About ONLINE Industry leader for more than 50 years Headquartered in North Carolina Originally a small merchant credit bureau In 1997, focus shifted from reporting past credit history to risk and debt management solutions clients benefitting from our Exchange- based products and solutions Licensed to recover bad debt in all 50 states
Today… ONLINE provides risk assessment and bad-debt recovery tools for the electric utility, cable, water and sewer, telecommunications, and property management industries.
Causes of Utility Bad Debt Fraudulent applications Failure to assess risk Inability to track Utility non-payers No penalty for non-payment Collection agency cannot locate your charge-offs
Before the ONLINE Utility Exchange Owes Clay Electric $200 Owes North Georgia EMC $350 Owes Pee Dee $ Owes SW Texas EC $250
THE SOLUTION IS… Verify applicant’s identity (Red Flag Rules) Assess the real risk in providing service Know the applicant’s payment history with other utilities Report non payers to the Utility Exchange Enforce a disconnect policy that reflects deposit amounts
Owes Southern Illinois EMC $200 Owes North Georgia EMC $350 Owes GUC $ Owes SW Texas EC $250 Since the Utility Exchange North Georgia EMC Runs UEX Report Charges Max Deposit
Enter the applicant’s information: Click the Credit Check button. (866) How does it work?
Your report will be returned in 1-2 seconds:
Red Flag Rules Enforcement deadline is December 31, 2010 Red Flag rules require Utilities to take new steps to curb identity theft
Stop Application Fraud 10 million american consumers discovered that their personal information had been used to open fraudulent bank, credit card, or utility accounts -Source: FTC Identity Theft Survey Report Average fraud amount per case is now $6,383— up from $5,249 two years ago 25 to 34-year olds, not seniors, are the most susceptible targets -Source: Consumer Data Industry Association
SSN Verification & Red Flag Alerts Preventing application fraud and obtaining accurate identifying information is vital. The ONLINE Utility Exchange Report verifies applicant identity and returns appropriate Red Flag alerts.
Possible ID Verification Messages
Other Possible ID Verification Messages and Fraud Alerts Inquiry age younger than SSN issue date Credit established before age 18 Credit established prior to SSN issue date High probability SSN belongs to another Match to other SSN. Verify ID Not a valid SSN
Other Red Flag Services Cost-effective batch screening service for existing accounts. Ongoing training for CSRs. Policy and procedure writing assistance.
Accurate Risk Assessment = Appropriate Deposits ONLINE allows you to correctly determine the risk of doing business with each new service applicant. Your CSRs will see the deposit set by the Utility based on risk levels and deposit amounts customized to your company.
Stoplight Method ONLINE returns a delinquency risk percentage along with a light that clearly identifies the credit risk associated with doing business with each applicant. Alert -Maximum Deposit Caution- Minimum Deposit Approved-Waived Deposit
Protect Yourself By aligning your deposit policy with your disconnect policy, you ensure that you collect appropriate deposits from high- risk applicants. Does your Maximum deposit cover your exposure?
The Exchange Advantage The Secret to our Success! Disconnects for Non- Payment are continually updated by other Exchange members and reported here. IN REAL TIME!
Other Unpaid Utilities Displays unpaid utilities including power, phone, gas, sewer, and cable. If a new service applicant owes another utility, ONLINE forces the deposit decision to a maximum deposit so you are protected.
What Sets Us Apart? Our proprietary Exchange database Verify identity, detect fraud, and assess the risk of doing business with applicants Red Flag compliance Reduce lost revenues and costly write-offs Most current database in industry
THE EXCHANGE ADVANTAGE™
Eliminates Bad Debt By leveraging the Exchange data submitted by member utilities, ONLINE locates utility non- payers when no one else can and exceeds client expectations with the highest recovery rates in the industry.
Accounts are typically referred to ONLINE with bad contact information
How It Works When a debtor applies for service at an Exchange member, ONLINE automatically receives and updates the debtor’s contact information in real time: Our collectors use that information to contact your debtor, typically the same day… to recover the money owed to you quickly.
ONLINE Collections Leverages the Exchange Advantage to locate your debtors more efficiently Utilizes advanced Collections technology Provides professional recovery practices Delivers industry-leading recovery rates
ONLINE Is Your Total Solution For Eliminating Bad Debt KNOW YOUR CUSTOMER Prevent fraud at the point of application PROTECT YOURSELF Charge the appropriate deposit amount to match your disconnect policy based on the credit risk posed by your new service applicant ELIMINATE YOUR BAD DEBT Help prevent bad debt before it happens by sharing payment experiences of your new service applicants with other Exchange members
Any Questions? THANK YOU FOR YOUR TIME.
Contact Information PHONE(866) WEBSITEwww.ONLINEis.comwww.ONLINEis.com Note: This presentation is for informational purposes only and should not be interpreted as legal advice.