Relocation Payback Agreement Collections Becky Baumann Commercial Services
Relocation Payback Agreement Collections Becky Baumann Commercial Services Group
An Agency With A View • • • Contractual agreement Solid documentation Different type of obligation
Collection Agency Benefits • • • Cost-effective Built for follow-up Shows seriousness Solid partner to consult and handle issues Litigation
Key To Successful Collections • • • Documentation Urgent and Consistent Process Non-Discrimination Buy-In From Company Willingness To Be Fair
Option 1: Substantial In-House Efforts • • Business Manager notifies the payroll department/mobility team Business Manager discusses the terms of the payback with employee when possible. Payroll deducts wages when applicable from last paycheck Payroll informs mobility team of balance remaining Mobility team sends out one or two letters Legal team writes a letter or in-house collections team attempts to collect All in-house efforts are ignored and balance is sent to the agency to collect
Option 2: Limited In-House Resources • Employee Resigns or Leaves • Business Manager notifies Payroll regarding termination • Payroll may or may not deduct from last check • Mobility Team sends out a letter requesting balance due 15 day demand • Mobility Team sends account to the agency for collection efforts
Option 3: Complete Outsource • Employee terminates • Payroll completes final deductions when possible • Mobility Manager sends a letter informing employee that the agency will be contacting them to make arrangements for balance owed. • Agency begins collection process
Collection Agency Attributes • • Track record Understands dynamics of balance owed- gross up issues Data security Compliance Understands company culture Audit capabilities Strong communication and reporting FDCPA
Statute of limitations State Alabama Years 6 Arizona 6 California 4 Connecticut 6 Florida 5 Hawaii 6 Illinois 10 Iowa 10 Kentucky 15 Maine 6 Massachusetts 6 Minnesota 6 Missouri 10 Alaska 6 Arkansas 6 Colorado 6 Delaware 3 Georgia 6 Idaho 5 Indiana 10 Kansas 6 Louisiana 10 Maryland 3 Michigan 6 Mississippi 3 State Montana Years 8 Nevada 6 New Jersey 6 New York 6 North Dakota 6 Oklahoma 5 Pennsylvania 4 South Carolina 3 Tennessee 6 Utah 6 Virginia 5 West Virginia 10 Wyoming 10 Nebraska 5 New Hampshire 3 New Mexico 6 North Carolina 3 Ohio 15 Oregon 6 Rhode Island 15 South Dakota 6 Texas 4 Vermont 6 Washington 6 Wisconsin 6
Questions? � Becky Baumann � Commercial Services Group � bbaumann@collectcsg. com � 502 -744 -5758
- Slides: 10