Barnes,M.D. David B.Apfelberg,M.D. Vice Chairman Nuclear Medicine David N.White,M.D. Robert L.M.Hetiand,M.D. John F.Scholar, M.D. Thoracic and General Surgery Secretary Lawrence V.Basso,M.D. Robert W.Jamplis,M.D. Calvin D.Brenneman,M.D. Obstetrics-Gynecology Walter B.Cannon,M.D.' Joel Friedman,M.D. James E.Stickler,M.D.' Urologic Surgery Morton R.Maser, M.D. Shirley Tom,M.D. Eric Strauss,M.D. Kevin R.Wheaton,M.D. Bryan D.Thom,M.D.' James B.Bassett Jr.M.D. Peter A.Nelson,M.D. University Health Service John S.Wachtel,M.D. David E.Torin,M.D. Allergy Frank J.McNee,M.D. Gene M.Phillips,M.D. William D.McKee,M.D. Occupational and Environmental Medicine Vincent J.D'Andrea,M.D. Allergy and Pediatric Pulmonary Madiyn W.Stein,M.D. John M.Dorman,M.D. Joann Blessing-Moore,M.D. Albert F.Mazzie,M.D. Harvey M.Weinstein,M.D. Anesthesiology Gary R.Fujimoto,M.D. Cathryn Stevenson,M.D. Lynn W.Winchester,M.D. Ophthalmology and Optometry Irene P.Cannon,M.D. John C.Damron,M.D.' Norman Ballin,M.D. Joseph H.Davis,M.D. Kevin R.Wheaton,M.D. Robert L.M.Hetiand,M.D. Christopher W.Dueker,M.D. Edwin E.Boldrey,M.D. Fremont Center John H.Redpath,M.D. Susan H.Ryu,M.D. Internal Medicine John R.Cooper,M.D. Alan Z.Booth,M.D. Dianne C.Martin,M.D. Janet Wyner,M.D. James C.Ann,M.D. David E.Hooper,M.D. Steven C.Merlone,M.D. Philip G.Sloan,O.D. Evan J.Pollack,M.D. Edward R.Baer,M.D. Dessie Athens,O.D. Family Practice Dermatology Marc Swanson,O.D. Sue K.Mihalko,M.D. Paul F.DeChant,M.D. David Druker,M.D. Otolaryngology/Head 8 Neck Surgery Thuan P.Duong,M.D. David G.Deneau,M.D. Louis Pang,M.D. Donald F.Lofland,M.D. Dale Pearlman,M.D. Michael R.McCaffrey,M.D. Pamela Levine Brown,M.D. Christine Miller,M.D. Kenneth L.Balcombe,M.D. Obstetrics-Gynecology Family Practice Pathology Michael J.Slesinski,M.D. Myron Gananian,M.D. John T.Differding,M.D. Scott Kramer,M.D. Kenneth V.Dole,M.D. Pediatrics Pediatrics William E.Straw,M.D. William C.Blair,M.D. Fatin Scobel,M.D. James Stringer,M.D. Margaret S.Kosek,M.D. William E.Page,M.D. Harry E.Hartzell,Jr.,M.D. Urgent Care Center Susan D.Smith,M.D. Frederick A.Lloyd,M.D. Richard A.Greene,M.D. Mary P.Hufty,M.D. Jane A.Morton,M.D. Medical Director Arthur C.K.Liu,M.B. Bettina C.McAdoo,M.D. Seymour A.Rapaport,M.D. Eileen Byrne, M.D. Ross E.DeHovitz,M.D. Felice R.Sussman,M.D. Pediatrics and Pediatric Cardiology Suzanne M.Stone,M.D. Internal Medicine Richard A.Greene,M.D. 'A professional corporation. Cardiology Podiatry Robert L.Hill,M.D. Elston D.Rothermei,D.P.M. Gary A.Fry,M.D. Arthur F.Widtfeldt,D.P.M. Health Care Division Administration Robert stL.at le,Jr. Joel P.Friedman,M.D. Robert Dibble,D.P.M. Administrator Marc D.Gradmar.,M.D. Psychiatry and Clinical Psychology Cardio-Renal Diseases and Hypertension y in y gy William C.Brown John V.Young,M.D. Nan A.Link,M.D. AssistantAdministrator/Controfter 9. Kathleen Dong,M.D. Lily L.Hurlimann Endocrine and Metabolic Diseases Karen L.Nelson,Ph.D. Assistant Administrator John F.Scholer,M.D.' Psychiatry and Pediatric Psychiatry Health Plan Administration/Satellites Maurice Fox,M.D. Bruce Bienenstock,M.D. Wanda Kownacki Lawrence Basso,M.D. Radiology-Diagnostic Assistant Administrator Randolph B.Linde,M.D. G.Melvin Stevens,M.D. Medical Services/Marketing Gastroenterology George P.Janetos,M.D. Charles D.Wirth Fernando G.Vescia,M.D. Solon 1.Finkelstein,M.D. Assistant Administrator Richard R.Babb,M.D. Roger.l.Jackman,M.D. Lab./Technical Services Brian Paaso,M.D. Joseph F.Walter,M.D. J.Bert Rose General internal Medicine Richard A. Kramer,M.D.` Assistant Administrator Walter M.Bortz 11,M.D. Michael J.Shepard,M.D. Support Services/Facilities Calvin D.Brenneman, M.D. Radiology-Therapeutic Walter T.Paniak Wayne J.Pietz,M.D. Gordon R.Ray,M.D. Manager,Patient Accounts Deirdre A.Stegman, M.D. Gregory O.Colburn,M.D. Paul Saindon James Audet, M.D. Rober;M.Meier, M.D. Assistant Controller Douglas C.Bauer,M.D. Surgery Katherine M.Williams.M.D. Cardiac and Vascular Surgery Patti A.Yanklowitz,M.D. David R.James,M.D. Palo Alto Medical Foundation Maria A.Caras,N.D. P.Michael McFadden,M.D. Robert W.Jamphs,M.D. Hematology and Oncology General Surgery President and Chief Executive Officer Charles A.Arnold.M.G. Alec S.MacKenzie,M.D. Nancy W.Collins William M.. Rogowah,M.D. Francis A.Marzoni,Jr.,M.D. Assistant to the President James E. Klint,M.G. Mary Beth Leonard,M.D. John R.Johnson Neurosurgery Vice President for Administration Paula G.Kushian,M.G. James B.Golden,M.D. Alien D.Corner, M.D. Infectious Disease and Immunology Ray N.Miller,M.D.' Vice President for Research Jack S.Remington,M.D. Oncologic/Colon/Rectal and General Surgery Robert E. Dodge Peripheral Vascular Diseases R.Hewlett Lee,M.D. Vice President for Development Sydney F.Hecker,M.D. Michael L.Trollope,M.D. William C. Brown Pulmonary Diseases Orthopedic Surgery Chief Financial Officer Norman W.Rizk.M.D. George D.Griffin,M.D. Alan A.Dettmering Jeremiah Suhl, M.D. C.David Petersen,M.D. Director,Information Systems Rheumatology Oakley Hewitt,M.D. Midge Pierce Ronald L. Nave, M.D. Steven T.Woolson,M.D. Personnel Director Melvin C.Britton,M.D. William J.F.Maloney, 111, M.D. Jay Thorwaldson Arthur M.Bobrove,M.D. Orthopedic Surgery and Athletic Medicine Director of Community Relations Laboratory Medicine Frederick L. Behling,M.D.' Maurice Fc-, M.D.,Director Kenneth G.Campbell,M.D.' Donald R.Bunce,M.D. The Health Care Division of the Palo Alto Medical instrumentation William E. Nichols,M.D. Medical Foundation is staffed by the Noel F.Thornosc ,,M.G. Charier E.Giangarra,M.D. physicians of the Palo Alto Medical Clinic. scen n RECEIVED FEB 19 1993 J & L COLLECTION SERVICES 1's'1 SOUTH 1:71.- F:AMINO f iC�i,L v.t a.a SAIN ;"°1ATEO C"A ' 4.4 ;:; DEAR lrlot%�, I INCc- _.. &. L 'COLLECTION SERV I C'E S AND ]--)Ne:= OTHER F=IRM HAVE BEEN FIGHTING I T OUT FOR FIRST PLACE OVEFR' THE P(-iST TEN MONTHS, YOU WILL ISLE THE. BE NEF I C I;`•iR Y C1..F t-A DRAMATIC INCREASE SE iPLACEMENT FOR TF-IE NEXT TWO MONTHS. I THAW` YOU FOR (OUR PPIS GOOD Wl"RF.`. AND I i.,tiL}W THAT THI 'INCREASE I N PLACEMENTS WILL F''F�ODUCE A SIZEABLE INCREASE IN PROFITS Ti 1 BOTH YOUR FIRM AND C. J. C'RE:-I1 I 1- CORPOR(iT I ON. SINCERE FrALD EVERS� 'F'EI i I T OF=';=.F"iA'1-IONS MANACE IR C C a T. (;ERRAC:H I O 70 QUALITY JEWELRY STORES THROUGHOUT THE WEST IX. INSURANCE oro s Er r and Omissions sions o Fidelity Bond o Business Package o Workers Compensation All certificates and other statements evidencing necessary insurance requirements per special conditions ( Section II, Specifications for collection services, page 7 and 8 ) will be supplied upon contract acceptance. 25 X. ASSOCIATIONS J&L is a member and actively participates in the following associations. o Healthcare Financial Management Association o American Guild of Patient Account Managers o American Collectors Association o California Collectors Association o San Mateo Chamber of Commerce o Better Business Bureau o International Credit Association 1 26 XI. FEE SCHEDULE AL Collection Services, Inc., is pleased to provide Contra Costa County with the following contingency fee agreement. 1 26%contingency fee for all dollars collected on assigned accounts. 50% contingency fee for all dollars collected on litigated accounts. In addition, we would be pleased to provide you, free of charge, a training seminar for your collection staff. " Where Service is a Commitment, Not a Word " 27 X11. SUMMARY C®MROEMTPAL Thank you for allowing us to provide you this information and your interest in our services. We recognize you will be reviewing several agency proposals and will have to make a difficult decision in determining the finalists. Are the other agencies doing the following: (1) Utilization of a predictive dialing system to help keep costs down and maximize productivity? (2) Credit bureau scoring to identify and intensify collection efforts on the most collectable accounts thereby increasing overall recovery, and the time to resolution? (3) Have over 120,000 telephone numbers programmed into their system for skiptracing purposes? (4) Utilize a specialized collection approach ( segregate the collection process into specific departments) or, are their collectors responsible to handle the entire collection process; contact with debtors, skiptracing, third party billing and follow-up)? (5) Do their collectors work schedule include 4 nights per week to maximize contact or do they work 2 nights per week as most? (6) Is there collection system programmed to develop monthly client budgets ( liquidation curve ) to maintain agency superiority? We do all of the above.... and if chosen, we will initiate collection and customer service strategies tailored to making us your# 1 collection agency vendor! Sincerely, Don Johnsen, President 28 f XIII. EXHIBITS A. ORGANIZATIONAL CHART ( self explanatory ). B. CLIENT SURVEY ( This letter is routinely sent to our clients to provide valuable feedback on our services). C. REMITTANCE STATEMENT (self explanatory ). D. ACKNOWLEDGMENT ( all assignments received are acknowledged with this statement ). E. HISTORY REPORT ( this is a very powerful report which provides a complete analysis of all collections and inventory by month. We refer to this report as our "report card" ). F. CLIENT INVENTORY REPORT ( this report provides a complete listing of all assignments ). G. CANCELLATION NOTICE ( self explanatory ). 29 a� W V! O V O U ■ 6 OC I II - J It O 4 m (� o V v H w � W Q 1�`Y■ C - C (.) 0 j0iggw o_ p srO�i �+c o va Q rw/awi 06 o owl r» x ''n Carol Altmann Corporate Director Good Samaritan Health Systems 532 Race St. San Jose, CA 95126 Dear Carol, Maintaining complete client satisfaction is our# 1 goal. iIn an effort to better understand your needs and also to provide vital feedback on our services, I would appreciate if you would take a minute to answer the following questions, using the below numeric description. (1) Excellent (2) Good(3) Fair(4) Needs improvement(5) Poor (A) Responsiveness to inquiries (8) Reporting and accountability (C) Complaint control ' D) Communication and working effectiveness with staff ( 9 e (E) Collection results Comments and Suggestions You're response and comments are invaluable to us! Thank you, Don Johnsen, President EXHIBIT B J & L C O L L E C T I O N. S E R V I C E S r INC . 2121 S. EL CAMINO REAL, STE 404 P.O. BOX 5514 SAN MATEO, CA 94402-9998 415-574-6006 PAGE NO. 9 GRACE SANDERS STATEMENT DATE 04-03-95 MT DIABLO MEDICAL CENTER CLIENT NO. MTD100 6 1 1800 SUTTER ST CONCORD, CA 94524 CD AMOUNT AMOUNT OUR AMOUNT DATE NAME STS PAID US PAID YOU COMMISSION DUE YOU --------- -------------------------- -- --- ---------- ---------- ---------- ---------- 03-13-95 WHITTINGTON,CURTIS P PIF 15. 12 3.63 11.49 H004415113 - 03-13-95 WHITTINGTON,CURTIS P PIF 30.06 7.21 22.85 H004664942 03-15-95 WILLIAMS,NANETTE H P PRM 51.50 12.36 39.14 H004442687 03-27-95 WILLOUGHBY, AMANDA P PRM 64.37 15.45 48.92 H004642146 03-20-95 WOLFF,GARY M H004601928 P PIF 34.02 8.16 25.86 ' 03-30-95 WOODWARD, TANIA H004482170 P PIF 113.82 27.32 -27.32 03-20-95 WYNHOFF,KELLIE H004582755 P GDN 50.00 12.00 38.00 03-28-95 WYNHOFF,KELLIE H004582755 P GDN 50.00 12.00 38.00 03--30-95 YAO, FENG P H004814471 P PIF 28.66 6.88 -6.88 03-15-95 YI, JINHO H004816302 P PRM 746.18 179.08 567. 10 03-28-95 ZELLER, DANIEL A P GDN 50.00 12.00 38.00 H004139069 03-09-95 ZELLER,DANIEL A H004533501 P POE 50.00 12.00 38.00 03-13-95 ZINO,CHERI H004547915 P PRM 55.46 13.31 42.15 03--30-95 ZOCCHI, CARL L H004707543 P PTC 1116.83 268.04 -268.04 03-30-95 ZOCCHIr CARL L H004707543 I PIF 16.83 4.04 -4.04 03-20-95 ZUKOWSKI , JOHN H004466280 P PAY 50.00 12.00 38.00 03-29-95 ZURAWASKI, EDWIN P PIF 35.00 8.40 26.60 H004563078 TOTALS 16454.28 15998.29 7791.35 8662.93 FINAL VOUCHER PAGE ------------------------------------- *PAYMENT CODES: GROSS COLLECTIONS THIS STATEMENT . . 32452.57 P = PRINCIPAL PN= PRINCIPAL NSF OUR CHECK ENCLOSED FOR . . . . . . . . . . . . 8662.93 I = INTEREST CONFIDENTIAL EXHIBIT C J & L COLLECTION SERVICES, INC. DATE. 04-Q4-95 2121 S. EL CAMINO REAL, STE 404 F.O. BOX 5514 SAN MATEO, CA 94402-5'93 PAM100 PALO ALTO MEDICAL F US ATION 2450 WATSON COURT PALO ALTO, CA 941-0-1 .We are pleased to acknowledge the accounts listed below Which have been assigned to this office for collection. To limit the possibility of confusion please report all payments directly to this office. We greatly appreciate your business. DEBTOR NAME ACCOUNT NUMBER LAST ACTIVITY AMOUNT ----------------------- ------------------------- ------------- ---------- DEVERELrWARREN L 16£576 01-23-95 396.00 GONZALEZ,GA£RIEL 468085 08-16-94 287.25 HIRD,DANA A 522186 10-27-94 95.00 TSAIrSHIRLEY SHEUH-FENC 528541 02-16-95 165.00 TUPOUrOFAKILOAMANU 142522 11-25-94 157.25 ZONN,JULES 104350 09-21-94 185.00 TOTAL NUMBER OF ACCLUNTS ASSIGNED: 6 TOTAL DOLLAR AMOUNT ;SEIGNED: $1 ,285.50 Sincerely, J & L COLLECTION SERVICES, INC. 415-574-6006 ' CONFIDENTIAL EXHIBIT D 1 ' PAGE € HISTORY ANALYSIS FOR: PAN100 - PALO ALTO MEDICAL FOUNDATION d & L COLLECTION SERVICES INC. MONTH ENDING 03-31-95 NET1(11O1S} -----ASSIGNMENTS------ ------COLLECTIONS------ NET GROSS -COMMISSIONS- -----CANCELLED------ --OPEN ACCOUNTS-- 4 AVG MO YR 4 AMOUNT AVG CURR % TO DATE % X TO DATE X 4 AMOUNT % 8 AMOUNT PIF AGE 3-95 19 5,679 299 0 0 0 0 0 0 0 0 0 0 19 5,679 255 (5,679) 2-95 26 7,251 279 806 11 956 13 13 239 25 0 0 0 21 6,295 5 84 (7351) 1-95 29 11,643 401 2,115 18 3,512 30 30 886 25 0 0 0 21 1,111 8 106 (11,947) 12-94 45 11,788 262 538 5 3,187 28 27 797 25 1 263 2 37 8,337 7 169 (11,440) 11-94 19 10,352 545 20 0 3,782 37 37 945 25 0 0 0 it 6,570 8 100 (10,648) 10-94 37 13,461 364 0 0 3,910 29 29 978 25 0 0 0 22 9,551 15 69 (13,536) 944 23 10,064 438 1,315 13 5,003 51 50 1,25€ 25 1 194 2 17 4,867 5 50 (10,171) ' 8-94 43 12,458 290 164 1 4,849 39 39 1,212 25 0 0 0 30 7,609 13 128 (12,9461 7-94 46 15,568 338 71 0 3,902 25 25 976 25 0 0 0 34 11,666 12 182 (16,644) 6-94 55 17,822 324 100 1 3,148 18 18 821 26 2 368 2 38 14,306 15 247 (17,822) 5-94 28 15,083 539 293 2 1€,501 78 76 2,913 25 1 411 3 16 3,172 it 201 (15,083) 444 20 8,196 410 0 0 6,243 77 16 1,561 25 1 120 1 10 1,833 9 221 (8,332) YR-95 74 24,572 332 2,891 12 4,498 18 18 1,125 25 0 0 0 61 20,074 13 137 (24,976) YR-94 493 173,268 351 2,883 2 73,211 43 42 18,447 25 10 1,987 1 314 98,070 169 189 (175,996) ' YR43 593 348,948 588 2,023 1 160,049 49 46 41,182 26 48 24,832 7 300 164,067 245 24€ (352,807) CONFIDENTIAL EXHIBIT E PAGE 1 ' PAGE 2 HISTORY ANALYSIS FOR: PAM100 - PALO ALTO MEDICAL FOUNDATION J & L COLLECTION SERVICES, INC. MONTH ENDING 03-31-95 Nfi!(GROS51 ---- ASSIGNMENTS------ ------COLLECTIONS------ NET GROSS -COMMISSIONS- -----CANCELLED------ --OPEN ACCOUNTS-- D AVG NO YR 8 AMOUNT AVG CURB X TO DATE X X TO DATE X 4 AMOUNT X D AMOUNT PIF AGE PRIOR 989 925,563 936 2,427 0 473,414 57 51 123,355 26 107 89,725 10 464 362,423 418 140 (926,041) IOTAL 2149 1,472,351 685 10,224 1 711,173 52 48 184,108 26 165 116,544 8 1139 644,634 845 179 (1,479,824) r r i 1 i 1 1 r r CONFIDENTIAL EXHIBIT E PAGE' 2 ' PAGE 1 STAIR STEP ANALYSIS FOR: PAM100 - PALO ALTO MEDICAL FOUNDATION J & L COLLECTION SERVICES, INC. MONTH ENDING 03-31-95 ------------------ASSIGNMENTS------------------- OVER NO YR 0 ANT-PLACED ADJUST NET-PLACED AVERAGE IMO 2NO 3MO 4NO 5ND 6MO 7M0 8MO 9HO WHO lIMD 12MO 12HO 3-95 19 5,679 0 5,679 299 0.0 2-95 26 7,351 -100 7,251 279 2.1 13.2 1-95 29 11,947 -304 11,643 401 3.1 12.5 30.4 12-94 45 11,940 -152 11,788 262 10.0 19.8 22.5 27.0 11-94 19 10,648 -297 10,352 545 19.7 24.3 35.4 36.4 36.5 10-94 37 13,536 -75 13461 364 17.7 23.5 27.1 27.1 29.0 29.0 9-94 23 10,171 -107 10,064 438 15.1 16.9 22.4 28.3 29.4 36.6 49,7 8-94 43 12,946 -488 12,458 290 15.8 24.8 23.8 29.7 30.1 33.5 37.6 38.9 7-94 46 16,644 -1,076 15,568 338 9.1 14.1 17.9 18.3 19.2 19.5 22.4 24.6 25.1 6-94 55 17,822 0 17,822 324 5.7 11.1 12.6 13.6 13.8 15.1 15.1 16.9 17.1 17.7 5-94 28 15,083 0 15,083 539 36.7 49.3 58.3 66.0 73.2 73.4 73.5 73.5 74.3 74.3 76.2 4-94 20 8,332 -136 81196 410 7.0 62.6 722.3 74.9 74.9 75.5 75.5 75.5 76.2 76.2 76.2 76.2 3-94 43 19,819 -76 19,743 459 0.7 18.5 26.8 31.5 31.5 31.5 31.6 31.7 33.1 33.8 34.7 34.9 35.6 ' 2-94 65 19,534 -68 19,466 299 2.9 32.9 38.5 43.2 46.6 48.1 50.5 51.2 51.8 53.4 54.2 54.9 56.0 1-94 69 19619 -253 19,266 279 10.2 30.7 34.6 37.2 42.9 44.4 46.9 48.4 49.4 49.4 49.6 49.6 50.6 12-93 36 19,776 -977 18,799 522 4.5 11.7 14.3 17.0 19.0 20.1 21.4 23.7 24.3 25.4 25.4 25.5 26.2 11-93 63 25,872 -333 25,540 405 2.4 13.5 23.7 30.0 31.1 31.8 31.9 32.0 32.5 32.7 32.9 33.2 39.8 10-93 35 14,242 0 14,242 407 0.0 9.0 14.9 30.3 31.7 33.3 34.0 34.9 35.2 36.6 36.9 38.0 43.8 9-93 48 19,594 0 19,594 408 1.2 3.1 7.3 11.5 15.1 16.7 19.3 19.4 20.3 20.6 20.6 20.8 28.2 8-93 65 23,358 0 23,358 359 1.1 2.8 4.0 8.7 10.3 12.7 13.4 14.1 14.7 15.3 15.7 15.8 41.6 7-93 65 23,780 0 23,780 366 1.9 4.5 9.2 10.9 14.2 18.6 24.9 25.3 25.7 25.8 26.1 29.1 46.5 6-93 54 21,025 -74 20,952 388 1.1 3.0 4.4 10.6 11.8 13.3 16.5 19.3 20.8 21.1 21.4 22.8 50.6 5-93 42 34,053 -1,422 32,632 777 5.1 8.0 9.6 19.2 20.3 22.8 24.8 29.0 29.5 30.5 31.4 32.2 54.3 4-93 9 4,705 0 4,705 523 0.0 9,0 11.4 15.5 19.6 21.6 24.9 26.3 28.3 32.0 35.3 50.5 61.5 TOTAL AVERAGE RATIOS. 7.2 18.2 23.7 27.9 30.0 31.4 34.1 34.4 34.9 36.3 38.3 37.2 44.6 1 CONFIDENTIAL EXHIBIT E ' PAGE 3 J & L COLLECTION SERVICES, INC. CLIENT INVENTORY 02;38PM 04-06-95 2121 S. EL CAMINO REAL, STE 404 P.O. BOX 5514 ASSIGNMENT DATE SAN MATEO, CA 94402-9998 JAMES N BLACKMAN JBA100 ATTORNEY AT LAN 600 UNIVERSITY AVE PALO ALTO, CA 94301 DEBTOR 8 DEBTOR NAME CLI-REF 4 DT-ASGN PN-ASGN PRN-COLL CAN-ANT BALANCE LST-PAY STS 163533 ANDREWS, ALLEN TROY 89199798 06-22-93 1500.00 0.00 0.00 1500.00 GDN 187532 BANTA, CHRIS DOUGLAS 05-02-94 2000.00 1500.00 0.00 500.00 08-05-94 SIF 187531 BASSI, JULIE ANN 05-02-94 950.00 800.00 0.00 150.00 03-20-95 PRM 197171 BIVONA,ANTHONY CHUCK 10-26-94 1900.00 0.00 0.00 1900.00 ACT 187528 FONSECA, RENE BENJAMIN 05-02-94 1500.00 0.00 0.00 1500.00 03-28-94 SKP 187530 JONES , MICHAEL LEE 05-02-94 700.00 550.00 0.00 150.00 04-03-95 PAY 187527 MONTEITH, ALEXANDRA 05-02-94 1000.00 0.00 0.00 1000.00 SKP 163532 MOZART, AUGUST 89191008 06-22-93 650.00 0.00 0.00 650.00 03-01-92 SNP 163531 RAMACCIOTTI, ROBERT 69088311 06-22-93 1500.00 0.00 0.00 1500.00 SKP 163530 ROSS, LYNN SH245293A 06-22-93 920.00 0.00 0.00 920.00 01-28-93 GDN 163529 SANTOS, GLEN 89192060 06-22-93 3700.00 1074.00 0.00 2626.00 02-10-95 POE 196569, SMURDA,SHELLY LEE 10-13-94 500.00 0.00 0.00 500.00 SKF ' 196568 STEVENSONAICHAEL HARRY 10-13-94 1210.00 0.00 0.00 1210.00 11-16-92 PRN 187529 STORK, JUERGEN HELMUT 05-02-94 1000.00 200.00 0.00 800.00 08-30-94 GDN 196567 TOLAND,PARTICK N 10-13-94 500.00 0.00 0.00 500.00 04-02-93 GDN 187526 WALKER, ROBERT ALLEN ---05-02-94 1500.00 500.00 0.00 1000.00 07-29-94 POE -------------------------------------------------------------- --------------------------------------------------------- ACCOUNTS LISTED 16 NET ASSIGNED 21,030.00 TOTAL CANCELLED 0.00 TOTAL ASSIGNED 21,030.00 TOTAL BALANCE 16,406.00 TOTAL COLLECTED 4,624.00 CONFIDENTIAL EXHIBIT F PAGE 1 ' PAGE I STATUS CODE LISTING 14:38:59 06 APR 1995 CODE DESCRIPTION........................................ ACT NEN WORK ACCOUNT AIL ATTORNEY HANDLING, SIGNED LEIN ON FILE. ATS ATTORNEY HANDLING, LEIN FORM SENT FOR SIGNATURES ATY REPRESENTED BY ATTORNEY BAN BANKRUPTCY. NO ASSETS. BLD INS BILLED, PAYMENT PROCESS INITIATED BPR BROKEN PROMISE CAL HOSPITAL BILLED M-CAL (PENDING PAYMENT) CAN ACCOUNT CANCELLED BY CLIENT REQUEST. Cl CITIBANK BANKRUPTCY CODE CCC CONSUMER CREDIT COUNSELORS PAYING CCR CHARITY WRITE OFF BY CLIENT CD CITIBANK DECEASED CODE CLD INSURANCE CLAIM DENIED, PATIENT RESPONSIBLE CLH HOLD PER CLIENT CNR CANCEL BY AGENCY. NO RESPONSE. CON COMPLAINT, NO CONTACT ' DEC DECEASED. NO ESTATE OR BEYOND CLAIM DEF DECEASED. CONTACTING ESTATE BIS DISPUTED DOC DOCUMENTS FROM CLIENT REQUESTED DUP DUPLICATE LISTING FRD FRAUD GD1 HOT GOOD NUMBER GDM GOOD CONTACTABLE HOME PHONE HOS DEBTOR IN HOSPITAL, UNABLE TO CONTACT HOT MONEY ACCOUNTS WITH NO PROMISE HSE HOUSE INS UNVERIFIED INSURANCE COVERAGE IPR INSURANCE PAYMENT RECEIVED, BALANCE DUE FROM PATIENT IPV INSURANCE PAYMENT RECEIVED, BALANCE PPO WRITE OFF JAL DEBTOR IN PRISON, UNABLE TO CONTACT JLY JEWELRY RETURNED TO CLIENT, HOLD FOR PAYMENT LAB LEGAL JUDGEMENT, ABSTRACT RECORDED LAS LEGAL ACCOUNT ASSIGNED BY CLIENT LBK LEGAL BANKRUPTCY FILED. LBW LEGAL BENCH WARRANT ' LCL LEGAL ACCOUNT PENDING CLIENT DOCUMENTATION LDE LEGAL DECEASED, NO ESTATE LEG NEW LEGAL ACCOUNT, NOT SERVED YET 1 LEX LEGAL EXECUTION ON ASSETS STARTED LJD JUDGEMENT OBTAINED, ASSETS AVAILABLE LJN JUDGEMENT OBTAINED, NO ASSETS LKP PREPARE SHERIFFS KEEPER LOX ORDER OF EXAMINATION LPF LEGAL PAID IN FULL. LRE PREPARE REAL ESTATE SALE LSC LEGAL ACCOUNT, SERVICE COMPLETED LSD DISMISSAL TO ATTORNEY LSF LEGAL SETTLED IN FULL, LSK LEGAL JUDGMENT CONCLUDED. LSP STIPULATION OF JUDGEMENT IN EFFECT LSV SERVICE UNSUCCESSFUL. TO TRACER LTP TRIAL PREPARATION ' LUN COURT REFUSES JUDGMENT CONFIDENTIAL EXHIBIT F PAGE 2 PAGE 2 STATUS CODE LISTING 14:38:59 Ob APR 1995 CODE DESCRIPTION........................................ NBD INS VERIFIED BUT NOT BILLED OR INFO NEEDED NOT AVAILABLE YET NEN NEW WORK FIRST 5 DAYS NRP DEBTOR IS A MINOR. NO RESPONSIBLE PARTY. OMC MEDT-CAL TOO OLD TO BILL PAD PAID ASSIGNED BALANCE, INTEREST STILL DUE PAY PAYMENT PLAN IN EFFECT. PBT PAID BEFORE TURNOVER PC CITIBANK PAID IN FULL CODE PIF PAID IN FULL POE EMPLOYMENT PHONES AVAILABLE PFR INS PAYMENT RECEIVED, BALANCE FPO W!O AND PT RESPONSIBILITY PRM PROMISE TO PAY PS CITIBANK PAID-SETTLED CODE PTC PAID BALANCE TO CLIENT RAI REFUSES PAYMT, SUIT AUTH REQUESTED RAW REFUSES TO PAYT SUIT NOT WARRANTED ' RE CITIBANK EXHAUSTED EFFORTS CODE REV REVIEW RSM REFUSES TO PAY. AMT TOO SMALL FOR LEGAL. SIF SETTLED IN FULL SKL SKIP LOCATED SKP SKIP. TRACING FOR LOCATION STA STATUTE OF LIMITATIONS HAS EXPIRED. SUS DEBTOR HAS NO ASSETS OR INCOME TOE TURNED OVER IN ERROR TRA TRANSIENT, ADDRESS IS A SHELTER UNL UNABLE TO LOCATE VVC VICTIMS VIOLENT CRIMES WEB WAGE EARNER BANKRUPTCY WEL DEBTOR IS ON WELFARE. CONFIDENTIAL EXHIBIT F PAGE 3 tJ & L COLLECTION SERVICES, INC. DATE: 04-03-95 2121 S. EL CAMINO REAL, STE 404 ' F.O. £01 5514 SAN MATED, CA 94402-9998 MTD100 IT DIABLO MEDICAL CENTER ' 1800 SUTTER ST CONCORD, CA 94524 The following debtors assigned by you to this agency have been removed from active collection processes. Please notify us immediately if the action was taken in error. Thank you for the opportunity to be of service to you. ' DEBTOR .NAME ASSIGNED PRINCIPAL CAN. AMT. ACCOUNT NUMBER ----------------------- --------- ---------- ---------- -------------------- LUCIDIO,PETE 09 DEC 94 623.16 623.16 H004430690 LUCIDO,GEORGIA BANKRUPTCY. NO ASSETS. LUCIDO, PETE 13 JAN 95 200.14 200. 14 H004458378 BANKRUPTCY. NO ASSETS. MCKISSICK,JOSEPH 07 MAR 95 29.7.9 29.79 H003784709 ACCOUNT CANCELLED BY CLIENT REQUEST. MORASH,CHARLES 07 MAR 95 38.69 38.69 H004479432 ACCOUNT CANCELLED BY CLIENT REQUEST. OBRIEN,MICHAEL 07 MAR 95 94.41 94.41 H004808382 ACCOUNT CANCELLED BY CLIENT REQUEST. PAWLEY,AMRY JANE 10 FEB 95 89.90 89.90 H004752713 ACCOUNT CANCELLED BY CLIENT REQUEST. RAAB,DONNITA 10 FEB 95 135.96 135.96 H004722359 ACCOUNT CANCELLED BY CLIENT REQUEST. RAMOSrGLORIA 10 FEB 95 1831.99 0.00 H003446838 ' PAID ASSIGNED BALANCE. INTEREST STILL DUE REIL, ALBERT 13 JAN 95 753.30 358.72 H004592341 REILr JOSIE ' ACCOUNT CANCELLED BY CLIENT REQUEST. RIVERS,ROBERT J 10 FEB 95 1185.17 1185.17 H004371225 ACCOUNT CANCELLED BY CLIENT REQUEST. SEIPP, LEONARD 07 MAR 95 10455.10 10455.10 H004617234 ACCOUNT CANCELLED BY CLIENT REQUEST. SVEJDAZ,DONALD 10 FEB 95 51.17 51 . 17 H004207791 ACCOUNT CANCELLED BY CLIENT REQUEST. SVEJDAZ,DONALD 10 FEB 95 24.47 24.47 H004234282 ACCOUNT CANCELLED BY CLIENT REQUEST. SVEJDAZ,DONALD 10 FEB 95 112.98 0.00 H004455044 ' ACCOUNT CANCELLED BY CLIENT REQUEST. [CONTINUED NEXT PAGE] PAGE NO. 1 CONFIDENTIAL EXHIBIT G ' PAGE 1 MT DIABLO MEDICAL CENTER MTD100 04-03-95 DEBTOR NAME ASSIGNEDPRINCIPAL CAN. AMT. ACCOUNT NUMBER 1 ----------------------- --------- ---------- ---------- -------------------- SVEJDAZ,DONALD 10 FEB 95 1 100.84 100.84 H004469318 ACCOUNT CANCELLED BY CLIENT REQUEST. WESTWOOD-SMITH, ELAINE 07 MAR 95 281 .10 281.10 H004497996 ACCOUNT CANCELLED BY CLIENT REQUEST. WHITMAN, STEPHAN J 07 MAR 95 1838.57 1338.57 H004601597 ACCOUNT CANCELLED BY CLIENT REQUEST. TOTAL NUMBER OF ACCOUNTS: 17 .. PAGE NO. 2 TOTAL DOLLAR AMOUNT CANCELLED: $15,007.19 Sincerely, J & L COLLECTION SERVICES, INC. 415-574-6006 1 4 1 CONFIDENTIAL EXHIBIT G PAGE 2 Iraq overawe IffmQo a4 DQ 1155 ELLIS STREET, SAN FRANCISCO,CA 94109 • (415) 563-6226 FAX: (415) 563-1633 Mr. Phil Batchelor , County Administrator April 10, 1995 CONTRA COSTA COUNTY County Administration Bldg. 651 Pine Pt. , 11th F1. Martinez CA 94553-1229 Dear Mr. Batchelor, The costs and fee quotations herein are in response to your "Invitation to Submit Quotations For Collection Services" dated March 28, 1995• I have also provided explanations of our flat fee collection service.. Your Invitation was mailed to our Rohnert Park Corporate office and subsequently forwarded to our regional office in San Francisco for response. It is our desire to serve Contra Costa County with our flat fee, Pre-Collection as well as follow-up personal, contingency fee services. These have proven exceptionally effective for many counties, cities and States in providing solutions to a wide range of their collection needs. Should Transworld Systems Inc. be favored with a contract to provide collection services for the County, we are sure you would find both the high returns and quality of service exceeding your expectations. Because of the short time we have had in which to prepare our quotations and because this is not a discussion of individual terms of contract, we will defer these matters until such time as you indicate you wish to negotiate a contract for our services. For further information and for a personal meeting please contact me throu h our San Francisco office, phone 415-563-6226 (FAX 415- 563-1633. 'Thank you. Very truly yours, c � William G. Gwynne Sr. Consultant Encl. SAN FRANCISCO,LOS ANGELES,NEW YORK,CHICAGO,DALLAS,HOUSTON,DENVER,SEATTLE,PHOENIX,HONOLULU,ATLANTA,BOSTON,OAKLAND,AND OTHER MAJOR CITIES TRANSWORLD SYSTEMS INC. 1155 Ellis Street San Francisco, CA 94109 415-563-6226 Fax 415-563-1633 Quotations for Collection Services APRIL- 1031995 QQ�QQQI�D � �4 William G. Gwynne Senior Consultant pl�f�QaQL�D I�OI�a Mr. Phil Batchelor, County Administrator County of Contra Costa County Administration Bldg., Room 106 651 Pine Street Martinez, . CA 94553 The following are just a few of the companies that have been utilizing the services of Transworld Systems p ,�„ pp �' g $� ti ' �t �: B't'- w p+..W �f Y v°`�_'ct f'vW � Y _ti �. $�� � � � rrms+ �+mwa. i.. 4 R �' �°�a C t! � k.+r k'4} "6,>} !f\!!4. ■ ✓ tib {p�'��`a`�w'1' g .�.«°^ „� 1 1Y '4& ■ 'r."`°".F 1 �Y wr.4#t a ;+ 1, t. t 4 [ L x a x€ t ate,m ti' m «x <. x �a € v f'1 Si R.i w A £ A � Iz:--:»S ��.`7 E t "�,. ■ `+eve F 'i, [ { j ��'F �.t`. _ H «,„ a "�� r�9..v" "t. ■y� ' ,L„k..,�.« �,# 6.s. K a°�'Gg"&�i �:��:.d' � �S' t i` ■ "i d s k 0L. ■ �d a �E i3 �E S E i VTC . ■ 0 U kr---`E ,<e R D Ukms+ H . N c 4 ''', '' ',� � -'`� �"'`� !-A � � �e�-^°� s ,. ,,...,,. CIA ' — r n r �� �,._� B ■ i t�_ �«.� .� ,.s; ■ N�� e r , ; � ' + Fes"' ■ U t , F `,,-`,)i21 , '�a,."�,.h`�..:. @ w-,� "�_ %� �.,-ti t ��a..,c`� �.>i e i*' ?sem C' ° ...a�,� o,_,t �F � � . . �n r�' t ��.d g, sa^ gr�. "4 � h4 �' r` p- P; G� Gµ,i t. `�.�y ■ #�. S A`" 6 a. "�i...>��y E 4 s !.'Y...f g ..,:.t ■ y X, t ..u..._ c i X43 c"` '`,' -tea+�µ`t S`"".t..a. n k �`i e��a. ,A�"nRS @ AUP :. IJI D GE .. RHE# x 4 A C»` is l 8�..:.�N r i�C ', (-,,F ��'..,... r. !�d f �, I � �'v��"��€ �= is F"" t 'DAN( m"1��.f{` 1'�` i�' � �gR,�""';^^"t get.g^.x�g."-tdr &y, �, ,yg^y �. ,,r». � �v r 4. (F 10A E Pi, L 9 ii' +� � ■ ��y y) ' a,..c'-'r•*-��.;; t'ti's:'�«`� ■ 'G R+..,.���� Tw..$E ?` S `�S';n�'�� ��- .� ms`s.;�-"a`s,at., �&�:c�. S c.3 3�"�'4 '..,✓� , D?� , I'x.�r rP k.x"� 8 x }.�;,,� ■ fi`rry'S )q�`4,r t�� ^�yi"�E�f& y���c — .'-w I,— HONE € � — QA o A fF e: `.9 " H S S x �—. ■ ,,-A W'v1 R N' A� k�s N GROUP O G � ■ C) C'�"' '1 1 g �,d AA« p� fi �gg}� p+� lir� R HOTa..'k ■ U 1 � .TA :t'�` 3 ?t C°b. k� A n ■ .' C ti 13ffi f,, A �.", L S-� i `�' �� v✓-a ;€ �' � u e t� E`er. � � UNITED IRLIN !NLAND 900VIVER & LIGHT ■ HYATT ST J01-11INS UNIVERSITY ■ PUROLATOR ■ CITY OF TAMPA U LIC'OH IiNC ■ CHUB MED m DOMINOES "PIZZA ■ `' /-* 0 FILMiS ■ PACIFIC NORTHWEST BELL ■ CITN PLJB 1Sk h* "ORP i B y,``�y N �, 'NA t�n�G . ?:..,�TCOR A v E ■ a ;t ICETON g;�.� � ���t V¢ —'�.`"S gI+ 9 k y _ a 4 �c ". � � $ x #, E:, rtes"a bit � . tiS`,..,. ■ L.«"i l .,e"" ' .{ a„.. ¢ E.., . ■ ,�" .. w L L ,-«„ x�-..:4. a .n -.. .t. meq, ■ t ?' f 'V a ..� � �`�i_ E_..�,. �`"Y '..., � 4 � ,«�£� � ■ ,-}'.A..� �,! F _3 �s' ■ �""y��""�� 1 �j%x�L(( ''®,,!