Collectionology – This is the inside information on what goes on in the heads of big collection agencies and the big wigs. To fight against the system, you must first understand the system.  Let my views educate and inform you, but let your decisions be a product of your own conclusions. – Mr. Kay

(Get the Exclusive Interview “Confessions of a Student Loan Collector”)

I didn’t get to where I am now because I’m some type of magical words smith.  I got where I am because I’ve educated myself on the industry I feel into.  When I started in collection, I stunk.  I couldn’t collect money if my life depended on it. It got to a point where I decided I needed to change.  I mirrored one of the top skip tracer in my company and learned every trick in the books.  Since then I’ve been a life time student on education.

For the last few years. I’ve subscribed to this new letter that gives tid bits of trips tricks and strategies to collectors all across the United States.

I wanted to share this news letter so you can get a better perspective on WHY collectors do the things they do or say the things they say… I shared this with a friend of mine and he was blown away.

CLICK ON THE LINK TO GET THE ARTICLE

The article talks about 2 topics.

• TOUGH CALL – 6 Ways to Quit the Overly Talkative Consumer – You’ll learn some of the key “language” collectors use to  take you out of your state and get control of the conversation.

You want to know these tactics so you can PIN down the collector.  Inexperienced collectors will become “friends” with the borrower and WILL give you the best deal possible.  I’ve personally done this… where I’ve gone above and beyond… because I just liked the person on the line.

Your goal is to become friends.  An old saying is… “you can catch more bees with honey than vinegar” – Mr. Kay

• AVOIDING CRITICAL ERRORS – Under stand the “process” and the “mentality” of a collector.  One key point is  “IF you DO NOT know why the consumer is past due, you CANNOT effectively negotiate for payment.”        Look I’m not telling you to lie to the collector BUT the story is the KEY to getting what you want from the collector.  You can expect to get the lowest settlement when you show solid income on your 1040 OR ask for the lowest payment when you have $600 per month BMW payment.

CLICK HERE TO READ THE COLLECTOR INSIDER TIPS

I’m going to end it with one of my favorite quotes….

If you don’t like where you are, change IT! You’re not a tree. – Jim Rohn

Understand that circumstances are created everyday but it’s how you deal with them that makes a world of difference.

Leave me a comment below.

Frequently Asked Questions

• Understanding Student Loans
• Student Loan Repayment Options
• Settlement Options
• Everything About Student Loan Collections
• Garnishment? Get the 411
• Want Your Income Tax Back?
• Default VS Delinquency
• Student Loan Bankruptcy

Live Free and truly learn how to break away from your student loan troubles.

Sincerely,

Mr. Kay Production Manager

Rogue Student Loan Collector

.

Why should you listen to me?

Why am I releasing this information?

Leave me a comment below.

Collectionology – This is the inside information on what goes on in the heads of big collection agencies and the big wigs. To fight against the system, you must first understand the system.  Let my views educate and inform you, but let your decisions be a product of your own conclusions. – Mr. Kay

(Get the Exclusive Interview “Confessions of a Student Loan Collector”)

Collection Technology Inc. (CTI) claimed the top ranking among small contractors on the U.S. Department of Education’s debt collection performance results for the third consecutive quarter. CTI scored 96.34 points, well ahead of second place finisher Coast Professional Inc, with 83.41 points. Delta Management Associates rounded out the top three finishers with 81.43 points.

Meanwhile, Pioneer Credit Recovery reclaimed the first-place ranking among unrestricted contractors, scoring 95.32 points, as NCO Group and Van Ru Credit Corp. slid out of the top three. FMS Investment Corp. took second place with 90.15 points during the quarter and Continental Service Group, d.b.a. ConServe finished third with 89.19 points.

Quarterly performance rankings are the only ones that really matter on the collection contract, as account placement volumes are determined by score: the top ranked firms will receive a greater percentage of new accounts when the accounts are distributed later this quarter.

Scott Daniels, CTI’s vice president, told insideARM.com that the company is enjoying the rewards associated with receiving a greater percentage of ED accounts. But the growing inventory puts the Monterey, Calif.-based firm at risk of losing its top ranking at some point, he said.

“The competition is designed to not let someone get too far out ahead,” Daniels said. “The farther ahead you are, the more you carry and it’s difficult to keep up with it…We will be in some neck and neck races and we may lose.  But we think we’ve got a strategy that will allow us to win.”

ED performance scores are based on a weighted average of total dollars collected; total accounts serviced and total administrative resolutions. The top performer in each contractor group receives the maximum score for that category, and the other agencies are scored against the top performer. The department awards 70 points for dollars collected to the top performance, 20 points for total accounts serviced, and 10 points in the administrative resolution category.

As the 2009 contract ages and more facets, such as inventory balance come into play, the performance rankings have become more volatile, particularly among the unrestricted contractors.  None of the top three performers this quarter won two or more categories for the October through December period.

Pioneer, a subsidiary of student loan giant Sallie, won first place because it collected at least $3 million than in December than any contractor in December. It has collected more than $55 million on the contract to date. However, Pioneer finished 8th in the administrative resolutions category and 5th in the accounts serviced category. FMS, meanwhile, finished first in the accounts serviced category and 2nd in the administrative resolutions category.

