So last Monday we went and did this really cool thing in all three offices … we joined collection professionals across the country and took part in the ACA’s Collector’s Pledge.  This pledge shows American Profit Recovery’s commitment to treating consumers with respect and helping them find ways to pay their debts.  We were one of the first agencies in all three states to take part in this pledge which we felt showed one more way we hope to help consumers, clients and employees Profit From Our Difference.   

We ordered engraved plaques for each office, created signs for all employees to sign together and individual certificates to show our own commitment to the pledge to hang in our offices or cubicles.  We sent out a press release.  No one came.

This didn’t dampen our spirits nor take away from the excitement we all felt in taking this pledge together; this was one more way for our employees to truly see how we were different and how we are all part of something special.  We work for a leader in our industry who already lived by and taught the words of this pledge long before the ACA took this initiative.  We should simply be proud to do so. 

It’s just too bad that in an industry that takes so much negative press, there is rarely a story about anything good.  No stories about the small business that stayed in business because we helped them get paid on their outstanding debt.  No stories about the consumer who fell on hard times yet was treated with dignity and respect and thanked our collectors for helping them resolve their delinquencies in a way that worked for them.  No stories about employees of collection agencies who believe they all play a part in a common goal. 

In the words of Abraham Lincoln:  “Don’t worry when you are not recognized, but strive to be worthy of recognition.” 

That is what American Profit Recovery will continue to do.

Yes, that’s right … a week.  Every year American Profit Recovery takes 5 full days to say thank you to their employees for all they do every other day of the year.  And at the end of the 5 full days I generally find myself asking who’s dumb idea this was … and then I remember, it was mine.

One of the many hats I wear at APR is Human Resources and I am thankful that I work for a company that allows me the budget, resources and time to plan such an amazing event.  We try as a company daily to thank our employees for all they do but like in any business, thank you’s and kudos go unmentioned sometimes because of daily business needs.

Employee week makes us all refocus and remember one of the goals of our partners; to make American Profit Recovery a great place to work and to help all employees profit from our difference.

This year’s week was full of food, daily quizzes with prizes awarded, daily “gifts”, and even an out of office bowling party in our MI office.  It’s a challenge every year to keep this week fresh and fun but I think we succeeded.  Pictures and video to follow so you can all see how we celebrated this year!

We’ve Rattled the Cage…

There are a lot of businesses fighting for their life lately and I’ll get right to the point, collection agencies should not be one of them. But during the recent course of providing customers and potential customers valuable information about our services, we encountered several people in the collection industry fighting for their territory.

American Profit Recovery offers a unique system called our Tier I service. It’s a flat-fee system that allows customers of APR to put our system into place without spending the traditional 33 to 50 percent that most collection agencies charge to collect your money. Now full disclosure, we do offer this type of service called our Tier II system for more stubborn accounts but we try to steer our clients into or flat fee collections system first.

The press release which you can ready here http://www.americanprofit.net/news-articles/Advantages%20of%20Flat%20Fee.pdf outlines why flat fee collection agencies can be more effective in working accounts over a percentage based service. It was posted online and the fireworks began to fly…

An industry site, www.Insidearm.com posted the release and many other agencies began to read and comment on the posting. Most were very critical of the system saying it was pretty much a bad way of doing business and that charging a large percentage was a better way to go; here’s how we felt; You be the judge:

Every account is worked with the same effort; We don’t “Skim” the bigger accounts to make more money for ourselves. With a flat fee, the same fee is charged for each account whether $100 or $1,000.

Because we are a low flat fee collection agency, we can start collecting on your accounts much earlier in the process. Early intervention allows for a quicker recovery, reduced staff time on your part and an opportunity to save the customer relationship with a more diplomatic approach.

What many do not know is that a collection agency has to send a letter anyway to a consumer. Many do pay off that letter so for a collection agency to grab 33-50 percent off of a 44 cent letter, we find interesting…

There are many more benefits to using a flat fee collection agency. I’ll be back with another Blog entry with more tips our competition doesn’t want you to hear…

Totals are in!!!  American Profit Recovery raised $2295.50 for the first annual Collector’s Challenge Month sponsored by the ACA.  With a first year goal of $1,000 we are ecstatic with the money we raised as a team!