` a �",�:'}°" µ ■ `t � � �""` �4... a r "" a � N Contents Mission Statement .Part TSI/CMS, A Three Phased System Exhibits Part II About the Company Exhibits Part III - Transworld Computer Service. Exhibits Part IV Cost and Compensation Exhibits Part V Letters and Testimonials TRANSWORLD SYSTEMS - PHILOSOPHY AND PRACTICE At Transworld Systems Inc., (TSI) we believe successful collections rely on applied psychology, communications and timing. . As a third party, the z message sent must be reasonable, t'o the point and compelling i f the debtor is to be convinced his best move is to. take care of .his obligation to his creditor. While we have state of -the.art computer systems. to give us the ability to handle large volumes of accounts very inexpensively, to deliver our message quickly and-to take care of business matters efficiently, i t is the design, copy and timing of the debtor contacts in our .TSI Pre-Collection system and the education, training and experience of. our collectors in our Credit Management Services (CMS) branch that ultimately bring a change of, priorities resulting in payment by the, debtor. PART TSI/CMS, A THREE PHASED SYSTEM Exhibits: A. Two phase vs. three phase approach B. Department of Commerce. = rate o f A/R depreciation C. Six page blue folder "Eliminating the high cost of Debt Collection" D. "Notice of Transfer of Assignment" report Provides for automatic transfer of account to CMS, i f not cancelled by client E "TSI Service Completed` ort _ p p Provides f or optional assignment to CMS F. "Collection Status Report" Comprehensive monthly report on all active pre-collection accounts and summary of performances of current system G "CMS Collection Statement" A.monthly report on a client's CMS collection activity H. "CMS Inventory Report" A bi-annual report issued in January and July giving status of all active CMS accounts TSI/CMS IS A THREE PHASED SYSTEM • PHASE 1, The.f i rst step i s our client's time-activated Accounts. Receivable follow-up system, that will identify slow and potential collection problem accounts, early. Non-responding accounts and those which do not keep payment arrangements should be started on TSI's Pre-Collection Service very shortly after debtor non-performance: Repetitious creditor demands tend. to be ignored or even harden resistance by the debtor. They, also run the risk of violation of arcane State and Federal collection laws. Without the TSI P,re- Collection alternative, creditors will spend upwards of $16.24 on statements, computer letters and phone calls -over a 6 month period, not wanting to alienate the debtor/patient or incur the'high cost of traditional percentage, contingency agencies. PHASE II You w l l probably choose our. "Courtesy Notice" as our first contact to the debtor/patient: . Without being harsh, this ."notice" brings to bear the • "persuasiveness" of TSI as a third party collection agency. At an almost insignificant cost per debtor account, we will send up to five debtor contacts with increasingly intensive tone and carefully chosen content until the debt i s paid or dishonored. When the debt i s paid, you w i I I probably want us to send our "Thank You" letter at no additional cost to you. TSI's Pre-Collection gives our client the freedom and flexibility to choose the kind of service desired for that particular account, the frequency of contact, the time to start, stop or suspend service and the ability to make arrangements for payment with the debtor as we.l 1 as to receive a I I payments directly from the debtor. Every detail of our Pre-Collection System has been researched for greatest effectiveness, and`al I phases of the system are under constant scrutiny to be sure all legal requirements are being met. Thirty days after the final, fifth , contact has been sent Pre-Collection is complete. You w i I I be sent a report on the completed service, and you w i I I have the option of having .collectio.n efforts continued by Credit Management , • Services out of their offices closest to the ' debtor. PHASE III • CMS's collectors are all college graduates and are Company trained. Since the large majority of accounts they work* are those that have not responded to TSI Pre-Collection, our collectors are very familiar with the kinds of situations that they, will be handling. Because o'f the high percentage of accounts that are settled by TSI's Pre- Collection, CMS is handling, essentially, second assignments., Even so, CMS recovers an .average of 29%, which is higher than the industry average. CMS i s a fu I I service agency, equipped to handle skips and legal actions anywhere in the United States. , TSI/CMS is licensed in all 50 States. The advantages of CMS handling .hard core accounts not withstanding, our clients are free to select any follow-up collection system they want. • t Q ► --' CD M 0 1 CD o m rn CD � r) ' a � 1 CD r ► tz cx_ zoo CD CD O ' CO000 O r cn n ► CD CC) - ► pp C7 O CD CT ► N ► ► ' !N p o i o.. * I 1 .. 1 r ' r_N CD _ CD CO CDoo CD 0 JL X <' 00I m mcD O r tJt <„ p 02 N EA GA 6A CD 01 rn0m i -t cn D t co00 0 m.. O (D n 1 i o O0 , ze� v �• rn ' -M C - Q () I R. %p Q- Z m o ,� S Ic�—t r m 1 No co Z tA Q r) t rt O t C� i CI D C o O t ZDrn m i �� ZOrn= n .� t - 3 �oa S n-i i C1 n O o o �F�� �p Z , 000= A 1 rnn�.. rt D t 0� .s zv N�� O r17 OCR L _ Z o y I p. Ln CA M i t D t v3� v ' o O CL Z 0 i O , U G� t V' i i r THIS IS YOUR MONEY DEPRECIATING 100i 5% U.S. DEPARTMENT OF COMMERCE SURVEY 80% - - 26% LOSSES ON 35% DELINQUENT 60% � ACCOUNTS 50% • 40% 30% 70% 20% 90 10% /o 4,7�- 77 t MO. 3 MO. 4 MO. 6 MO. 12 MO. MONTHS PAST DUE ARE YOU TRYING TO SOLVE TODAY'S PROBLEMS WITH 1970 SOLUTIONS? � Because of today's profit squeeze, time is of essence in regaining your lost operating capital. D TRA .? S 1W r - 'Rol Da SYD� STEMS DIN "Q2 0 Q ElimInating The: High Cost i r of Debt Collection { j "We've proven it to many of the Fortune 500 plus over 40,000 { other companies, since 1970." I i i CORPORATE OFFICES: �. 5880 COMMERCE BLVD. ROHNERT PARK, CA 94928 (707) 584-4225 i OVER 130 OFFICES NATIONWIDE TO SERVE YOU � � 7 . . . TS1 is the best solution to, their receN �le problems. Banks and Credit Unions - over 930* Wholesalers and Retailers - over 10,000* Industrial Manufacturers and Distributors Fuel Oil Companies Travel Agencies Girl Scout Councils & YMCAs - over 250* Libraries Video Stores Security Alarm Companies Hotels - over 635* Veterinarians - over 610* Clothing Manufacturers Optical Stores Pest Control Trade Schools Colleges and Universities CPA's - over 825 practices* over 625* Medical Laboratories Advertising and Marketing Firms Wholesale Food Manufacturers & Distributors Convention Services Insurance Companies & Agents City, County, & State Governments ""' -over 550* • over 300* Plumbing Services Mail Order Houses Publishing & Printing Utility Companies Companies - over 840* Hospitals, Medical and Dental Court Reporters Practices and Clinics - over 10,400* Employment Agencies TV Stations Oil and Gas Companies Auto Dealerships and Repair Shops Financial Services - over 215* over 1,230* Cable TV Services Health and Fitness Clubs Real Estate Services - over 700* Auto Parts Stores / Suppliers Automobile Rental Agencies Heating and Air Conditioning Services - over 560* Long Distance Telephone Services Ambulance Services Trucking & Moving Companies - over 1,000* Florists Fraternities and Sororities Newspapers and Magazines Waste Disposal. Companies - over 310* Cellular Telephone Services Medical Supply Manufacturers Professional Athletic Teams • Printing Shops Information extracted from audited client lists *Individual companies or institutions using the TSI system WHY TRANSWORLD SYSTEMS ELIMINATES THE HIGH COST OF YOUR COLLECTION AGENCY We've proven it to banks, credit unions, retailers, whole- _ salers, manufacturers, universities, - • doctors, hospitals, and others. The TSI system collects a far greater percentage of delin- quent accounts and bad checks se, than a conventional collection agency, and at just a fraction of the cost. . . less than $10 per account i .. . . . regardless of the size of the account or its location. !_ Small businesses up to Fortune 500 companies will tell you the TSI system successfully works while maintaining customer goodwill. National statistics prove it. During the latest period measured, the average collection agency collected less than 21% of all debts assigned at an average • cost of 41¢ per dollar collected. • ® During the same period, Transworld Systems collected more than 56% of all debts assigned at an average cost of approxi- mately 7¢ per dollar collected. TSI's collection rate is more than double that of a conventional collection agency . . . for about one- sixth the cost. AVERAGE AGENCY• i COST: TSI's cost is always less than $10 per account. 410 PER DOLLAR• COLLECTED This chart dramatically demonstrates how cost effective and productive TSI can be. Why pay more for less return! It pays to use TSI. HOW HOW DOES TRANSWORLD SYSTEMS WORK? AN UNCOMMON SOLUTION TO A COMMON PROBLEM. TSI has a successful history of growth which is attributable to its cost effectiveness, high recovery rate, and superior quality of service. Many TSI clients with a wide range of account balances have found the TSI system to be the only economical method of i uV obtaining professional third-party collection results. TSI's low flat fee enables clients to assign their accounts in the early stages of delinquency, thus providing the best opportunity for successful recovery. A conventional collection agency cannot compete with TSI's high recovery rate, effectiveness, efficiency, or low cost per dollar collected. Represented through a network of more than 130 "i offices nationwide, TSI is licensed to collect in every jurisdiction '+ where required. TSI currently has over 40,000 clients using its remarkable services. The following chart indicates the rapid depreciation of accounts when held in-house: NATIONAL DELINQUENTACCOUNT ' • •� 100% 50% 90 80 • 70 60 50 40 7 ° 30 20 10 Months Past Due: INCREASED CASH FLOW—ALL MONEY PAID DIRECTLY TO YOU. Last year TSI collected well over 500 million dollars—and all of it was paid directly to our clients. Compare this to a conventional agency where money is first deposited into the agency's bank account and held up to 60 days. In other words, the TSI service not only recovers a larger share of delinquent accounts and bad checks far faster than a conventional collection agency, but it also allows you to put that money to work— immediately. WHAT DOES TRANSWORLD SYSTEMS DO? CUSTOMIZED PROGRAMS AND AUTOMATIC PROGRESS REPORTS. The TSI collection program is specifically designed to fit our clients' needs. Our clients select the accounts to be recovered, and then tell us when to start collection activity and when to stop. Our clients even instruct us how they want each account handled— diplomatically or intensively. But one of the things our clients like most about our service is that TSI automatically sends out a sophisticat- ed report detailing the status on each account assigned for collection, thus keeping you fully informed. Have you ever tried getting a progress report from a conventional agency? It can be like pulling teeth. All for less than $10 per account. Complete follow-through — court action if warranted. CMS' Phase II Many of our clients experience recovery rates of 56% and more. However, it is logical to expect a residue of accounts that are hardcore collection problems. These accounts may automatically be transferred to Credit Management Services (CMS), a division of Transworld Systems, on a contingency basis. CMS follows strict hiring and training policies. Hiring college graduates exclusively, CMS has sophisticated training programs where collectors receive thorough schooling in state and federal laws and interpersonal communication. By means of these firm company standards, CMS maintains account recovery levels far superior to competitors in the collection industry. You have a professional account executive to serve you. TSI maintains an enviable standard of professional excellence. Our account executives are thoroughly knowledgeable and up-to-date on the very latest state and federal debtor laws. A TSI Account Executive is assigned to service each client personally. This close teamwork is another one of the important factors contributing to TSI's tremendous success and the excellent relationships we enjoy with our clients. PROOF TRANSWORLD 'SYSTEMS CAN PROVE IT TO YOU. We've proven it to over 40,000 clients. It's very important for every business to collect their delinquent accounts quickly, without disturbing ongoing relationships. That is why our clients love the TSI service. Unlike methods used by conventional collection agencies, the TSI method of collecting accounts is highly effective without being harsh. In fact, at our client's option, a "thank you" letter may be sent to a debtor after the account has been paid, at no additional cost. Our client's image is protected, goodwill is restored, and it isn't uncommon for debtors to return as cash-paying customers. FINANCIAL ANALYSTS CONFIRM TSI'S EFFECTIVENESS. �t for the __ ' ' • els creel C° d Systems g the industvY' .. orl of over- �1 Tv hest recovery pato{t1�e value hig of 56/° an average ' record°f ,k` due accounts Barron S s a long'tevm prOce he normal al ILIO rate rSl11a deliver tw o{the norm , `` is is stag arty 1`as a roller able to a fraction sv,,°vld s clien e comp s analyst)ane being evy ev the clients o{Teat` all businesses jh oven 5�%" say firmMcl�inleY Cate at V etsltY 'y veco .TSI can loo loN ev collectio s "The dt ing fv°m sm Girl Scours, o{well e securities tion firm cost b 5�/0, ina the risk ening,rang s to the al col c° to 50 /o YMcp. d nation Gi1daY °f The typical s 25(° o 1 billing costs ,and elim to than 90 an ocal e fivms,. No one Allsop 0%and keep b ��/O' reatet dl evag costs Y loans°{g majov book atviott • gets only 2 s national coven d funds" of bot stale t suits. ins like M Vere avasscrxea hotel cha ovldha Co"lscov °{ver° ma Z1TZe +' days and h Lehman�uttOn exce ari vat appears the t'Rational scope V pzt��e a ` eaYSOn age, d to mimic �- Sh that tvve „ has fadedr°Chers son her - - Sa OUR PERFORMANCE GUARANTEE WE STAND BEHIND OUR PERFORMANCE WITH A MONEY-BACK GUARANTEE. OUR REPRESENTATIVE WILL BE HAPPY TO EXPLAIN THIS UNIQUE FEATURE. NO FINANCIAL RISK TO YOU — LET US PROVE IT MEMBER UNITED STATES CHAMBER OF COMMERCE■MEMBER AMERICAN COLLECTORS ASSOCIATION SUBSIDIARY OF THE UNION CORPORATION,A NEW YORK STOCK EXCHANGE COMPANY PROVE IT WHY NOT PROVE IT TO YOURSELF? Over 40,000 companies nationwide have taken this test and selected Transworld Systems Inc. as their receivable management system. Can they be wrong? Test your own results. SERVICES OFFERED Transworld Systems YOUR COLLECTION Inc. AGENCY Average Recovery Percentage .•. ❑ 21% (Nat'l Avg.) ACA statistics Average Cost to Collect an Account tf ❑ 30-50% Increased Cash Flow ' ' ' ❑ o6Yasld UpDirect to t0 Y Monthly Status Report ❑ 7 "Thank You" Letter Sent to Debtor Hold Harmless Agreement* ❑ ? Performance Guarantee* - M ❑ ? Reduces In-House Costs up to70% - if ❑ Nationwide Coverage Through ❑ 7 Over 130 offices Licensed to Collect ❑ 9 in All States Account Executive to Personally ❑ 9 Service Your Account Proven Record of Financial Stability [� ❑ 9 and Growth Since 1970 Complete Follow-Through Court ❑ 9 Action if Necessary Through our CMS Division (Phase II) • Informative / Educational - ❑ 9 Newsletters (Collection Law) *Backed by the financial strength of a New York Stock Exchange Company NOW, we hope you have proven it to yourself. Because of our effectiveness, low cost, and performance guarantee, it just makes good business sense to request additional information, supported by excellent local references. Please send in the enclosed postage paid card today. � t �0 01 m o°�, 03 pd CORPORATE OFFICE. NOTICE OF TRANSFER OF ASSIGNMENT SHHO COMMERCE BOULEVARC i' n0HTTEPT PARK rA 54929 THE ACCOUNTS LISTED BELOW ARE BEING TRANSFF_RRE �S� 1707158. 250 TO CMS FROM TRANSWORLD SYSTEMS INC. AS PER OU CE MAIIING ADDRESS. 1 Po Box "37 WRITTEN AGREEMENT AT THE PREVIOUS AGREED UPC SANTA RosA CA 95402 PERCENTAGE COLLECTION RATE. DQ Credit Management Services a DIVISION OF TRANSaORLD SYS7;: .IS ,NC TO EXPEDITE THE COLLECTION PROCESS, RETURN THI FORM TODAY. BE SURE TO FILL IN APPROPRIATE BLANK DEBTOR PHONE NUMBER MUST BE FILLED 1; ASC COMPANY PERMANENT CLIENT NUMBER 1001-99999-99 999 STREET PHONE NUMBER 208-999-8888 CITY ST ZIP DATE 2/13/92 _ IN ORDER To CANCEL ANY OF THE FOLLOWING ACCOUNTS,CHECK THE APPROPRIATE BOX.THIS FORM MUST BE RETURNEV'TO OUR CORPORATE.. IMPORTANT— MARCH 139 1992 DEBTOR NAME AND ADDRESS TO CANCEL ACCOUNT DRIVER'S LICENSE NO JOHN SMITH CHECK BOX & RETURN TO CMS ' DATE LAST PMT OR CHARGE 9/10/91 _.. 3333 2ND AVE W TRANSMITTAL NO DATE ASS;GNED TO TSI AMOUNT NOW DUE $189.0 MESA AZ 85202 0127229327 12/01/91 BAL.11 MOREILESS TIAN ABOVE _ DEBTOR HOME PHONE REF. 5 51 3 5 6894 SPOUSE S NAME SOCIAL SECURITY NO _ DATE OF BIRTH LAST KNOWN MR EMPLOYER ;ADDRESS PHONE LAST KNOWN I MRS. EMPLOYER IIADORFSS .PHONE DEBTOR IS A BUSINESS DBA IF KNOWN. NAMES B ADDRESSES OF G':Jr,ERS OR OFFICERS COSIGNERS OR OTHER HELPFUL INFORMATION 1001-99999-99 MARCH 139 1992 DEBTOR NAME AND ADDRESS I TO CANCEL ACCOUNT ❑ DRIVER S LICENSE NO ANN WRIGHT i CHECK BOX& RETURN TO CMS DATE_AST PMT OR CHARGE 9/28/91 _ 222 A ST TRANSMITTAL NO DATE ASSIGNED TO TSI • CHULA VISTA CA 92012 1 0127531696 12/29/91 SAL.AMO11 NOW DDE 1185.09 BAL.IF MOREILESS THAI ABOVE REF* 006173 DEBTCR HOME PHONE SPOUSES NAME SOCIAL SECURITY NO DATE OF BIRTH LAST KNOWN MR. EMPLOYER ADDRESS PHONE LAST KNOWN MRS. EMPLOYER (ADDRESS PHONE _ f DEBTOR IS A BUSINESS DBA IF KNOWN. NAMES d ADDRESSES OF GY4ERS OR OFFICERS COSIGNERS OR OTHER HELPFUL INFORMATION 1001-99999-99 MARCH 139 1992 DEBTOR NAME AND ADDRESS TO CANCEL ACCOUNT JAMES HILL CHECK BOX& RETURN TO CMS DRIVER S LICENSE NO DATE LAST PMT OR CHARGE _ 10/12/91 231 8 ST i TRANSMITTAL NO DATE ASSIGNED TO TSI AMOUNT NOW DUE S 56.98 . NEWTON MA 02158 i 0127531697 12/22/91 BAL.IF MORE/LESS THAN ABOVE REF. 077685 !DEBTOR HOME PHONE SPOUSE S NAME SOCIAL SECURITY NO DATE OF BIRTH LAST KNOWN ' MR. EMPLOYER (ADDRESS PH N LAST KNOWN MRS. EMPLOYER JAODRESS (PHONE IF DEBTOR IS A BUSINESS OBA IF KNOWN NAMES S ADDRESSES OF C'.W,E-S OR OFFICERS COSIGNERS OR OTHER HELPFUL INFORMATION 1001-99999-99 MARCH 13. 1992 S K I P - M A I L R E T U R N DEBTOR NAME AND ADDRESS TO CANCEL ACCOUNT ❑ I DRIVER'S LICENSE NO JAMES E B I R C H E L L CHECK BOX 8 RETURN TO CMS DATE LAST PMT OR CHARGE 9/2 5/91' 564 I NGLE MOOD DR TRANSMITTAL NO DATE ASSIGNED TO TSI AMOUNT NOW DUE 1133.50 FORT M Y E R S F L 33903 I 12/14/91 BAL.IF MORE/LESS THAN ABOVE • REF. 110267 DEBTOR HOME PHONE SPOUSES NAME SOCIAL SECURITY NO _ DAIE OF BIRTH .— ,ASC KNOwN---�— --- ------ -- - . MR. EMP(.DYIH ADDRESS I.A$T KNOW,( — --_ _ --- MRS. EMP(1�.EH ,ADDRESS �P231aiF _ D'eSTOH ISA BUSINESS DBA IF KNOWN NAMES 5 ADDRESSES OF OR (0,SIIINEHj 0;4 UIIIEN ME(.PF UI INFORMAIIO:d 1001-99999-99 MARCH 139 1992 4U ��X 15i 5tKVIlUt L;UIVIVLt I to These accounts have been identified as hardcore delinquent. Many 1111 'J of them can still be collected however, via the intensive efforts of ILIM R �"' ' � fijq� our Credit Management Services Division. For placement at one of our regional collection centers and for additional recoveries, we �� DQ CORPORATE OFFICE:5880 COMMERCE BLVD., recommend you complete this form and return to CMS today. ROHNERT PARK,CA 94928 (707)584-4225 • ROBERT SMITH E SONS PERMANENT CLIENT NUMBER 2200/21345-99' 1521 N SEQUOIA AVE SAN FRANCISCO CA 94130 DATE 6/15/88 A.E. No. 9999 PHONE NO. 415/581-1852 Dear Client: Though TS! Is canceling these accounts, a good portion of the money still owed can be collected through the use of our Intensive Collection Division, Credit Managemani Services. VVe therefore, urge you to reassign these accounts to our CMS Division. As a courtesy to you, these accounts will be accepted by CMS at a commission rate of 45%contingent upon collection,except where legal action is warranted, or at the time of placement your debtor is a skip,a 50%contingent commission fee will apply. Cf,1S will advance all attorney fees and court costs at no cost to you, when and if necessary. Because of the preferred 45% contingent rate, CMS cannot accept assignments under this program with balances of less than $100.00. To reassign this account, simply update the information requested (fill in the blanks,. sigmm. this form on the bottom where indicated, and return it to our Corporate Headquarters, striking out those you do not wish to assign and those with balances under $100.00 Remember,at CMS if there is no collection,there is no charge. EBTOR NAME AND ADDRESS PATIENT NAMEICUSTOMER REF.NO. DRIVER'S LICENSE N0. NEWPORT CO* 84-31298 DATE LAST PMT.OR CHARGE 02/28/88 61 N BOND DR TRANSMITTAL NO. PERCENTAGE COMMISSION RATE AMOUNT DUE $ 140.00 SCOTTSDALE AZ 85268 0027639853 45/50 SAL.IFMORE/LESS THAN ABOVE DEBTOR HOME PHONE SPOUSE'S NAME SOCIAL SECURITY N0. BANK AR KOWN LA EMPLOYER ST KNOWN PHONE MRS. LASTEMPNO ER PHONE 'DE?TOR IS A BUSINESS.PROVIDE NAME OF 'VWNER OR OTHEP HELPFUL INFORMATION. )EBTOR NAME AND ADDRESS PATIENT NAME/CUSTOMER REF.N0. DRIVER'S LICENSE N0. MEMPHIS E MEMPHIS 84-29134 DATE LAST PMT.OR CHARGE 01/10/88 39 BRADLEY RD SO TRANSMITTAL NO. RATE NaCOMMISSION 551 AMOUNT DUE 551*00 OOKANE WA 99206 0027639857 45/50 BAL.IF MORE/LESS THAN ABOVE DEBTOR HOME PHONE SPOUSE'S NAME SOCIAL SECURITY NO. BANK OR LAST LAST KNOWN EMPLO ER PHONE MRS. EMPLOYER PHONE f C•EB OP,IS A BUSINESS.PROVIDE NAME OF IWNER OR OTHER HELPFUL INFORMATION DEBTOR NAME AND ADDRESS PATIENT NAMEICUSTOMER REF,NO. DRIVER'S LICENSE NO. ROBERT BELL CO. 84-34981 DATE LAST PMT.ORCHARGE 02/16/88 804 S MAIN ST TRANSMITTAL NO. PERCENTAGE COMMISSION 239.00 RATE AMOUNT DUE SALINAS CA 93901 0027639871 45/50 BAL.IF MOREMESS THAN ABOVE DEBTOR HOME PHONE SPOUSE'S NAME SOCIAL SECURITY NO. BANK LAST KOWNST KNOWN lAR• EMPLO ER PHONE MRS.�EMPLO ER PHONE IFOE5TOR IS A BUSINESS.PROVIDE NAME Of Olt\EP nR OTHER HELPFUL INFORMATION DEBTOR NAME AND ADDRESS PATIENT NAME/CUSTOMER REF,NO. DRIVER'S LICENSE N0. CARL L BETSON 85-00189 DATE LAST PMT.OR CHARGE 04/19/88 351 WESTMINSTER AVE TRANSMITTAL NO. PERCENT AGE COMMISSION b 75.00 RATE AMOUNT DUE COSTA MESA CA 92627 0027639878 45/50 BAL.IF MORE/LESS THAN ABOVE DEBTOR HOME PHONE SPOUSE'S NAME SOCIAL SECURITY NO. BANK MR. LAST KNOWN 0 ER MRS.LAST KNOWN PHONE EMPLOYER PHONE 'OV,NET OF IS THER HELPFUL INFORMATION ATIONAMOF SKIP--MAIL RETURN' IF DEER OR,OTHER BUSSINES UL INFORMATION p1,nderslgned hereby assign to Credit Management Services, the claims listed above for the purpose of collection at the commission rate stipulated above, and authorizf to endorse negotiable instruments received in payment of claims, and to deduct commissions on claims paid direct to me from any money due me. I agree to repo, raptly all payments made directly to me after date of assignment and further agree that Credit Management Services is entitled to full commission due on all moral, Iecovered, whether paid to Credit Management Services or me direct after date of assignment. In case suit or action is instituted to collect such commissions on any of the-- assignments. the undersigned promises to pay all collection costs and Such additional sums as the coup may adjudge reasonable such as coup costs, attorney fees. et DO NOT ASSIGN BANKRUPTS OR BALANCES UNDER $700.00. AUTHORIZING v .:: iF-�;5�1'ORI.0 SYST�'.tS INC 3-85 SIGNATURE --- SAMPLE --- TJI 16% "'/JL`� COLLECTION I��ot��a®ar�r�voa�a - zIzywrACwx ISO. aJ Corporate Office STATUS REPORT 5880 Commerce Blvd., Rohnert Park,CA 94928 (707)584-4225 CLIENT NUMBER PHONE NUMBER PERIOD ENDING PAGE 6000-06192-000 312 696-0800 06/01/88 1 VO DEBTOR I N F 0 R M A T 1 0 N CURRENT *AGE STARTED LAST ACTIVITY t BALANCE M M - Y Y m M Y Y M M - D D - Y CD NO MONROE MERCANTILE CO. ACCOUNF REP NO. 1380 w 20 HANES DRIVE MIKE C NROY AURORA IL 60505 PHONE 312 585-2157 PHASE I =S t 0 )005950069 ARN 750.34 02-88 04-88 04-26-8 S 2 3005950071 DAN ERPRISES 440.39 02-88 04-88 05-19-8 4 3005950072 ETC OX INC 176.85 02-88 04-88 05-19-8 PP 4- )005950074 BIG 604.02 01-88 04-88 05-12-8 2 3005950075 BRI429.62 01-88 04-88 05-12-8 2 )005950076 BUS RTAINMENT CORP .:- 71.59 11-87 04-88 05-10-8 PT 2 )005950077 CAR ARD SHOP 274.37 11-87 04-88 05-09-8 P 1 3005950078 CAR IFTS. , 696.67 02-88 04-86 05-12-8 2 )005950079 DES. CHOICE 686.49 02-88 04-88 05-12-8 M 2 )050080 GIF OWE RS BY' JEFF 973.50 02-88 04-88 05-20-8 . P 2 )0 50081 F0U 1734.09 02-88 04-88 05-16-8 S 3 )005950082 GIF A n; 3ut Y 252.48 01-88 04-88 05-03-8 . P 1 ut 5 3005950083 G I L El THE " 389.41 01-88 04-88 05-12-8 2 3005950084 GOCVER CHALET 400.49 02-88 04-88 05-03-8 :P 1 )005950.085 HEB K S WORLD INC 187.80 01-88 04-88 05-10-8 PT 2 )005950086 JAP CENTER 306. 15 02-88 04-88 05-12-8 2 )005950087 KAP NITURE EDWARD 441 .74 01-88 04-88 05-12-8 2 0005950088 LIV VES 224.55 11-87 04-88 05-03-8 S 1 )005950089 ROS LEYS 212.32 11-87 04-88 05-12-8 2 )005950090 ROV 266.96 01-88 04-88 05-12-8 PP 2 )005950091 SIM HE SHOP OF JOHN 181.64 01-88 04-88 05-17-8 P 2 )005950092 SOU 187.02 01-88 04-88 05-10-8 M 1 )005950093 STA C, RITA 454. 17 01-88 04-88 05-12-8 2 )005950094 TRK LES INC 278.99 01-88 04-88 05-12-8 2 )005950096 CHI E GIFTS 155.65 02-88 05-88 05-16-8 P 1 )005950097 GOL R, THE 782.73 03-88 05-88 05-16-8 P 1 )005950098 FRA Tip THE 464.11 02-88 05-88 05-10-8 1 TRANSMITTAL SERIES 0005949984 THRU 000 950183 URCHAED l .-02-87 SYSTEM PURCHASED NUMBER 200 AMOU T 1050 ,00 ACCOUNTS SUBMITTED 194 09840 30 PAID IN FULL/CANCEL 154 59235 85 PARTIAL PAYMENTS RECEIVED 27 29205 80 SUSPEND 31 6x036 21 • TOTAL PERFORMANCE 212 13t477 .86* SKIP/NAIL RETURNED 2 873 . 51 COMPLETED SERVICE 8 6t469 ,99 COLLECTION COST TO DATE IS 1.6 PERCENT OF AMO NT COLLECTED *AGE DATE OF LAST PAYMENT t CODE M: MAIL RETURNISKIP PP: PARTIAL PAYMENT SSUSPENDED ACTION ___ OR CHARGE P: PAID IN FULL/CANCELLED PT: PAID-THANK YOU LETTER SENT SC: SERVICE COMPLETED CREDIT MANAGEMENT SERVICES "Money you thou,ht was lost =� Rec vered through our services" COLLECTION STATEMENT FOR: MARCH 199- CLIENT NO: 1200-123-:;-99 STATEMENT NO: 255800 OFF.CE PRODUCTS PAGE: 1 DEBTOR INFORMATION 030394 INDUSTRI_ CONSTRUCTION Ol 50 lA 100.00 50.00 031-94 !NDUSTRT- CONSTRUCTION 01 50 03 100.00 50.0G 030594 r==`_ ROE= T S 04 25 04 500. )0 125.OC 030894 NORTH INSURANCE AGENCY 08 50 Ol 625.00 312.511- 03-1294 12.5+031294 A`.==!IN/U=_.KINS CPA 14 50 Ol 325.00 162.5C 031.94 DAMS CO_.-STRUCTION 16 50 02 650.00 325.00 032094 ST=YENS =-UMBING 16 50 11 1000.00 500.-0C 030594 PEEP V AF:=L 18 50 01 817.00 408.5[ I • 2792.00 1125. _0t37 _396.00 • • mom • CODES: 1 - Paid in Full 4 Service Fee 12 Legal Settled 958.50 1A Partial Payment 5 Returned Merchandise 13 Legal Payment 2 Settled in Full 6 Adjustment 51 Your Check Received 3 -NSF 11 Legal Paid 255800 Credit Management Services CLIENTTRUSTACCOUNT_ I S w�POBOX9864. � SANTA ROSA CA'95402-1864=- = I PAY TO THE ORDER OF - CLIENT NO., -,' CHECK NC. DATE„ w.„; AMOUNT 200=.:12 45 99 2555:-0 03/31/-94 958.50 , D,-VIS O'=I,CE PRODUCTS , L 2 *MAI'.: STR.�ET VOID AF ER SIX MONTHS ` Sz,NTA ROSA, CA 95402 ry X X X X X X xn X X X f X r X X <' X X X X X X X X X • VOID HIS IS NOT A CHECK THIS I- NOT CHECK VOID a Copyright 1993—Revised 1994-Credit Management Services—All Rights Reserved 10 CHS Credit Management Services INVENTORY REPORT 5560 COMMEPCE BLVDJROHNERT PARK' CA 94928-1696(707)56<--250 CLIENT NUMBER PHONE NUMBER PERIOD ENDING PAGE 0100-12345-99 707/123-4567 JUNE 1994 1 DEBTOR NAME im: P DATE AMOUNT PLACED CURRENT BALANCE LACED ®� I ABC COMPANY YOUR ACCOUNT EXECUTIVE ; IS 123 MAIN STREET j ANYTOMN• GA 12345 SMITH. CHARLES 3432 i PHONE - 415/265-8002 i 1 2 3 4 5 6 7 8 0007130846iABB OBERT T. 04 03/.94; 605.58 .00 ;PIF !04/21194 0007304353; BOM ONALO L. 04 05/94', 316*89 316.89CEC 0007430847; BUT N FLORAMAR ! : 01 03/94, 49.61 ; 49.61 ADIS 105/25/94 0007430T981 CAR • ANNE E. 04 03!94 643.09; .00 ;PIF ;05/22/94 00074307671CON LOUISE 1. ; -,04 05/94 242.44 242.44 ',CEC 000T43OT791 DAY RON A. ! 12 12/93; 574.05 E 574.05 `101 105/07/94 . 0007430848'; OUB RANK 04 06/93 630.81 .; 630.81 `FMD 04/20/94 0007304411; FER .• JOHN L. E 04 05!94; 1. 290.41 1.290.41 'C EC 00D743DT99EFUL LEAMON 04 04/94; 138*80 000 'PIF 06/15/94 0007430803! GRE NOY S. 04 03/94; 927.39; .00 PIF '05/13/94 ! ! 0007430845! HAN ULF A* 02 03/94; 46.39: 46.39 '103 ;05/21/94 �007304399i HEN OAVIO L. 03 06/94; 221.08; 221.08 :CEC 0007304379! HO2 REGORY ! 04 02/94; 192.00; 172.00 ;101 05/21/94 0007304361JON A.- 04 10/931 258.56 ; .00 'PIF 05/20/94 0007304392! KIR AR ON A. i 04 01/941; 159.91 .00 'SVG 013/02/94 0007304391ELEE R. 1 04 03/,94; 43.46; 43.46 101 06/15/94 0007430818LYN IA OT 11/93; 297.29 :, 297.29 :101 05/07/94 0007430845MAY MACK E. ! 04 01/941 311.57 ! 261.57 ;CEC 04/25/94 0007304357; MID . L. 104 04/94 119.00 ; 119.00 103 06/07/94 000743OT89 MOR NMA 04 10/93; 767.99 : 613-99 ;LGL ,03/10/94 000743OT96iNUL EMARY 04 03/941 416.571 416.5T :CEC 0007304413PEG MEN F. 04 03/94' 87.65 ; 87.65 403 05/07/94 0007430829 RAI JERRY L. 04 02/94;' 119.35 : 119.35 -110 05/13/94 0007304358 !RIV RLEY A. 04 11/93; 385.34E 385.34 LGL '03/17/94 E 00073044001SAU ES H. 04 02/941 77.70 ; .00 'PIF p6/21/94 10007304363 SHU BENNY A. 04 10/93; 600.00E 200.00 :SIF 01/15/94 0007304393ESPR EPH C. E 04 05/94; 776.82 776.82 CEC D007430T811THO RONALD D. 04 05/94; 423.26 ' 423.26 CEC 0007430787 !VIC AIR 08 12/93 864.18 ; 864. 18 101 05/07/94 : 1 I - * NOTE * ACCU'UNTS SHOWING PAIDOR CANCELLED CODES OW THIS LIST WILL NOT APPEAR ON FUTURELISTINGS. i i e Copyright 1990=Revised 1994-Credit Management Services-All Rights Reserved 'CODE CEC'COLLECTIOR'E==OP.T$CONTINUING S I F:SETTLED IN FULL FWD:fOR YARDED CANCELLED-DECEASED 105 CANCELLED-;-COUNT PL-CEO cc ERROR DESCRIPTION RTIA RETURNED t:ERCHANDISE SVG%-3D.SERVtCE FEE 1 0 1:CA CF ED COLLECTION EFFORTS EXHAUSTED V CANCE'-D-BANKRUPT 1-0 CANCELLED-01SPUTED SU:-s:O:ADVISABLE t P I F Fa10 1N FULL LGL.SUFT FILED 1 0 3:CANCELLED-SKIP CAUNOT LOCATE �'.CANCE-E7-COMPANY DEFUNCT 1 x:- CANCELLED-'HER 16 PART II ABOUT THE COMPANY Exhibits: A. Barron's review of parent Union Corp. B. Extract from Union Corp. 1994 Annual Report C. "Print Order" Contains Performance Guarantee, Hold Harmless agreement and terms for CMS assignment D. Neil Ross, V-P Information Systems, letter on TSI security ABOUT THE COMPANY 1 . TRANSWORLD SYSTEMS INC. is a wholly owned subsidiary of the Union . Corporation, Fairfield, N.J. Union stock is listed on the New York Stock exchange (NYSE) under the symbol (UCD). Officers of Transworld Systems Inc. are: Gordon S. Dunn, Chairman of the Board George M. Macauley, President Kent Wigton., V-P of Finance, Secretary/Treasurer Pixie Wheeler, V-P Administration Neil Ross, V-P Information Services 2. Financial Soundness Complete financial disclosure i s made on'an annual basis with the NYSE and the Secretary of State of New .Jersey. Copies are available on request. An extract of the current annual report is attached:_ 3. Hold Harmless • TSI will provide. a "Hold Harmless_ Agreement" between the parties at the time of . contract award. 4. Bonding TSI is a member in good standing of the American Collectors' Association (ACA). As. such,. TSI is under general liability bond with a $1 ,000,000.00 maximum coverage. A copy of said _bond w i l l be provided at the time of -contract, award if requested. 5. Peformance Guarantee' r At the time of contract. award TSI will make its standard written performance guarantee that assures our client will receive a return of at least double his investment or TSI will make up the difference between the amount received and two times his investment or, at our option, refund the. entire amound. paid for our service. 