Implementing Process Improvement to Government Collections Craig Nielson

How have the last few years been? How have you reacted? Budget cuts Furloughs Staffing (adding or reducing) Changes in focus and responsibilities Outsourcing More technology Less technology New processes and activities

We collect because…. Revenue Legislative mandate It’s the Law! Accountability It is the right thing to do It’s my job Other reasons…..

Collection Challenges Too many not paying Too few staff Too little time Revenue Data integration with host system(s) Locating missing debtors Anything else?

“What are Ideal Collections?” Maximizing each collections phase and opportunity by utilizing the best mix of techniques, tools and technologies to enhance your success.

Why the rush? Because Time really IS Money….

Effective Collection Perspectives Like leftovers, “The fresher the better” Constant contact and immediate response People who are not contacted either by letter or phone are not likely to pay It is okay to hold them accountable Consequences of nonpayment is communicated A softer approach may be more effective You are assisting them to move on with life

Collection Objectives The right person, working the right account, at the right time. Every time. Quicker response by debtors Less time and effort spent per account Revenue is increased Simplified and consistent account flow Making the Staff’s work easier (and more productive!)

Some Debtors have Less Money How does that change your priorities, approach and activities with regard to? Targeting and prioritizing Contacting Correspondence Payment Plans How long you work with them Outsourcing

Maximizing the Entire Lifecycle?

Workflow Management

Leveraging each Step or Process

Assignment Methodology Age of obligation Account type Dollar value Worker Type/Responsibility Volume of cases/account Available resources Legal requirements – FDCPA, TCPA, Etc. Collections history

Contacting Methods Onsite In Person Correspondence Outbound Calling Automated/Predictive Dialing Field Collections Text

Multiple Payment Options Onsite at the counter Mail Online portal With staff over the phone IVR Payment/installment plan Kiosk

Multiple Payment Methods Cash Check Money order Debit Credit cards Electronic funds transfer

External Data Sources Credit bureaus Skip tracing Analytics NCOA Other government departments – DMV - LEDS, EDD, police, etc.

Proactive/Assertive Measures Collection fees – payment plan, per payment Imposition of Interest Penalties Refund/payment intercept/offset Withholding of benefits Liens, levies and garnishment Seizure Warrant, arrest or incarceration

Outsourcing Collections Need Volume Cost When Why How One agency vs. multiple How long to they keep them What is your “Sweet Spot”?

Performance Metrics and Goals Examine the results from each activity Dollars Contacts Letters sent Paid in full Pay plans Collection percentage Volume reduction

Thank You For More Information: Craig Nielson Phone: REVQ (7387)