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Collection Improvement Program

Collection Improvement Program. Office of Court Administration. Texas Office of Court Administration. State Agency Created in 1977 Chief Justice - Texas Supreme Court Provides Administrative & Technical Support Serves Approximately 2,600 Courts in the State (512) 463-1625. THE ISSUE.

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Collection Improvement Program

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  1. Collection Improvement Program Office of Court Administration

  2. Texas Office of Court Administration • State Agency • Created in 1977 • Chief Justice - Texas Supreme Court • Provides Administrative & Technical Support • Serves Approximately 2,600 Courts in the State • (512) 463-1625

  3. THE ISSUE “Lack of compliance in paying court fines and fees denies a jurisdiction revenue and, more important, calls into question the authority and effectiveness of the court and the justice system.”

  4. Five-Part Presentation • The Concept of Change • Origins of the Collection Improvement Program • Collections Tools & Technology • Selecting A Vendor • The Real Issue

  5. “In Order to Grow We Must Make A Conscious Decision to CHANGE!”

  6. “Change is often not easily embraced but is almost always inevitable.” • ATTITUDE • KNOWLEDGE • TIME • HAM FACTOR

  7. Quotation Station Not everything that is faced can be changed, but nothing can be changed until it is faced. -James Baldwin “You can't stop change from coming, you can only usher it in and work out the terms. If you're smart and a little lucky, you can make it your friend.” -Barack Obama

  8. GENESIS Dallas County Collections Program

  9. 1992 Cases Receiving Payouts

  10. Findings • 51% of all money owed was outstanding, either with a warrant or just uncollected. • If the money wasn’t collected in the first 90 days, usually not collected!

  11. Current - 60 Days 60 - 180 Days 180 Days plus 25 % Collected 65 % Collected (Warrant) 10 % Collected Court Collections

  12. Current - 30 Days 31 - 60 Days 61 - 120 Days 120 Days Plus 85% Collected 10% Collected 3% Collected 2% Collected - Charge Off/Write Off Private Sector Account Management

  13. Proactive Enforcement Plan and Procedure

  14. OCA’S VOLUNTARY PROGRAMS • The Office of Court Administration (OCA) became involved in the search for a solution to this issue in the mid-1990s. • By the end of the decade the agency had adopted a collections model based on the program used in Dallas County, which employs proactive, private sector techniques with great success.

  15. 2005 Senate Bill 1863Collection Improvement Programs (78) 79th Legislature • Counties 50,000 54 • Cities 100,000 24 • Half by 04/06 • Half by 04/07

  16. Major Components • Requires specific “in-house” management of current cases as outlined by OCA • Requires strict management of delinquent cases which may include outsourcing • Annual program reports • Punitive measures for non-compliance

  17. Pre-Appearance Appearance Non-Compliance/Default Pre-Capias Pro Fine Post Capias Pro Fine Phone Calls Notices (letters/postcards) Warrants Amnesty Programs Warrant Round Ups Non-renewal of DL Denial of Vehicle Reg. Civil Remedies Collection Windows & Remedies

  18. Collection Tools Courtesy Cards Warning Calls Applications Warning Cards Interviews Warrant Calls

  19. Collection ToolsStatutory • DL Suspension • Vehicle Registration Denial • Recreational License Suspension • Professional License Suspension • Wage Attachment • Commissary Account Attachment • Tax Refund Intercept

  20. Collection ToolsInternet Services • usps.com • whitepages.com • accurint.com • masterfiles.com • nstn.net • publicdata.com • zabasearch.com • phonevalidator.com • freetranslator.com

  21. Phone Evolution Contact Progressive Dialing Predictive Dialing Up Date Records Electronic Payment Voice Mail Scheduler

  22. Vendor’s System Payment Innovations Credit Cards , Kiosk, Electronic Transfer, Remote • Consumer makes contact • On line • By phone • In person • Store Front Payment is received and transmitted electronically Posts to Customer File • Direct Deposit to bank or ACH • On site printed funds check • Recap Report-Next Business Day via • Fax • E-mail • Web Reporter Validation System

  23. Discovery Strategy Implementation Evaluation Find out where you really are. Develop a plan to put you where you want to (should) be. Just Do It! Don’t be afraid to make changes. Action Plan

  24. How much is uncollected? How do collections compare with assessments? Do WE have a problem or an opportunity? Establishing Local NeedThree Questions

  25. Finance Office Budget Office Auditor’s Office Court Administration Financial Records Establishing Local NeedFollow the Money

  26. Enforcement Model “Key Elements” • Staff or staff time dedicated to collection activities. • Expectation that all court costs, fees, and fines are generally due at the time of sentencing or pleading. • In most cases, defendants unable to pay in full on the day of sentencing or pleading are required to complete an application for extension of time to pay. • Application information is verified and evaluated to establish an appropriate payment plan for the defendant.

