1. LEARN COLLECT EXCEL Choosing the Right Collection Agency Mark Lombardo Vice President AllianceOne Receivables Management, Inc.

2. LEARN COLLECT EXCEL Why Government Agencies May Need to Outsource: Budget constraints Hiring freezes Time restrictions No skiptracing resources Pressure from the public Growing backlog of delinquent cases/accounts Technology Constraints

3. LEARN COLLECT EXCEL Considerations Prior To Selecting an Outside Collection Agency (OCA)? The OCA will be an extension of your operations and should be free of ethical challenges Evaluate experience, success rate, and financial stability OCA staff should be well trained and operate within defined work standards Check multiple similar references Is the OCA properly licensed to collect nationally? Flexibility – wide range of payment options, willing to work with your situations, customized reporting and remittance, etc. Review data security and disaster recovery plans Employee training and tenure

4. LEARN COLLECT EXCEL How to make the right OCA choice Ensure that the OCA offers all of the services you need to be successful and to provide your staff with ease of use including: Clear implementation plan Customization to meet your exact needs including reporting, data communication, remittance, customer service Legal department Credit bureau reporting Automated placement of accounts Significant similar collection experience Dialing capabilities

5. LEARN COLLECT EXCEL How to make the right OCA choice Enhanced Service Offerings Time payment management programs (pre- collection) IVR (Interactive Voice Response) system On-line access to accounts Drivers license restoration program Customized letters Amnesty programs Comprehensive national skiptracing

6. LEARN COLLECT EXCEL Recommendations for Selection Process Before choosing an OCA, make an on-site visit; see their operation center first hand Select the OCA you feel is best qualified, then negotiate their commission rate Negotiate a contract which clearly defines the relationship Be certain the OCA is willing to develop and maintain an honest, straightforward relationship with you and your personnel Establish contact personnel Have frequent meetings (weekly during implementation and quarterly thereafter) to set contract goals and discuss performance

7. Conclusion Thank you for your time and attentionThank you for your time and attention Questions are welcomeQuestions are welcome