1. What are the basic criteria for payment arrangements?
Response: The payment arrangements criteria vary from debtor to debtor. The objective to establishing a debtor’s payment arrangement is to correctly determine the debtor’s “financial condition” utilizing credit reports, skip trace information and information obtained directly from the debtor. For example, if a debtor has a place of employment, property or an ability to obtain a loan, Persolve will pursue one to 3 installment payments for debt settlement. Otherwise, a debtor that is without assets and may be unemployed or with a “low” pay job, monthly payment plans range up to three (3) years. Each debtor must answer detailed financial information in order to be approved for a payment plan.
2. How do you determine what the debtor can afford?
Response: The amount a debtor can pay without assets or access to credit is solely dependent upon his/her monthly income versus monthly bill payments. Also, Persolve requires proof of income in order to determine a debtor’s ability to repay. We request pay stubs, tax returns, and bank statements to establish the debtor’s income.
3. Are arrangements reviewed for upgrading periodically? If yes, how often is upgrade attempted?
Response: Yes—Persolve routinely reviews all payment arrangements monthly with the objective of upgrading the payment schedule based on the debtor’s now current ability to pay or potentially generating a settlement within client criteria.
4. If an arrangement is broken, what is the firm broken promise follow up process?
Response: If a payment schedule is broken, the collector will immediately initiate telephone calls in an attempt to contact the debtor to re-negotiate the payment arrangements. Also, letters will be sent to the debtor in a further effort to contact the debtor.
5. Describe action if portion of promised amount is paid.
Response: If only a portion of the promised amount is paid, the collector immediately contacts, or attempts to contact, the debtor to determine the reason for any shortfall in payment. If the shortfall is due to the debtor’s inability to make the promised payments, a different payment arrangement is pursued to establish a new mutually agreed schedule of payments that can be made by the debtor.
6. Is a separate arrangement file kept? If yes, describe process.
Response: No—all payment arrangements are entered in the notes section of the collection system and followed up by the collector who made the payment arrangement. Further, all payment schedules are set up in the collection system and if payments are missed, a daily receivable aging report is automatically updated and immediately available to the collector for follow-up.
7. Describe your procedures to ensure that your firm adheres to client settlement parameters.
Response: Each collector is provided with a schedule of client settlement parameters. Further, for all newly collected funds, a “Payment Authorization” is completed and signed by the appropriate collector and approved by the Manager who forwards the Authorization to the posting clerk for processing of payment.