Because CTI bested its peers in at least two categories, its overall score was higher and therefore its percentage take of the new inventory also will be larger. Daniels said CTI’s employee count hasn’t increased much because of the increased business. CTI is, however, putting more time into matching specialists with the type of accounts it receives, which varies with each distribution, he said.

During the first 14 months of the contract, all 22 collection agencies (17 unrestricted and five small business firms) have collected more than $738 million for the Department of Education.

Student Loan Collection Performance Report for Fourth Quarter 2010

Leave me a comment below.

Frequently Asked Questions

• Understanding Student Loans
• Student Loan Repayment Options
• Settlement Options
• Everything About Student Loan Collections
• Garnishment? Get the 411
• Want Your Income Tax Back?
• Default VS Delinquency
• Student Loan Bankruptcy

Live Free and truly learn how to break away from your student loan troubles.

Sincerely,

Mr. Kay Production Manager

Rogue Student Loan Collector

.

Why should you listen to me?

Why am I releasing this information?

Leave me a comment below.

Treasury offset Program (TOP)

With the tax season right around the corner, I have literally gotten over 170 emails since this month started.  I wanted to cover a topic that no one else is taking about… The Treasury offset Program.

What is a Treasury Offset? Under this Treasury Offset Program, the Financial Management Service, a bureau of the US Department of Treasury will offset Federal and/or State payments if a borrower fails to pay their obligation. While the most common type of Treasury offset is for Federal tax income refunds, several other types, such as social security benefits and federal salaries are also eligible for full or partial offset. In other words, if a borrower has an outstanding federal debt and they have incoming social security benefits, this too can be subjected to the offset. In addition to defaulted debts held by ED, defaulted loans held by guaranty agencies are also included in the treasury offset process.

Mr. Kay’s Notes: With the TOP program the seized amount is considered an involuntary payment meaning the amount will be applied to the balance but will not count towards any voluntarily payment arrangement such the Rehabilitation Payment Plan. The money seized from the offsets is only applied towards a loan’s outstanding interest until it’s paid off, and then it’s finally applied to the principle.

“Not knowing the solution, a lot of debtors I talk to give up and surrender their hard earned tax return annually. I think Dept of Ed wants you to be stuck in this trap so they could suck your money every year. I’ve seen debtors get their taxes seized, call in the following year to find out the balance is still the same from the year before….” – Mr. Kay, Rogue Student Loan Collector

Other Federal and State agencies also certify debts for offset, but Department of Ed has historically been responsible for the largest volume of offsets. As a result, many tax professionals, and even the IRS will automatically assume an offset has been requested by the Department of Ed when in fact, it may have gone to another Federal or State debt.

State Payments

State payments (e.g., State tax refunds), in addition to Federal payments, may be offset in the Treasury offset program. Just recently the Treasury Dept was requested to offset both Federal and State payments for federal student loans.

States Involved

Alabama Missouri Arizona* Montana Arkansas* Nebraska California* New Jersey* Colorado New Mexico Delaware New York Georgia North Carolina* Hawaii Ohio Idaho Oklahoma Illinois Oregon Indiana* Pennsylvania Iowa** Rhode Island** Kansas* South Carolina* Kentucky Utah Louisiana Vermont Maine* Virginia* Maryland* Washington DC* Massachusetts* West Virginia* Minnesota Wisconsin

* *Indicates states that also participate in state offset programs.

** Participates in a State offset program, but not for local taxes. The following states do not have a personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

What is the purpose of the Treasury offset?

The purpose of a Treasury offset is to recover federal debts for Federal taxpayers without the cost of legal fees. It was created to basically recover unpaid debts arising from federally supported activities, which includes but is not limited to student financial assistance. Since 1986 the Department of Education has referred millions of defaulted student loan debts and grant claims to the U.S. Treasury for collections by offsetting federal and/or state income tax refunds along with any other payments authorized by law. The Department of Ed can request for the U.S. Treasury to arrange an offset to collect any Federal defaulted student loan debt or grant claim. Once the Department of Education refers a delinquent borrower to the treasury department these groups of borrowers are considered permanently “certified” as long as the account is in default (collections).

Mr. Kay’s Notes: Being permanently “certified” means your tax returns will be continuously seized until your outstanding balance is paid off, or the loan is taken out of default after the completion of a voluntary payment program. Interest on defaulted student loans accrue on a daily basis, so your balance will probably barley budge even after your tax money has been applied.

Get more information here www.StudentLoanBlueprint.com

Leave me a comment below.

Frequently Asked Questions

• Understanding Student Loans
• Student Loan Repayment Options
• Settlement Options
• Everything About Student Loan Collections
• Garnishment? Get the 411
• Want Your Income Tax Back?
• Default VS Delinquency
• Student Loan Bankruptcy

Live Free and truly learn how to break away from your student loan troubles.

Sincerely,

Mr. Kay Production Manager

Rogue Student Loan Collector

.

Why should you listen to me?

Why am I releasing this information?

Leave me a comment below.