Alliance Collection Service, Inc.
1-888-764-3449
www.alliancecollectionservice.com
February 2009
Inside this Newsletter
1 2009 Collection Climate
“Tidal Wave Approaching”
2 Children Helped Through
the Shepherd’s Hands and
You
3 The Refinance Boom
4 Alliance Collection Service,
Inc. Honored as One of Top
50 Places to Work in
Mississippi
5 Valentine’s Day Quotes
2009 COLLECTION CLIMATE
“Tidal Wave Approaching”
We have done a tremendous amount of
research over the past eight weeks, and
there are two things that I believe all 6,500
or so agencies in the U.S. can agree upon.
The first is that the amount placed with
collection agencies in 2009 will skyrocket,
and the second is, that with employment
numbers falling, recovery amounts will
follow suit in a dramatic way.
When you ask any agency “What are you
doing to offset this downward trend in
recovery?” you will almost always hear
something along the lines of “We are going
to work with debtors,” which, translated,
usually means that the agency might
extend payment arrangements for a few
extra months or will likely increase the
number of lawsuits filed. This answer
misses the mark, in my opinion, as it
pertains to the creditor.
With credit lines limited or frozen at
increasing rates and access to capital, or
cash, that the creditor needs to keep their
doors open becomes more limited, any
form of income that was previously seen as
trivial now becomes critical. This is
especially true with bad debt AR. Clients
or creditors will have to look to their bad
debt as a source of income more than ever
in 2009, and this presents a problem of
monumental proportions for them.
We have seen, over the past 120 days, a
huge shift in the mindset of the nation.
Simply put, if you can possibly be
considered by anyone to be a member of
“corporate America”, you have a target not
on your back, but centered squarely on
your chest. The media, the population, and
the government have placed the blame for
America’s economic troubles at the feet of
corporate America, and in some cases,
rightfully so; however, as Jesse Hamby
points out, the real reason for our woes is a
lack of economic responsibility at every
level, not just at the top. But, we needed a
face to put with the crime when the
mortgage crisis hit, Wall Street began to
crumble, Fannie Mae and Freddie Mac hit
bottom, and the economy tanked. The
problem was we never got that face, even
though the politicians promised us they
would get to the bottom of it. The best
they could do was to embarrass the Detroit
three for flying in corporate jets and then
vote themselves a pay raise. But one thing
is sure, if you can be remotely considered a
“bad corporate citizen”, you are going to
be dragged through the mud whether you
deserve it or not, that is unless you are a
member of the Senate or of Congress.
Put these two points together, and you can
see that using anything remotely
resembling brutal collection tactics to
collect much needed bad debt can produce
potentially catastrophic consequences for
the leadership of any company or practice.
We must collect that money, but we cannot
afford to ignore the PR fallout if it is not
done correctly.
ACS has begun a campaign to inform
consumers of the coming tidal wave of
collection agency calls and what to do
should they get a call. We hope to get the
point across to every American that the
best way to deal with a collection agency is
to call you, the creditor, before the account
is considered delinquent. We believe that
this will not only help the general
population to remain calm during troubled
times, but will also help you to collect your
accounts in-house with greater success
rates. Once debtors begin to get calls from
multiple agencies, we have a better
opportunity to keep the all-important line
of communication open, which should
result in higher collections and customer
retention. This is just one way we at ACS
are working to do more for you than just
collect money.
Ken Dulaney
Sales and Marketing Director
Alliance Collection Service, Inc.
CHILDREN HELPED
THROUGH THE SHEPHERD’S
HANDS AND YOU
In December, 2008, The Shepherd’s
Hands charity distributed money to
the Tupelo Children’s Mansion and
to The Alpha House for Boys, both
located in Tupelo, Mississippi. The
money was raised through the
efforts of volunteers who conducted
The Shepherd’s Hands annual golf
tournament in September, 2008.
Mr. Tony Palmer of Alliance
Collection Service, Inc. and Board
Member of The Shepherd’s Hands
delivered the much needed funds to
both organizations. Many of ACSI’s
clients sponsor this event each year.
We wanted you to see where the
money goes. Thank you for helping
us help these children who have a
tremendous need.
THE REFINANCE BOOM
As many of you know, I often use this
segment of the newsletter to inform our
readers on topics related to the mortgage
and credit industry. Therefore, this month I
want to touch on a subject that I have been
asked about over and over again in the past
few weeks. Do I refinance my house right
now or not?