6. Sem TSI takes extra precautions to protect the accuracy and security- of its service through such practices as redundancy i n entering data, complete and current backups of computer data and physical security of plant, . equipment and files. A letter from Neil Ross detailing some of these measures is attached. .. . ._... .... .., .._. .._..-. Y.:.,,t..._ ... .�.,:J.;.:.*__..1..._ _._. ...w.,.. ,_..... . a:o.�i Y..l.wX...,a�. �..__ _....i..ay....._a=Y' ...-u... .*a..,.0 tisa.. ..._w.........._. NATIONAL i NOVEMBER Union Corp. Business downturn means a pickup for this bill collector. GOING after past-due accounts can businesses that may purchase a system for designed mainly to serve large national com- actually result in a slackening rate of several dozen accounts receivable to a major panies —all major credit-card sponsors, five recoveries during a recession for a bill collector corporation desiring the service for 50,000 of the 10 largest bank-card issuers in the U.S., like Union Corp. But Melvin L. Cooper, accounts at a clip.Transworld gets credit for big oil and telecommunications companies, Union's chairman and chief executive officer, the highest recovery rate in the industry—an large department store chains and government maintains that the rising volume of past-due average 56% of the value of the overdue agencies. A major new source of business is business more than makes up for any slowing accounts.Union claims that many Transworld the U.S. Department of Education, which is in the rate of recoveries. So Cooper sees the clients enjoy collection costs as low as 517,7% trying to collect on the enormous volume of Fairfield,N.J.-based company benefiting from of the amount collected, while at the same unpaid student loans. Capital Credit now a recession, or at least less susceptible than time cutting normal billing expenses. has a$60 million hunk of that volume. Mel most companies to the generally adverse effects The Transworld system is based around a Cooper, though happy about the potential, of a downturn. series of five letters sent to slow payers through says difficulty in dealing with government Economic trends aside, the rising use of a computerized mailing system into which a agencies is a drawback. Wmputers and more sophisticated techniques client's past-due accounts are fed. After that With consumer credit expected to continue e helping outside collectors attract more phase of the process, the bulk of the still- expanding, Cooper sees plenty of room for business, and Union has been a high-tech uncollected amounts are turned over to future growth. He even sees opportunities in leader in the field. Having divested itself of Transworld's Credit Management Services other countries as credit buying catches on, manufacturing operations in fiscal 1989, division, which charges on a commission though Union probably will approach foreign Union concentrates on providing accounts- basis,depending on amounts collected.Union ventures with a great deal of care. A special receivable management and collection services. says recovery is roughly 30'/o in this Phase II, area Cooper is eyeing is collection of overdue In the fiscal year ended June 30, net income which is higher than the industry average. medical bills. "It's a huge field in which from continuing operations more than doub- The Capital Credit subsidiary operates on we're not represented," he says. To broaden led to 58 million,or$1.05 a share, from$3.6 a contingency-fee basis, charging 30%-500 of its bill-collecting business, Union is seeking million, or 50 cents a share, in fiscal 1989. amounts collected.Its system involves a com- acquisitions. The company is well-heeled, Revenues were up an impressive 22%to$71.6 bination of letters, telephone calls and, if the practically debt-free, and capable of pulling million. For fiscal 1991, net of$1.25-$1.30 a client desires, litigation. Capital Credit is off significant deals. — H.S.R share looks like a pretty good bet. The company got off to a fast start in the Financial Overview current year's first quarter, ended Sept. 30. Year ended earnings Revenues Net income Book Value Net rose 240 to $2.4 million, or 31 cents a NYSE/Symbol:UCO/Abbreviation:UnionC juna(a) war Sh.(b) (millions) (Millions) Per Sham share, from $1.9 million, or 25 cents a share, 1990 $1.02 $71.6 $8.0 $6.13 a year earlier, as revenues jumped 32% to 1989 0.49 58.5 3.6 4.90 $21.4 million. The revenue surge in part_. 25 lees 0.23 53.8 1.8 (c) reflected a rush of customers seeking to beat a 200-Day I i 1987 o.o2(a) 47.3 0.3 (c) price increase,to reflect higher postage costs, Moving Average II planned by one of Union's divisions for early 11 title; 20 Dividends 1991. But Cooper also attributes the spurt in :' Current Rete o Current Yield o business to the continuing rise in consumer I ��iJi�1� 15 Key Ratios Shareholder Data debt in the recent past,including the prolifer- Profit Margin 11.1% Market Value $145 million ation of credit cards,and to Union's opening " r... ""' 10 Return on shares of new offices. Common Equity 15% Outstanding 7.2 million Return on Insider Net Buys Union has two main subsidiaries. It ac- (Volume Ten Thousands Total Assets 8.s% quired the larger, Transworld Systems Inc., 1 (anre.,latest 8 moa) 2.400 •in 1985; the other, Capital Credit Corp., hasAverage 4 Debt to Egu+ry 3% Volume Daily 15.000 shares been in the fold for many years. 2 4'L8'7 Current Retlo 3.7-10-i Inatitutlanel Holdinga 50% Transworld operates on fixed rates, charg- ing clients roughly $5-$10 per collection 88 89 90 a—From meaningful operations.of D—rFully&"I sale. account, depending on volume. It has more Barron's/7elescan a L nbr mseing the because of•prefer ewer;de d—Lou reflecting rM dKVCtlon of preferred d/vidands. than 30,000 customers, ranging from small r r t } All Allm z. ,�w �� {a t�;:� �j,l :• t�A+r`"''•9 rye' *?5''�r�_"'mss 5' l is;iry { i r+J 4[!t ktp4 j#�.� p 3 yxrR t7't ,. is a BUSINESS OVERVIEW THE KEY TO COLLECTING PAST DUE DEBT IS "THIRD-PARTY" INTERVEN- TION. AS A THIRD PARTY, THE COLLECTION AGENCY HAS AN ADVANTAGE BECAUSE DEBTORS ARE FAR MORE CONCERNED ABOUT THEIR CREDIT RECORD WHEN THEY ARE CONTACTED BY AN OUTSIDE COLLECTION AGENCY AND, THEREFORE, ARE MORE LIKELY TO RESPOND POSITIVELY. THE IMPORTANCE OF NATIONAL CREDIT GRANTORS AND THE INCREASED MOBILITY OF DELINQUENT DEBTORS HAVE CREATED A DEMAND FOR NATIONAL COLLECTION FIRMS LIKE TRANSWORLD SYSTEMS, ALLIED BOND AND CAPITAL CREDIT. THESE COMPANIES HAVE THE FINANCIAL AND MANAGERIAL RESOURCES TO MAINTAIN AND UPGRADE SOPHISTI- CATED AUTOMATED COLLECTION SYSTEMS THAT OPERATE NATIONALLY. UNION'S OBJECTIVES FOR THESE BUSINESSES ARE: • DEVELOP NEW PRODUCTS AND COLLECTION SERVICES TO EXPAND BUSINESS WITH PRESENT CUSTOMERS AND ATTRACT NEW CUSTOMERS. _ • APPLY PROVEN TECHNOLOGY IN ORDER TO PROVIDE CLIENTS.WITH SUPERIOR AND COST-EFFECTIVE COLLECTION SERVICES. • IMPROVE PROFIT MARGINS THROUGH INCREASED 'PRODUCTIVITY AND COST CONTROL. • PROVIDE HIGH QUALITY CUSTOMER SERVICE. TRANSWORLD SYSTEMS, INC. TRANSWORLD, HEADQUARTERED IN ROHNERT PARK, CALIFORNIA, OFFERS THE COMBINATION OF BOTH FIXED-FEE AND CONTINGENCY FEE COLLECTION SERVICES. AS THE LEADING COMPANY OF ITS TYPE IN THE r" t' i•� ' '; _ INDUSTRY, TRANSWORLD HAS A SUCCESSFUL HISTORY OF GROWTH WHICH IS ATTRIBUTABLE TO THE STRENGTH OF ITS MARKETING ORGANI- ZATION, A HIGH RECOVERY RATE, COST-EFFECTIVENESS AND QUALITY OF SERVICE. TRANSWORLD'S SYSTEM REDUCES CUSTOMERS' IN-HOUSE COLLECTION COSTS WHILE PROVIDING DETAILED MONTHLY STATUS • REPORTS FOR ACCOUNTING AND CONTROL PURPOSES. ITS FIXED-FEE UNION ■ ■ ■ • SYSTEM, PHASE I, IS BASED ON CONTACTING THE DEBTOR WITH A SERIES OF COMPUTER GENERATED COLLECTION DEMANDS SENT BY MAIL. UNLIKE COMPANIES WHOSE REVENUES ARE DERIVED FROM CON- TINGENCY COLLECTION, TRANSWORLD'S PHASE I SYSTEM CURRENTLY CHARGES A FIXED FEE RANGING FROM $4.55 TO $9.95 PER ACCOUNT DEPENDING ON THE NUMBER OF ACCOUNTS PLACED. MANY CUSTOMERS WITH SMALL-BALANCE DELINQUENT ACCOUNTS, RANGING BETWEEN $50 AND $100, HAVE FOUND TRANSWORLD'S PHASE I SYSTEM T❑ BE THE ONLY ECONOMICAL METHOD OF OBTAINING Transworld has a . successful history PROFESSIONAL, THIRD-PARTY COLLECTION RESULTS. TRANSWORLD'S of growth which ABILITY TO GET CLIENTS TO MAKE AN EARLY ASSIGNMENT OF DELIN- is attributable to QUENT ACCOUNTS, USUALLY FORTY-FIVE TO NINETY DAYS PAST DUE, IS the strength of POSSIBLE BECAUSE OF THE LOW FIXED-FEE STRUCTURE AND ITS its marketing SOPHISTICATED MANAGEMENT REPORTING SYSTEM. MANY CLIENTS organization, a high EXPERIENCE COLLECTION COSTS AS LOW AS FIVE TO SEVEN PERCENT OF recovery rate, cost- THE AMOUNT COLLECTED, WHILE AT THE SAME TIME ELIMINATING A effectiveness and GOOD DEAL OF THEIR NORMAL BILLING EXPENSES. THE COMBINATION quality of service. Transworld's OF LOW COST AND HIGH RECOVERY RATES RESULTS IN A HIGH CUS- system reduces TOMER RENEWAL RATE. customers' in-house collection costs TRANSWORLD CURRENTLY HAS WELL OVER 40,000 CUSTOMERS USING while providing ITS SERVICES, FROM SMALL COMPANIES THAT MAY PURCHASE A SYSTEM detailed monthly FOR 40 ACCOUNTS TO MAJOR CORPORATIONS THAT PURCHASE SYS- status reports for TEMS FOR 1 00,000 ACCOUNTS AT A TIME. accounting and control purposes. THE COMPANY'S OUTSTANDING MARKETING ORGANIZATION, CONSISTING N � OF MORE THAN 700 INDEPENDENT CONTRACTORS, PROVIDES THE i SALES EFFORT AND ONGOING SERVICE ESSENTIAL TO THE SYSTEM. THIS }``•'`- -3"` � -*'"�.' �` ��^`'� GROUP IS HIGHLY MOTIVATED BECAUSE IT IS PAID ON A COMMISSION BASIS. THE BUILDING OF SUCH A SALES FORCE IS A FORMIDABLE BARRIER TO ENTRY FOR POTENTIAL COMPETITORS. TRANSWORLD HAD 129 SALES OFFICES THROUGHOUT THE COUNTRY AT YEAR END AND PLANS TO OPEN SIX NEW SALES OFFICES IN FISCAL 1 995. 0 • CREDIT MANAGEMENT SERVICES (CMS) APPROXIMATELY 75% OF THE CLIENTS USING TRANSWORLD'S PHASE I SYSTEM ASSIGN THOSE ACCOUNTS THAT WERE NOT COLLECTED DURING THE FIXED-FEE -PROGRAM TO CMS, A DIVISION OF TRANSWORLO, ON A CONTINGENCY FEE BASIS (PHASE II). BECAUSE A CMS OFFICE IS OPENED ONLY AFTER BUSINESS HAS BEEN DEVELOPED BY TRANSWORLD, HISTORICALLY IT HAS BECOME PROFITABLE WITHIN THE FIRST MONTH OF OPERATION. t CMS COLLECTORS ARE PAID ON A COMMISSION BASIS AND PERFORM COLLECTION SERVICES AT IB BRANCH OFFICES. BRANCH MANAGERS, /� _ed TRAINED AND PROMOTED FROM WITHIN, ARE COMPENSATED THROUG r ' ao A COMBINATION OF COMMISSION AND PROFIT INCENTIVE. CMS HAS DEVELOPED SOFTWARE PACKAGES AND COMPUTER SYSTEMS TO HAN- DLE FIDUCIARY REPORTING AND INTERFACE WITH A CLIENT BASE OF . OVER 35,000. THE AVERAGE DEBT ASSIGNED TO CMS IS OVER $600 WITH AN AVERAGE PAYMENT COLLECTED IN EXCESS OF $1 75. CMS w COMPLETED ANOTHER VERY RON EAR AND O-REC Rp�QL TIONS, REVENUES AND PROFIT r fi TRANSWORLO CONTINUED TO STRENGTHEN AND UPGRADE T.S ^ " ;` PENDENT CONTRACTOR SALES FORCE IN FISCAL 1994, H $MAIN . ; TAINED ITS HIGH OPERATING MARGINS AND POSITIVE CASH FLOW, A IS POISED FOR FUTURE GROWTH. ALLIED BOND & COLLECTION AGENCY, INC. ALLIED BOND & COLLECTION AGENCY IS A WELL MANAGED, CONTIN- GENCY FEE BASIS COLLECTION COMPANY WITH A NATIONALLY RECOG- NIZED REPUTATION FOR SUPERIOR COLLECTION PERFORMANCE. IN FIS- CAL 1 994 ALLIED HAD A RECORD VOLUME OF PLACEMENTS, BOTH IN AGGREGATE DOLLARS AND NUMBER OF ACCOUNTS PLACED FOR COL- LECTION. ALLIED INCLUDES AMONG ITS CLIENTS MANY OF THE LARGER • CONSUMER CREDIT GRANTORS ACROSS A BROAD SPECTRUM OF INDUS- 0 THE UNION CORPORATIONAND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the years ended June 30, 1994, 1993 and 1992 (In thousands, except per share amounts) 1994 1993 1992 Operating revenues $92,109 $80,499 $85,942 Expenses: Operating expenses 59,255 52,711 55,999 Selling, general and administrative expenses 20,470 16,869 17,770 Depreciation and amortization 4,442 3,291 2,260 Restructuring charge - - 9,000 Operating costs and expenses 84,167 72,871 85,029 Operating income 7,942 7,628 913 Interest expense (1,048) (687) (260) Interest income 723 1,074 2,643 Income before income taxes and cumulative effect of change in accounting for income taxes 7,617 8,015 3,296 Provision for income taxes 3,138 3,345 1,154 Income before cumulative effect of change in accounting for income taxes 4,479 4,670 2,142 Cumulative effect of change in accounting for income taxes 1,068 - - Net income $ 5,547 $ 4,670 $ 2,142 Primary and fully diluted income per common share: Income before cumulative effect of change in accounting for income taxes $ .72 $ .71 $ .28 Cumulative effect of change in accounting for income taxes .17 - Net income $ .89 $ .71 $ .28 Average number of common shares outstanding: Primary 6,234 6,614 7,789 Fully diluted 6,234 6,614 7,876 The accompanying notes are an integral part of the financial statements. tHE UNION coRPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 1994 and 1993 (In thousands) 1994 1993 Assets Current assets: Cash $ 11,579 $ 8,697 Short-term investments, at cost, which approximates market 22,600 22,132 Accounts receivable, trade, less allowance for doubtful accounts of $552 and $807 4,660 4,795 Prepaid expenses and other current assets 3,846 4,545 Total current assets 42,685 40,169 Property, buildings and equipment, net 10,812 12,737 Cost of intangible assets from businesses acquired, less accumulated amortization of $6,199 and $4,767 51,603 52,322 Other assets and deferred charges 2,135 1,956 Deferred income taxes 2,960 2,901 Total assets $ 110,195 $ 110,085 Liabilities and Shareholders' Equity Current liabilities: • Accounts payable $ 5,307 $ 2,439 Accrued expenses 13,894 14,028 Income taxes payable 1,525 1,575 Current portion of long-term debt 204 159 Total current liabilities 20,930 18,201 Long-term debt 20,973 21,036 Other liabilities 11,291 12,335 Total liabilities 53,194 51,572 Commitments and contingent liabilities Shareholders' equity: Common stock, $.50 par value; authorized shares, 15,000; issued shares, 8,476 and 8,476 4,238 4,238 Additional paid-in capital 43,225 43,225 Retained earnings 45,830 40,283 Less treasury stock, at cost, 2,886 shares and 2,209 shares (36,292) (29,233 Total shareholders' equity 57,001 58,513 Total liabilities and shareholders' equity $ 110,195 $ 110,085 The accompanying notes are an integral part of the financial statements. S Q � r v/« 1n"_*c."0 �Transzu r d ystems Corporate Office: 5880 Commerce Boulevard, Rohnert Park, California 94928-1691 (707) 584-4225 CLIENT NUMBER FIRST TRAN.NUMBER LAST TRAN.NUMBER Order 06.4089 o. Ct)1�FP RATE CDFFICF LJSE ONLY (One Box MUST be marked.) Special shipping address: SHIP TO: ❑ CLIENT ❑ TSI OFFICE Today's Date ''�ig TOTAL TRANS PURCHASED ❑ MPO—Separate Status Report TRANSMITTALS To BE USED WITHIN NO.TRANS FOR MASTER ElGPO —Separate Status Report 24 MONTHS FROM TODAY'S DATE NO.TRANS THIS SUB-CLIENT ❑ Master/❑ SUB-One Status Report New Order Reorder Client No.If Reorder " • . Exercise TPHASEI, OPTION MotJrRs, a of Option I I — E� CLIENT NAME (PRINT ONLV9 - .PURCHASER HAS OPTION TO BUY (28 CONTINUED APPcrcAe K/ ADDITIONAL TRANSMITTALS FOR$ (rF (IF IF OPTION IS EXERCISED WITHIN 120 DAYS FROM TODAY'S DATE. ADDRESS CITY 28 (15) STATE, ZIP CODE +4 (AREA CODE)CLIENT PHONE NO. REGION NO. `SALES NO. (AREA CODE)TSI OFFICE PHONE NO. (2) ` ACCOUNT REPRESENTATIVE CYCLE FREEZE I TEXT SIC CODE, TYPE OF BUSINESS SKIPS I/We agree to pay the balance of$ in installments of not less than AMOUNT $ AOL each.The first payment will be due 19_ and the final payment due OF ORDER Skips _ $ - ----- ---------- on 19_. In case suit or action is instituted to collect this Note or any portion Expired $ ----------- ---------- thereof, the below named buyer(s) promises to pay all collection costs and such additional sums as • the court may adjudge reasonable such as court costs,attorney fees, service of process, etc. in said Lost Trans r $ ---------------------- suit or action. Status Reports $ ------------------- :'G U A R A N T E E ------------------:GUARANTEE _ TAX(+) (IFAPPLICABLE) $ TRANSWORLD SYSTEMS INC guarantees the purchase of the collection service, if used in TOTAL accordance with complete instructions'contained-in the Transmittal folder and instructions AMOUNT DUE $ printed on the numbered Transmittals,that the purchaser will collect a'minimum of two times` the total purchase price of the Transmittals purchased within 85 days after submitting the final LESS(-) Transmittal for servicing, provided all Transmittals are used within'24.months from date of AMOUNT PAID $ purchase, Or TRANSWORLD SYSTEMS INC. will, at its option, (1) refund the complete BALANCE purchase price of said Transmittals to the purchaser,' or (2) refund the cash difference DUE $ between the amount collected and double the amount invested for the above Transmittals to- the purchaser. Make check payable to: (This Guarantee only applies to orders where the account balances average$50 or more.) TRANSWORLD SYSTEMS INC. (SEE BELOW FOR CONDITIONS) All Transmittals must be filled out completely with correct debtor addresses,not involving bankrupt accounts or accounts which are beyond 12 months from date of last payment or charge. Our written Guarantee will apply if you have used all Transmittals within 24 months from date of purchase in accordance with printed instructions contained in the Transmittal folder,on the Transmittals, and herein.Transworld Systems Inc. assumes no responsibility for nor does it authorize any statements,acts,or promises of any person other than the written statements and Guarantee contained herein.The Hold Harmless Agreement,paragraphs 9 and 10 on reverse side, will apply on all of the above Transmittals purchased. The purchaser authorizes Transworld Systems Inc. to forward any negotiable instruments received directly to the purchaser. MAIL RETURNS- If mail is returned,Transworld Systems Inc. will notify client of the skip and cancel that account. To obtain a replacement Transmittal, client must return the Mail Return Notification and a check for$3.00(subject to change)to cover handling costs within 60 days of notification of the skip. if the$3.00 fee and Mail Return Notification are not returned within 60 days, the account will be classified as paid in full and that amount will count toward satisfaction of the Guarantee. It Freeze Skip option selected, replacement credit will be granted only on reorder and the dollar amount of the skipped accounts will be counted in �tal performance and Guarantee satisfaction. \ TERMS AND CONDITIONS CONTINUE ON REVERSE AND REQUIRE YOUR SIGNATURE X PURCHASER'S SIGNATURE I PRINT PURCHASER'S NAME X REPRESENTATIVE'S SIGNATURE I 0 COPYRIGi-i-r 1990,REVISED 1993—IRANSWORLD SYSTEMS INC. T'mnstvor-ld S Stelrns 111c. (.riIr[it tVlctrtra��etftertt S�rzlu-�s ASSIGNMENT AGREEMENT 4iIS AGREEMEN F is made and entered into by and between TRANSWORLD SYSTEMS INC.. herein called "TSI", a California Co .>oration, Corpor.ite Office at 5880 Commerce Boulevard, Rohnert Park, California 94928, also dba CREDIT MANAGEMENT SERVICES, herein c<llled "CMS", and the business or person listed on the reverse side of this Agreement, herein called "Company." NOW, THEREFORE, in consideration of mutual covenants and agreements contained herein, the parties agree to as follows: PHASE 1. The Company agrees that all accounts forwarded to TSI are hereby assigned for collection at the prepaid flat rate (Transmittal price) as stipulated to on the reverse side of this Agreement. 2. TSI agrees that any account assigned under this flat rate collection agreement may be cancelled and returned within 90 days of the date the account is submitted for collection to TSI by sending to TSI one of the following: a) Suspend Service Notice(Pink, second copy of the Transmittal assignment form), b) Stop Order(Yellow, fourth copy of the Transmittal assignment form), c) By placing an "X" in the space marked "Cancel and Return Account" as indicated on the form, Notice of Transfer of Assignment to CMS, d) By electing not to participate in Phase It of the TSI/CMS collection program and having all unpaid accounts cancelled and returned to the Company at the end of 90 days automatically(Service Completed Notice). 3, The Company agrees that it is not entitled to any refund for unused Transmittals whether or not they have expired.(See Guarantee) PHASE II -- FULL SERVICE 4. The Company agrees that if an individual account is not suspended or cancelled within the time period as outlined in Phase 1 (90 days), the account will automatically be transferred to our CMS Intensive Collection Division on a percentage commission basis. 5. The Company further agrees that all accounts that are transferred to our CMS division will be assigned at a u c) % commission rate. It is also agreed and understood that in order for an account to qualify for this commission rate, this account must be assigned to TSI/CMS for collection when the account is less than months past due from the date of last payment or charge. The Company further agrees that a 5 %commission rate will be due on each account which is delinquent in excess of the ve stated months. . The Company further agrees that a 50%commission rate will be due on the following accounts: a) Accounts which prove to be skips(mail returns), b) Accounts outside our network which CMS is required to forward to another agency, c) Accounts where suit must be instituted, d) Accounts under$100. 7. The Company agrees to notify CMS immediately of all direct payments received after date account is transferred to CMS and further agrees that CMS is entitled to full commission on all monies recovered whether paid to CMS or the Company direct. 8. CMS agrees to advance all court costs associated with the filing of legal action on assigned accounts. As prescribed by law, CMS will be reimbursed of such costs from the first monies recovered from the debtor. In consideration for this, CMS will retain all interest collected by CMS on assigned accounts. 9. TSI/CMS shall indemnify and save harmless the Company from.and against any and all loss,cost, damage, claims, or injury on account of any matter or thing made, done, permitted, or neglected by TSI/CMS in connection with its attempts to collect debts forwarded.to or assigned to TSI/CMS by the Company; provided. however, that this Agreement shall not apply with respect to any erroneous information furnished to TSI/CMS by the Company nor shall it apply'to any act or omission of the Company. , 10.The Company agrees to indemnify and save harmless TSI/CMS from and against any and all loss, cost, damage, claims, or injury on account of any matter or thing made, done, permitted, or neglected by.the Company in connection with the information forwarded to TSI/CMS on accounts. 11.The Company authorizes CMS to endorse negotiable instruments received in payment of claims and to deduct commissions on claims paid direct to Company from any money due Company. 12.CMS agrees to remit on a monthly basis all monies due to the Company on accounts that have been collected on a percentage collection commission and will furnish an appropriate statement; however, interest earned on funds held in trust for the benefit of the Company will be retained by CMS. 13.It is understood and agreed that the Phase II CMS Assignment Agreement may be terminated within five (5) working days following receipt of a written notice by either party. Said notice shall be sent by Certified or Registered mail. Any account which has previously been assigned to CMS prior to the effective termination of this Agreement will be governed by the appropriate collection agency licensing law. 14.All costs and expenses, including reasonable attorney fees, incurred by CMS in order to remedy any breach of this contract will be borne by the Company, ❑ PHASE IONLY _ • PURCHASER'S SIGNATURE ❑ PHASEIANDII (Frill Servirr) PURCHASER'S SIGNATURE DATE: SIGNED: "17SI,CMS"REPRESENTATIVE cO Copyright 1990,Revised 1993—TRANSWORLD SYSTEMS INC.— All Rights Ra 1 0D �krm V - In Mau CORPORATE OFFICE:5880 COMMERCE BLVD,,ROIINF.RT PARK,CA 94928-1691 (707)584-4225 aa�o • December 19, 1991 To Whom It May Concern: Transworld Systems Inc. (TSI ) is vitally concerned with matters of security. The very nature of our business involves the handling and storage of sensitive financial data concerning the debtors of our tens of thousands of clients. TSI regards the preservation of the confidentiality of such information and its secure storage whilst in our possession as the highest priority. Security of information can be discussed at a number of levels. Firstly, there are the physical security arrangements that are in place to protect access to our building, the computer room and computer records contained therein. Secondly, there is the matter of information that is available in printed form - its accessibility, storage and eventual destruction. Thirdly, there is the matter of data stored in computer files, its integrity and security. We will discuss each of these areas in turn. • All of the operations involved in TSI 's collection service are performed at the Corporate office in Rohnert Park. We make use of three purpose built sole occupancy buildings which were designed with security in mind. Each building has limited access and is open to the public only when a reception- ist is present. At all other times, the buildings are kept locked and access is available either through the use of a doorbell or, if the building is unoccupied, through a keypad style combination lock. The combination for each lock is known only to a limited number of people on a need-to-know basis, and security is maintained by changing the combination at frequent intervals and whenever a key employee is terminated. Each building is fully alarmed and connected to a central alarm company during unoccupied hours. Additionally, the computer room is secured by a keypad style combination lock whose combination is known to very few employees on a need-to-know basis. All buildings are protected by smoke detectors and sprinklers, except for the computer room which has a halon extinguishing system. All employees of TSI are required to read and understand our Employee Handbook, which emphasizes the confidentiality of information handled during . the course of business. In addition, each employee has signed a confiden- tiality and non-disclosure statement. Paper records containing debtor input information are recorded in batches and, upon completion of the data entry keying function, batches are stored in cupboards in our Transmittal Department, the door to which is kept locked when no one is present, (as a matter of fact, it is our standard • practice for all internal office doors to be shut and locked when offices are unoccupied) . Periodically, these input batches are transferred to our own warehouse location where they are archived for legally required retention periods, and then destroyed. Computer generated lists are SAN FRANCISCO,LOS ANGELES,NEW YORK,CHICAGO,DALLAS,HOUSTON,DENVER,SEATTLE,PHOENIX,HONOLULU,ATLANTA,BOSTON,MIAMI,AND OTHER MAJOR CITIES TSI Security 12/19/91 - Page 2 retained within our office with the exception of those that we produce and mail to our clients. Those lists used by us are shredded or disposed of in a secure manner after our need for them is completed. Our computer systems involve the storage of large databases, access to which is restricted on a need-to-know basis. Our mainframe computer is a Unisys 2200/401 with an Amperif Mass Storage subsystem. We routinely backup our databases and programs to magnetic tape. There are two levels for storage for backup tapes. First, we have a secure vault within the computer room; Secondly, we have a secure room in a second building which is physically separated from the building containing the computer room. Backup tapes are circulated from the computer room to the second storage facility on a weekly basis. Access to our mainframe computer from terminals is restricted to terminals located within our Corporate office complex. . There is no provision for clients or employees remote from Corporate Office to "dial-in" to our mainframe. Our computer system contains many levels of security and employees are allowed access only to that information for which they have a need. i At TSI we maintain vigilance to ensure that our operations are conducted as securely as possible, and to ensure that confidentiality of data entrusted to us by our clients is preserved. These are important issues for us and they receive an appropriate level of top management scrutiny and control. In serving the third-party collection needs of hundreds of banks, insurance companies, and other financial institutions and businesses who regard the confidentiality of their customer information to be of the utmost importance, we believe that to do anything other than operate within a highly secure environment would not only be a disservice to our clients, but also poor business judgement. Any questions concerning confidentiality of customer information and TSI 's security arrangements should be addressed to: Mr. Nei.]