  27. Enforcement Model “Key Elements” • Payment terms are usually strict (e.g., 50% of the total amount due must be paid within 48 hours; 80% within 30 days; and 100% within 60 days). • Alternative enforcement options (e.g., community service) are available for those who do not qualify for a payment plan. • Defendants are closely monitored for compliance, and action is taken promptly for non-compliance. Actions include telephone contact, letter notification, and possible issuance of warrant.

  28. Enforcement Model “Key Elements” • A county or city may contract with a private attorney or a public or private vendor for the provision of collection services on delinquent cases (61+ days), after in-house collection efforts are exhausted. • Application of statutorily permitted collection remedies, such as programs for non-renewal of driver’s license or vehicle registration. • Issuance and service of warrants, as appropriate.

  29. Three C’s of Enforcement • Control – Required to manage. • Contact - Required to connect. • Consistency – Required to conclude.

  30. $100,000 (65-90%) 60,000 (60%) - 6,000 (Less Cost) +12,000 (30% of $40K Uncollected) $ 66,000 (Net Revenue) Outsourcing As A Tool

  31. IT WORKS BETTER TOGETHER

  32. Selecting A Vendor • Initiating the Process • Always begin with a Request for Information (RFI). • Use the information from the RFI to create a Request for Proposal (RFP). • Use both to narrow the list of Candidates.

  33. Selecting A Vendor • Vetting Process • Well Documented Industry Credentials • Valid Licensing in All States • Specific Case Expertise & Work Plan • Background Checks & Staff Training

  34. Selecting A Vendor • Vetting Process • Existing & Prior Client List/References • Require In-Person Finalist Presentations • Visit the Selected Vendor’s Facility

  35. Selecting A Vendor Research Complaints & Legal Actions • - Better Business Bureau • - www.RipOffReport.com • - www.Complaints.com • - www.Google.com

  36. Selecting A Vendor • Contracts • Write Your Own “Customized” to Fit Your Needs. • Payments to Court, to Agency or to BOTH… • Capabilities & Methods Supported • * Credit & Debit Cards • * Cash, Checks & Money Orders • * Western Union, MoneyGram & Others • * Online, Phone, Mail & In-Person • Remittance Procedures • - Frequency & Methodology (ACH or Check)

  37. Selecting A Vendor • Other Considerations • Skip Tracing Processes & Procedures • Recording & Archiving of Calls • Insurance Coverage & Surety Bonds • IT Capacity & Internal Infrastructure • Online Access to Reports & Case Data • Business Continuity/Disaster Recovery Plans

  38. Selecting A Vendor Emerging Industry Trends • Selling Obligations to Private Sector Firms • Using Primary & Secondary Vendors • Incentives for Guaranteed Returns. • Penalties for Failure to Meet Target Recovery Rates.

  39. Common Plan Issues • Uniform Collection Policy • Program/Project Supervision & Management • Targets & Goals • Participation • Staff selection, criteria, qualifications • Functional Logistics- physical location(s), furniture, equipment, forms, supplies, etc. • Funding and/or Budget Issues

  40. Keys to Success • Judicial Understanding & Commitment • Simplicity (kiss) • Internal Communication & Cooperation • Quality Staffing • Investment in & Efficient Use of Technology

  41. With A Single Step Jim Lehman Office of Court Administration 205 West 14th Street, Suite 600 Austin, Texas 78701 (512) 936-0991 jim.lehman@courts.state.tx.us Russ Duncan Compliance/Collections Specialist FLCCOC–2541-1 Barrington Circle Tallahassee, Florida 32308 (352) 503-7490 rduncan34@tampabay.rr.com

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