Our donation will be used to support education and training for those in the collection industry as well as consumers through free electronic Community Education Kits regarding consumer rights and money management basics; the Foundation scholarship program advancing the higher education of people connected to the credit and collection industry; the Receivables Management Training Program giving persons with disabilities access to employment in the accounts receivable field; the Foundation’s annual consumer outreach campaign, National Credit Education Week; and the Foundation’s latest initiative, the Personal Financial Management Web Course—a free online money management training program available to consumers as a public service.

To raise this money, APR employees participated in a can drive, purchased casual dress days, took part in food specials and raffles in MA, MI and NC.  APR provided the food, raffle prizes and a pizza party for the winning team in the can drive as their own corporate donation. 

This challenge was the perfect way for APR to get involved as it ties in with our motto, You’ll Profit From Our Difference.  Through community education and resources the ACA will be able to help all consumers handle their finances better and make that positive difference American Profit Recovery believes in.

Many who have come in contact with this collection agency, American Profit Recovery have more than likely had a chance to meet Matt Moskowitz, currently one of four partners. Matt’s overall experience in the collection industry is impressive to say the least. When Matt set out with his soon to be partners, he had a vision of creating one of the most reputable collection agencies in the country. Matt and his partners have done just that earning several industry accolades.

Matt started his career as a loan officer in the financial industry and then served in various roles in the collection industry before founding APR.

Matt spearheads the sales force at American Profit Recovery and spends much of his time building relationships with key partners such as The Professional Landcare Network, other associations that might endorse APR and others.  Matt prides himself on working with clients as a consultant, trying hard to identify what they can do to improve cash flow.  Hear Matt in his own words about his experiences and how he has a passion for helping businesses stay profitable.

We worked hard … we played hard … and after a manicure and massage I feel ready to share our results from PLANET’s first annual Day of Service.  Our MA based team partnered with one of our favorite local lawn care clients, SLS Landscape Services, out of Rowley, MA to provide some great results that will be enjoyed by many!  Check us out!

In celebration of Earth Day 2008, American Profit Recovery’s offices in MA and MI are off to volunteer with clients and industry partners to create and clean up more green spaces locallyin their areas as part of PLANET’s first ever Day of Service.

Five employees from MA are meeting up with Szczechowicz Landscape Services Inc. at 12pm today to clean up and plant flowers in Rowley Town Park in Rowley, MA.  Other volunteers will help clean up the nearby cemetery to prepare for spring and Memorial Day Veteran’s festivities.

A team of ten will be headed to the Costic Center in Farmington Hills, MI at the same time to plant iris and mulch there!  Together with Real Green Systems, one of APRs industry partners, employees and volunteers will help the town with an area that needs clean up to benefit all who use it!

To see what companies are participating in your area visit:  www.planetdayofservice.org.

Happy Earth Day!

As the warm weather approaches, and the oil deliveries start to drop off, now is the time to make sure your customers don’t forget about paying for that warmth you provided them over the winter months. As a collection agency in Massachusetts and Michigan, we work very closely with many oil dealers in the northeast to help them resolve past due debt from customers that don’t pay.

Spring is here and summer is just around the corner. How soon some people forget to pay their bills when they are not using your product or service at that exact time. That’s what some do and it causes oil dealers and the companies that repair furnaces to experience negative cash flow at certain times of the year such as spring and summer.

What can you do? Well first, it’s imperative that a company’s internal accounting procedures are such that someone is on top of receivables especially the ones that are not paid on time. As anyone in the business will tell you, it’s very easy for a homeowner to jump from one oil dealer to the next without paying the first one for that oil delivery or furnace repair. It’s imperative you stay on top of these late payers and do what you can to not only get them current with their bill, but also keep them as a customer.

Staying on top of your receivables and getting in there early when the bills go unpaid will help you keep your customers along with a respectable tone when trying to collect.

Our own Justin Berg of American Profit Recovery recently wrote an article for Oil Heating Magazine in which he lays out the steps to keeping your customers current and keeping those homeowners as customers after the process. Take a look and follow his advice and you should see a noticeable improvement in your cash flow…

http://www.americanprofit.net/news-articles/press-coverage/oil-heating-may08.pdf

Collectors Challenge Month is the ideal way to get involved in our community because it brings together the entire industry for a need we all can appreciate. So many people we contact could improve their lives if only they had the skills and knowledge to successfully manage their personal finances. With our help, ACA can make a difference.