. D. Ross Vice President Information Systems NDR/ja 12/19/91 PART III TRANSWORLD COMPUTER SERVICE Exhibits:- A. TSI Service - Input Methods B. Collection Data Input System CDIS A PC operated system - simple, fast and efficient TRANSWORLD COMPUTER SERVICE • This third division of the Company is the data rocessin service p Y P g . company f r TSI and. CMS; i t is .located at Company headquarters i n Rohnert Park, California. The, major computer hardware is comprised of: UNISYS 2200/401 mainframe, 1 1 gigabits of AMPERIF mass storage with dual access controllers and 18 megabytes of cache memory, 6.UNISYS 1600/6250 bpi tape drives, 4 UNISYS high speed line printers, 2 UNISYS DCP/15 controllers serving 70 workstations, providing bysynchronous and. asynchronous remote communications, 2 UNISYS U5000/95 mini-computers with 20 workstations for batch . • data entry, PC Wide Area Network Software ' includes: - UNISYS MAPPER database/.report generator, UNISYS OFIS office automation system, UNISYS TELECON/CMS . telecommunications control system with TIP capability, Proprietary collections software written i n COBOL and RPG 11 , Proprietary PC-based remote data entry systems. COLLECTION DATA TRANSFER • Clients with relatively small needs supply us with simple written forms called Transmittals, which are-sent to us by mail. For clients with medium to high monthly volume there are various methods used from paper listings sent by mail to reel-to-reel data transmission via the telephone lines. A diagram of the variety of ways 'a client can put accounts on our service by, means of "Tranless" system is attached. COLLECTION DATA INPUT SYSTEM (CDIS) CDIS i sour most recent Tranless system for clients to start Pre-Collection Service for their accounts. This .TS1 exclusive software enables clients to use their office PC's, either singly or in networks, to operate their TSI Pre- Collection Starts, Stops and Suspends. I t is a one-key transmission of the collection information to TSI via modem. The collection information can be keyed at the PC or it can be downloaded from the output of 'a mainframe report. CDIS has useful application to clients with multiple branches or sources of collection data as special reports can be had .right from your own data base • sorted by origin, alpha listing, amount, date or other desired indexing. Allowance is made for many additional fields containing. information important to the client but not necessary for TSI collection purposes. Please see special CDIS information sheet attached. • CLIENT TSI MANUAL (1) TRANSMITTAL •COMPLETION FORMS - KEYED - (2) INDIVIDUAL - U.S.POSTAL ti_DAYS INPUT - - STATEMENTS SERVICE: / 1 MAINFRAME DEBTOR DAYS COMPUTER CONTACTS (3) LISTING ' MAINFRAME U.S.POSTAL 2-6 DAYS COMPUTER SERVICE 1(4) MAO TAPE COMM. MODEM IMMEDIATETERMINAL DISK (6) PERSONAL MODEM 6Y OMPUTE IMMEDIATE KEYED GD!S INPUT • Figure 1: 6 INPUT METHODS FOR TSI SERVICE TSI SERVICE — INPUT METHODS We have written before abort the various methods by which a client can submit account information to start the TSI service. Because of the importance of correctly understanding the implications of each method, we are addressing them again this month. Figure A shows in diagrammatic form the six basic methods a client may use to input debtor information. It also shows the time it takes to transfer the data from the client's office to TSI and the time taken by TSI to input the data into its computer to generate the first debtor contact. A. STANDARD TRANSMITTAL INPUT The standard input method is through the use of the four-part transmittal forms. This is the preferred method for the typical client. The transmittal provides a clear, concise and easy way for the client to record the essential details for TSI to • start service. It also provides an efficient and economical way to submit follow-up information to stop, suspend or reinstate service. B. TRANLESS INPUT All other methods of input are referred to as "tranless" because they do not • make use of the regular four-part transmittal forms. Requirements that are common to all tranless methods are: a. There must be a minimum order of 1,000 accounts. b. Monthly submission must be a minimum of 100 accounts, to be submitted at one time. c. No sub-clients are allowed. d. All accounts must be for the same service, i.e., diplomatic, intensive or bad check. e. The "freeze skips" option is mandatory. f. The debtor number to be .used in place of the transmittal number must be ten characters or less. g. Orders involving a tranless input method must be approved by Corporate Office prior to acceptance. Requests for approval .must include copies of- intended f_intended input forms, etc. Methods of input for tranless clients are: • 1. Copies of Client Documents. Perhaps the simplest form of tranless input document is a copy of a bill or statement prepared by a client. We can accept such a document-as a substitute for the regular transmittal form provided the information required to start the TSI service is complete, accurate and legible. The advantages to the.client are that he is spared the time and effort required to complete the.transmittal form manually and he can use his own account number (subject to the ten digit limit) as the debtor number in the TSI system. Disadvantages of this method include the need for a separate service notice with which to communicate "stop" information, the possibility of duplicate account numbers being used (which is totally unacceptable in the TSI system) and, in general, a lessening of the control and discipline imposed when the transmittal form is used. 2. Client Listing Sheet. Similar to number one, the difference being an aged accounts receivable list is used instead of individual statements. The main advantage of this method is that information need not be manually transcribed. .However, to the disadvantages listed above, add that a listing frequently contains items that are not to be included in our input. For example, the client may wish • only those accounts 90 days past due be set up, requiring the lining out of all other items, resulting in an input document which is difficult to read. 3. Magnetic Tape. If a client uses a computer system, it is possible he has the ability to prepare his input on magnetic tape. If he can do this according to our specifications, he has not only completely eliminated any manual effort by his staff, but by eliminating the need for us to key enter his data, he has also reduced the time required to set up accounts and start the TSI system. The same disadvantages exist for this method as for other tranless methods; service notices, possible duplicates, etc. Magnetic tape may be mailed or, if the.client is. equipped with the necessary communications hardware, can be transmitted to TSI by telephone (see below). 4. Data Transmission. Another option for a client who uses a computer which is able to communicate via dial-up telephone is to transmit input to TSI directly from his computer file (magnetic disk or tape). We can presently handle data transmission at 4800 baud using a Bell 208B modem. Other transmission speeds will be provided in the future as the need arises. The advantages to the client using this method are the speed of transferring data and elimination of manual keying of input. Also, where the volume justifies, this method can be used for service notices to expedite the updating of our files. Where it is inconvenient or impractical to use data transmission for service notices, the regular form may be used. • 5. Personal Computer. The last option for a client to use is the PC-based Remote Data Entry System to record, store and transmit debtor information. TSI will provide all of the hardware and software required. RDFS uses standard IBM PC-XT or compatible equipment together with specially developed, user friendly programs. Details of pricing and ordering procedures are available from your manager or Corporate Office. Use of RDES provides a client with the advantages of speedy communication and faster processing by TSI. It is ideal for use in connection with bad checks, for which no previous record, other than the check itself, .exists. In summary, TSI provides a variety of methods by which a client can input data. The regular transmittal form will best suit the needs of most clients and is easy to implement. Other methods may be used to advantage where large numbers of delinquent accounts are encountered, but their drawbacks as well as their benefits must be carefully evaluated to ensure that the method used will result in the successful utilization of the TSI system and lead to a continuing and profitable relation- ship for all. • • "AmeriConnect has found TSI to be the most effective agency for customer contact and collections.CDIS provides a constant, effective collection effort that is done in a timely manner." COLLECTION DATA INPUT SYSTEM AmeriConnect The leading edge receivable management software that is as simple to use as your "CDIS is far superior to anything available...Through the current database, but cuts the cost of use of the CDIS program we have been able to keep the collections like no other system on the collection staff down and show a direct financial savings." market today. Controller,Coast International Long Distance Service ■ Record details of your delinquent accounts through the user-friendly input screens or download from your existing computer database. Recording the information may be no different than the system you use today. CDIS is network ready and will work with your existing printer and modem to print reports and transmit data to TSI. • ■ Easy-to-use menu and windows allow you to access data j for account review, editing and updating. CDIS enables you to get better results—faster. ■ Detailed management reports show the progression of your accounts. From Account Listings, Stop Service Re- 'w. ports, Summaries and Database reports, you have immediate account information. CDIS highlights bad check fraud and even provides for customized reports. With CDIS you gain control fast, use collection time more } efficiently and produce the management information you need to stay on top of aging accounts. See it for yourself. Ask for a demonstration today and move your collections procedure into the next generation. Taking Receivables Collections NIED11 To The Next Generation COLLECTION DATA INPUT SYSTEM -- I f Who else but Transworld Systems, the nation's leading _.n. account recovery experts, could == � develop the most comprehensive a software available in past due 7 » A� account management. t Now you have immediate �_-- information from your PG j` Reduce your cost of collections. CDIS (Collection Data Input System) software requires no special training and is compatible with a wide variety of DOS based PC environments. If you are a current TSI customer, take this opportunity to convert to this exciting new program. i" If you aren't a current TSI customer, here is a great reason to become one. TRANSWORLD SYSTEMS INC. Corporate Office 5880 Commerce Boulevard Rohnert Park, CA 94928-1609 WILLIAM G. GWYNNE 707-584-4225 SENIOR CONSULTANT 1155 Ellis Street,San Francisco,CA 94109 (415) 563-6226 Fax (415) 563-1633 PART IV COST AND COMPENSATION Exhibit: w . A. Estimated Cost Comparison, shows why TSI/CMS returns far more to our client Note: A t a personal meeting I can share actual confidential status reports of other-clients with similar needs as the County of Contra Costa B. Performance Guarantee and financial references COST AND COMPENSATION Thericin of•TSI Pre-Collection is based on the number of accounts for P g which service is anticipated over a period of time. Our flat fee per account i s the only charge f.or our service and i t declines with.the increase in volume required. The Transmittals contracted for are valid for two years. Therefore, the lowest cost per transmittal, ie. per account, is achieved by basing the contracted amount of Transmittals on the anticipated need over the full two year-, period. Your request for quotations on our service indicated a one year time frame, and we understand that volume would be about 1000 accounts per month plus some. backlog accounts to be handled in the first month. 12,000 accounts (@1000 per month) @ $5.75 per account = $69,000.00 (The rate for 15,000 accounts is $5.45 per account) If CDIS i s selected f.o r entering n.ew accounts, there is a $100.00 one-time software fee. There is no charge for software updates at this time nor for operational assistance by our MIS staff. TSI charges no set-up fee, requires no minimum usage per month. Our fee . based on volume of accounts is our only remuneration for our Pre-Collection Service. Payment plans are available for clients needing to spread payments over a period of time. CREDIT MANAGEMENT. SERVICES charges a commission, a percentage of the amount of the money collected. There are no up-front costs prior to litigation or any costs whatsoever other than the percentage fee contingent upon money actually collected. CMS COMMISSION PHASE I I SERVICE PERCENT CF MONEY COLLECTED Accounts previously worked by Pre-Collection: . Started Pre-Collection aged 90 days or less 40% . Started Pre-Collection after 90 days aging 45% Accounts under $100.00 50% Accounts requiring skip tracing 50% Accounts requiring suit or special legal action 50% Accounts outside our own network 50% Accounts assigned directly to CMS 50%. Accounts assigned on Service Complete form 45% Please see our.Print Order, second page for explanation on Phase I and Phase 11 services. ESTIMATED COST COMPARISON Between a Conventional Agency and TSI/CMS OTHER TSI Number of accounts assigned 1,000 / mon. 1,000 / mon. Average balance per account(est' ated$ 1 2001,00 $ 1 200100 Total Dollars assigned $ 2oq, 000.p0 $ 2001, 000.TO Average recovery percentage' 21. % 56. % Amount recovered $ 41, 000. po $ .1121, 000.TO Avg. fee to collect account41� $ 17,1220.Op $ 51, 750-VO $5. 75 Net dollars returned to you $ 24,1780.op $ 10q, 250- P0 PER ACCT. Projected savings using TSI $ 811,470. Po . TOTAL AMOUNT RECOVERED: $ 42,1000.Op $ 112,1000.Op Cost as a % of Amount Recovered 41• % 5. 1 % CREDIT MANAGEMENT SERVICES CMS-4— Follow-Up Legal Services, Skip Tracing, Asset Investigation Total Dollars assigned (accounts not paid in Phase I , TA) $88,1000. op Average recovery $ 25,1520.0p 29.% Average fee to collect $ 111,484.p0 45.% Net Dollars returned by CMS $ 11, 036.po TOTAL NET DOLLARS RETURNED TO TSI + CMS $ 12q, 286.po PROJECTED SAVINGS USING TSI/CMS (NET TSI + NET CMS - NET OTHER) $ 9�, 506.PO TOTAL AMOUNT COLLECTED $ 42,1000. 010 $ 131, 520.po TOTAL COST OF COLLECTION $ 17,1000. 010 $ 11, 234.p0 COST AS A % of AMT. RECOVERED 41 . % 12.5% *Note : Recovery percentages and average costs are Industry and Company averages. Please refer to "blue brochure" . • TRANSWORLD SYSTEMS can prove it to you r.� A We have proven it to over 400 credit unions and banks. It's very important for a financial institution to collect ��, "�`1 their delinquent accounts quickly and efficiently, without �- disturbing ongoing relationships. That is why they love 1 �� the TSI service. Unlike methods used byconventional collection agencies,the TSI method of collecting accounts is highly effective without being harsh. In fact, at our 1�_ client's option, a"thank you" letter may be sent to a debtor after the account has been paid, at no additional cost. Our client's image is protected, goodwill is frequently restored, and it U isn't uncommon for debtors to return as cash-paying customers. 0- TRANSWORLD SYSTEMS CORPORATE REFERENCES. FINANCIAL REFERENCE CORPORATE COUNSEL INDEPENDENT CPA • CLIENT REFERENCES BANK OF AMERICA ANDERSON,ZEIGLER, ARTHUR YOUNG&COMPANY PROVIDED ON REQUEST MAIN BRANCH DISHAROON&GRAY 1111 SUMMER STREET SANTA ROSA, CALIFORNIA 50 OLD COURTHOUSE SQUARE STAMFORD, CONNECTICUT 06905 SANTA ROSA, CALIFORNIA 95402 PHONE.(203)326-8224 PHONE:(707)545-4910 • MEMBER UNITED STATES CHAMBER OF COMMERCE MEMBER AMERICAN COLLECTORS ASSOCIATION OUR PERFORMANCE GUARANTEE LET US PROVE IT TO YOU — AT NO RISK TSI will guarantee a 100% profit on any dollars invested in our service. In other words, you can test our service without risk. 0 w�. s r a v C PART V LETTERS AND TESTIMONIALS A. A Partial List of Counties and Cities using TSI B. Personal, Client reference - Town of Fairfax C. Personal Client.reference - Fuller-O'Brien Paints D. Personal Client reference Hawaiian Express Service, Inc. E Beaufort County Treasurer F. State of Wisconsin = Office of Commissioner of Banking G TAOS County Emergency Services Department H. City of Bellflower, CA • I. Village of Bradley, IL J: City of Arcadia, CA K. Cloverly Small Animal Clinic L. Animal Medic:lnc. M South Lamar Animal Hospital N. Toledo Radiological Associates, Inc. Q Diamond K Supply Ltd., Lafayette, CA P. Bernalillo County, NM, Treasurer's Newsletter Q J. a Goldstein, D,D.S. R TSI/CMS Newsletter, "Client Update S. Medical Group Management Update • PARTIAL LIST OF COUNTIES USING TSI CLAY COUNTY, Missouri - Collector' s Office BERNALILLO COUNTY, New Mexico - Office of the Treasurer VILAS COUNTY, Wisconsin - Clerk of Courts DOUGLAS COUNTY, Nevada - Fire/Paramedic GASTON COUNTY, North Carolina - Tax Collector and Motor Vehicles SANTA CLARA COUNTY, California - Library System ORANGE COUNTY, Florida - Building Department BALTIMORE' COUNTY, Maryland - Office of Finance LAURENS COUNTY, South Carolina - Delinquent Taxes CHIPPEWA COUNTY, Wisconsin - Sheriff' s Office CAMP COUNTY, Texas - Emergency Medical Service POLK COUNTY, Florida - Emergency Medi'Eal Service RUTHERFORD COUNTY, Tennessee<- Emergency .Medical Service KIOWA COUNTY, Oklahoma - Emergency Medical Service • PARTIAL LIST OF LOCAL CITIES USING TSI ANTIOCH RI CHM OND CONCORD PITTSBURG SUI SUN FAI RFAX SAN RAFAEL BERKELEY (Library) • _ TOWN OF FAI RFAX 142 BOLINAS ROAD, FAIRFAX. CALIFORNIA 94930 ( 4 1 5 ) 4 5 3 - 1 5 8 4 / F A X ( 4 1 5 ) 4 5 3 - 1 6 1 8 'w Mr. William Gwynne Transworld Systems Inc. 1155 Ellis St. San Francisco CA 94109 Dear Bill: TSI has helped both The Town of Fairfax and me personally. I welcome this opportunity to express our satisfaction in your company' s service and in your commitment to our success. We were having difficulty in getting our business licence fees collected, mainly from businesses based in residences. We had delinquencies that just wouldn't respond to our notices. Besides the loss of ' revenue represented by these delinquencies, they were wasting my time and a source of frustration. After your presentation showed the Town Administrator and me how we could get payments in and other accounts resolved without me having to send any more statements, and all in a diplomatic way, we wanted • to try TSI . We started your service the end of July. Our first collection, about three weeks later, returned our investment in your service. Back payments and resolutions of accounts continued, and now, as we look to 1995, we have had a performance on our investment of over five times with two-thirds of our system still available. What I especially like is that we keep control of the accounts, and the debtors call me if they have any questions. That way old accounts are settled quickly and in a non-offending way. The "thank you" letter you send on our behalf to the accounts that have paid is a nice touch, which we appreciate. TSI has done such a good job solving our business licence fees delinquencies we are looking for other areas to which we can apply the TSI third party pressure. Your patience, perseverence and guidance in getting us started right as well as your continuing service has helped us achieve a 69% performance rate in less than three months. I hope that our experience will give other small cities confidence to use TSI for their slow and delinquent accounts and bad checks. -J� p-reci i , T ni de�P'ra cis P,,nt,d un Re.riled Payer �uu�a 18FULLER 09BRIEN PAINTS REK March 10, 1995 Mr. William Gwynne Transworld Systems, Inc. 1155 Ellis Street San Francisco, CA 94109 Dear Bill: As you well know here at Fuller-O'Brien Paints, what counts are results and service. As we have stores all over the country, we need quality and dependability from our suppliers. I want you and your company to know that we are very pleased with Transworld on all counts. Since we started using your service for NSF checks almost three years ago, there has been a very substantial improvement in the recovery of money that was previously lost in returned • checks. Your new Collection Data Input System (CDIS) as you call it, is helping us to get check recovery efforts started in less than one-half the time it took before. Since age is so crucial, when it comes to recovering returned checks, our recovery rate improved by about 30% when we started using CDIS software. One happy result that we really didn't anticipate was that our closed account and mail skip problems are decreasing with CDIS. We are always trying to find ways to cut our losses in bad checks. Usually collection companies are very expensive in check recovery, -and -their results are meager. With Transworld Systems and CDIS however, our recoveries are so good the modest "bounced" check fee we charge pays for your service completely. Our thanks to you, Bill for your help when we need it, for the special reports on our system that you give us and in general, your dedication to our success in using your company's service. ith pr iation, Robert A. Zenteno Credit Manager RAZ/Is • 395 Oyster Point Boulevard, Suite 350, South San Francisco, California 94080 • (415)671-6060 • Fax (415)871-0680 SERVING NORTHERN CALIFORNIA AND ALL POINTS IN HAWAII CERTIFICATED FREIGHT FORWARDER ICC FF-266 s, 3624 MUNSTER AVENUE, SUITE C & D h'Sj HAYWARD, CALIFORNIA 94545 Telephone (415)783.6100 Mr. William G. Gwynne December 13 , 1990 TRANSWORLD SYSTEMS INC. 1155 Ellis St. San Francisco, CA 94109 Dear Bill; I am a big fan of TSI/CMS . I have used your cost effective -letters systems for recovery of past due receivables and bad checks for 12 years. I an pleased to tell you how effective your company has been in recovering money for us and in cutting our collection costs at the same time. I have to say cost is quite important to us because most of our billings are relatively small, many under $100.00 . With our current TSI 223 unit system our cost of collection is running only 1.8%, and our return is over 79%. Of the receivables not recovered by TSI, Credit Management Services is recovering over 30% . I like that CMS will work the hardcore accounts that were not recovered by TSI , even mail skips and small amounts. To me, TSI distinguishes itself from the many other collection services I have heard about by its professionalism and direct but non-alienating approach. Debtors are impressed, and they respond. It is important to us, since our customers are in Hawaii, that our collection arm has credibility. With your office in Honolulu as backup, our delinquent accounts are definitely more interested in settling their debts to us . Our office here especially appreciates the ease of operating the system and the fine monthly status reports that let us know exactly what is going on currently with each account. You must be aware that a company our size is the target of just about any collection agency seeking new clients, but I can assure you, Bill, we will not leave the fold of TSI/CMS . I have been shown many collection systems , some with collection letters and some of the "break the kneecaps" variety, but none of them have the class and strength of Transworld Systems. Very trul,yOyouurs Jo eUC. Schaul.., Secretary - Treasurer Joy Logan BEAUFORT COUNTY TREASURER • P.O. Drawer 487 ,t Beaufort, South Carolina 29901-0487 www Mr. Jeff Taylor Transworld Systems Inc. 4975 Lacross Rd., Suite 350 N. Charleston, SC 29418 Dear Jeff: I want to take this opportunity to express my pleasure with the results we have received from using Transworld Systems. 1 am "just tickled to death" to find a service that performs even better than I expected. In the past four months of working with Transworld, we have recovered over$101,000 of delinquent taxes. Some dating back as far as 1987. We recovered current as well as prior taxes, thus preventing them from going into delinquency again. The best feature of the system is that it pays for itself. We have recovered over 107% of the systems' cost through execution fees. We invested $13,400 with Transworld Systems. Within 60 days we recovered 75% of the cost and we exceeded the cost in 90 days. The entire system was paid for by execution fees, and it cost nothing in taxes to Beaufort County. When we first began using your service, we were not prepared for the immediate response we received. I am delighted to report a response from 64% of all accounts turned over to you. We were-- able to communicate with delinquent tax payers who had not responded to our statements for years. Like most counties, we do not have the manpower to levy and seize delinquent property rental taxes and.mobile home taxes. Transworld now allows us to recover these taxes without hiring another tax collector. Jeff, I wanted you to know how very pleased we are and would strongly encourage any county or business to give you and Transworld Systems an opportunity to work with them. Sincerely, Joy Logan Beaufort County Treasurer 4 Tommy G.Thompson 'Toby E.Sherry • Governor ( ' CummiS.ionrr Richard L.Dean Deputy Cununi„iuner State of Wisconsin Office of Commissioner of Banking 101 East Wi1S011 SU'Cet • 5th Flour• P.O. Box 7876 • Madison, Wisconsin 53707-7876 •(608) '-66-16'_1 • FAX (608) 267-6880 February 24, 1993 TO ALL CLAIMANTS AND FORWARDEES RE: Credit Control Systems, Inc. 117 South Chestnut Street Green Bay, WI 54306 As stated in our letter of February 8, the Office of Commissioner of Banking took possession of the books, records, and assets of the above collection agency for the purpose of liquidating its business. In an attempt to provide the best service to Credit Control clients, our Office solicited competitive bids from collection agencies that are licensed to do business in Wisconsin. Transworld Systems, Inc. presented the bid that was most favorable to all clients. As a result, they have been awarded the right to service the clients of Credit Control Systems. Pursuant to Transworld's offer, all unused Credit Control activators currently held by flat rate clients will be replaced, free of charge, with Transworld Transmittal forms. Percentage and NSF check clients that wish to list their accounts with Transworld will be serviced by Transworld under their regular terms. Transworld Systems, Inc. is a nationally recognized company with a good reputation and a solid balance sheet. Their Wisconsin offices are located in Milwaukee, Madison and Racine. A Transworld representative may be reached at 608-276-8307. Valuable papers pertaining to accounts you listed with Credit Control will be forwarded to you at a later date. Once received, you may wish to forward these papers to Transworld. Sincerely, Howard D. Quimby '• Administrator Consumer Credit Division ADMINISTRATIVE OFFICES OF THE TAOS COUNTY EMERGENCY SERVICES DEPARTMENT Post Office Box 1722 Taos, New Mexico 87571 MEN March 26, 1991 Mary A. Ratchford Account Executive Transworld Systems Inc. 5301 Central Ave., NE Suite 203 Albuquerque, NM 87108 Dear Ms. Ratchford: In December of 1990, we contracted with your pre-collection service to assist us with our collections. I am pleased with your system and the revenue we have generated since we implemented it into our department. To date, we have received ten times our investment in your collection service in less than four months. We appreciate all the time you have spent with our office staff helping them organize our billing system, which is now more efficient and organized. You did this at no additional cost to us and, thus, saved us internal costs by streamlining our internal procedures. We initially started with a 500 account system and have since reordered the same amount within our Option Period, which saved us more money. I would highly recommend Transworld Systems to any ambulance service. Best regards, Jerry Lucero Coordinator Taos County Ambulance Service JL:Im oA8 err �. 800MIeL Staf May 13, 1991 To: Honorable Mayor and Members of the City Council Attention: Jack A. Simpson City Administrator From: Mary M. Ramirez Administrative Assistant Subject: Performance Evaluation and Renewal of Agreement File No. 152 By and Between the City of Bellflower and Transworld Systems, Inc. On May 11, 1989, the City of Bellflower entered into a collection service agreement with Transworld Systems, Inc. The City purchased 500 collection requisitions at a cost of $3,475.00 or $6.95 per requisition. By April 1991, 138 collection requisitions were submitted to Transworld for items totalling • $70,433.31 . Approximately forty-one percent of the 138 requisitions have been paid in full totalling $22,144.97. In May 1991, the remaining 360 requisitions were issued for $23,000.00 in outstanding receivables. By purchasing collection requisitions, the return on the City's purchase is eight to one. For every $1 .00 spent, we have collected $8.00 and the collection cost is 4.3% of the total collected. Overall, Transworld has provided helpful assistance to maximize collections and their performance has been favorable. It is recommended that the City renew the agreement with Transworld Systems, Inc. for another two-year term and purchase 500 additional requisitions. The unit price has increased from $6.95 to $7.45 -- totalling $3,725.00. Should the City Council decide to renew this agreement, attached is Resolution No. 91-50. In the event that the City utilizes 500 requisitions before the two-year term expires, the City has the option of purchasing additional requisitions to continue collection on delinquent accounts. • oEFICERS VIIJjAGE OF BRADLEY BOARD of TRUSTEES MAYOR WILLIAM PONIKVAR KENNETH HAYES 147 South Michigan Avenue CARL ERICKSON CLERK JERRY BALTHAZOR WILI-LAIM ZAJC MEMBER OF ILLINOIS MUNICIPAL. LEAGUE KATHY O'CONNOR TREASLRER HOWARD DUCHENE LEON SLOVIKOSKI BRADLEY, ILLINOIS 60915 ROBERT MARTIN April 25, 1994 Mr. Richard Young Transworld Systems Inc. 750 Lake Cook Road, Suite 395 Buffalo Grove, IL 60089 Dear Richard: Thank you for introducing Transworld Systems to the Village of Bradley. In the first 4 months of using TSI we have already achieved a 4 to 1 return on our original investment As you know, we are submitting delinquent water and sewer bills with an average balance of$550 and our bottom line cost is only 11.3%.We are impressed with your systematic and very diplomatic approach which has not only brought in the money but has also reopened communications with those who owe us money. We are very happy with the simplicity of use of your system and the complete control we have over those accounts we have submitted to you.The monthly status report is also a valuable tool providing us with up to date information on the status of every account you are working. Considering the response we have received, I would recommend TSI to any city with slow pay or delinquent account problems. Sincerely, Mayor Ken Hayes Village of Bradley • . JOSEPH C. CIRAULO MAYOR PROTEMPORE 240 West Huntington Drive ROBERT C. HARBICH ARCADIA P.O. Box 60 DENNIS A. LOJESKI Arcadia,California 91066-0060 BOB MARGETT COUNCILMEN DONALD R. DUCKWORTH GEORGE FASCHING JUNE D. ALFORD CITY MANAGER MAYOR CITY CLERK June 23, 1993 Mr. Rand Franklin Transworld Systems Inc. 3040 State Street Santa Barbara, California 93101 Dear Rand: 1 was pleased to learn that you had joined Transworld Systems. I understand that this is a fine company and wish you the best of luck with them. As you know, the City of Arcadia is a client of Transworld. We had been one of their clients and then left to go with a firm called Collectech Systems. After a year though, we returned to Transworld. My conversations with the department heads working with Transworld indicates that they are doing a good job for us and our people are very happy with their performance. Keep up the good work! Hope to see you soon. Sincerely, Robert C. Harbicht Councilman } Cloverly Small Animal Clinic • K.T. Somaiah, D.V.M. 15549 New Hampshire Avenue, Silver Spring, Maryland 20904 September 22, 1993 Judith Goodrich Transworld Systems Inc. 5205 Leesburg Pike, Suite 306 Falls Church, VA 22041 Dear Judith: Transworld Systems' (TSI) accounts receivable program has been a real help to our clinic. We are very concerned about the good will and reputation of the clinic.We had been delaying sending accounts to TSI until they were five to six months old.You convinced me that thinking that we could collect ourselves and accepting lient's excuses was throwing money away. Even with sending these old accounts to TSI, we have recovered early 30%. Now we are turning accounts over at 45 to 60 days delinquent thereby saving myself and my staff all that time wasted chasing delinquent accounts. Now we concentrate on our animal clients rather than their nonresponsive owners. Also, we can use TSI for our NSF checks rather than an expensive check guarantee service.We can pay for two years of TSI with the money we have been paying Telecheck annually! And collect our slow paying accounts and NSF checks too. The Credit Management Services(CMS)division follows through with the accounts not recovered by TSI.With TSI/CMS the client has a complete cash flow management program:from a simplified in-house collection,TSI pre-collections to CMS intensive collections including legal action if necessary. All for a few pennies per account Thank you for your time and patience in making sure that I am getting the most from my TSI/CMS collection program. I recommend Transworld Systems to any veterinary practice or any business with receivables. Very truly yours, KT. Somaiah, D.V.M. P. O. BOX 575 • MANCHESTER, PA 17345-0575 • SERVICE CENTER DISTRIBUTORS OF AMERICA'S 717-266-5611 BEST ANIMAL HEALTH, PET, FARM, 1-800-767-5611 AND HOME SUPPLIES December 11, 1992 Mr . Bill Winand Transworld Systems, Inc. 2001 North Front Street Bldg . 