If there is one silver lining to the historic
financial crisis we are currently
experiencing, it is that interest rates have
never been lower. The lowering of interest
rates is one of the most powerful tools the
Feds have right now. That means that rates
on home loans have fallen to levels hardly
imagined a few years ago. However, this
doesn’t mean everyone who is solicited by
a mortgage company or a bank to refinance
should take that step. The current refi
boom doesn’t make sense for everyone.
Here are a few things to keep in mind
while evaluating whether or not a home
refinance is right for you.
1.
2.
3.
Not everyone will have the credit
score to qualify for the teaser
rates you see advertised. This is
one of those areas where you
really need to read the fine print.
While it is true there are some
incredibly low rates out there
right now, it is also a fact that
millions of people have taken a
hit to their credit score in recent
months and, therefore, will not
qualify for 5.25% fixed rates.
Don’t get yourself into a “bait
and switch” situation. Often
times these low rates get you in
the door, but then disappear once
your credit score comes back.
If you currently have an
adjustable rate mortgage or
ARM, it will be worth your time
to check out your possibilities.
These adjustable rates are one of
the reasons millions of
Americans are struggling to
make their mortgage payments.
They are bad news and should be
avoided. However, if you
currently have a reasonably low
fixed rate mortgage, it is
important that you spend time to
evaluate just how much financial
benefit you will get from a refi.
Carefully calculate all costs
involved in doing the loan before
you make the decision.
Don’t be fooled by mass mailers
that look like they come from the
federal government or FHA. This
is not to say that you couldn’t get
a correspondence from the
Federal Housing Authority, but
that would be a rarity. More
often than not, these mailers are
from a mortgage company or
bank and they just use the FHA
logo to make it look official. The
truth is, we all have access to
FHA loans if we meet the
requirements. Any bank or
mortgage company that is
certified to make FHA loans can
help you with this. Don’t be
fooled in to believing that only
one or two companies have
access to these programs. The
government doesn’t endorse
particular mortgage companies
for these loans
4.
Equity is king! In a housing
market that is still falling, be
aware that your home may have
actually decreased in value since
your last appraisal. The closer
your loan amount is to the full
value of your home, the higher
the interest rate. The banks are
taking more of a foreclosure risk
and they will pass that risk along
to you. Try and have a good idea
about what your home is worth
before even starting down this
road.
Not all loans are created equally. Do your
research, and always ask a lot of questions.
Like I often say, if it looks too good to be
true, it probably is.
Jesse Hamby
Tennessee Sales Director
Alliance Collection Service, Inc.
ALLIANCE COLLECTION
SERVICE, INC. HONORED AS
ONE OF TOP 50 PLACES TO
WORK IN MISSISSIPPI
“Being selected as one of the best places to
work in the entire state is a great honor.
This award is a testament to the efforts of
our management team to provide a safe,
comfortable environment to all our
employees and to provide practical benefits
to enhance productivity and minimize
stress. Our current management staff
includes Haley McLemore, CFO, of
Amory, MS; Ken Dulaney, Sales and
Marketing Director, of Belmont, MS; and
Tony Palmer, Director of Collections, of
Saltillo, MS. I am pleased with the attitude
of our staff and their constant search for
ways to make our company a “best place to
work,” said Mr. Chambers.
Ken Dulaney
Sales and Marketing Director
Alliance Collection Service, Inc.
VALENTINE’S DAY:
QUOTATIONS
The best and most beautiful things in the
world cannot be seen or even touched.
They must be felt with the heart
-Helen Keller
My bounty is as boundless as the sea,
My love as deep; the more I give to thee,
The more I have, for both are infinite.
-William Shakespeare
How do I love thee? Let me count the
ways
-Elizabeth Barrett Browning
Alliance Collection Service, Inc. was
honored on January 14, 2009, in Jackson,
MS, as one of 50 companies chosen as
“Best Places to Work In Mississippi 2009”
by the Mississippi Business Journal.
Jeff Chambers of Monroe County, and
President of Alliance Collection Service,
Inc., accepted the award for the company at
a breakfast during the Mississippi Trade
Mart in Jackson, Mississippi. ACSI was
founded by Mr. Chambers in 1995 and
chosen to receive the award after a
stringent selection process was completed.
The company has worked over the past
fourteen years to become a leader in the
collection industry. They are currently
working to educate the citizenship of North
Mississippi on the upcoming wave of
collection activity due to the economic
crisis nationally. They stand out because
they are working to change the way
collections are done and set the example by
treating consumers fairly and with respect
and dignity.
The FAR SIDE / Source: Google
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