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New Account Verification, this has become a little more complicated with the present regulations and with regulations changing all the time. This week, a Credit Union showed me some papers mailed to the CU requesting a new account. The application was printed from their website. The President asked me to run some reports to confirm their thoughts. The papers were for a Phillip M. The social security number passed OFAC and so did the name. The address failed and so did the birth date.

Verification tools are offered on our website www.skip-trace-solutions.com. I used a simple “People Search” and verified the social belongs to a man in TN. “Drivers License Verifier” shows the name and address do not match. Finally a “Reverse Address” verification showed the address is a business address in Brooklyn, NY with three businesses and three different names and telephone numbers. Okay, this was too easy. The US Postal Money Order included in the envelope appears legitimate. The big give away, the applicant claimed to be related to the Operations Manager!

The verification process is so vital. Fraud through bogus accounts constantly plagues our industry. Examine your new account opening procedures. Make sure you have the tools you need. What could have happened here? He may have attempted a bogus check deposit at a shared branch and a quick withdrawal. Glad this CU will never know a loss on this bogus applicant.

Technorati Tags: fraud, new account verification, skip trace tools

As the months pass it becomes more than obvious, the average consumer is struggling. This has reflected in my workload as I feel certain it has in most every area of collections. So much so, that in recent months I have needed to make field calls as in years past. True, this is not the most efficient way to reach members. However, it can be effective. Though I have clearly made hundreds of visits to people’s homes, I take it serious every time. Anything can happen!            

You may not be able to make personal visits due to the location of your member, but if you do; I have listed below some guidelines and safety tips for this part of collections.

·    Plan your route with maps and account notes and copies of titles, if needed. Leave a list of stops with someone in the office. At a minimum, tell them where you are going and what time you should be back. Make sure they have your cell phone number.

· Take plain white envelopes to leave messages at the home. Also take plain white note paper. When leaving an envelope with a note, write the member’s name on it with the words “personal, private” in the bottom left corner. 

·   DO NOT LEAVE BUSINESS CARDS just stuck in a door. Especially, if your title is on it. Always put a note or card in an plain white non-see through, envelope. 

· Take a charged cell phone. I started when cell phones did not exist. I had to call in at pay phones! (they were a dime in most places..)

· Approach a home slowly and watchfully. Do not run toward a house, it may startle the people inside.

· Always Smile when talking to the person who answers the door. It puts them at ease.

· As with the phone, ask for the member by first name only-Hey, is Greg in?

· Listen and ask only pertinent questions. Do not appear nosey.

· Be respectful, say “Yes” and “Thank you” and “No, Ma’am”, and “Yes, Sir”!

· Do not mention that your member is past due on a loan when speaking to a third party. If asked, “Why are you here?”, you may say something like; “Well, Tom has personal business with our Credit Union and I need to speak to him.”

· Do not block people in when you park. This can appear aggressive. The exception would be if you are repossessing and the unit is there. I have parked behind the car that I want to secure. 

· If there is no one home, be cautious about going to the back of the home. Neighbors talk.

· If no one is home and there is doubt about the member still living there, consider going to a neighbor to verify residence. Do not say where you are from, just say something like, “Hey, I rang the door bell and no one answered, do you know if Billy is home?” Then just listen. Most neighbors love to talk.

· As with any visit to a member’s home, if you feel unsafe leave.

· Do not stare into windows, this can be seen as invasive. And- that’s right- neighbors talk. Especially about unknown visitors.

· Have some identification that you work for the CU in case you are stopped by authorities.

Technorati Tags: Field Calls, procedures, safety

Welcome! As the work load increases and the economy shows no signs of improvement, I find myself required to take up the practice of making personal visits or “field calls”, as in years past. This sometimes will lead to repossessions. The following is an account of a repossession I was a part of in NC.                         

Wrecker for Your Needs

On Wednesday, I participated in a self-help repossession. It is legal in NC and used very frequently. This case was a bit unusual. The Manager of the CU was directly involved due to the ongoing relationship with the parents of the member. This member/debtor was past due on a 2006 Nissan Altima. There were several phone calls to the member, several trips to the home where the member lived with her parents, to obtain payment or a valid promise to pay. Finally, after realizing the member was not able or willing to pay full monthly payments and that the parents were not a resource for this member, the decision was made to repossess the unit. The loan was four months past due, the broken promises were adding up. Also, the sources of any help were already exhausted for the member.

We arrived at the home and knocked on the door several times. The parents were working, the member we suspected was asleep. We called her cell phone to attempt to wake her. Nothing we did could wake her. We called a wrecker and he loaded the unit with no word from the member inside.