1, Suite 308 Harrisburg, PA 17102 Dear Bill, I wanted to let you know that I am pleased, thus far, with the performance of TSI 's collection system. I turned over forty ( 90 ) ac- counts to TSI on November 6, 1992 and, to date, I have recovered 25% of the tutal amOunt submitted at a cost of 8 . 3%, which certainly beats the conventional collection agency costs of 25% to 50%. • It is working well for us to have an outside third party apply diplomatic pressure to our customers . TSI 's simple, but complete, collection system has motivated our customers to action, be it either a payment or a phone call . I am looking forward to continued success with TSI . Very truly yours, JAMES A. GANTE, CPA Controller /)y cc: file • lT'S AN/NAL HOED/CFOR ANIMAL HEALTH For God loved the world so much that fie gave His only Son. so that everyone who helieves in Him may not die but have eternal life.John 3.16 �ouEf Zali a2 Michael J. Taylor, DVM / Leslie Neil, DVM 2414-B South Lamar Austin, Texas 78704 • (512) 441-3192 H. Travis Putney Transworld Systems Inc. 7719 Wood Hollow Drive Austin, Texas 78731 Dear Travis, We are happy to tell you how pleased we are with the service Transworld has been providing us. We have been implementing our system for some months now and as an Accounts Receivable tool it works well for us. Before we implemented Transworld into our billing and collections process, we were using TRW to try and collect our delinquent accounts, and without very noticeable results, probably due to the fact that our balances are usually less than $100. Now, since we are able to use TSI at a much earlier age in the billing process without offending our 4 clients, we are able to eliminate most of the fruitless letters and phone calls previously necessary to try and re-establish communication with our clients. We have integrated Transworld's courtesy notice into our billing cycle at about 60 days past due. The TSI system is easy to use and we get a quick response from our clients, without all the extra effort and expense to try and re-establish communication with them. We also like the fact that with Transworld our clients pay us directly, and that impacts our cash-flow in a positive way. Travis, we appreciate the personal follow through and suggestions from you since we started working together. We highly recommend you and Transworld to any office experiencing problems with their receivables. Sincerely, 0"W#��/'Ovm South Lamar Animal Hospital • TOLEDO RADIOLOGICAL ASSOCIATES, INC. • B I L L I N G O F F I C E LAVOY OFFICE PLAZA 484 1 MONROE ST. • TOLEDO,OHIO 43623 J. ROBERT YODER, M.D.. F.A.C.R. CHONGGI L. MAH. M.U. KENNETH K. W. SEO. M.D. DAVID A PARKER. M D. LEONARD M HEINZ. M.D.. F.A.C.R. KEITH D. WILSON, MD. JOHN T CHILES. M.D. PARAG U. PARIKH, MD. H E. MUEHLENBECK. M.D. FA.C.R, MICHAEL R HAY. M.D. THOMAS N SARDELIS. M.D. MURRAY A. HOWE. M D. I.L. APOSTOLAKIS. M.D. ALLAN S. KAUFMAN. M.U. DANIEL SINGER. M.D. ROBIN 0 SHERMIS. M D. CHARLES C. CHURCH. M.D. WILLIAM G. NOVAK. M.D. BLAINE A. KEIGLEY. M.D. CHARLES 1. PRICE. M D PHILIP 1. SILVERMAN. M.D. JONATHAN 1. YOBBAGY. M D. April 20, 1993 Theresa Markovich Transworld Systems Inc. 3454 Oak Alley Ct. Toledo, Oh 43606 Dear Theresa, We wanted to let you know that your program, Transworld Systems, has surpassed our expectations. As you know, we were very skeptical with your promises of performance and operational excellence. We have experimented with our agencies, , using a similar format, only to be disappointed with the operational end of their programs. Transworld has had few operational problems and a consistent 45-50% resolution rate. Recently, we ran another comparison program with two other agencies. These agencies basically duplicated the Transworld program and Transworld still out-performed by half. We have experienced a reduction in our collection costs and an increase in patient awareness. An added boon has been the opportunity to educate our patients in insurance re-imbursement procedures for future services. Transworld Systems has performed as promised. We are more than pleased and will continue to use your service. Please feel free to use Toledo Radiological as reference for future clients. Sincerely, 6", Peggy Collier Collections . ❑ FLOWER MEMORIAL HOSPITAL RADIOLOGY DEPT ❑ TOLEDO CLINIC OFFICE ❑ TOLEDO HOSPITAL RADIOLOGY DEPT. ❑ SPRING MEADOWS DIAGNOSTIC OFFICE 0 ROEMEK BUILDING DIAGNOSTIC OFFICE DIAMOND K SUPPLY LTD. 3671 MT. DIABL.O BIA11). • I.AFAYI'A"FE, CA 94 5,P) Phone: '_'8,1_:1:1 7 7 August 5, 1994 Transworld Systems, Inc. 1155 Ellis Street -San Francisco, California 94109 Attn: H. Vincent Mueller Dear Mr . Mueller, Since 1978 we have conducted business with Transworld Systems . The recovery rate has always been to our satisfaction. In 1992-1993, sixty-four of our eighty-five accounts were successfully Collected. Because of the positive collection strategy in Phase I only ten accounts were transferred into Phase II, and to date substantial amount has been collected. We are very pleased to have such great support system to turn to when in need. Sincerely, Linda Lawson Office Manager BEERNALILLO COUA7YALBUQUERQUE, NM TREASUREWS NEWSLETTER H.R FINE, TREASURER APRIL 1, 1994 JUNE 30, 1994 SECOND QUARTER, 1994 VOLUME 2 ISSUE 2 IN THE NEWS LITTLE CONTRACT the State. Initially, the Treasurer was refused a V SAVES BT�r BUOU TOU request to transfer salary money to fund the con- tract, so the Treasurer borrowed from his postage A contract costing taxpayer's $4,626.45 saved account to fund it. On April 14, 1994,Transworld County taxpayer's$78,611.76 in penalty and inter- Systems Inc. was awarded a contract and by est that would have gone to the State, and June 30, 1994, they had collected $367,221.74 in recovered an additional $288,609.98 in hard to 1991 delinquent taxes, penalty and interest. collect delinquent taxes. Last February,our analy- sis showed that we did not have sufficient staff to The $78,611.76 saving in penalty and interest collect as many of the 1991 delinquent taxes and that went directly to the Bernalillo County General related penalty and interest as we should. Any Fund instead of the State, represents a 1,700 1991 taxes that remained delinquent after July 1, percent return on cost in just six weeks. In 1994, would have to be turned over to the State addition, the County's share of the delinquent for collection and any interest and penalty due taxes was about $66,000. We might not have on those taxes would have to be paid to the State collected those taxes for several years. (known as the House Bill 31 requirement). If collected before July 1, 1994, Bernalillo County In the 1994-95 budget, we asked for $5,000 to could keep the accrued penalty and interest. fund a collection agency contract to help us with 1992 delinquent taxes before they are turned The Treasurer spent two months doing trench over to the State.The budget request was denied. warfare to establish his statutory right to use a Perhaps it is easier to raise taxes on those who collection agency to help collect chronically delin- pay rather than collect from those who do not Lquenttaxes and at the same time save County pay. Much more of this and taxpayers could call ers the interest and penalty before it fell to for a few resignations. Transworld Systems Inc. • J.D. Goldstein, D.D.S. ,M 25400 U.S. Hwy. 19 N., Suite 199 CARING FOR YOU Clearwater, Florida 34623 TRANSWORLD SYSTEMS INC. JASON FELTS / DISTRICT MANAGER 240 N. WASHINGTON BLVD., SUITE 540 SARASOTA, FL 34236 . Dear Jason, Jason, I've been in the medical field for twenty five years.After trying several other agencies that charged a high percentage with very poor results, I'd given up on collection agencies. I must admit that when you first approached me I was somewhat skeptical. I didn't understand how you could be as effective as you were saying,and charge less than$10.00 per account. Well, we decided to test it,and the results have been much greater than I expected. I really like the fact that we can turn over anyone that becomes past due, fror> the self- paying patients,to the Insurance Companies,or even Medicaid and Medicare.The monthly reports you send are also nice. It makes it easy for me to check up on you!Something else I really appreciate is the professional approach you use.The wonderful results are important but not at the expense of losing relationships with patients. It means a great deal for me to be able to say"TSI has not cost us one patient!"I also like the way you say"thank you"on our behalf when our patients do pay their debt to us. Lastly,the personal service from you and the staff there at TSI is greatly appreciated.You've always been very pleasant to work with and willing to help. Yes, Jason, I'd be happy to recommend TSI to anyone in search of a collection agency that really produces,and will do what they say they will do. Sincerely, 19AW Bonnie Rothenbuecher Financial Manager • Da op Da �p C1 q,;;KS �a�0 � UP Information That Will Improve Your Collection Results December 1994 FROM ATTORNEY LETTERS AND OTHER THE DECEPTIVE PRACTICES: MAILBAG WHAT YOU DON'T (OR DO) KNOW CAN HURT YOU The collection industry is highly One case, Clomon vs. Jackson, regulated nationally. Recently, the stemmed from a debt of less than $100. Each month we receive hundreds Federal Trade Commission decreed to The company using the attomey letter of endorsement letters from TSI's hold you — a creditor —responsible for was found to be in violation of the many satisfied clients. Here are the actions of the independent debt FDCPA and the court awarded the some brief lines from but a few. collectors you hire. Creditors can be debtor statutory damages and attorney's held legally responsible for their fees — in an amount more than 420 "It's been less than six months collection agency's violations of the times greater than the original debt since we began using TSI and we Federal Fair Debt Collection Practices Regardless of the amount, creditors are extremely impressed with the Act (FDCPA) to the extent that the must know and accept responsibility for results so far! . . . we received creditor knowingly encourages, induces, the actions their agency utilizes to $9,000 in cash payments and or condones their commission. Simply motivate debtors to pay. another $6,500 has been stated, if you condone a practice that is arranged . . . all this at a practically deceptive or misleading, you can be As a client of Transworld Systems Inc., ridiculous cost of 1.1%!!" held accountable. you can rest assured that your third party collections are being done -- Douglas Wright, Business Manager Among such deceptive practices is the ethically and professionally. Adhering to Geriatric Authority of Holyoke, MA inclusion of an attorney letter within all the FDCPA regulations, TSI's five- the agency's mass mailing of account letter demand series leads the industry "Upon reordering our second payment demands. The U.S. Court of in account recovery. Federal and state system with TSI, we were amazed Appeals has determined that collection collection laws, the same as the many y agencies or creditors may not use an other laws which protect our society, to find a 50.3% recovery rate with attorney letterhead on their mass-mailed are always subject to changes and the first system. Our collection collection letters. A letter from an amendments. Concerned with more cost was a phenomenal 2 cents attorney who is not actively involved in than just recovering your money, TSI on the dollar." the legal collection process, or has protects you by operating within full — Gerald C. Fluter not even reviewed the account in compliance of these laws which Attorney at Law question for that matter, may be continue to evolve on a national basis. construed to be a deceptive act for TSI's dunning notices and procedures which you could be held liable. Don't remain strong as they are constantly "The Transworld Systems be misled by an agency offering an reviewed by legal counsel to ensure program is effective and very attorney demand In its collection that they meet all the current affordable. According to our latest letter series! requirements. Internal education Collection Status Report, it has procedures also help TSI personnel helped us to collect on over The court determined that such a letter remain current on all industry changes $79,000 of overdue accounts." could "give the consumer the so that the service rendered to clients impression that the letters were and account representatives reflects -- Michael E. Sullivan, Vice President, communications from an attorney. This any such revisions. Finance & Administration impression was false and misleading Trimble House (Lighting Company) because, in fact, (the attorney) did not While you might believe a letter which review each debtor's files; he did not "appears" to be from an attorney is a "For the return of money, there determine when particular letters should strong inducement for a debtor to pay, is NO faster collection company be sent; he did not approve the sending a recent survey revealed that an than TRANSWORLD SYSTEMS of particular letters, based upon overwhelming 81 percent of creditors INC." recommendations of others; and he did feel that attorneys cannot out-collect not see particular letters before they agencies. The federal law is firm and — Carroll Elkins, Owner were sent — indeed, he did not even such recent.Court decisions clearly Domino's Pizza, Tacoma, WA know the identities of persons to whom indicate that deceptive collection the letters were issued." practices will not be tolerated. John Granville positive qualities have also played a Now in Tacoma, JOHN provides his TSI Tacoma Sales role in the development of many of personal service efforts to hundreds TSI's top sales representatives. of TSI clients throughout the Pacific Representative Profile Following a clear path of goal Northwest area. Following the strict attainment, JOHN GRANVILLE of TSI skills of dedication he learned in the Transworld Systems Inc. is often Tacoma, WA, is living proof that strict service, he takes great pride in referred to as the collection agency adherence to providing client satis- sharing with area business people the with trust, stability, and integrity. These faction is the key to a successful many ways in which TSI/CMS can career. help individual companies. Maintaining steady cash flow is important, and Prior to his becoming a sales repre- JOHN accepts and meets this sentative for Transworld Systems, challenge for local businesses daily. JOHN attended the U.S. Army Military "TSI gives business owners the Academy at West Point. While he power to have full control of the was a cadet, he developed the money owed to them, and it is my dedication and commitment that is responsibility to provide this necessary for one to gain experience opportunity to them through my in any endeavor. He graduated from service and support," says JOHN. West Point with bachelor of science degrees in business management and In addition to representing TSI, JOHN economics, with a minor in business is also an active member of the �v science. JOHN'S wife, ERIKA, also National Guard. He serves as a first �► graduated from West Point where she lieutenant at Ft. Lewis and is proud to earned a full degree in aeronautical be a member of two such forces in engineering. These achievements the Tacoma area. "What better way among others helped JOHN cull a to serve my community than through deep-seeded sense of responsibility the National Guard and TSI." John Granville to his family and his community. Startling Statistics Creditors. and � the FDCPA ■ According to the American Collectors Association, the A bank recently claimed that it could take such steps. The Fifth Circuit held 1992 estimated national aver- use whatever tactics, including that the consumer does not have to age recovery rate for collection harassment and intimidation, to collect show evidence that the debt is invalid agencies was 18.5 percent. (TSI's average is 56%.) on a valid debt without adhering to in order to be protected by the law. the Fair Debt Collection Practices Act. ■ The ACA also estimated that The bank maintained that the Because the FDCPA does not govern $14 billion was recovered by "FDCPA only governs someone trying. the efforts of a creditor who is third party collection agencies to collect a debt that is void and attempting to collect its own debt, the during 1992. These statistics unenforceable against the alleged question arises as to whether the reveal that bad debts cost debtor." However, according to the bank was actually a debt collector. every man, woman, and child U.S. Court of Appeals of the Fifth The bank involved in this action was in the U.S. more than $250 Circuit, the FDCPA is designed to trying to collect the judgment in each year. This means that a protect consumers from victimization connection with the liquidation of the family of four would pay $1,000 by unscrupulous debt collectors, original bank. Therefore, the more for goods and services regardless of whether the debt is defendant would be governed by the during the year. valid. FDCPA since it was acting as an agent for the original creditor. ■ U.S. banks processed over 62 In this case, a bank used methods billion checks in 1992, including prohibited by the FDCPA to collect on -- "Collector" magazine the 533 million of them which a judgment against a customer for July 1994 bounced. According to the $25,451.59 plus interest The ACA, 1.5 million checks are customer then brought an action dishonored each day because against the bank for violations of the TRANSWORLD SYSTEMS INC. of insufficient funds, closed 5880 Commerce Blvd. law. In response, the bank defended accounts, or stop-payment itself by maintaining that since the Rohnert Park, CA 94928 requests. debt was valid it was permitted to ®Copyright 1994 AM Rights Reserved � .e 9O gV, d .. D ;, .t 0 13 h �o zid � � f° �• O • • to w lit 96- 'k n u' 0, o o On h n `�' � ' � �• � h � � d � G � � %161 � t i ^ Qr � pr Sk o '`� o Yn D �n .a 7r':� ''�• on ^ �, ^ .a �' h tj- �..•r "� r d d n O �.'d G D D ^. r ��* m h o y^• ^ co h9..1 log co O rb ° ry r• n 'F'' d Z' r• Ei+ '' f p 9 O yt �(p to t� l0 1� � ..+ o $ rr" two °nio 7 G ^.•an .d y d \ is h d n �. �' :'y �' d O k to d V�► :o+ dG I 0-�� � d d • �^d� ^ �� L^�,� � � n `3 �r• � N � ��' � by y O5 o" G r3 �• dQi ~ Car Sr o g ►•o �'. d � 'n h °' � d R.o_c�+°' h �3' �. /rte mot 0 CO r G pp h W (y O d O n O ry d r^ V 7 '�, Qr' n G• N � h d h �(D i. tD Ix'D ip d 3 n �. p CID .. ro � � � O••f� n d o� � n � `h.^•� N � �' � acs-� -rr„ h e+�• Q �h+� � un to) A M h h d � p.ro. � h^.• w � '� ^ 0 0911 ?n co m 1 Ail � �•ro � N � Q.r+h. �' N p. tlnal- D O Q l d n MR" STEM 1 F TED' AMM� �,� J POWERFUL COLLECTION SOLUTIONS 5776 Stoneridge Mall Road Suite 170 Pleasanton, CA 94588 (510)460-3735 Fax: (510)460-0342 Toll-Free: (800)730-4RSI April 10, 1995 Clerk of the Board of Supervisors Contra Costa County County Administration Building 651 Pine Street Martinez, CA 94553 Dear Supervisors: We appreciate your request for a service proposal. As we have expressed to each other in previous meetings and discussions with Vanessa Balinton-White, Collection Manager and Nancy Bischoff, Director, Office of Revenue Collection, Contra Costa County and Recovery Systems Inc. share a common belief that there is a potential for increased account resolution within the county's collection department prior to-account assignment to a contingency collection agency. Because R.S.I. is not a conventional collection agency as outlined in the request for proposal, we hope you will consider inviting our firm to help strengthen your ability to resolve open accounts using RSI's Internal Collection Program (ICP). The ICP series is a powerful collection tool that will serve as a financial catalyst for your debtors to pay Contra Costa County during your internal collection process. The program will effectively increase the county's ability to collect from seriously delinquent accounts, lower the costs of expensive third party collections and maintain good public relations throughout the program. The materials presented in this proposed plan describe RSI's primary and exclusive products and services and we respectfully request you treat it confidentially. We specifically request that neither this plan or any of the information contained herein be provided or reviewed with any other firm. Again, thank you for considering our services. Should you have any questions and wish to contact me, please feel free to call my office. Respectfully Yours, :• David Kaplan, President RECOVERY SYSTEMS, INC. Table Of Contents I. COMPANY PROFILE II. RSI'S INTERNAL COLLECTION PROGRAM (ICP) A. RSI's Program Offers Flexibility B. RSI's Internal Collection Program Can Generate Immediate Cash Flow • RSI Issues Credits For Returned Mail Handling Disputes C. Program Placement and Updating Is Simple • Automated Placement of Accounts by Modem and Computer Diskette • Manual Placement of Accounts D. Objectives Of The ICP Series and Ability To Meet Those Objectives • Projected Account Placements From Contra Costa County • Investment By Contra Costa County • RSI Eliminates All Financial Risk and Guarantees Returns That Exceed Collection Costs E. RSI Will Generate Clear and Concise Management Reports To Assist You In Tracking The Status Of Accounts In Our System • Confirmation Report • Completion Report • Account Status Report III. CONCLUSION AND OFFER OF SERVICES IV. REFERENCES P /Ul CO Ci10N SOIVTI 22 5776 Stoneridge Mall Road, Suite 170 • Pleasanton, CA 94588 • Phone: (5.10) 460-3735 Fax: (510) 460-0342 9 Toll-Free: (800) 730-4RS1 RECOVERY SYSTEMS, INC.'S FORMAL PROPOSAL AND INTERNAL COLLECTION PROGRAM I. COMPANY PROFILE RECOVERY SYSTEMS, INC. (RSI) was incorporated in California in March, 1993 and is a privately held company. RSI is headquartered in Pleasanton, California. RSI is a flat fee demand letter writing collection corporation who's service consists of a progressively stronger series of demand notices, mailed by us, to our client's debtors. We represent. companies that typically have a high volume of debtors that owe small amounts of money. Our services fill the gap between our debtor's final internal efforts and their employment of a contingency collection agency. We effectively reduce the amount of accounts assigned to an agency, thereby reducing costs and maintaining good public relations. Because RSI does not employ collectors, and relies heavily on technology, we have dedicated our resources to the development of our employees who manage the systems. They are committed to the principle that responsive service combined with exceptional results nurtures long lasting relationships. We are fully committed to the future growth of the company and hope to form a mutually beneficial relationship with Contra Costa County. POWERFUL COLLECTION EOLUT/ONE 5776 Stoneridge Mall Road, Suite 170 • Pleasanton, CA 94588 • Phone: (510) 460-3735 Fax: (510) 460-0342 0 Toll-Free: (800) 730-4RS1 • H. RECOVERY SYSTEMS INC.'S INTERNAL COLLECTION PROGRAM (ICP. Recovery Systems' ICP is a series of collection letter templates that have been designed to maximize internal collections during the critical period following the identification of an account as seriously delinquent or non- payer. The ICP series motivates debtors to pay Contra Costa County first by escalating the urgency to pay with third party intervention, fear of damaged credit and fear of attorney involvement, after standard internal efforts have been exhausted. Our program will single out your outstanding debt and prioritize it for the debtor with an urgency unmatched by Contra Costa County's standard internal collection process. RSI's program will also reduce expensive assignments to collection agencies that retain a percentage of the balance, and will lower collection costs to a fraction of the current rate. From the moment you place accounts with us, through the completion of our program, RSI can be utilized as an integral part of your collection program. A. RSI's Program Offers Flexibility The ICP series can be customized with the message that best suits your particular needs. Each letter series.will reflect the severity you deem appropriate to motivate payment. Because each of our debtors have different needs, the system can be customized by adjusting the nature of a letter series, adding either one or a combination of these options: • The threat and impact of credit reporting to all three major bureaus (TRW, Equifax and Transunion). • A letter series designed to collect from bad check writers. • A final letter from our collection attorney. • A thank you letter sent to your debtor upon receipt of payment. • A system that provides for your debtor to pay by credit card. WC am, 4 POWERFUL COLLECTION SOLUTIONS 5776 Stoneridge Mall Road, Suite 170 • Pleasanton, CA 94588 • Phone: (510) 460-3735 Fax: (510) 460-0342 9 Toll-Free: (800) 730-4RS1 • Samples of RSI's letter series are contained in the appendix to this proposal. This includes a series customized for Contra Costa County (Appendices A-C). In addition, you will find a thank you letter (Appendix D), the first letter of a series that can be sent to bad check writers (Appendix E) and a letter that displays the option of allowing your debtor to pay by credit card (Appendix F). B. RSI's Internal Collection Program Can Generate Immediate Cash Flow Our program provides the debtor with tear-off remittance slips and window envelopes addressed directly to Contra Costa County. With RSI's system you are always in control of the account because all collected money comes directly back to you, generating immediate cash flow. A contact's name and phone number at Contra Costa County can be printed on the notice to accommodate debtors wishing to make direct payment arrangements. • RSI Issues Credits For Returned Mail. RSI will issue a credit on returned mail of up to 10% of the total number of accounts ordered. This credit can be applied to future orders. We will also report all mail returns to the three major credit reporting agencies. This provides an excellent skip tracing tool. Any resolution on these accounts in the future will result in 100% payment to Contra Costa County. Disputes are handled by prompting the debtor, with instructions on the notices, to clearly document disputes in writing and send them to you. A Us WA POWERFUL COLLECTION SOLUTIONS 5776 Stoneridge Mall Road, Suite 170 • Pleasanton, CA 94588 Phone: (5 10) 460-3735 Fax: (510) 460-0342 • Toll-Free: (800) 730-4RS1 • C. Program Placement and Updating Is Simple The flexibility of the RSI system allows for manual placement or fully automated placement and updating of accounts by modem or computer diskette. Our data entry department can customize this process to minimize your internal workload. • Automated Placement of Accounts by Modem and Computer Diskette. Data can be earmarked by Contra Costa County as an RSI account. These records can then be downloaded in an ASCII format to a separate file and transferred directly to RSI via modem or computer diskette. RSI will then upload these records into our system and initiate our demand letter program. When payment is received by Contra Costa County, RSI's convenient status report (Appendix K) can be used to communicate updated information. • Manual Placement Forms (Appendix G) can be used as an alternative to automated placement and used to assign new accounts to RSI and to update the status of the account. D. Objectives Of The ICP Series and Ability To Meet Those Objectives As previously mentioned, the ICP series is designed to increase Contra Costa County's overall account resolution internally, and lower the cost of collection. Our series can be used by your collection department as a powerful collection tool after standard internal efforts have been exhausted. In addition, the ICP series has been developed to protect your image in the community by maintaining a diplomatic approach to third party collections. Direct account assignment to agencies that retain a percentage, puts your accounts in the hands of hard core bill collectors that can be potentially damaging to your public image. RSI puts the psychological influence of a collection agency at your fingertips, while allowing you to maintain the control over debtor communications. d MIN �► 6 POWERFUL COLLECTION SOLUTION! 