Collection Services
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Early Intervention Tools

1. ARC Billing Service
      Customized rates

Outsource your statement generation, mailing, payment posting, and delinquency follow-up. By allowing us to perform all accounts receivable billing and payment arrangements, our clients are able to have personnel devote their time performing core business activities; which leads to an increase in efficiency and revenue generation. Pricing options are contingency, monthly monitoring, and flat rate payment options. This service requires custom quotes.

2. Pre-Collection Letter
      $2.70 per account

Pre-Collect letters are an effective step between your attempts to collect and the Credit Bureau while allowing you the opportunity to retain 100% of the collection. Our Pre-Collect letters can substantially reduce your collection costs, by motivating your debtors to pay in a non-contingency environment. For a one-time fee per letter, your debtor will receive one letter from the Credit Bureau on our letterhead. All payments and correspondence are directed to your office, and no other fees are involved.
If you collect, just notify us, and the collection process will be stopped. If the account is not resolved to your satisfaction, the account will move into full- service collection without further delay.

3.Pre-Collection with phone call(s)
      $5.00 per account

This service is the same as above with an added telephone call(s). This extremely effective program will help increase collections by combining professional collection calls along with our pre-collect letters.

4. Early Treatment Program (ETP)
      $5.00 per account + 10% contingency

ETP is a program designed to allow clients the advantage of agency involvement, without the higher contingency fee, when the debtor needs just a little motivation. It benefits clients that wish to employ a soft collection product that saves time by allowing the Bureau to handle all calls, concerns and monies during the first 30 days. ETP provides a greater recovery advantage then our pre-collect programs by utilizing more letters and professional collector involvement.

Full Service Contingency Collection

Customized Rates
At this point in the process, your collection headaches become our collection challenges. Our full service begins immediately after the delinquency is added to the debtor's credit file. Trans Union, Experian, and Equifax credit reporting databases are impacted providing national representation of your receivables. The debtor's ability to obtain future credit is often suspended until your debt has been paid or resolved.

1. Letter series
Our full-service contingency collection campaign includes pre-approved psychologically-worded letters to elicit a response from the debtor.

2. Telephone collections
Telephone collection is 10 times more effective then letters so we make every attempt to contact your debtor verbally. A fully integrated automatic dialing and tracking system or predictive dialing technology enables comprehensive and continuous management of your receivable. With this powerful technology our certified collectors spend their time talking to debtors, not listening to the phone ring, busy signals or re-dialing. The dialer has the ability to dial up to 600 numbers per hour, connecting only live voice answers.
Accounts are constantly being monitored. Reports describing a variety of information regarding your delinquent accounts are sent on a bi-annual or as needed basis, to keep you informed of the status of your accounts. Our professional staff is ready to assist you in any way possible to insure the information you require is promptly provided.

3. Legal Action Legal action is taken only when all else fails. When the debtor has the ability to pay, but refuses, we recommend you consider suit on accounts over $350.00. We submit to you a suit authorization, after all asset information is checked to make sure it's current and collectable. We act as liaison between you and our attorneys They cover the entire state of Michigan and provide an attorney referral service nation wide.
Out of state claims are forwarded to either a collection agency or collection attorney in that state for effective local representation.

Purchase of Receivables

Another option we offer our clients is the selling of their receivables to us at a discount. This practice, also known as factoring, is gaining popularity as clients see it as a viable alternative source of obtaining working capital. We would be happy to negotiate should you have a desire to explore this option.

Accounts Receivable Consulting

Reduce ongoing agency expense by strengthening internal aging activity. We will thoroughly review your accounts aging activity and determine what enhancements can be made. Thus, you can be certain you have done everything possible to have the most effective AR aging activity program available.

Seminars

Throughout the year we produce collection and A/R management seminars for businesses and our clients with the focus on education and training. We also provide customized in-house training seminars at your facility or ours. Our seminars cover a wide range of topics from establishing and implementing office financial policy to effective collection techniques. These seminars are an invaluable tool to you and your staff in providing the necessary motivation and skills for more proficient personnel.

Collection Training

All our collectors must successfully complete certification and advanced certification programs through in-house training and The American Collectors Association. Our collectors are taught to collect in an assertive yet polite manner. Our goal is to collect the utmost on your bad debt, while maintaining your important consumer relationship.

