NLA gets the full details on a new member-benefit program from AmerAssist A/R Solutions – the newly endorsed collections service. We interview Paul Stang – Corporate Vice President of AmerAssist
AmerAssist Question and Answer Session
NLA: There are lots of collection sources available to lour members…why did the association elect to work with AmerAssist?
Stang: I think there are two main reasons. First are our low fees – typically we charge 10 percent or less per account. In an era where most conventional agencies are getting fees of 25 t 50 percent, our low fees give your members the ability to collect at an affordable rate.
Secondly, and perhaps even more important, is our higher recoveries. Today the national collection average for all percentage collection sources is around 18 percent. Our collections rate is always far above the national average and in fact we have clients that are enjoying recoveries in the 60 to 80 percentrange.
NLA: How exactly do the AmerAssist programs work to collect our member’s money?
Stang: The specific collection strategies will vary depending upon the size (amount of debt) of the account but all will include written payment demands - beginning with a soft-spoken “Audit” approach (designed to prevent alienation) all the way to a final demand from a collection attorney. In addition to the written demands, professional collectors will contact the debtor by phone during daytime, evenings and weekends if necessary. Non-responsive debtors will be reported to the three national credit bureaus litigation, when warranted, at AmerAssist’s expense.
It is AmerAssist’s systematic use of every remedy available that will get your members the highest possible recovery.
NLA: Is there any way that members can offset the cost of your services?
Stang: Yes, by adding a collection charge, or taking advantage of our guarantee, your members can totally offset the costs of AmerAssist’s primary phase services.
To add a collection charge the member must have written language in their credit granting document stating that if the account is sent to an outside collection source the debtor will pay the cost of collection. It’s my recommendation that your members consult with their attorneys as to the actual language to include in that document. If that language is not currently in the document I would strongly recommend working with an attorney and revising the document to allow for the addition of those charges.
The other way AmerAssist can in-affect offer “free collections” is by taking advantage of the included “100 percent Collection” guarantee. This guarantee simply states that if AmerAssist is unable to collect on any account assigned to us we will do another collection at no charge. So in effect this guarantees a satisfactory collection on each and every attempt. There is no cost for this guarantee and it typically applies to accounts of $300.00 or more.
NLA: What does AmerAssist do to get higher collections than other agencies?
Stang: Again there are several reasons for higher recoveries. First since our fees are so low your members can afford to turn the accounts over to us early – when they are most collectable. Because we get the accounts before they are deteriorated by time we will get a higher recovery. And secondly we are a full service agency – doing everything allowed by law to collect – and that results in more money coming back to your member.
NLA: What do you mean when you say "everything allowed by law?”
Stang: During our collection cycle we will employ every tool we can to get your members money. We will utilize a series of progressively stronger written contacts to the debtor outlining our intention to collect. The written communication is enhanced by a series of telephone demands by professional collectors. On retail debtors (homeowners, etc.) we will make those calls at night and on the weekend when people are most likely to be at home). We may also use Western Union Mailgrams to add additional impact to the written debtor communication. Also included in our programs, at no additional fee, is a final demand contact from a collection attorney. We will also report non-responsive debtors to the three national credit bureaus m and finally, when warranted, will litigate and AmerAssist pays all the filing fees.
NLA: What about customer alienation? We have heard that is a problem when using a collection agency?
Stang: Certainly alienation and the driving away of clients is a big concern when using a conventional collection source. AmerAssist, on the other hand, has techniques built into our program designed to get your members money collected and do so without alienation. Our services begin with an “audit”- to confirm the debt. Everyone gets audits these days and they don’t alienate. Our “audit” has proven over the years to be a soft-spoken but effective way to collect quickly and without alienation.
NLA: Many of our members have both smaller retail/residential debts and larger balance commercial debt. How does AmerAssist handle several differing types of debt?
Stang: One of the real beauties of the AmerAssist programs is that they are not a “one size fits all” approach to collecting. Large balance commercial/contractor debt typically demands more collection activity than smaller balance retail debts. AmerAssist has programs designed specifically for different types and size of debts.
NLA: How does a member get started using AmerAssist?
Stang: The process is very simple. Your members can contact AmerAssist either through the association or by contacting us directly at (877) 207 9215 or by logging on to www.amerassist,com/ars/affinity. When we hear from a member one of our Account Executives will contact the member and set up a day and time to meet. Our representative will do a no-charge receivables analysis at the members location to determine how our services could assist the member.
Once the service gets set up it’s extremely easy to use. Everything is online. There are no forms to fill out manually, no copying of valuable records, etc. And your member has the ability to add more accounts, turn off our collection efforts, and review the status of every assigned account online 24/7.