But consumers aren’t the only ones who will benefit from the campaign. By supporting the ACA International Education Foundation, we’ll help create a more positive public image of the industry, and encourage our colleagues to take pride in the work they do.

For more detailed information about the Foundation and Collectors Challenge Month, please visit the Web site at http://www.acainternational.org/People.aspx?cid=12005.

How APR is Participating: 

We have come up with several ways APR employees can participate and contribute to this great event!!!

Dress Down/ Casual Days - Our employees, can purchase casual days this month.  Casual can be purchased for a day, a week or the entire month.

Can/Bottle Drive

Weekly Raffles 

Food specials - Each office will feature a series of food specials for the month. 

Our company goal for first time participation in this event is $1,000.  With 65 employees as of April 1 that is a whopping $15.38 per employee.  Check back for updates!

To paraphrase an old saying, “we punish all for the actions of a few.” And in the collection industry, this is a regular occurrence, as was pretty much the case this past Friday on the NBC show Dateline. Dateline has been conducting a series on the recent financial crisis and it was only a matter of time before they got to the collection industry.

There is no doubt that there are people in the industry that give the rest of us a bad image. And if you think about it, there are bad apples in every industry. Our bad apples just seem to be more visible than other industries. Do some collection agencies deserve to be taken to task by Dateline? If you saw the episode, you would think so. In fact, we’re okay with it. The less renegades in our industry, the better for the overall image of our industry.

There are plenty of good apples in the industry also.  It’s a great time to once again show you American Profit Recovery and let you see just how we operate. American Profit Recovery is a collection agency. And yes, we collect money that is owed to our clients. That much is very clear. How we do it, is another story.

Ethics, morals and standards. That sums up how we do it. Our team members are college educated, and follow the strictest of standards. They all go through comprehensive training, continued education and live our true brand of being different. They all know this is the way to run a successful business in the debt collection industry. Even before we get on the phone, most accounts go through our mail based Tier I system that gently reminds people of their obligation to settle their account with our client. Many times, this is all it takes.

When we do get on the phone, we realize that many of these calls can be difficult and uncomfortable.  We focus on keeping them professional and strive to help the consumer by working out some type of agreement that is acceptable to both parties. We never knowingly annoy the consumer, abide by all laws and aim for an amicable solution. It’s just good business.

Unfortunately, Dateline shed very little light on the majority of the nearly 6,000 collection agencies in the country that take compliance very seriously.  We know that, when done in compliance of state and federal laws and even further consideration for consumers’ situations, we serve as a necessity to the economy and to businesses of all sizes. The collection industry pumped over $40 billion back into the economy last year at a time it is desperately needed.  We are the guys putting the money where it belongs, in the hands of the businesses that performed the service. 

After viewing the show on Friday, I felt proud to be a part of American Profit Recovery.

A few weeks back we acknowledged our Collection Awards for 2008. Now its time to recognize the faces you work with on a daily basis - our incredible sales staff. 

Dale - Rookie of the Year

Dale joined our MI APR office in August 2007 and now has over 115 clients.   Dale was chosen for this award for his dedication to our industry and his clients and for being a great leader to our MI team.  Congratulations Dale!

Mike - Rookie of the Year

Mike joined our MA Sales Team in March 2008.  Mike now has over 130 clients.  Mike was also recently promoted to Field Trainer after 10 months for his coaching skills and incredible work ethic.  Congrats Mike!

Andy R - Most Tier II Placements

As Salesperson of the Year for 2005 and 2006, Andy R has an incredible client base.  Because of his excellent training, customer service and desire to get great results for his clients, he was recognized this year for his client’s Tier II placements.  Great job Andy!

Andy Y - Salesperson of the Year

Andy Y joined our MI APR office in March 2006.  Andy was named both Salesperson of the Year (for his 2nd consecutive year) and also recognized for having the most orders in 2008.  He now has over 300 clients nationwide.  Congratulations Andy!