When we arrived at the CU, we called the county sheriff to report the repossession. We called the mother to let her know and to ask for a key. We then inventoried the unit and typed out the list. The inventory was signed by the two people that emptied the unit. The items were boxed and secured in the CU. The father brought us the key and he signed for the belongings. We notified him of certain valuables in the box and thanked him for the key. We moved the unit to be in view of the security cameras at all times.

Later that day, we received a call from the member asking what she could do to get the car back. She was shocked that we could come take the car with her things in it. She admitted she was asleep and did not hear us knocking. We told her she would have 10 days to secure a pay-off for the loan. In this case, we would not accept just the past due amount.  If she paid the loan in full, we would then return the unit to her. She was again not aware that we could request a full pay-off of the loan.   

Key things to remember when performing self-help repossession:

• Plan your visits during the “safest” hours of the day.
• When possible, send two employees to pick-up the unit.
• If the unit was financed new, see of you can obtain a key that is cut from the key code. Calling the dealer and faxing a copy of the title can usually prove your lien and get the code or the key cut.
• If you must send only one person, make sure the person leaves a list and copies of map(s) to show their expected route and time of return.
• Also, take a fully charged cell phone.
• Find the telephone numbers for wreckers ahead of time and call them to see who would be available when you need them, put them on standby.
• Take gloves, pen, paper and trash bags. You may have to inventory the unit before you come back to the office.
• Take a screwdriver with both kinds of heads for taking off the license plate.
• Take a camera with batteries and film, (if film is needed).
• FInd the non-emergency number for the local authority and put it in your cell phone.
• Be prepared to pick-up the unit and be prepared to leave it. If the situation gets dangerous- leave and consider sending someone else after dark. If you “breach the peace”, you must leave.
• If the member is home, but asks you to leave- then leave, quietly. No questions asked.
• If the member is not home and a relative or neighbor asks you to leave- then leave. Do not risk confrontation especially on private property.
• Do not look in windows or doors for more than a mere glance. Anything more can be construed wrongly and could result in trouble.
• Stay away from dogs unless the owner is present. Do not reach down to pet a strange dog. I have heard of repo men taking dog biscuits to help in tight spots!
• Do not take a gun for any reason. Should not have to mention this, but a wrecker driver for me showed up with a gun one day and asked me to hold it. He said shoot anyone who comes out the door. I told him I would not and handed the gun back to him!!!
• Remember, no car is worth you safety or your life! If you feel danger- leave.

Technorati Tags: repossession, safety, self-help

Welcome! This post reflects on the 341 meeting I attended in Charlotte on Wednesday, August 27, 2008. The location was different from last week and this was a chapter 7 meeting. The location was ACROSS from the Federal Courthouse. First picture is the courthouse at 400 Trade St. That was easy to find.

Federal Courthouse Charlotte, NC

The location for the meeting was actually across from the courthouse and was not as obvious. It was marked but not a large entrance at all. It was very nice inside. There was a security gate, but the x-ray machine conveyor was broken. This held things up a bit. There were two men fulfilling the Trustee duties. The first arrived after I did and carried a big box of files. He was the attorney for the members in our case. I introduced myself, and he said we would have to wait until after the hearing to discuss our case.

402 W. Trade St. Charlotte, NC

The members had filed their bankruptcy during a workout agreement we had with them. It was a bit sticky, because we had no signed loan modifications. This was not procedure, but things happen sometimes that we need to work around. There were two vehicles loans – each 1999 models. My only question during the hearing was to ask the members if they had intentions to reaffirm their loans. They said – yes. I wanted that on the records, though I knew they wanted to pay. After the member’s attorney had finished his part of the meeting, we proceeded to conference room. He talked to his clients first, then brought me in to the room. The attorney asked about the signed documents, I said there were none for the last payment adjustment. We had discussed previously the options for payments, and he had talked to the members before I went into the room. After making it clear that the members would be struggling to pay $200/month for each loan, I accepted that arrangement, and we completed  loan modifications with the attorney’s blessing. We will forward official reaffirmations to the attorney, and he will have no problem with the loans being paid. So, what did I learn? When facing a situation like the one we were in with no signed documents or some other error, talk to the attorney BEFORE the 341 hearing and discuss options. Do not wait and spring demands or surprises on the attorney. You get further that way. I had taken time to fax amortization schedules to the attorney to explain to him that the present payment amount will not pay-off the loan in a reasonable time frame. He quickly agreed. Remember the member’s attorney has to sign that he agrees that the reaffirmation will not place “undue burden” on the member/debtor or their dependents. In the words of a very good Credit Union defense attorney in SC, when a mistake is found, be the first to correct it, and it will work out better all the way around.