5776 Stoneridge Mall Road, Suite 170 9 Pleasanton, CA 94588 • Phone: (510) 460-3735 Fax: (510) 460-0342 • Toll-Free: (800) 730-4RS1 • Furthermore, payments are made directly to Contra Costa County giving you immediate access to the increased cash flow. • Projected Account Placements From Contra Costa County. Table I provides an overview of projected account placements by Contra Costa County over a two year period (using an average balance of$100 and a placement of 12,000 accounts annually). TABLE I ANTICIPATED PLACEMENT ANNUALLY No. of Descr><ption Accounts $ Value Placed ....A:,:,nticipated placement of dell<nquent accounts o third party 12,000 $1,200,000 collecrion services. • Investment by Contra Costa County. RSI's fees are based on a fixed amount per account. The cost per account decreases as the size of the order increases. Fees for our services are paid to RSI in advance. Table H flays out the cost per account based on the volume of accounts ordered. TABLE R FEE SCHEDULE NUMBER O:F ACCOUNTS INVESTMENT PER .......... ............................................ ............. ................................. ACCOUNT 12;000 $ 5.00 24;000 $ 4.75 All orders will be validated for up to two years. NNW 7 POWERFUL COLLECTION SOLUTIONS 5776 Stoneridge Mall Road, Suite 170 • Pleasanton, CA 94588 9 Phone: (510) 460-3735 Fax: (510) 460-0342 • Toll-Free: (800) 730-4RS1 The actual cost of assigning 12,000 accounts at a cost of only $5 per account for example, would be $60,000 and you keep every dollar that is collected. • RSI Eliminates All Financial Risk and Guarantees Returns That Exceed Collection Costs. RSI guarantees an order of letters, properly utilized, will collect a minimum of two times the total investment of the order (Appendix H). Table III provides an overview of projected program results for a 12,000 account placement over one year. The table compares straight contingency agency placement with projected results from the RSI combined program. 8 POWERFUL COLLECTION,SOLUTIONS 5776 Stoneridge Mall Road, Suite 170 • Pleasanton, CA 94588 • Phone: (510) 460-3735 Fax: (510) 460-0342 • Toll-Free: (800) 730-4RS1 TABLE III PROJECTED PROGRAM RESULTS RECOVERY SYSTEMS CONVENTIONAL INC. AGENCY Total $$Amount Assitgned $1,200,000 $1,200,000 Percentage Resolved 20% 20% Total I ve. $240,000 $240,000 Antic:::: t. Fee(two year order} $4.75 per account 33% commission Total Net Cost $57,000 $79,200 Cost Per$ Resolved 23% 33% Net $Return $183,000 $160,800 Outstanding accounts can then be transferred to a contingency agency after RSI has completed its ICP program ................................................................................................. Balance Placed After RSI_ $960,000 ......::.....:............................................:.:......1111....................1...... ................................................................................................. .................. . ............ 11.11. ................... .................. _ ........... _ ................................ . . ....I............... ...........__ ........ ...I...... ...I......... .................................................. . _.................................. .............................................................................I......I........I.... ...... ....................... .......... .. .............. _........... .................................................................................................. ............... .. _ _ ......._ 1111 _......_.. .................................................................................................. _...._............. _........._.. ...................... .............................. ......................................................................I........................... ...................................................................11...1.........1.............. .................................................................................................. ................................................................................................. ...............................................................................I.................. ................................................................................................. .................................................................................................. Average Agency Recovery 15% (2nd;Placement} Total $$Resolved (2nd'Placement) $144,000 ..............:..............................................::...............::.......:......... .................................................................................................. ................................................................................................. .................................................................................................. ................................................................................................. .................................................................................................. 1111... .................................................................................................. ................................................................................................. .................................................................................................. .................................................................................................. Anticipated Fee 33% Cost $47,520 Net.$$Return (2nd Placement) $96,480 ............................................................................................1111.. Total Combined<CostOf. Collect>ton' $104,520 Total Gdin ined';Cost Per $$I __........... _ 1111. .................................................................................................. ................................................................................................ __. _. . 1111 _ 1111... .1...........................I....'. . Resolved 27% TOTAL COMBYNED NNET RE $279,480 vs $160,800R VOW(RFUL COWC710N fOLUM;ND 5776 Stoneridge Mall Road, Suite 170 • Pleasanton, CA 94588 • Phone: (510) 460-3735 Fax: (5 10) 460-0342 • Toll-Free: (800) 730-4RS1 Thus, by integrating the ICP series into your internal collection process, prior to assignment to a conventional agency, the total combined net return (dollars back to you after collection fees) will be increased in excess of$118,000 (or a 74% increase) over conventional collection agencies' results. If Contra Costa County were to invest this additional $118,000 income exclusively towards collection expenses in the future, at the new combined cost of 27% per dollar collected, over $437,000 would be collected through the program. Therefore, Recovery Systems, Inc. would not only produce an additional $118,000 of income in a single year but provide the resources to collect an additional $437,000 in the future. E. RSI Will Generate Clear and Concise Management Reports To Assist You In Tracking The Status Of Accounts In Our System • Confirmation Report. This report confirms the setup of every account assigned to RSI and totals the balances of all dollars assigned (Appendix I). • Completion Report. This report lists all of the accounts that have completed the ICP procedure. Statistical analysis of collection results and cost break-downs for both the current period and inception to date are presented (Appendix J). Our statistical analysis will keep you apprised of the actual cost and success of the ICP series. • Account Status Report. This report lists the status of all of the accounts that are active and provides a space for manual updates (Appendix K). This feature is provided for manual updating. _�- 10 POWERFUL COLLECTION SOLUTIONS 5776 Stoneridge Mall Road, Suite 170 • Pleasanton, CA 94588 • Phone: (510) 460-3735 Fax: (5 10) 460-0342 • Toll-Free: (800) 730-4RS1 III. CONCLUSION AND OFFER OF SERVICES Based upon RS I's business experience in creating and managing similar programs, we are certain you will be satisfied in retaining us for program design, strategy, collection services and continuing management consultation. More specifically, RSI will: • Set up a system for electronic account placement and updating • Write and send all notices • Compile statistical information on a daily basis • Issue management reports containing detailed analysis and information regarding the status of the accounts. IV. REFERENCES The following quotes are taken from letters recently written by our clients: WAUSAU INSURANCE COMPANY Adele Koch/Accounting Manager (209)730-4158 "R.S.I.'s pre-collection program returned a 56 percent collection rate and fees that averaged 2 cents on the dollar. Your system has worked so well, we have expanded the type and volume of accounts to your firm for collection." TRIAD SYSTEMS CORPORATION Yolanda Walsh/Legal Manager (510)449-0606 "A 25% return within a 30 day window on bad debt accounts is cerainly an achievement worth getting excited about. This at a cost of less than $.03 per dollar collected." CORE MARK INTERNATIONAL Bruce Whitelaw/Credit Manager (510)487-3000 "RSI's collection program has provided me with the same effectiveness that an agency possesses without the added. expense. As a result, my cost of collections on small balance accounts has significantly decreased." ><>< POWERFUL COLLECTION SOLUTIONS 5776 Stoneridge Mall Road, Suite 170 • Pleasanton, CA 94588 • Phone: (510) 460-3735 Fax: (510) 460-0342 • Toll-Free: (800) 730-4RS1 Client Name: Contra Costa County Social Security Number: 561-53-3265 ^� Agency Reference Number: 13442 5776 Stoneridge Mall Road,Suite 170 Client Reference Number: 0269 Pleasanton,CA 94588 0 Notice Dated: 04/104/10 /95 Invoice Number(s): ISSUE TO: John Smith 123 Any St. Anytown, CA 91234 AMOUNT DUE: $ 1,000 NOTE: IMPORTANT NOTICE ON REVERSE SIDE. This is an attempt to collect a debt. Any information obtained will be used for that purpose. Our client's records show your account for the amount listed above to be unpaid. This account has been assigned to our agency and we have been authorized to pursue collection. We are committed to make whatever efforts are necessary to effect collection on this claim. TO PREVENT THIS MATTER FROM ESCALATING IMMEDIATELY MAIL YOUR CHECK OR MONEY ORDER FOR THE FULL BALANCE DUE . Please return the bottom tear-off portion of this notice with your payment in full. We have provided a return envelope for your convenience. Your record will be cleared from our files when you have met your obligation for payment in full. Thank you. ..... . . - ....._....- ........ ..__---- ---.._._._......... ........ . ....... . . ......... . . . ....... ... - .._._......... IMPORTANT: RETURN THIS PORTION WITH YOUR CHECK IN THE ENVELOPE PROVIDED. Client Name: Contra Costa County Social Security Number: 561_53-3265 Agency Reference Number: 13442 Client Reference Number: 00269 1 MAKE Notice Dated: 04/10/95 LPAYABLE Invoice Number(s): Contra Costa County • Office of Revenue Collection 50 Douglas Drive, Suite 301 Martinez, CA 94553 AMOUNT DUE: $ 1,000 0 We will assume this debt is valid unless you notify our office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof. If you notify our office in writing within 30 days from receiving this notice, our office will: obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgement or verification. Our office will also provide you with the name and address of the orig- inal creditor, if different from the current creditor. YOU MUST VALIDATE YOUR DISPUTE BY PROVIDING THE FOLLOWING INFORMATION: • The amount disputed • Agency reference number • Your client's name * • Client reference number • A brief explanation of why you believe the disputed amount to be incorrect. * Indicated portions of the required information are shown on the face of this letter. • Client Name: Contra Costa County Social Security Number: 561-53-3265 Agency Reference Number: 13442 5776 Stoneridge Mall Road,Suite 170 Client Reference Number: 00269 k=c Pleasanton,CA 94588 = Notice Dated: 04/10/95 Invoice Number(s): AMOUNT DUE: Esl, 0 0 0 �'l�iTrfP[li[TYFrNii4TFT l�nTfF ���iT--G'fl� As required by law, notice has been sent to you regarding the severity of this claim. Despite our efforts, your account remains unpaid. YOUR FAILURE TO RESOLVE THIS MATTER WILL AFFECT YOUR CREDIT. IF THIS CLAIM IS NOT RESOLVED WITH OUR CLIENT YOUR ACCOUNT WILL BE REPORTED TO THE THREE MAJOR CREDIT REPORTING AGENCIES: TRW, EQUIFAX AND TRANSUNION. TO PREVENT THIS MATTER FROM ESCALATING IMMEDIATELY MAIL YOUR CHECK OR MONEY ORDER FOR THE FULL BALANCE DUE . Please return the bottom tear-off portion of this notice with your payment in full. We have provided a return envelope for convenience. Your record will be cleared from our files when you have met your obligation for payment in full. Thank you. ...... ........ ......... IMPORTANT:RETURN THIS PORTION WITH YOUR CHECK iN THE ENVELOPE PROVIDED. Client Name:Contra Costa County Social Security Number:561-53-3265 Agency Reference Number: 13442 Client Reference Number:00269 MAKE Notice Dated:04/10/95 Invoice Number(s): RkYABLE TO»€ Contra Costa County • Office of Revenue Collection 50 Douglas Drive, Suite 301 Martinez, CA 94553 AMOUNT DUE: $ 1,000 THE LAW OFFICES OF MICHAEL R. BRUCK 732 D ADDISON STREET . BERKELEY, CA 94710 PHONE 510-649-7514 FAx 5 1 0-845-1 597 John Smith DATE: 8/7/63 123 Any Street AMOUNT DUE: $1,000 Anytown, CA 91234 REFERENCE: AZ89675 REGARDING: Contra Costa County RSI REFERENCE: 13442 This office has been retained by Recovery Systems Inc. They have asked us to contact you about this debt. The above-named creditor has advised that it intends to use all legal means available to collect this debt. Our firm has not reviewed the merits of this claim and the option to litigate has not been made by the above-named creditor. However, if litigation were to be pursued, the loser of such litigation could be subject to court costs and in some cases attorney's fees. You should also be aware that if litigation were pursued it would be undertaken by a local attorney in accordance with appropriate state statutes. Please note that any information obtained from you will be used for the purpose of collecting this debt. If a written dispute of this debt is not received within thirty days from the date of this letter, we shall assume this debt is valid. Upon receipt of a dispute, verification of the debt will be provided. If the original creditor is different from the above-named creditor, the name and address of the original creditor will be provided. I urge you to satisfy this debt immediately. Please demonstrate your willingness to resolve this matter voluntarily by making full payment to the above-named creditor and remitting it along with this notice. Very Truly Yours, Send Payment To: Contra Costa County Office of Revenue Collection 50 Douglas Drive,Suite 301 Martinez,CA 94553 MICHAEL R. BRUCK Attorney at Law m YSTE POWERFUL COLLECTION SOLUTIONS • 5776 Stoneridge Mall Road Suite 170 Pleasanton, CA 94588 (510)460-3735 Fax: (510)460-0342 Toll-Free: (800)730-4RSl Our client has asked that we extend their thanks for your cooperation in resolving this matter because they value your relationship. THANK YOU from Contra Costa County Client Name: Contra Costa County Social Security Number: 561-53-3265 Agency Reference Number: 13442 5776 Stoneridge Mall Road,Suite 170 Client Reference Number: 0269 Pleasanton,CA 94588 0 Notice Dated: 04/104/10 /95 • Invoice Number(s): ISSUE TO: John Smith 123 Any St. Anytown, CA 91234 AMOUNT DUE: $ 1,000 NOTE: IMPORTANT NOTICE ON REVERSE SIDE. This is an attempt to collect a debt. Any information obtained will be used for that purpose. Attention: Your bank has returned your check for the amount shown above due to insufficient funds. Our client has asked that we reach you immediately to resolve this situation. The law imposes strict penalties against intentional use of a "bad check as payment for goods or services. IMMEDIATELY MAIL YOUR CHECK OR MONEY ORDER FOR THE FULL BALANCE DUE PLUS $15;A SERVICE CHARGE THAT WILL BE USED TO OFFSET BANK CHARGES. THIS WILL PREVENT THIS MATTER FROM ESCALATING FURTHER. Your record will be cleared from our files when you have met your obligation for payment in full. Thank you. ........ ...... ... ....... - -- ........................... IMPORTANT:RETURN THIS PORTION WITH YOUR CHECK IN THE ENVELOPE PROVIDED. Client Name: Contra Costa County Social Security Number: 561-53-3265 Agency Reference Number: 13442 Client Reference Number: 00269 4iaKE Notice Dated: 04/10/95 CHECK Invoice Number(s): PAYABLE TO: I i Contra Costa County ® Office of Revenue Collection 50 Douglas Drive, Suite 301 Martinez, CA 94553 AMOUNT DUE: $ 1,000 0 We will assume this debt is valid unless you notify our office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof. If you notify our office in writing within 30 days from receiving this notice, our office will: obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgement or verification. Our office will also provide you with the name and address of the orig- inal creditor, if different from the current creditor. YOU MUST VALIDATE YOUR DISPUTE BY PROVIDING THE FOLLOWING INFORMATION: • The amount disputed • Agency reference number • Your client's name * • Client reference number • A brief explanation of why you believe the disputed amount to be incorrect. * Indicated portions of the required information are shown on the face of this letter. O A. IN ft..,q-I Client Name: Contra Costa County "'I Social Security Number: 561-53-3265 ®i Agency Reference Number: 13442 5776 Stoneridge Mall Road,Suite 170 Client Reference Number: 00269 Pleasanton,CA 94588 = Notice Dated: 04/10/95 Invoice Number(s): i AMOUNT DUE: Fs ,'000 As required by law, notice has been sent to you regarding the severity of this claim. Despite our efforts, your account remains unpaid. YOUR FAILURE TO RESOLVE THIS MATTER WILL AFFECT YOUR CREDIT. IF THIS CLAIM IS NOT RESOLVED WITH OUR CLIENT YOUR ACCOUNT WILL BE REPORTED TO THE THREE MAJOR CREDIT REPORTING AGENCIES: TRW, EQUIFAX AND TRANSUNION. TO PREVENT THIS MATTER FROM ESCALATING IMMEDIATELY MAIL YOUR CHECK OR MONEY ORDER FOR THE FULL BALANCE DUE . MASTER CARD &VISA ARE ALSO ACCEPTABLE FORMS OF PAYMENT. Please return the bottom tear-off portion of this notice with your payment in full. We have provided a return envelope for convenience. Your record will be cleared from our files when you have met your obligation for payment in full. Thank you. ......... .. ...... _....... ......... IMPORTANT: RETURN THIS PORTION WITH YOUR CHECK IN THE ENVELOPE PROVIDED. FOR CREDIT CARD PAYMENT ONLY Client Name:Contra Costa County MC ( ) VISA O Social Security Number: 561-53-3265 Signature: Agency Reference Number: 13442 Client Reference Number:00269 EMAKE Account Number: Notice oared:04/10/95 Invoice Number(s): PAYABLE Expiration Date: ATO•;; ' �, Contra Costa County ® Office of Revenue Collection 50 Douglas Drive, Suite 301 Martinez, CA 94553 AMOUNT DUE: $ 1,000 I' NAME I DATDEYS NEW ACCO U � NT ✓ Here for Return V Check Collectior I ATTN.TO .. _ INV.# BAL.#1 ADDRESS. CHANGE BALANCE/STATUS PAID F1 NO INV.# BAL.#2 DO NOT THANK YOU I clTv ❑ IN FULL � INV* BAL.#3 `- STATE/ZIP El YES SEND THANK VOU i INV.# BAL44 CUSTOMER ❑ REDUCE BALANCE BY $ REF* "DO NOT ITEMIZE INVOICES UNLESS ABSOLUTELY NECESSARY" * E] INCREASE BALANCE BY TOTAL BALANCE $ PHONE S.S.# OPTIONAL I' ❑ STOP ALLFURTHERACTION RECOVERY SYSTEMS INC. ' NOT MORE 5776 Stoneridge Mall Rd.,Suite 170 E] SUSPEND ACTION FOR DAYS Tp CSS Pleasanton,CA 94588 DATE I LAST PMT LAST CHG IMPORTANT:EXPIRED TICKETS ARE INVALID AND WILL BE RETURNED TO YOU UNPROCESSED. CLIENT PURCHASE AGENCY REF. EXPIRATION `1 ❑ NUMBER NUMBER NUMBER DATE Here if RSI has already been notified of this placement/update. �j DAY'S NEWACCOUNT[j.1 TODATENAME Here for Return Check Collectior { ATTN.TO `) INV.# BAL41 ADDRESS CHANGE BALANCE/STATUS E] L.# NO INV.# BA2 PAID DO NOT SEND THANK YOU CITY" ❑ IN � FULL " INV.# BAL.#3 'V STATEIZIP ❑ YES r , SEND THANK YOU , INV.# - BAL.94 CUSTOMER ❑ REDUCE BALANCE BY $ "DO NOT ITEMIZE INVOICES UNLESS ABSOLUTELY NECESSARY" * ❑ INCREASE BALANCE BY TOTAL BALANCE Fs PHONE 1 * $ �. S.S.# OPTIONAL RECOVERY SYSTEMS INC. ❑ STOP ALL FURTHER ACTION NOT MORE I 5776 Stoneridge Mall Rd.,Suite 170 E] SUSPEND AcrIONFOR DAYS T AYSS DDATE Pleasanton, CA 94588 LAST CHG LAST PMT IMPORTANT:EXPIRED TICKETS ARE INVALID AND WILL BE RETURNED TO YOU UNPROCESSED. CLIENT PURCHASE AGENCY REF. EXPIRATION V NUMBER NUMBER NUMBER DATE ❑ Here if RSI has already been notified of this placement/update. I I NAME DATTEYS NEW ACCOUNT[:j✓ Here for Return Check Collectior i ATTN.TO _ INV.# BAL.#1 ADDRESS CHANGE BALANCE/STATUS j PAID ❑ DO NO SEND THANK YOU INV.# BAL.#2 I CITY ❑ IN - FULL INV.# BAL.#3 ;. 9 STATE2IP ❑ YES SEND THANK YOU CUSTOMER E] REDUCE BALANCE BY $ INV* BAL44 REF# "DO NOT ITEMIZE INVOICES UNLESS ABSOLUTELY NECESSARY" I I *PHONE E] INCREASE BALANCE BY i TOTAL BALANCE $ * * S.S.# OPTIONAL INC. ❑ STNOT MORE OP ALLFURTHERACTION RECOVERY SYSTEMS { N 5776-Stoneridge Mall Rd.,Suite 170 E] SUSPEND ACTION FOR DAYS T AYSS) f Pleasanton,CA 94588 LST CHG I°AST PMT 1 IMPORTANT:EXPIRED TICKETS ARE INVALID AND WILL BE RETURNED TO YOU UNPROCESSED. CLIENT PURCHASE AGENCY REF. ExPwanoN NUMBER NUMBER NUMBER DATE Here if RSI has already been notified of this placement/update. t I � I � I I { I ' 1 , I � l ----------.----------------------- I IfI � 1 , I � I I , --- ---------------------------- ------- - ---t - I 1 I I � I � I ! I ' f I I R" COVE ERY SYSTEMS, INCORPORATED` POWERFUL COLLECTION SOLUTIONS NO RISK GUARANTEE Recovery Systems, Inc. guarantees an order of letters, properly utilized, will collect a minimum of two times the purchase price of that order. If an order of letters fails to produce collections of that magnitude, Recovery Systems, Inc. will, at its option: 1) Refund the purchase price paid for the order; or 2) refund the difference between the amount collected and two times the purchase price paid for the order. An order is said to be properly utilized when the following criteria are met: 1.All letter sets within an order must be activated by assignments within two years of that date of that order. 2:The average balance of all accounts assigned must be no less than $50.00 and no individual account balance may be less than $25.00. 3: No individual account assigned can be older than 12 months from the date of last charge or payment, and that no assigned debtor is bankrupt. 4: Each individual account shall be assigned containing the debtors correct name, address, and balance due, and the accounts are presently due, unpaid, and without offset. 5:Client understands that if a bad address is provided, one that casues mail directed to the debtor to return, the account will be disqualified from statistical considerations. 6:Client also agrees to notify Recovery Systems, Inc. within 10 days of receipt of payment on accounts assigned and to inform Recovery Systems whether such payments constitute payment in full. 7:When an individual account has been reduced to the sum of $5.00 or less, stopped or is disputed and cannot be pursued by Recovery Systems, Inc., the account will be considered paid in full. Recovery Systems, Inc, is not responsible for and does not authorize any statement, act, or promise made by any person other than the written statement and guarantee contained herein. CONF/RMAT/ON REPORT "�.c-�"m . Sy'`1 ; c JR° c•�Rn7,D Accounts assigned this period �� P Report Date: 3/31/95 POWERFUL COLLECTION SOLUTIONS • 5776 Stoneridge Mall Road,Suite 170 Pleasanton,CA 94588 Phone: (510)460-3735 Fax:(510)460-0342 Page Number: 1 Toll-Free:(800)730-4RSI Contra Costa County Office of Revenue Collection 50 Douglas Drive, Suite 301 Martinez, CA. 94553 Client Number: STAYCI Debtor Name Client Reference Number Agency Reference Number Assigned Date Amount Bill Adams 262599 0011 3/7/9,1 129f.00 Michael Azuma 203950 �� 0236 3/7/94 Jeff Baker ��'- 403895 Af 0237 3/7/9 92.8� Carolyn Callahan206507 y 0239 3/7/94 117 Ou E Mike Cano 404373 y" ., 0240 3/7%94 71.55.' Clemente Carrascoe: 208055 0243 �, 3/794 ,",/ , 140 00 Randal Coleman 203705 0241 3/V 106;9�0' Joyce DoyleRE 3'? 205758' 0245 3/7/94 24207 Kenith Duffy y, y 402502 u 0246 % 3/7/94 113 67 J.D. Dukes �� 402519; 0247 3/"7%94 : 156;20" Daniel Durham 204167 0248 3/7/94 84.54 Egon Engers Sr. dOR 203833 0249 3/7/94 1E01 74' :- F.. John Ferguson j 407578 0250 3/7/947]"1"' 167.50 Joe Fulfer 404187 0251 3/.7/,94 7 123 ,6. Robert Gendler' 2029840252 3/7/94 133 97� Jo Glickfield �'> 404083; 02530 3/7/94 ` 104 45� Harry's Fish Sliop' 13134534, % ,'f 0128o- 3/10/95#1756:56', Fred Hudson 201367 0254 3/7/94 57.06 Dallas Jackson 403981 0255 94 4 182.95,59 Kevin Jones " �` 269853':'' hNs 0009 x_ .. 3/2/94 4S4µ00 Bozidar Kornic 206825 ��� 0257 3/7/94 191.14. Lapel's Etc. ' 561231 O27 3/10/95 James Mattingly " 402065 , �ez 0259 3/7/94 251 50. Perry's Markets 638482 ,. 0125 3/10/95 156'.",23,,5 Joseph Sawyerw591456;;; 0013` 3/':'7- 278 S4 Joe Smith ? 704568 ` ' 0010 " 5/19/94' 1,00 00' Super Stores of Amenca 123135.420124. 2/28/95 f`' 1,000 00 Valley Delivery a 456421?i 01263/10/95 569.33 Kelly Wheeler 59874 0010 3/7/94 646!24 Robert Wilson,Ke::.. 203264 0252 3/-P 1331.97` Michael Young'_ 78543 0129 3/29/95 1,000;00 t. A _ At . Total Dollars As i ned $8,890.17Tj 111 M ;; r 6 o SERIES COMPLET140M REPORT 'gio- o"UN11 'st"T %*I AMW POWERFUL COLLECTION SOLUTIONS Report Date: 03/31/95 • 5776 Stoneridge Mall Road,Suite 170 Pleasanton,CA 94588 Phone:(510)460-3735 Fax:(510)460-0342 Toll-Free:(800)730-ARSI Page Number: 1 Contra Costa County Office of Revenue Collection 50 Douglas Drive, Suite 301 Martinez, CA. 94553 Client Number: STAYCI SERVES COMPLET►ON CODES: P:Paid in Full C:Series Complete 5:Series Stopped by Client AR: Mail Returned Debtor Name Client Reference Number Qualified Balances Agency Reference No. Purchase No. Code At Start At End WE Bill Adams � - 262599 ,1129 00 129,4V� 0011 � 0' 615 4 C Michael Azuma` 203950 90':SOf 90 50 0236 615 „ C =r Carolyn Callahan 206507; 117 00 117 00 h 0239 615' = M Mike Canoe: w 404373 7155 71 55 0240 615 C Clemente Cazrasco � �g 208055 140.00 n 140 00 0243 615, C Randal Coleman " a 203705 106.90 10690 ` 0241 615'` C Joyce Doyle y 205758 242 07 2'42 Y, 0245 615. C ti �� Kenith Duffy `� 4025021 11367 113 67 0246 615 C ., � J.D. Dukes 402519 156 20 15620 0247 615-, �.� C Daniel Durhamy 204167. 84.54 84 54 0248 ,.; 615 C Egon Engers Sr 203833;;. 101,34 , 10174 0249 615 . - C John Ferguson , 407578__ 167.50 1.67 50 0250 615 ,,; C Joe Fulfer `� �`" 404187 12376" 123 76 0251 615, C ��� ` Robert Gendler 202984;. 133.97 13397 0252 �„ 615: C Jo Glickfield w 404083 104.;454 1:04 450253 615:v ; C Fred Hudson 201367 57.06 , 57 06;' 0254 615 C 'F' 403981.: 182:99 182 99 0255 61:5 C Dallas Jackson y Kevin Jones 269853 454.00 0.600009 615 , P Bozidar Kornic Z ��� "� 206825 1,91.14 ; 191 14 0257 615 C James Mattingly,-,_ . � � 402065 251.50 51 40 0259 615 M Rosalind Norman 203986,m, 74:04�q 74 04 0262 615' C Merlynn Olsen � 204366 72.,04 72 04 0263 615 . C Allen Patine 208410 121:50 121 50 0264 615 �; C Joe Reda <., 2026396 62.02 2 02 0265 615 C Joseph Sawyer - 591456 a "� 278 54 274.' 0013 615 C Searchlight Market', 12598. 1,06"4 200 54 1121 1234` C 598744" 646 24 f 0 00"' 0010 615 P Kelly Wheeler, Robert Wilson y 203264 133 97 133 97 0252 615 C . � 00 ::. mg y j> ,F 5,40843 3,304 09 M Qual► edB lance Collected $2,104.34 rry , Qualified Balance Collected Collection% Cost of Letters Expended Cost per$Collected Thank you for using This Report $2,104.34 38.91 $98.00 0.05 Inception to Date $2,104.34 38.91 $98.00 0.05 O (OD A ��vO(p�i A b N N pyo O G N OOle CD `C N ry y A " V. CD CD CD � o a` 7p N M p CD W . CD z C) fD 0 1111110000 ❑ ❑ ❑ 00000000000 ❑ ❑ ❑ ❑ 00000 `+ o �O a d � M N y • AlIT AI�TCE re ices, Inc. 5500 Redwood Road, Oakland, CA.13 :19 Tel: (510) 531-4858 m Fay: (51.0) 531-4014 April 10, 1995 Clerk of the Board of Supervisors Room 106, County Administration Building 651 Pine Street Martinez, California 94553 Re: Quotation for Collection Services for The Contra Costa County Offices of Revenue Collection To Whom It May Concern: Enclosed you will find our quotation for the collection of any and all delinquent bills, judgments, claims, and accounts assigned to it by the County in accordance with provisions of Section 26220, 26221, and 26222, of the California Government Code. In addition to our proposed contingency fee, we have also enclosed the MBE-WBE documents stating the MBE- WBE service providers that we will be utilizing. Our proposed contingency fee is twenty-seven percent (27%) of the sums collected. Our office meets all of the requirements that were provided to our firm in your CONTRA COSTA COUNTY INVITATION TO SUBMIT QUOTATION FOR COLLECTION SERVICES dated March 28, 1995. If we can provide you with any further information, please feel free to contact our office at your earliest convenience. Very truly yours, ALLIA E IT SERVICES Irwin J. Eskanos t` / IJE:tms A?` SENT BY:CAPITOL LEGAL SERVICE ; 4— 6-95 1:07PM ; 91644331314 +5105314014;#. 5 e SERVICE OF PROCESS ESKANOS & ADLER $20.00 LOCAW ATTEMPTS $30.00 EXTENDED AREA13 ATTEMPTS +.25 Per Miler Round Trip $25.00 SECRETARY OF STATE (Seard iiings/S ves) + Fees Adv. $10.00 RETURN TRIP TO P/U FILINGS $35.00 - LOCATES & REPORTS (Skip Tracing/Ast SearcheaMW/Real Praperty/Poetal Seeroh/Et�c) COURT FILINGS: $10.00 LOCAL/$30.00 OUT OF COUNTY (YddPlamffil Damdo/Eto) + .A% Per Kfft ADDITIONAL. CHARGES: $15.00 (PRIORITY ) $10.00 (DILIGENCE REPORT) SURVEILLANCE: $50.00/HR. CAPITOL LEGAL SERVICES, INC. CALL TOLL FREE (800)441-1694 or (916)443-7112 Prides tamed Require A lVlininum Monft Billing Of $250.00 SENT HY:CAPITOL LEGAL SERVICE ; 4- 6-95 1:05PM 91644331314 +5105314014;# 2 o F"3e3 P-802 RPR 26 195 09ew Contra Costa County MITE/WoR,CONT'RACT COMPLZANCS PROGRAM AffIrm tIve Aidon Ofaft 631 tae Stmt, Matinee CA 84553 310/646-4106; FAQ 5107646-4098 . ., Y q ' UTTER Olm U1' MU T10 P8 ropm 0 AN 111188/M SUBC7biSVLT1Tl VYCS P3t0`VTT� CAPITOL LEGAL SERVICES, INC. Name ultant/sardw 2. c.r. _ . 0 / UI: Y Name of Project �* 3. _ 00101 Project Wum . 