Congratulations also to Jeff D in our Lexington, KY office for your revenue awards in 2008.  Keep it up in 2009.

As always, we are proud of our entire sales staff and the great service they provide to our clients nationwide.  This way our way of recognizing our top few in 2008.  Congratulations and thank you to you all!

A recent survey from Inside ARM, an industry publication serving the collection industry states that many in the collection industry have either laid off staff already or are going to be making cuts in the near future. It states 37 percent of collection agencies surveyed laid off staff in the fourth quarter of 2008. It also says that 27 percent plan on making cuts in early 2009. I guess even this industry is not immune to the current economic climate.

Unless you’re American Profit Recovery. The team here is proud to say that once again, they are bucking a trend as they have no plans to lay off anyone in the near future. In fact they brought on 16 new staff in the fourth quarter of 2008 and APR is currently bringing on a several new members to join the team this quarter. So far, in the past several months, APR has increased staff by close to 20 percent. The company continues to grow as a result of, in my opinion, great leadership and a forward thinking team.

One other clear reason APR is growing is the fact that they offer their Tier I, Flat-Fee system. As times get tough, many businesses are looking for an affordable way to collect on past due accounts without spending a large percentage of what’s owed to them in fees. The Tier I system costs an average of $15.00 per account regardless of the amount owed. That in itself has helped this collection agency grow when others are forced to make cuts. More and more businesses are looking for better ways to improve cash flow and improve the performances of their accounts receivables. This is one clear way and it’s a trend being set by APR that is making waves in the collection industry.

The moral of the story? Be Different…

If you ever wanted a case for keeping on top of your receivables and not waiting months before going after late payers, you’ll find the latest report from the Warren Group interesting. The report cites that bankruptcy filings in Massachusetts went up 41 percent in 2008 over 2007. The report also cites there were over 1.1 million bankruptcy filings nationwide in 2008, a bump of over 30 percent over 2007.

So why is it important to stay on top of your receivables and get the ear of your late payers early? Well the above says it all. If you or a collection agency say…American Profit Recovery for instance, can work out a deal early before the consumer declares bankruptcy, you have a far greater chance at recovering your past due debt. A few key tactics will help you accomplish your goals;

First, be flexible. Tough times call for a little flexibility. Work out a payment plan with your customer if necessary. Be nice. While there are some typical types that never pay, some people have fallen on tough times as we all well know. As our own Al Scott says here at American Profit Recovery, you get more with honey.

At American Profit Recovery we are constantly trying to find ways to reward employees for a job well done.  From shirts for hitting certain milestones to trips to Vegas for referring lasting employees, to our annual Employee Week for everyone we’re always trying to help our employees ”Profit From Our Difference!” 

One other annual event is our end of the year awards.  This week I’d like to highlight our winners in Tier II (Our Collectors.)

First, I’d be remiss in mentioning we have an amazing management team who were not eligible to win:  Barry J, Greg D, Mike H and Greg M in MI and Jeff V and Bruce B in NC keep our collection floors running professionally every day. 

This year we were pleased to recognize:

Brian L - Rookie of the Year

Britt - Most Improved

Pat - Most Payments Received

Bob B - Collector of the Year

Congratulations to all of you and to our Co-Rookie of the Year Ervin who’s photo was unavailable. 

In 2008, APR’s Tier II Division alone collected over $6.6 million.  We can’t wait to see what 2009 holds!

So you took my advice http://www.collectionagencyblog.com/?p=124 and requested a free copy of your credit report form one on the National Credit Bureaus.  Now you are probably thinking to yourself “What do I do with this?”. 

The main thing you want to do with this is check the accuracy of the report.  Things to look for may include: 

-         accounts marked delinquent from collection agencies or an origanal creditor

-         credit lines that you may have applied for long ago and have forgotten about

-         requests for credit that you did not initiate (this could mean that are a victim of identity theft)

If you find inaccuracies, you want to get them fixed quickly.  Federal Law allows you to challenge inaccuracies for free.  Contact the Credit Bureau and dispute it.  The Bureau will contact the source of the data and receive a response with in 30 Days.  The bureau will then send you the results of the dispute. 

If you feel that you may be a victim of Identity Fraud you have certain rights.  Find out your rights and course of action at www.consumer.gov/idtheft