Technorati Tags: 341 hearing, Bankruptcy, reaffirmation

If you are just viewing this post, be sure to take the time and read the previous post that includes the background to the this case. It will fill in the gaps as I cannot repeat it all here.

After easily finding a place to park, I entered the building. There were no security gates. There was a security guard telling you to turn off your cell phone, if you enter the court room. I was just on time. However, the members and their attorney were not there. I went in to the court just to listen. This was when I saw a man coming to the hearing as a “pro se” filer. (He was his own attorney.) It was not his first time in the court. From what I could understand, he was trying to save at least 2 properties from foreclosure. The Trustee had to tread lightly, as they cannot give legal advice. But, it was so evident he did not have the basics for defending his position or strategy and needed an attorney desperately! If anyone ever comes to you and wants to file pro se; tell them that unless they went to law school, then don’t even need to think about filing. It is way too complicated!

After 35 minutes, they called the case, and the Trustee’s assistant makes the announcement that the case has been delayed due to a conflict with the debtor’s schedule. The case was to be heard at 1:00PM. So, I had a couple of hours. I called a client in the area and learned she was on vacation. So, I just hung-out at a local eating place and spent time on my Blackberry.

The case was not called until about 1:20PM. The member/debtors were present with their attorney. After the swearing in and general info was announced about the case, their attorney made the court aware that the schedule B has to be amended to include the car that the member owns and the father pays for. The Trustee reminded the attorney about schedule “D”, I believe. Then it was my turn. The Trustee asked me to proceed. I began by asking questions about the truck. How many miles are on it? The husband said about 48,750. Was it repaired? “Yes.” As we had been told by their attorney that was in the shop. Where was the damage? “Left wheel” Was it insured? What company and was it full coverage? “Nationwide- full coverage.”

Then I started asking about the vehicle she drives and her father pays for. What value were they going to place on the schedule for it? Their attorney answered, “Kelly Blue Book”. The Trustee was obviously listening and corrected him and said. “Do you mean NADA?” He said, Yes. I added – full retail? He just nodded his head. I asked about insurance and who paid for it and other such things. The answers were now coming only from the wife and she was getting more snooty by the minute.

Two days previous, a teller had allowed the wife to cash a $50 check drawn on the account of another member. She brought it to me and I asked for a copy. The check said “Child care” in the bottom left. I emailed our attorney and he said “There is a clause in the code that states if there is any income revealed within 45 days of the petition that was not disclosed previously, then the petition must be thrown out.” FD I had discussed with the President our strategies. She agreed that we should at least ask. So, I began by saying the two days previous she had cashed a check for $50 at the CU and the notation was “child care”. She immediately rolled hers eyes and huffed. I asked her if she kept children in her home? At that point, she launched into a dissertation about the check and how she kept one child for one day and all kinds of other stuff. It was not a regular thing and she has three of her own to keep! Her voice was climbing in volume, and I knew the next question would not help. The Trustee must have believed her, and we went on to the next issue.

When we asked her attorney initially about the second car, he said that he could not get in touch with his clients, “They are on vacation.” So, I told her that her attorney had told us they had gone on vacation. I asked her how long were they gone? Did anyone go with them? And who paid for it? She was very huffy at this point. They had been gone for a week, and her sister’s family went with them and her Daddy paid for it! Well, by that time she was rambling, and I held my hand up to stop her and told her I was only asking the questions.

The Trustee took over from here. But, I had one more question. So I interrupted, I asked her attorney if we could inspect both units and take pictures for the file some time the following week. He sheepishly said – yes. At the end of the hearing, I did not stay around for chatting, I left.

If all this sounds strange, let me give you my perspective. Read the rest of this entry »

Technorati Tags: "pro se', 341 hearings, Bankruptcy, chapter 13

As mentioned, I attended a 341 hearing on Thursday, in Charlotte, NC. The photo is the building at 4600 Park Rd. where the meeting was held. It was a re-purposed office area that was made to fit the need. This was my first time attending a meeting in that building. The work area was functional for the case load scheduled for that day….

4600 Park Rd. Charlotte, NC

First, a little background is needed for this case. Do you have some members that seem to have more situations than others? Things can go right, but then some things can go wrong in a hurry! That is the case here. This couple had been severely delinquent on two vehicle loans, a personal loan and an overdraft loan. After several broken promises, you know “the 401K loan has been delayed”.. we will pay some next week… You have all heard them.. We sent a repo agent to their home to recover both vehicles. He picked up one and said the member told them they were filing bankruptcy and hiding the truck until they get a case number. Read the rest of this entry »

Technorati Tags: attorneys, Bankruptcy, repossessions