When you should use each service

Billing:
* When staff is needed to focus on core business activities, instead of statement and payment processing

Pre-Collect:
* When a soft push is needed to get an account paid
* Early intervention before time slips by

Pre-Collect with Call:
* When your staff doesn't have time to make that "last call"
* The need for verbal communication
* Should you wish to increase your recovery in a preliminary stage

Early Treatment Program
*When you prefer the agency to handle all inquiries, accounting and remittance
* Should you desire greater agency involvement, through multiple letters and collector contact, before it reaches regular contingency collections.

When pre-collect with a call has been utilized versus only the precollect letter clients have realized an increase of 20% in recovery of their debts. Therefore, their net back increased from 23 % to 37%. A prime example if you spend a little more-- you get a lot more!

Time is on the side of the debtor. The more time they have, the less chance you have of getting your money. Place your accounts with us whenever pre-collection letters don't work, or if you see one of these:

• Two billings are ignored.
• The debtor fails to return calls.
• The debtor's mail is returned.
• The debtor stalls or delays payment.
• The debtor tells you they are not paying.
• The account is 90 days, and no payment plan is in place.

Expectations

We guarantee the best possible service and collection efforts to remit back to you a good return on your bad debt. Please note the national overall recovery rate is averaging about 18.5%. Credit Bureau, Inc. averages between 20.1 and 29.1% recovery rate depending on the type and location of the account. We are absolutely committed to contributing to the financial success of our clientele.

Net Back is the best way to evaluate agency production. It is what you deposit after an agency takes its fees. Our reports give you the information you need to make that determination. Following is the formula to figure your net return per dollar placed and evaluate other agencies:

Avoid the most common mistake made in selecting an agency, never, ever pay in advance. Contingency ensures a bona fide effort.

Transferring Accounts to the Bureau
There are many methods to transfer accounts to the Bureau. The most widely used and preferred method is electronic. Your client consultant can help you determine the best fit for you.

Minimum Amount Required
Given the operational cost for entering and maintaining files, and the potential for return, we have determined that accounts under $25.00 would not be profitable for either of our offices.

Rate Structure

The Ann Arbor Credit Bureau offers several services to its clients. You may choose any one (1) service or a combination; whichever fits your needs. The pricing represents our basic rates. You will never pay higher then this but based on your volume, we will give you a custom bid.

Billing
Our billing services consist of monthly statements to debtors and account maintenance. The cost is contingency based and the percentage would be determined per client.

Pre-Collect
An account placed for pre-collect would receive a letter sent on our letterhead. The debtor would be instructed to pay in full directly to the client, or contact the client if there are any concerns. The letter has a cost of $2.70 with an automatic 30-day roll into contingency collections.

Pre-Collect with Phone Call
This extremely effective program will help increase collections by combining professional collection calls along with our pre-collect program. The cost for this service ranges from $5.00 to $8.00 per account.

Early Treatment Program
Multiple letters will be forwarded to your debtor for a one time listing fee of $5.00 in addition to a 10% contingency fee on all monies collected. Any inquiries, accounting and remittance will be handled by our office. All disputes will be forwarded back to our clients for a speedy response to take advantage of the ETP fee structure. Unpaid balances will automatically roll into regular contingency collections after 30 days. Pre-mature cancellation of accounts will result in our nominal discovery rates.

Regular Collections
This service includes credit file impact, letter series, telephone collection and accounting of payments. We provide our collection services at a 33.3% contingency fee, unless the following conditions occur:

1. Accounts with a service date 18 months or older at the date of listing, at 40%.
2. Accounts listed with an initial balance of $100.00 or below, at 50%
3. Skip-trace accounts, or accounts that we have established a current address, different from the location provided by Client, at 50%
4. Returned checks, secondary placements, video rentals and leases, at 50%.
5. Legal and Forwarded Accounts

Any accounts that go to legal or need to be forwarded will be accessed at a 50% contingency fee. All efforts will be exhausted in the regular collection phase before either of these processes would be implemented. We cover all attorney fees once the account has advanced to the legal stage. All court costs will initially be billed to you. Those costs will in turn be attached to the original debt and will increase the amount that the debtor owes. When payment is received from our attorney we will immediately forward your court costs back with no fee taken.

New Client Set-Up Fee
There is a one-time, $200.00 set-up fee on the initial placement of less than 5 accounts or $100.00 if less than 10 accounts.

Steps to Becoming a Client

Start here: Contact Us.

    Get a copy of your personal credit report fast!

Email: info@a2cb.com