4. The undermined wM pertgrm work in aon tion with the above pxvdact as (check one): sale proprl&toftbfp X Corporation . jaw venture . PWaso attaa your MBB/W88 cerUffaidion Tetter, or oerUdc ate#f aveBabl4. 5. CbAok one of the-Mow3ag: MD8 Baboonauxtoat WBS 8ubaomulte4t MSS Ser"Ce Provider41B8 Service Provider s MDS Otbw � W133 Other Des ba e.�rtb• S. The undersigtaed wM perpm thi Mowlpg descrlb44 wort tQ comection with-the above project (specify In deteM the pa -dauUr i6rk Items or pa►wts to be performed: ._F I.T. N...Q..LEQ6k J F .S ...VI.CF QF PBQCEZ 7. 'Total 814 to Ptime Consul�antlServica Pz6vider: $ SEE A.TTACNA_41NT $ � G N ANA ' LISA J. LFF IIQP E ORAL M GER APRIL°6TH 1495 m9naturs pasitton/Title pate 9. LISA J. WOLFF Alamo of Person Mmyletwa Thle Foams 10. CAPITOL LEGAL SMVICES,. INC. 916 443-7119 KBE WBE Company Name ' . Phone Number 916 443-3131 _ I AX Number a:sacra-�.aae t arrvs» SENT BY:CAPITOL LEGAL SERVICE : 4- 6-95 1:06PM 91644331314�p. +5105314014:# 3 14g° :w v g w ...•, b; v e w R} pp n 4 a v t9z •O •�" ?S Msv - w ' » ro w r 90!60 G6, 90 Nclu £00-d £2L-1 £ti£-d 83MU 8 SOWAS3 �t0�j�0ts+ SENT BY:CAPITOL LEGAL SERVICE 4- 6-95 1:06PM 91644331314 +5105314014;3# 4 f CCCCCCCCC TTTTa, CCCCCCCCC TTTT DEPARTMENT OF TRANSPORTATION CCCC TTTTTTTTTTTTTT Division of Civil Rights CCCC TTTTTTTTTTTTTT 1320 N Straat, Roos 2300 CCCCCCCCC TTTT CCCCCCCCC TTTT TTTT Sacramento, CA 93E14 TTTTTTTTT 0916) 634-4576 CALTRANs Certification Nusbere CT-020681 CAUC --- s CERTIFIED PROORAMS --- Certifyi:g Agency+ CALTRANS CORPORIATION DBE SWDE Expiration Data Oa-01-1995 Contact Poraon+ Llre9'3: RlaW (916) 443-7112 Attention, Loa J. Wo166 CAPITOL LEGAL SERVICES, INC 2741 RIVERSIDE BLVD. ` SACRAMENTO, CA 93$18- G e , Divisiono vi ig s ---Post in Public View----- '-- CERTIFICATION DUST DH RENENED ANNUALLY ,.•- Review thissnotificationnfor accuracy and notify Caltrans in writing of any necessary chansea, SW STATE WIDE -----Preferred WORK LOCATIONS----« --Preferred WORK CATEGORIES and BUSINESS Types----- 19110 LEGAL SERVICES SE J9210 COURTS SE N Oniy ecrtifiied DBEs sayy be utilised to meet Federally funded contract goals. Only certified SMBE or SWBE's say be utiliaod to �1as* Stete funded contract goals. Only c®rtified CFMBE or CFNBE's say be utilized to most Century Fresway contract goals. : . R�. •1 •yam- '' .":':ii.S:r _;' •••" •}:•s�16•,_�;r •• t• .� � 1�,•• -.r :•,! s ti '9: ` :l�j{''+, •'•:>-:::a;:-{.Y;. tic. r._ L :!_�.ti:' ,. ir+�3 t�•. %}. _'t' ', ' ji: •-�: - .;.p �'i.-�`' :;.,.. ••'.b4(•�,;".l'.^.lt,1::,;,�':,y Ir..sa. - ,.}ryy �•,..•.•::�' •� • - •r.'r :. - � Z.' 'ti y• �i. 14 �'Yi�• ',� 1' .•��-4,f. • _ •'s ••..• � .ti?• _ _'`L ! :.ww•..• :.,, •h:.� Y.;•p...'ti^:7 r .,,r'':-„• •:K-. � "74\^11'M! L .x'.«'•~�.�Y�' _ .�:. _•.s.•C •]] f'. ...- • •Z. �ri1 b •,.;..-iri• :.:•a..ti 1':h!L'. .S/.. L.. �,..:.� y .. _ I < 7.�' w'•Mr �'.:.•G:q 4 •t r•Y� d,.f f t ! ( .•�• :^..j. �,1..•F.n�. . r`. .v ,. ..•• �'�•:'`,.�I.►r. ..}r Cyt. 'tis. �' qr�. i,..�n�l�,� ��.$if 1e.{� ,I.�,.J"!•:!`:+6•':.'. k.t: f' • =r:: .,.. `•.S,';•yy-' .�.•,.. ter'..:'•!:•�. ,IN.:, .•: .•1••. �::{{.:.,.• .�: ;►:., i:� 4. :Ml' •..•,..,. . `, ;. "::., �'.1:;i;:�:�. ..;: ,+;`•^,•....�:'.� :�'•r:"•J••,�':': .,�. ••. :•9i•':r'. ..�;:' qt.;, � •d..t,?(•t: .«.,.•►,• „��.ti'••. 1 • .v7 . _n•, :i...., '.rpt. •,• "Y.�w•ti:'�,r,a{:::..r. ;1`K' a !J..y,:l�i1.T'.t .. F . �{`d:i�:: a .. .t��r:.ri.::d;:�,•�'lfA�x�i_->.4:b�•..,..•.�.I.:c9;i'�1�'s.�r..r,.n'. T `+ 04-06-1995 10:09AM /177 �'JICIJJIYCJIY V✓< 1V� W I1Ln.1..11 P.02 Jr/ Ali.1 V Co0tk8 Costa Coutity MI31�/Wii,� CONTRACT.COWLY.ANCE PILO RAM Affirmative Aellou Office 651 Pine Streeto Nt*finez, CA 94553 5101646-406; FAX 5101646--4098 LETT OEI INTF. " ?'O PERFORM AS AN MDR/WBE SUBe0NSULT.ANT/SMV110E PROVIDER 1. Naive of Prime Consultant/Service Pro z. C C - c 1 r s r Nam of Project 3_ Projftt Number 4. The undersigned will perform work in eounection with the above project as (c,¢c1c one): , sole proprietorship � corporation ' I partnership joint venture Please attach your MBEMPE oertification letter or certificate if available. .5. Check one of the-following: ME Subeonsultant WBE Suboonsultaat . MBE Set`vice Provider WSE Sera'iee Provider MBE Other WBE Other ' Desclrl6e Describe 6. The undersigned wiU perform the foliow Jzg described work in connection with the above project (specify in detail the pardeular*ork items or palls to be performed: Cur 7. Total Bid to Prime Consultant/Service Ptovider: si to Pasit� tt . Datd �. IW IK P I-ze RiwMe of Person Co�mpletf ng This Form �Ap4 t l C.¢.J o' .c -r ao�1 �y we S o. �C r .v r S o d .337.3 MEIWBX Company Name Phone Nims r 045 g9 FAX Number i a. 04-06-1995 10:09AM P.03 N q .. • M � .O N L �� Y�Y � Z p M C M ■ a n" f •• 4 w A . R� y�S �C sn chi EN T ' • n� w • I d �rr K N n I - oil 1 1 , w 0V, a o 0 pip r p lit ro t w AO c 10 MW i r �03x ! �e ca 1 !s W Y w Q A r0 r w�� 1 y w 1 ia 9i QST S6, S0 Md9 £00-d 9TZ-,L £T£-� 631UU I SONUAS3 bTObT�SOTs+ 04-06-1995 10:10AM P.04 1 ,o ¢,.�: ,gyp.. .4�' •� •f)4 1 , c a' O t w�7 gs ,�W as �.•� �•�� � bV C! 4- U ,e rn arA ~' pfi y p-.. �.r•fl Q•� �„p t0 to Ct ,. 9 EI �,� �° '. da p w U p04 0 E'� p >•� a am UrX e.3:D r•. '� At.� tis lit o+u Ok C4 R LAI -00 1 � Olt to t'� ... is 8124 p.> 44 . 4 too cn L. i +upAfAfayC Vppp��� a"ai ccd� Coo C �O r ' ���+'�^ ��'a••. �."'mow� 41 w..� �"+ cm �� gS i P.05 ,. 04-06-1995 10:11AM , *WE Clearinghouse September It 1994 YOUNG C 12A AMERICAN COLLECTION SYSTEMS 31192 LA BAYA AR STE H WE.'STLAKE,CA 91362 CHS Verification Order Number. 94HS0041 In accordance with General Order 156 and the Clearinghouse Operational Guidelines, WMBE status has been verified and approved for your firm,as follows: x Minority Business Enterprise (MBE) status xil Women's Business Enterprise (WBE) status VA Multi Status This status enables your firm to participate as a WMBE, in procurement programs for the public utilities doing business in the State of California who are signatories to the WMBE Clearinghouse. This verification status is valid for three (3) years from the date of this letter with the following conditions: (1) You must notify the Clearinghouse of any change in ownership and/or control of your Sim within 30 days of the charge. Failure to notify the Clearinghote violates section 8285 of the Public Utilities Code which is cited in the application. (2) The Clearinghouse may reconsider your WMBE status: (a) If it is determined that such status was knowingly obtained by false, misleading or incorrect information. (b) If,in a formal inion, the Wit-verification California Public Utilities Commission determines that the B verification criteria under which you were deemed to be eligible is no longer valid. (3) The Clearinghouse may request,additional information or conduct on-site visits at any time during the term of your verification. (4) If the Clearinghouse verifies you under the Comparable Agency Verification process, you must submit proof of recertification by the comparable agency prior to the comparable agency's expiration date to maintain eligibility. We wish you success in your future business development. *CA ON ANALYST SENIOR ANALYST Admu bmyd by Cordoba Corporarian at t V4LSF{iRg BOULEVARD.1 VM F1AOR,L08 A1+1GB1M.CAMPAA 90017 A 800-869.7385 4 213495.4695& FAX.213-895-46" TOTAL P.05 Far West 2700 Ygnacio Valley Road, Suite 325 Walnut Creek, California 94598 • P.O. Box 9369 Phone(510)933-8583 • FAX(510)933-2380 April 5, 1995 Clerk of the Board of Supervisors Room 106, County Administration Building Martinez, CA. 94553 Re: Collection Services To Whom It May Concern: Thank you for your invitation to submit quotations for collection services to Contra Costa County. Far West Collection Service, Inc. has been providing our collection services for the County of Contra Costa since May of 1977. Since the last contract was awarded to Far West, we have once again improved upon our collection ability by upgrading our computer system and adding a predictive dialer. This in turn enables us to place more phone calls and improve upon our recovery of funds for the County of Conta Costa. We are looking forward to continuing to provide our collection service to Conta Costa County. We feel we have the tools and the experience necessary to achieve maximum results. Sincerely, Robert H. Smith PREFACE Far West Collection Service, Inc. is a California Corporation, Incorporated March of 1974, holding license #0-3130 from the Department of Consumer Affairs; Bureau of Collection and Investigative Services and duly bonded by Transamerica Insurance Company. Our trustee account is maintained by Bank of America, Oak Grove Road Branch, Walnut Creek, CA. The corporation offices are located at 2700 Ygnacio Valley Road, Walnut Creek, Ca. 94598. Far West Collection Service, Inc. is a fully computerized collection agency offering billing services, letter services and direct assignment claims. Far West has the experience and expertise in the collection of accounts. We are currently the contractor for many large companies, who are very pleased with our services. NON-DISCRIMINATION CLAUSE Far West Collection Service, Inc. assures that it will comply with Title VI of the Civil Rights Act of 1964 and that no person shall, on the grounds of race, creed, color, sex or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under this agreement. Far West Collection Service, Inc. will take affirmative action to insure that applicants are employed, and the employees are treated without regard to their race, religion, color, sex, or national origin during their employment. PERSONNEL Far West Collection Service, Inc. employs approximately 45 people, which consists of management, system design, programmers, collectors and clerical personnel. MANAGEMENT Robert H. Smith, President and founder of Far West. Robert has had thirty four years experience in the collection industry and has fourteen years experience in software design, programming and implementing various custom in-house systems. Darleen R. Smith, Secretary/Treasurer of Far West. Darleen has had twenty years experience in the collection industry and has been with Far West since 1974. Kathy Kranz, General Manager of Far West. Kathy has had twenty years experience as Office Manager. She has been in all facets of the collection industry including clerical, collections, personnel and management. Jane M. Crane, Collection Manager of Far West. Jane has had five years experience as Collection Manager and twelve years experience with client conduct. SCOPE OF OPERATIONS We utilize an IBM AS400 which has been upgraded to give us more capability to provide better service follow up on the individual accounts. We have full communications and the capacity to communicate with other companies. We have the capability of accepting all accounts assigned to our agency, be it data entry, diskette or on tape. Once the accounts have been entered on the computer, they are then assigned to our collectors. Collectors are trained to protect the interest and the image of their clients with respect to adverse collection methods, unwanted public relations and awareness of any possible litigation against the client. We incorporate into our collection department our own skip tracing and asset searching section. This specialized section utilizes direct on line output through computer terminals with C.B.I. to update credit reports. Our computer stores up to 1,750,000 names of accounts assigned to Far West Collection, Inc. and notifies our collection staff of all accounts that are duplicate accounts. OBJECTIVES 1. To provide Contra Costa County with a collection system that can be administered by your personnel with little effort. 2. Provide our clients with a collection system that will interface with their operations and eliminates paper handling errors. 3. This system has full accountability of the status of past due accounts and the results obtained with a full audit detail. 4. Provide a collection system that will have the capability of modifications or design to your specifications. 5. Above all, install a collection system that will be effective and cost justified. In light of these common objectives, we feel our agency will be able to handle you accounts in a very efficient manner. PROPOSAL We propose to collect account for Contra Costa County while meeting and agreeing to all stipulations and specifications listed under Contra Costa County Specifications for collection Services. Since we are engaged in collecting a substancial amount of medical accounts,we are aware, not only of the unique situation existing between the County and residents thereof who are to be contacted for payment, but also of the nature and psychology involved in the professional and ethical collection of hospital and medical accounts. It is obvious that there are an appreciable number of accounts that are recalled or deemed uncollectable. Considering the above mentioned circumstances and ourn philosophy of operations, we certify that any and all accounts recalled by the County, regardless of the cause of the amount of time they have been assigned, will be returned immediately without equivocation or charge of any kind. Since we feel that present consumer legislation reflects a desire to insure ethical and professional practices in this, as in other industries, we invite interested parties from the County to examine our client list and personally contact any of our clients to verify our conformance, not only with the letter, but the spirit of such legislation. We operate without detriment to the public relations of our clients while maintaining high recovery percentages. Far West Collection Service, Inc. proposes to work each and every account assigned to our agency until the account has been paid in full or until all avenues of collections have been exhausted and the account is deemed uncollectable. Far West Collecton Service, Inc. proposes to collect the accounts assigned from Contra Costa County at the commission rate of 50% of the total monies collected. NATIONAL RECOVERY CONTROL NRC "People And Service You Can Count On!" MARCH 7 , 1995 CONTRA COSTA COUNTY MBE/WBE CONTRACT COMPLIANCE PROGRAM AFFIRMATIVE ACTION OFFICE 651 PINE ST. MARTINEZ, CA 94553 TO WHOM IT MAY CONCERN: ALTHOUGH WE ARE NOT CERTIFIED AS A WBE CORPORATION, NATIONAL RECOVERY CONTROL IS A WBE COMPANY BASED ON THE SPLIT OF STOCK: LORI HUMPHREY-- 51% TODD HUMPHREY-- 49% PLEASE INCLUDE THIS ATTACHMENT WITH OUR LETTER OF INTENT TO PERFORM AS AN WBE SUBCONSULTANT/ SERVICE PROVIDER FOR COLLECTIONS FOR CONTRA COSTA COUNTY. SINCERELY, l N AGRANT XEC IVE VICE PRESIDENT , 1�} 1, at/ a Ag"We g � f 46177 WARM SPRINGS BLVD., FREMONT, CALIFORNIA 94539 510-651-9500/FAX: 510-623-6958 NATIONAL RECOVERY CONTROL NRC "People And Service You Can Count On!" ATTACHMENT FOR QUESTION 7- BID NATIONAL RECOVERY CONTROL BIDS ON THE CONTIGENCY COMMISSION RATE OF: 33% FOR REGULAR COLLECTION ACCOUNTS 33% FOR LEGAL COLLECTION ACCOUNTS 46177 WARM SPRINGS BLVD., FREMONT, CALIFORNIA 94539 510-651-9500/FAX: 510-623-6958 r � Contra Costa County MBE/W13L CONTRACT COMPLIANCE PROGRAM Affirmative Action Office 651 Pine Street, Martinez, CA 94553 510/646-410G; FAX 510/G4G-4098 LETTER OF INTENT TO PERFORM AS AN MBE/WBE SUB CONSULTANT/SERVICE PROVIDER 1- NATTnNAT R _ Name of Prime Consultant/ ervicel rovider 2. COUNTY COLT,EcTTnN,SFRAUCE Name of Project 3. Project Number 4. '1'l.ie undersigned will perform work in connection with the above project as (check one): sole proprietorship y - corporation partnership joint venture Pleise attach your MBE/WBE certification letter or certificate if available. 5. Check one of the following: MBE Subconsulta.nt WBE Subconsultant MBE Service Provider WBE Service Provider ^� MBE Other _x WBE Other __SEE-I EXTRU ATTACHED Describe Descri e G. The undersigned will perform the following described work in connection with.the above project (specify in detail the particular work items or parts to be performed: IN COMPLIANCE WITH THE FAIR DEBT PRACTICES ACT NATIONAL RECOVERY CONTROL WILL SEND LETTERS, TELEPHONE, SKIP-TR AC-17, A ND FQ1 T QW-UP ACGOTJNTS a.. AS TO COLLECT MONIES FOR CONTRA COSTA COUNTY AS NRC HAS FOR 6 YEARS. 7. 'Total Bid to Prime Consultant/Service Provider: $ SEE ATTAcHETI 8. r4l 4-7-95 S ture Po 'don/Title Date 9. _ JOHN LAGRANT, EXEC''ITTTVF VICE 12gglsiBENT Name of Person Completing This Form 10. NATIONAL RECLLU-E��9�T��9T � 510 ) 651-950a MBE'/WBE Company Name Phone Number 510) A23-695 FAX Number A:\C.CP1-3.0rf (4/2/93) CALIFORNIA SERVICE BUREAU RECEIVE® APR 5 1995 April 4, 1995 CLERK BOARD OF SUPERVISORS CONTRA COSTA CO. OFFICE OF THE CLERK OF THE BOARD OF SUPERVISORS ROOM 106, County Administration Building 651 Pine Street Martinez, CA 94553 RE: Invitation to Submit Quotations for Collection Services for The Contra Costa County Office of Revenue Collection Gentleperson, In accordance with your recent invitation, we submit the enclosed quotation for collection services. We trust it is both satisfactory and successful. Very truly yours, r Rich Moreno {j Vice President4 1 J � (v F Oil 68 Mitchell Blvd. • San Rafael, CA 94903 •(415)479-5092, FAX (415)479-3508 ' California Service Bureau Quotation for Collection Services prepared for Contra Costa County Office of Revenue Collection April 7, 1995 Table of Contents I. Customer Service 1 A. Client Services Staff 1 B. Customized Reporting 1 C. License and Bond Requirements 2 II. Performance 3 A. Collection Personnel 3 B. System 4 III. Fee Structure 5 IV. Description of Services 6 A. Collection Policy Overview 6 B. Information Required to Begin 6 C. Collection Procedures 6-7 V. MBE/WBE Program Requests 7 VI. References 8 Addendum 1 9 L Customer Service The changing environment in the collections industry has led to an increasing amount of importance being placed on customer service. For over 23 years, the principals at California Service Bureau have firmly believed that the needs of the client should be the driving force behind internal policy and procedures. A. Client Services Staff CSB's San Rafael office currently maintains a full time client support staff. We believe in personalized service for all client needs, on and off site. The support staff's primary function is to facilitate communication between clients and the collec- tion personnel. If you, as a client, feel that your accounts need a particular kind of approach, or you have special information on particular cases, these will be noted upon input into our computer so that the collector can take appropriate action. Depending on volume, ample support staff will be assigned to exclusively handle Contra Costa accounts. This "specialization" will allow our staff to become ex- tremely familiar with your operation so that we can continually address your chang- ing needs. If your account volume so dictates, we will not hesitate to add employees to our support staff, and to dedicate them to your needs. B. Customized Reporting Timely reporting is the only way for you to know the status of accounts you have assigned to us. CSB's custom software allows us to report anytime, in any format, listing any data, in any sequence required. Unless otherwise instructed, CSB will provide you a monthly Debtor Activity Report that will supply the following infor- mation. 1. Name 2. Account number 3. Amount assigned 4. Date of last payment 5. Current balance 6. Status of account 7. Total dollars assigned 8. Total dollars collected 9. Percentage of recovery Special ad hoc reports are also available within 24 hours of request. CSB wants you to know the status of your accounts because we have a higher rate of recovery. -1- C. License and Bond Requirements CSB presently has a $1,000.000 Insurance policy (see Addendum 1) and will obtain all necessary bonds to comply with your requirements. CSB is currently licensed by the City of San Rafael and was previously licensed and bonded to the State of California. -2- II. Performance The ultimate measure of a collection agency's performance is the agency's recovery rate. CSB's major clients enjoy an average recovery rate 56% above the national average. Califarnia��' Service X Bureau National 3 to Average 1$ 6% With clients that utilize more than one agency, California Service Bureau has, each time, out- performed the competition in an actual collection effort. We are confident we will obtain the same results for you. A. Collection Personnel The strength and longevity of California Service Bureau are directly attributable to its per- sonnel. CSB strives to attract and retain quality collection specialists who share our commit- ment to meeting client needs. CSB often assigns collectors to exclusively handle certain clients accounts. This allows us to track client accounts as closely as possible and to assure that all "due diligence" is applied to each account. Our San Rafael office presently maintains a staff of full time collectors with an average of 14 years experience. The president of CSB has 10 years experience as a credit grantor and operates the business to satisfy your goals. Our legal department includes a Qualified Manager with twenty years experience and a collector with over 25 years experience. CSB also retains bilingual personnel to assist the Hispanic community. -3- B. Systems Our commitment to excellence extends beyond the personnel we hire to the tools provided for their use. Our state of the art collection software is "result-oriented" and designed to direct collection efforts in a logical and persistent manner to ensure that all steps are taken to collect your accounts. Accounts are matched against our existing data base of debtors. Because we have one of the most extensive data bases in Northern California, this procedure has proven invaluable for the location of return mail accounts. CSB will utilize the ACCESS! predictive dialing system to allocate your accounts to our collection professionals. Predictive dialing technology dials and re-dials "busy signals" and "no answers" until contact is made, thus ensuring the highest possible contact rate. CSB recently installed the "Merlin" Computer Disc System that enables our collectors to directly access all telephone numbers in the eleven western states (including Hawaii and Alaska) by name, address and phone number. We also have access to the State of California, Consumer Affairs Registrations, Board of Equalization records, Department of Corporation Registrations and Partnership records, Real Property Owners by name and address in Cali- fornia and all recordations with the State Uniform Commercial Code. We now have the ability to locate debtors and their assets second to none. -4- III. Fee Structure We are pleased to offer the best full service collection service to you at the following tiered contingency schedule. Accounts assigned within 6 months of delinquency 15% Accounts assigned between 6 month and 12 months of delinquency 20% Accounts assigned over 12 months of delinquency 25% Skip Accounts Assigned (No valid Address) +8% -5- IV. Description of Services A. Collection Policy Overview B. Information Required To Begin Collection To initiate collection, CSB can accept your hard-copy, magnetic tape, or other media which provides the following information: 1. Name of debtor 2. Most recent address and telephone number. 3. Your account number, if applicable 4. Employment information, if available 5. Date of last payment or date of last charge 6. Date of birth and social security number if available 7. Balance Due C. Collection Procedures 1. All written and telephone demands are made in compliance with Federal and State legislation regulated by the following: a. PL95-109 Federal Fair Debt Collection Practices Act b. PL508 Fair Credit Reporting Act c. California Robbins-Rosenthal Fair Debt Collections Practices Act 2. An acknowledgment of all assigned accounts received will be sent immediately for verifica- tion. Collection effort will begin within 24 hours. -6- 3. Return mail accounts are assigned to our skip tracing unit and the following tools are used to assist in obtaining new address and telephone information: a. The newest, up to date CD-ROM records for the 11 western states. b. CSB is on-line for most recent address and any new creditor information with Equifax, TRW and Trans Union. c. All California public records available on CD-ROM. d. CSB is on-line and can obtain property records and names of"near-bys" for all California. 4. CSB's internal collection policy is to get payment in full as soon as possible. The debtor must make every effort to obtain financing through bank loans, personal loans, or credit card advances, to liquidate the balance of their debt in one payment. If the debtor is unable to pay in full or arrange for a loan, CSB will accept payment arrangements. 5. At your discretion, accounts placed for collection with CSB are routinely submitted to the Consumer Reporting Agencies where they are maintained in the personal credit file for seven years. 6. Again, at your discretion debtors located out of the area can be forwarded to associate agencies through the affiliation with the American Collectors Association (ACA). ACA has over 3,500 member agencies throughout the United States, Canada and Europe, thus provid- ing nationwide and international coverage. 7. Legal action is the final result when it is determined that the debtor has the ability to pay but refuses. Legal action is not undertaken without prior authorization by the client. We shall comply with the utilization of the County Counsel for the legal process. 8. All monies collected by CSB will be transmitted on the first working day of the following month in the manner specified by the county. VI. MBE/WBE Program Requirements CSB will make every effort to support the County's program to Minority Business Enter- prises and Women Business enterprises, by providing opportunities for participation. -7- References Westamerica Bank Novato, CA Dan Cohn (415) 382-6214 Stanford University Clinic Palo Alto, CA Larue Perkins (415) 498-5815 Marin General Hospital San Rafael, CA 94912 Angela Cooke (415) 925-7515 St. Mary's Hospital San Francisco, CA Pat Langlands (415) 750-5564 Farmers Insurance Co. Merced, CA Fred Mendoza (209) 384-5400 -8- ;. :.xxsa:xx«•�r.;s«xay,+..:.:.::<;ta:tu.::t:•:::as:•:s::sR>xzv.wr.:•xx•�w•:a:•:x•>rxtirr.'s MrpD 36/1 .:ax..� •.:•x•>r>: �•::N+:•:•a.:•:�u:••:•::r.>•;•:<;>+:•. ••:;.r`••aC:: i ISSUE OATS 6 1 995 xx PRODUCER ' THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND : CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE JARCIK INSURANCE AGENCY; INC. DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE DBA. NORTH COAST INS. BROKERS ; POLICIES BELOW. . ..POLICIES ......................................................................................................................................... P.O. BOX 1026 COMPANIES AFFORDING COVERAGE SANTAROSA CA 95402 ...................................:............................:......................1�.......... ................................................................... COMPANY A AMERICAN STATES INSURANCE CO. i LEITER :....................................................................................................................................................................... COMPANY B .......................................................................................... INSURED LEITER i....................................................................................................................................................................... CALIF SERVICE BUREAU OF MARIN, COMPANY C LETTER INC. & CALIF SERVICE BUREAU OF ........... :........................................................................................................................................................... SACRAMENTO, 68 MITCHELL BLVD. : COMPANY p SAN. RAFAEL; CA 94903 ...`ETTER......................................................................................................................................................... COMPANY E LETTER E =: ?::s:�=s:>:><=>>;:>;>:>i:::<:isi�%�t���=`%t: ??:•`''%»??;i: ><'><'<:?<<»><:><::::»><:?<:>:`»:><:»:>:z�>:;:;>;`<:«z::�?::':`i:::>'•«�:> :%:%:>r:::s::'s::>:'<::z'2>«�� ::3f`�:::iii :z:%:>>:>:>:c>:#�`a?:Sts<:?>::>�::»::::»::r<:>::>:: >FY THAT:THPO :......;:.:OFI.;:.S;... E ......:;:.;:13EL W HAVE BEEN TO THE INSURED NAMED;AB:V.;:FRTHE POLICY PER';:;.::.:....................... THIS IS TO CERTIFY THE:POLICIES O INSURANCE LISTED B 0 E_, SUE O E O E O C PERIOD . INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONSOF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. :................................................................................................................................... ............................. ......................a....... ................................................................................... COTYPE OF INSURANCE POLICY NUMBER :POLICY EFFECTIVE :POLICY EXPIRATION TYPE i DATE (MM/DD/YY) E DATE(MM/DD/YY) . ...:.....................................................................................................................................::................................:.............................. ............................................ .... A GENERAL LuiBatn ' GENERAL AGGREGATE `s 1 0 0 0, 0 0 0 ;...... X COMMERCIAL GENERAL LIABILm 01-CD-567881_2 PRODUCTS-COMP/OP AGO. s 1 0 0 0 0 0 0 .........................'.......... CLAIMS MADE ; X OCCUR. / / PERSONAL a ADV IN URY i S 1 0 0 0 000 01 /01 /95 01 01 96':...........................:.................. ..... ..r.............•........... OWNER'S&CONTRACTORS PROT. EACH OCCURRENCE S 1 , 000, 000 An ).....s.....................................0 0 0 0 ......................................... flAE DAMAGE ......................................_............... ;.........................r............ MED:EXPENSE(Anyone person):s 5, 000 ....... ...... ........................................................................................ ;. AUTOMOBILE LIABILITY i COMBINED SINGLE ANY AUTO LIMIT :! .......... ALL OWNED AUTOS i BODIILL�Yr INJURY .SCHEDULED AUTOS (Per son :! ;........: ................................................ .................................. HIRED AUTOS BODILY INJURY NON-OWNED AUTOS ;(Per acckenq _ GARAGE LIABILITY : PROPERTY DAMAGE PR a .........................................................:.....................................................................................................,................................:.................................................. ................................. EXCESS LIABILITY /EACH OCCURRENCE is :..:........................................... .................................... UMBRELLA FORM :AGGREGATE :s OTHER THAN UMBRELLA FORM :........:.......................................................................................................................................................................... STATUTORY LIMITS i WORKER'S COMPENSATION EACH ACCIDENT :S p :................................................:........................................ i DISEASE-POLICY LIMIT :S EMPLOYERS'LIABILITY .......................... ............................................ DISEASE ... -EACH EMPLOYEE :S .......................................:..........................:;..................................................................;.................................:................................ ...............................................:........................................ OTHER ......:..................................................................::..................................................................:.................................:..................................................................................................................... ..... DESCRIPTION OF OPERATTONSILOCATIONSNEHK LES/SPECIAL ITEMS CANCELLATION: ONLY 10—DAY NOTICE WILL BE GIVEN FOR NON—PAYMENT. :: n cA ::...:............::................:.:........... :.:........ :::;:.:...:....:::..::::..:......:..::....::.:.:......::::......:..... SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE SIERRA PACIFIC PROPERTIES LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR ATTN: JILL JEPSON LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. 4300 RAILROAD AVENUE ':`':`:AUTHORrgO REPRESENTATIVE PITTSBURG CA 94565 :A�pRR>.�"rS.. :lAff.:::;:;:.>:.,,,;:.:;:.:.>::;::>::.>:;;>.:>::..,........:.................................................................:::..:.::.:.........:.................... ............:.....:.................�A. il...R.. Fl�i.>'lA1t .F1....99G..... —9— v w � z o c •1 ° cc3 ' �► ° � 4� rot c a 'cs ON 00 w y a v C/1 y o .5 —. M td (0=0) 00 W z p .et Cj X00 , a' 40 �/ ami w o c� o A as r• p U• o r OtO.t O �rO ani' .G a �p wo O rj4zoO aOcyds roOV•, a 0 N P U .+C •O 7��"„.', 'ot^L0”+ mne�1rd 'AL3 �► O Yy: y O ,p .G � cc >% >% y .r2 a. y E O bA ba W V " td O Cb, O3 ^O % % /d� � es .,. V O ^ O rn 'O •. y "f. w �T t) w c«. w O O .b >,.0 6> "� >' a °' � Viso aoi3 e° Uu `7 0 A .6 =0 'o � m � U � ao o � �? � � y V o) wO �"�. 0A cot `C> Op h ty �. L r. "� (A .+ !0 O ` Cs �s �p C9 to -4 Q. p �.&' o s p coo n c ',' ° rA p :° `° ., � cr� ao r; rr x ��,,. � p B' w + c9 'd ie d p, e° a o o = ll ' yo o er • oma. "' p ca Is tee r r M .7 .► (D ~ V. S ice. 4m f O o .,, c ""n,LS O r O epu O � v cea ' . Yc � Er � � a. 4 � `' r «Oe " `° vC, �t � ,< O� a' 1i C F. O 'C o d ca p � " \�M�•iL1 h 9 R 9 ° 00 OOH da ry ,.r n ° cr tr et to 91 ^' G' , e'' G L n fit• d �. ---�---_-- ' As , � �. Q C, .d H am' COpQ � "' � °�'� tx7 p C � � y � � �� a� � fir,' °mss� ',.'. � �• � '� !�S G N to b p S t n tp' b gyp; � O O n O Rpt R , �' F r"' ,O.y ►�e+ ~O «°".. S CF '<p �„ Q L0�1 T". �j '�7 CO �i �+,� W -� a. � �+a 'd 8 Rr co w n 4 - ca n,ra r' o Ki ro L:6 rot "" cr rA ���y{! w► � � � �'Ly "tom' �'.►' " Qp�9i <} W tW�7 en Sol {� Cs L.� CA tcs pp' ►+ o e'o ,,� e° .a ao p O �, v, a+ a "•, !� cu is. 'R. �p e�`ro ""' c�ya "O p"� E' er, o - yEGTORS q5 A L rERN11T10M'a. A monthly bulletin distributed by: CALIFORNIA SERVICE BUREAU 68 Mitchell Blvd. San Rafael, CA 94903 Published by American Collectors Association, Inc. Vol. 24, No. 3 March 1995 FORA BILLS INTRODUCED IN CONGRESS credit card are not dischargeable. Two bills amending the Fair Credit Reporting The changes are the first major reforms made Act have been introduced in Congress. in federal bankruptcy laws in 16 years. Rep. Henry Gonzalez (D-Texas) has introduced H.R. 561, which would revise the allowed uses of OPM RELEASES GARNISHMENT LIST consumer reports, duties of users and their affili- The Office of Personnel Management recently ates, responsibilities of those who provide con- released an updated list of the agents designated sumer reports, and pre-emption of state laws. This to receive process for child support and alimony measure would also regulate credit repair organiza- garnishments of federal employees. The list was tions. published in the Jan. 25 Federal Register(60 Fed. H.R. 68, authored by Rep. Doug Bereuter (R- Reg. 5044). Neb.), would amend the FCRA to allow consumer In most cases, these agents will also receive reporting agencies to disclose credit information to process for commercial garnishments of federal the Federal Bureau of Investigation for counterintelli- employees. In cases where the agent differs (such gence purposes. as for the Department of Defense and the Depart- Both bills have been referred to the House ment of the Interior), the agents designated to Committee on Banking and Financial Services. receive commercial garnishments will be listed in OPM's final rules for civilian employee garnishment. BANKRUPTCY REFORM ACT UPDATES RULES FOR DIVORCE, CHILD SUPPORT ACA RELEASES POSITION PAPER Debts incurred during a divorce or separation, ON LEGAL SERVICES CORPORATION or in connection with a separation agreement or ACA recently released its position paper on divorce decree, are no longer dischargeable in reform of the Legal Services Corporation (LSC), an bankruptcy under the recently enacted Bankruptcy organization which has harassed collectors through Reform Act of 1994. The new law also ranks child the filing of frivolous and hypertechnical Fair Debt support and alimony as "priority debts" that must Collection Practices Act lawsuits. be paid first in bankruptcy. LSC was formed in 1974 to provide legal Under the former law, some support obliga- assistance to the poor. In 1992, Congress funneled tions and debts incurred before a divorce could be $415 million to the nonprofit program, while state, discharged. Child support and alimony were treated regional and private funding totaled $1 billion. as general unsecured debt and were often last to Although the LSC goal is to provide legal be paid following bankruptcy. Now, debts incurred services to the poor, the program has been sur- while married that a spouse agrees to pay as part rounded by controversy since its beginning. LSC of the divorce or property settlements are not funds have been used for activities including reap- dischargeable. Also under the new law, taxes paid with a CONTINUED ON PAGE 4 CRED-ALERT is a monthly bulletin about legislative and In asking for an award of attorney's fees, the other matters affecting creditor's remedies agency asserted that the debtor's attorney made Editorial Offices: American Collectors Association, Inc. serious allegations without factual or legal grounds.Under Rule 11 of the Tennessee Rules of Civil 4040 West 70th St. Minneapolis, Minnesota 55435 Procedure, a court can impose sanctions against a Minn Subscriptions and Distributions by ACA members only. plaintiff who has brought a suit in bad faith. The Court ruled that the debtor's attorneys did not engage "in an adequate investigation as to the role of(the agency)," and as a result, the Court awarded STATE ACTIONS $1,500 in attorney's fees to the credit bureau. INDIANA: The Indiana Collectors Association's open borders bill, HB 1106, was heard in the House UTAH: A federal judge has dismissed a Utah man's Financial Institutions Committee and awaits further claim that he is due! the same protection from study by the committee. However, ICA officers may harassment by child support collectors as given for have reached a fair compromise with the committee consumer debts. In the case of Brown v. Child on the language of the bill, which now states: "A Support, et. al., a U. S. District Judge ruled that non-resident collection agency, which only has child support does not fall under the Fair Debt "incidental contact" with a debtor, shall not be Collection Practices Act. The man-attempted to-sue required to be licensed or required to have a a private child support collection company in Salt resident office. For purposes of this chapter, the Lake City when that company distributed materials term "incidental contact" shall mean contact by listing the man as "wanted." New York and Virginia interstate communications, including telephone, courts have issued similar rulings; however, ACA mail service or facsimile transmission." recommends that agencies work within the bound- aries of the FDCPA for all collection activity. NEW MEXICO: William J. Verant has been ap- pointed to the office of Director of the Financial WISCONSIN: Collectors will be fighting an uphill Institutions Division, the New Mexico agency that battle over sales tax this year. The Wisconsin oversees the regulation of collection agencies. Collectors Association, Inc. has been notified that a Verant has background in commercial banking and $1 billion tax shift cutting state school aid by one- crisis management of failed thrift institutions and third may prompt legislators to remove a sales tax holds a bachelor's degree in Business Administra- on services exemption the industry currently enjoys. tion from American University in Washington, D.C. WYOMING: Collectors are facing a legislative OREGON: Oregon Collectors Association, Inc. has proposal (SB 140, Maxfield) that would assess proposed legislation at the urging of ACA's Inter- costs of an audit to a collection agency if the state Collections Committee to open the state's agency was found to have violated any provision of borders to collectors who do not solicit or work for the state's collection law. Former ACA President clients within the state. A draft copy of the yet-to-be Linda Russell of Rawlins fears that the legislation introduced bill proposes that the Director of the will not set limits on the_size of the.fine or examine_ Department of Consumer and Business Services whether the violation is merely technical. adopt new rules relating to out-of-state collection agencies. The measure would also create penalties Another bill, HB 162 (Joint Revenue Interim Commit- for violations of those rules. Out-of-state agencies tee), a proposal to expand the state's sales tax, is are currently required to be registered and have a moving through the House relatively untouched. $10,000 bond when soliciting or collecting ac- New language to the bill states: "For the purpose counts within the state. of exempting sales of services provided primarily to businesses, exemptions shall be as specified by TENNESSEE: A state court awarded attorney's fees the legislature." The committee decided in Decem- to a credit bureau for its defense of alleged Fair ber that every business service or product that is Debt Collections Practices Act and State Consumer currently exempt from state sales tax will continue Protection Act violations. The agency sent one to be until the state! can identify the different types notice to collect a check, and even though it took of exemptions and their importance. The bill also no further action after being notified that the check attempts to define the different exemptions allowed had been stolen, a complaint alleged harassment, in the state, and putting those exemptions into misrepresentation and reckless conduct for report- eight separate categories. ing the check on the consumer's credit file. 2/CredAlert/March 1995 VENUE ADDRESSED IN INTERSTATE ESTATE CASE amount of sanctions may also be increased under A Colorado creditor will be allowed to sue a the bill. Utah customer in Colorado, a Utah appeals court Other provisions of H.R. 10 include product has decided. liability reform, rules for introducing scientific In the case of Rocky Mountain Claim Staking v. evidence in court proceedings, and requirements Frandsen (251 Utah Adv. Rep. 42, Nov. 4, 1994), a that congressional laws state whether they: are telephone company may sue a Utah man in their retroactive, pre-empt state law, authorize private home state for payment of a service order, since suits, or apply to the U.S. government. the man authorized the service by the Colorado company with a (dishonored) personal check. The W9SA ANNOUNCES NEW CRE D87 CARD company had first obtained a default judgment in WITH A SOCIAL CONSCIENCE Colorado, which was thrown out by a Utah trial Touting the new card as socially and environ- court. mentally conscious, Visa announced recently that it had begun marketing a new credit card that is HOMESTEAD LAW DOES NOT BAER LIEN "good for the earth." USED FOR CHILD SUPPORT AND ALIMON ! The GlobalFocus Visa card was introduced In reversing a summary judgment, the Okla- with a special introductory rate of 9.9 percent on homa Supreme Court has allowed a lien to be cash advances. The company hopes to snare placed on a man's home for alimony and child socially-aware spenders by promising that applica- support collection despite a state statute which tions will be "reviewed by a human beings, not exempts a homestead from the claims of a creditor. some faceless committee or merciless microchip," Although courts have allowed liens as part of a unlike "elitist cards." divorce decree, they have disagreed as to whether Approval of the card earns $1 for the one could be used to collect arrearages. Oklahoma GlobalFocus Fund. Subsequent use of the card law does not contain an exemption for alimony and causes donations of 10 cents to the fund, and the child support; however, the court took such a step company donates $2 for each year the no-annual- to be consistent with the intent of the homestead fee card is retained. exemption, i.e.: to provide protection to a family, Other perks of the card include: higher credit rather than to be used to avoid financial obligations. limits (up to $50,000) extended purchase cover- age, and guaranteed low airfares. CONGRESS RECE OYES TORT REFORM BOLL Money from the fund will be distributed among AS PART OF REPUBLOCAN "CONTRACT" 32 groups designated by the company, with House Judiciary Committee Chairman Henry amounts chosen as elected by cardholders. The Hyde (R-III.) has introduced H.R. 10, the Common charities include: Children's Defense Fund, Habitat Sense Legal Reforms Act. The bill already has 131 for Humanity, American Diabetes Association, co-sponsors. Amnesty International, American Society for the The tort reform bill is part of the Republican Prevention of Cruelty to Animals (ASPCA), and "Contract With America." One provision that may Guiding Eyes for the Blind. help debt collectors fend off frivolous or hypertechnicaf Fair Debt Collection Practices Act SUPREME COURT TO HEAR CASE lawsuits is a "loser pays" rule, whereby the loser ON ATTORNEY E XEMPTOGIN FROM FDCPA pays attorney's fees to the winner in federal diver- The U.S. Supreme Court will hear arguments in sity cases. the FDCPA case Heintz v. Jenkins. At issue is Another helpful provision would encourage (but whether attorneys who pursue litigation against not require) states to mandate that plaintiffs' debtors, without performing any additional collection attorneys who receive contingency fees must tell procedures, are subject to the requirements of the their clients how many hours they spend working on Fair Debt Collection Practices Act. the case. Plaintiffs would also be required to give Several organizations have filed "friend of the 30 days notice, including specific claims and court" briefs explaining their positions: the Ameri- amount of damages sought, before filing suit in can Bar Association, the National Association of federal court. Retail Consumer Attorneys, the Commercial Law In addition, sanctions under Rule 11 would be League of America, and the National Consumer Law required whenever a violation occurs. Rule 11 is Center. Appellate courts are split on the issue. intended to prevent frivolous lawsuits by prohibiting Although the case was scheduled to be heard plaintiffs' attorneys from filing suit without making Feb. 21, the outcome had not yet been determined reasonable. inquiry into the facts of the case. The when this issue of Cred-Alert was published. CredAlert/March 1995/3 GARNISHMENT MANUAL. NOW AVAILABLE nents of community action groups. LSC also funds ACA's Public Affairs Department recently about 50 percent of the budget of the National compiled "ACA's Guide to Garnishment Laws and Consumer Law Center in Boston. The Center pub- Regulations." The guide addresses rules and tips lishes manuals outlining how lawyers can file class for garnishment of government and private sector action lawsuits against collection agencies. workers. It includes state and federal rules, includ- ACA believes effective reform is necessary to ing the new guidelines for garnishment of military bring the LSC back to its original goal: providing debtor's pay. legal assistance to the poor. Effective reforms To obtain the guide, please call ACA's Sales should include requiring any court to award costs and Services Department at (612) 926-6547. and attorney's fees to a defendant if LSC com- mences a lawsuit for the purpose of harassment, if LEGAL SERVICES CONTINUED FROM PAGE 1 the lawsuit is frivolous or without foundation, or if suit was filed in an attempt to extend, modify or portionment, union activity and lobbying. In the reverse existing law or to establish new law. 1980s, LSC used taxpayer money to produce ACA also requests that LSC programs adopt -manuals which urged legal service attorneys to policies to attempt to negotiate settlements and "align themselves with the Democratic coalition" use alternative dispute resolution mechanisms and use lawsuits as a means of intimidating oppo- before filing suit. Printed in U.S.A. 4/CredAlert/March 1995 ;RE ®MMW'0111111W W Requests for reprints for additional information on material contained herein may be requested through the ACA member who sponsored your receipt of this publication. Please advise your sponsor of any address corrections. CALIFORNIA SERVICE BUREAU 68 Mitchell Blvd. San Rafael, CA 94903 847 Rincon Avenue }��( �( Livermore, CA 94550 A�YJI Jo Jo adntyre Co. (510) 447-3232 ♦ (510) 447-0113 FAX Collection Agencies April 6, 1995 Contra Costa County Administrator 651 Pine St, 11th Floor Martinez, Ca 94553-1229 Mr. Phil Batchelor, We are pleased to submit our quotation and some information on our company for your consideration. Based on not having any idea on the volume of accounts and dollars assigned our quote is as follows- assigned balances over $100. 28% assigned balances under 100. 33% If over eighty percent of accounts are over $100. we will handle all at 28%. If you have any questions please feel free to call. Thank you, Shelly zpatrick VP & General Manager Livermore Office w1fo Riverside, California ♦ San Diego, California ♦ Las Vegas, Nevada ♦ Spokane, Washington �. . Madntyre Co. Collection Agencies The selection of a Collection Agency is a VERY IMPORTANT and VERY EXPENSIVE decision to often made without taking the time to evaluate the DIFFERENCES in Collection Agencies. These DIFFERENCES can make a MAJOR DIFFERENCE IN YOUR BOTTOM LINE. Several of our clients assigned accounts to the same agency for ten to sixteen years always thinking that they were happy with the results. In one case a new client released their agency of 16 years within 120 days after seeing the J.J. Mac Intyre Difference. They hired a second agency to compete with us,the second agency lasted a year at which time the client did a review and found that once again the J.J.Mac Intyre Difference was so great that they could not afford two agencies. They were simply loosing to much money because of all of the accounts that the other agencies were unable to collect. Another client had two agencies which had been there for many years,the client became upset at one of them due to many customer complaints. We were hired as a replacement because of our strong references indicating that we recovered the money with out the complaints. Six months later the other agency was released as our checks back to the client were so much larger than the competitors. They also brought in another agency to compete with us but in about nine monthsthey were history and all accounts were assigned to J.J.Mac Intyre Co. The most important question to most clients is WHAT IS THE COST. Prospective clients are quoted a commission percentage that the agency charges of the moneys that are recovered. However; THE REAL COST is all of the moneys that are not collected, so a small collection commission could be a VERY EXPENSIVE service. Some agencies offer a low rate to get the business knowing that they will make a profit at the clients expense, as the agency does not get hurt if recovries are low, they still get their commission without the heavy collection exepnses. To make the proper decision you should look at a number of things and then talk to the Agencies References, among the important questions are: HOW LONG HAVE YOU BEEN IN BUSINESS? J.J.MAC INTYRE in business since 1951. WHAT COLLECTION TOOLS DO YOU HAVE? J.J.MAC INTYRE has State of the Art Collection Software on a mainframe accessed by over 200 terminals with collectors in all areas of California, Spokane Washington,Las Vegas Nevada and Houston, Texas. We also have and use Pre-dictate Dialing computerized dialing allowing collectors to become much more productive. .Inteli Rom, Automated Skiptracing(thirteen data bases on CD Rom)all accounts skiptraced for location&assets. AutoPay,Allowing us to take checks right over the telephone (these checks are not lost in the mail). MasterCard and Visa payments taken right over the phone allows for immediate payment in full to our clients while allowing the debtors to pay over a long period of time. Western Union Quick Collect a special program with WESTERN UNION CHECKS PRINT IN OUR OFFICE. WHAT ARE YOUR HOURS OF COLLECTION ACTIVITY? Offices open and collecting Monday thru Saturday Sam to 8:45 pm. With automated debtor skip tracing(debtor/asset location)at night automated with each account searched through thirteen data bases... • AL J.J. Madntyre Co. Collection Agencies WHAT .TRAINING DO THE COLLECTORS RECEIVE? At J. J.MAC INTYRE we do not hire so called trained Collection Agency Collectors(We have found that they are not trained to maximize recoveries,but to collect the easy ones) Every employee at J. J. MAC INTYRE COMPANIES is trained to optimize recoveries this is accomplished by departmentalization. Each collector is trained to collect only one type of accounts see ORGANIZATION CHART for more information on this important program. WHAT IS YOUR RECOVERY PERCENTAGE? At J. J.MAC INTYRE Companies we routinely recover from twenty to 200% above our competition. This figure varies as the determining factors to recovery are 1)Age of account at the time of assignment (delinquent accounts depreciate very fast) 2) Amount of information provided by the client(the more information you have the less collection problems you will end up with and the more we will recover if needed.). We have never been told that a clients other or former agency has outproduced us which means bigger checks to-you. Our fees are about the same as other agencies however our recoveries are what has built us, twenty years ago I was the only employee at J. J. Mac Intyre Company, now we have six offices with over a hundred and eighty employees collecting money from debtor located all over the world. Our growth has come for the most part from client referrals. IF YOU WOULD LIKE TO HAVE MORE OF YOUR ASSIGNED DOLLARS RETURNED TO YOU. YOU SHOULD INVESTIGATE THE J.J.MAC INTYRE DIFFERENCE... YOU OWE IT TO YOURSELF... WE LOOK FORWARD TO RETURNING YOU MORE OF YOUR MONEY Mary E. Fitzpatrick President J.J. Madntyre Co. Collection Agencies Why J. J. MacIntyre Company? Collector Specialization and Client Departmentalization Collectors working evenings, Saturdays and Sundays Advanced Computerization/Predictive Dialing IMMEDIATE CASH PAYMENT AVAILIBILITIES Skip/Asset Investigation Department Automated Number Identification Law Offices on site * Our telephone collection departments are segregated by type of business . This allows our collectors to specialize in one industry; Financial, Commercial, Medical, or Retail . You benefit from having a team of our collection professionals that are dedicated to your business specialty. * Our collection teams are working your accounts from 8 : OOam to 8 :45pm Monday - Friday, and 8 : OOam - 5 : OOpm on Saturday and Sunday 1 : 00 - 5 : OOPM. Maximizing contact times . * Our offices are fully automated, including a multi-line Predictive dialing system to support our collectors with the most advanced in-house collection system in our industry. Our automated credit reporting updates debtor credit files monthly to; CBI, TRANSUNION, and TRW. * Immediate cash payments are received continuously utilizing WESTERN UNION-QUICK COLLECT, MASTERCARD/VISA, and the newest quick cash success story "AUTO PAY" a check by phone . These tools successfully eliminates "The check in the mail story" for our clients . * Our Skiptracing/Asset Search department is staffed by full time skiptracers and asset investigators . They are supported with on-line access to all major credit data reporting companies, real property access, nearby criss-cross information bureaus, and 411 automated new listing information. * ANI - Automated Number Identification, providing us the telephone number from which the debtor is calling. this realtime number identification displays in our office, allowing us to obtain business and residence telephone numbers when your debtors call our 800 number. * Our legal department is staffed by 3 paralegal clerks, 3 paralegal collectors, a law office manager and our full time attorney; they' re in-house and on-line . ASSIGN YOUR DELINQUENT ACCOUNTS TO A PROFESSIONAL J. J. Mac:Intyre Company 1-800-621-9859 J.J. Madntyre Co. Collection Agencies ORGANIZATION CHART J.J. Mac Intyre Companies have been in business since 1951 . Our main office is in Riverside, California, with branch offices in Livermore (in the San Francisco Bay Area) and. in San Diego; also in Las Vegas, Nevada, Houston, Texas and Spokane, Washington. We have over 180 employees, fourteen are State licensed Qualified Managers . Each office is divided into departments, allowing us specialization to obtain the highest recoveries and professional standards . We are in the process of adding a Financial Department . Operations : The clerical staff handles all data entry, computer production, mail room, supply, letter service, reception, bookkeeping and cashier. Commercial : These telephone collectors only handle commercial accounts, they are very experienced in handling claims against major and small corporations, partnerships, and sole proprietors . Medical : Our medical collectors are trained to specialize in medical collections only. They are well-versed in insurance, cash accounts, Worker' s Compensation, PPOs, HMO' s, liens, Medicare, Medi-Cal, and most important, protecting your facility' s "Public Relations" image . Retail : Our retail collectors handle collections for utilities, financial institutions, department stores, and professional services . These collectors understand installment contracts, revolving accounts, bad checks, and open book accounts . Checks : Our Check Services Department, part of National Check Control, is a low cost, high return, recovery program. These collectors are trained in bad check recovery. Skiptracing: Our skiptracing department handles all accounts that require detailed skiptracing or asset investigations . This department is equipped with every known tool to aid our skiptracers in locating your debtors and their assets . Legal : Once an account requires legal action, our legal staff handles it from start to recovery. Paralegals and collectors, headed up by our fulltime in-house collection attorney, work with the process servers, marshall ' s office, and the courts, with the rapport necessary to utilize any legal process effectively. Every employee at J.J. Mac Intyre Company is accountable to their department manager; each department manager is accountable to a vice president; vice presidents to the president, and the president is accountable to all of our clients . TJ hil-P_ IFIT`,'F.,E C1. F'tt A4XVhfflF. Ckarinrlwuse 09/21/90 i J MAC IN'T'YRF COMPAt1Y 1 547 W. S'T'RUCK SUITE A. UPAN ,E, CA 92667- CHS VFRTFICATION ORDER NUMBER; 901180017 In crrcordancp With General Order 1556 and the Ciear-i.rtyhouse Operatic!rt:� l. c;uidelines, VIM13F status; has beet} verified and approved for: your firm, ,1,., follows: Minority Business Filterprise (MBF) stat•ul L,7/ Women' s 13tin1 tress Enterprise (WISE) st.atlls Multi Status This status enables your firm to participate as a WMBE, 1'Is procuvc,1n-s)1: programs for the publics t1t.i1i,tie5 doing business In Uie State of Califo - nia who are signatories L.o the WMBE Clearinghouse, This verification status IS 'va.i.i.d for- Utree (3) years f uotn HIP date (,I this le_LLer with the followi.tiq coildit•ions ; ( 1 ) You must renew your ver•lfIcation within 30 days upoll chancle 0t cl;•:rI ership or control. . Failure to re-verify subserpent, to a change ill ownership or control. may result- .i.ti de-verification of your firm. (2) The Cleariltyhouse may reconsider your WMBE status, if It is mined that such status was knowingly obtained by false, mirl.eratl i n'l at' 1ncorrsrct information, (.3 ) If, in a formal opinion, the California public: Ut.i 1i.ti.es Comm t1 determines that. tlhP WMBE verification criteria under which you 1rf ►. :+ deemed to be eligible. is no longer valid . (4 ) The C'teai"inghouse may request additional. information or C70ridU(_t. ( tt site viaits during the term of your verification. We wish you avicceso 1.n your future i)uEdnes,s devajopmeiiL. VFRTFICAI'IOPJ ANALYS`I' SEMfXUR VERT FTC:ATT(1ff A11AVYST Adlnirlisterecl by C ordoh:1 Cotfmririitn A Wtih Agit 1,bw.111111 Rc':N & r�59J 1al !1 nl^'nLITI-roll\'FSTP.EET,fIP1iiIIC�:tR,LI!` t1t;FiF ,(:�UFi-81.11:19:�:11f 0 8,"C-80.7385N5 A ;Ii.;:1>•lr ti a F.t�: 3•ti)i•4r.!.y