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Collection FAQ:

Why use a collection agency?
Debtors will often pay a collection agency even though they never cooperated with the original creditor, mainly because collection agencies typically increase the psychological anxiety associated with a debt. Second, the debtor will understand that the creditor is serious about collecting their money. Also, many debtors are wary of the impact that a collection account can have on their credit score.

What are your overall collection success rates?
There are several variables that will influence recovery rates: the age of the debt is arguably the most important factor. The older the debt is, the lower the chance of recovery. Other important variables include: industry, balance, documentation, demographics and type of debt (commercial/consumer/medical/NSF checks, etc.).

How quickly will you collect my money?
Claims are entered within the first 24 hours and the first collection notice is mailed immediately thereafter. This notice is followed up with subsequent phone calls and additional letters. Some debts are collected in the first 2-3 days while others may take up to 2 or 3 years! There are skips (cannot locate debtor), debtors who dispute the debt and debtors who are simply uncooperative.

Communication is very important to me. What type of reporting do you offer?
KCS offers many different reports to our clients. We have a custom case management system that can create many custom reports based on the needs of the client. Our most popular reporting package includes: MONTHLY debtor activity report, actuary report and a monthly payment report.

What if my debtor disputes the debt or simply refuses to pay?
If the debtor disputes the debt, KCS will provide them with verification of the debt, which typically consists of the documentation initially provided by the client. On occasion and depending on the dispute, KCS may have to request additional documentation from you, the client, in order to properly verify the debt. If the debtor simply refuses to pay, we will review the file to determine if litigation is advisable and upon client approval, we will forward the file to collection counsel. Relevant factors to consider prior to commencing litigation include: good documentation, balance, cost of litigation and a good address to serve the debtor with the lawsuit. If a file is not considered "suit worthy", you may still request that we report the debt to the credit bureaus.

Does KCS handle my claims all the way through the collection process, including legal?
Yes. KCS will attempt to recover your debt in-house. In the event litigation becomes necessary, KCS belongs to a national network of collection attorneys to whom we will forward your files upon your authorization. We will also keep you updated as to the progress made by the attorneys who are working on your behalf. Our clients appreciate the fact that we take care of everything throughout the collection process, especially the legal process since many people are not familiar with the complexities involved in a lawsuit.

How important is the age of a debt?
The age of a delinquent account is one of the biggest factors in determining whether or not a debt gets paid. The older the debt, the harder it is to collect. Research on the collect ability of delinquent accounts clearly shows that the most advantageous time to enlist the services of a collection agency is within 60-90 days of the invoice due date. Incorporating this strategy will help ensure maximum recoveries with the least cost to your company.

My Company is very customer oriented. Can you collect without damaging goodwill or jeopardizing future relationships with our clients?
Yes, we can. At KCS, we don't adopt a "cookie cutter" approach to collections. Many of our clients give us specific instructions as to how to proceed against their customers. We realize that today's slow-paying customer can often be converted into tomorrow's good-paying customer with the right amount of collection follow-up, which is why KCS endeavors to collect while attempting to salvage the business relationship between our client and their customer.

How do I become a client of KCS?
We have included our standard consumer and commercial collections services agreements in Word format for your perusal and authorization. These agreements do not mean that you are obligated to make all of your placements with KCS. Rather, they exist in order to explain what we intend to do for you, our client, and what we expect you to do for KCS. It's basically a mini rulebook governing our relationship.

I'm interested in placing multiple accounts. Do I have to fill out one placement form at a time or can I place in mass?
We provide the online placement forms for those clients that have one or several claims to place, but for those clients with heavy volume, we can receive their placements via fax, mail, electronic medium, E-mail or FTP. Our new enhanced website easily accommodates those clients with large volume placements.

Does your company charge an annual fee?
Good news. There is no annual fee for our services. In fact, since our fees are generated solely upon collections, you don't pay unless we collect.

If I decide to use your services, how do I get started?
Claim placement is a snap with KCS once you have authorized the appropriate collection services agreement. Simply click on the appropriate claim placement form (consumer and commercial) and fill it out as indicated. Should you have the need to process many claims, we can establish an account number and password for you, thus enabling you to place directly on-line with us. Once an account is placed, KCS commences services immediately.

What information would you need from me in order to get started?
After obtaining your company's name, address, fax, phone and E-mail address, we would require the debtor's contact information; name, address, phone numbers, total amount owing and its due date. This information is sufficient for us to commence collection activity against your debtor. However, relative to collections, knowledge is power. The more information we possess concerning the obligation, the easier it is to dissolve objections and effect payment.

What is your process for collection?
Once a claim is forwarded to KCS and booked for processing, first contact is initiated within 24 hours. Our efforts continue through a series of impact letters and timely phone contacts until the account is resolved by one of the following outcomes occurring: payment in full, payment arrangements made, settlement made, litigation necessary or efforts exhausted.


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