 |
| September/October 2008 |
| Features |
2008 Technology Buyer's Guide
Compiled by Elizabeth Hart
The ANNUAL TECHNOLOGY BUYER'S GUIDE on the subsequent pages lists 18 different packages for collection agencies, attorneys and other bankruptcy professionals. The listings were compiled by asking vendors who appeared in our 2007 Buyer's Guide to update their listing as well as inviting additional companies to participate.
The listings should not in any way be considered product reviews. No attempt has been made to evaluate the packages. Instead, the reader should consider these listings as a starting point to a more detailed examination. Space limitations constrain the amount of information that can be included in the listing, therefore additional information can be obtained by contacting the vendor directly.
The listings are alphabetical by vendor, with product name immediately following each vendor name. For reader convenience, we have added a vendor comparison chart. Here, we list those characteristics that will educate the reader about the kinds of capabilities that are available, and allow the reader to narrow down the search.
HARDWARE ENVIRONMENT indicates the type of hardware the system runs on.
SOFTWARE ENVIRONMENT lists the operating system, programming language, or underlying database management system.
Under PRODUCT CAPABILITIES, the listings describe how the software is implemented and its features. Vendors were given the opportunity in this section to provide product information that they would like the reader to see.
INTERFACES TO OTHER SOFTWARE includes some other major applications with which the product interfaces, e.g. Accounting Packages, EDI Applications.
PRICING is listed for the software only, unless otherwise indicated.
Perhaps a note on the economics of software development and support is in order here. Generally, the smaller the market niche, the higher the price, since development costs cannot be spread over larger numbers of units sold. While price is an important consideration, cost effectiveness must be the guiding principle in any purchase.
MAINTENANCE/UPGRADES indicate how the vendor keeps products that are already in users' hands up to date. Most vendors offer some sort of monthly or annual contract for maintenance and a preferential purchase price for upgrades or enhancements.
TRAINING/SUPPORT are key purchase considerations. How much is offered seems to be directly related to the complexity of the software, size of the vendor's staff, and the price of the software. Most vendors offer customization programming services; some have listed the hourly rate here.
DATE FIRST INSTALLED should be considered in concert with the number of current installations to gauge the vendor's commitment to his or her marketplace.
Finally, FOR MORE INFORMATION is self-evident. We have included e-mail and Web site addresses.
Abacus Data Systems
Product Name: AbacusLaw
Designed for: Bankruptcy Professionals: attorneys
Number of users/volume: Licensed per user (valuable for entire staff)
Hardware environment: PCs and network servers
Software environment: Windows and Netware
Product capabilities: AbacusLaw for time, billing, accounting, clients, calendars, cases, auto-filing court forms, conflict checking and more. Enter data once, use it for everything. Each client and case record can be linked to related emails, notes, forms, docs, etc. for quick and reliable access. Free demo and a "no obligation" quote.
Interfaces/other software programs: PDA's, iPhones, etc.
Pricing: Varies by product and options.
Maintenance: See support
Upgrades: Discount to existing customers.
Training: Online, by telephone/Internet, on-site, conference workshops.
Support: Annual, includes free online training modules and live telephone tech support.
Date First Installed: 1983
Number of current installations: Thousands of law firms
For more information, contact:
Any Abacus sales consultant
Abacus Data Systems
9191 Towne Centre Drive
Suite 180
San Diego, CA 92122
Phone: 800-726-3339
Fax: 858-452-2073
Email: sales@abacuslaw.com
Website: www.abacuslaw.com
American Software & Computers, Inc.
Product Name: CreditStar®
Designed for: Hardware
Hardware environment: Windows-NT PC's, VISTA, 2003 R-2
Software environment: Windows- NT, 2000
Product capabilities: CreditStar is finance management software package designed to give small and medium sized businesses the same lending power as the big com-panies. CreditStar gives your business the advantages of proper Risk Management, Credit Bureau access and monthly reporting, account monitoring, and Communications, Account Performance Rating, Collections, and 56 Management Reports. CreditStar offers Monthly Statements, ACH features, Communication Log entries, tracking Promise-to-Pay dates, automatic interest and late fees when earned. There are several levels of user permissions and login security. With CreditStar, financing can be your most profitable department. CreditStar is sold in modules, including Revolving, Installment Accounts, Credit Bureau, Collections and Letter Writing. Select only those needed and add more anytime. CreditStar is remarkably user friendly with drop down instructions and bubble guides. With CreditStar's advanced automation features, one User can manage over 2000 accounts. Interfaces/other software programs: Feature that allows user to create and merge documents in Word and WordPerfect®; Feature that allows creditors to be imported from and exported to spreadsheet or database applications.
Pricing: CreditStar operations module-$4500; additional modules $2800
Maintenance: $1500 yearly maintenance contract per call.
Upgrades: Included in maintenance contract.
Training: No charge in-house, onsite with a fee.
Support: Included in maintenance contract or per call.
Date First Installed: 1990
For more information, contact:
*Online Live Demo
Richard M. Hadad, President
Jeff Brody, VP Development
American Software &
Computers, Inc.
9613 Menaul, NE
Albuquerque, NM 87112
Phone: 505-293-6362 or
500-617-8271
Fax: 505-293-3380
Website: www.amsoftco.com
Automated Collection Control, Inc. (YouveGotClaims)
Product Name: YouveGotClaims
Designed for: All Debt Recovery Specialists-Agencies, Debt Buyers, Direct Creditors, Support Companies (process servers, skiptracers, etc.).
Hardware environment: Any computer with internet access.
Software environment: The ability to import and export data.
Product capabilities: Automated Collection Control, Inc provides the debt collection industry data delivery and data management tools for companies that outsource accounts for servicing by others-to attorneys, collection agencies, and others. Our flagship service is YouveGotClaims. Using the YouveGotClaims (YGC) data delivery service and management tools, companies are able to electronically place accounts and manage them all from one website. The YGC Data Standard has been accepted as the industry standard. YouveGotClaims is the low-cost solution to connect the client owning debt to the companies and firms collecting their debt. The YGC Data Standard is compatible with most collections software packages, allowing for immediate connectivity between agencies, law firms, and their clients. YGC's Mailman feature securely delivers data in batch, eliminating the need for multiple files for multiple servicers. The YGC DataLink is a web based management reporting system. Users are able to track liquidation, payments, status, and servicer efficiency from one website, 24/7. The ability to manage outsourced accounts from one location increases efficiency and profitability. Our YouveGotDocuments feature is the supplemental mechanism used by creditors and servicers working their collection accounts to electronically transmit, store, and manage the documents accompanying each collection account, thus creating a fully paperless environment. Our newest product, YouCreatedClaims, is a service that allows creditors and their serving collection firms and agencies to manually send new accounts or account updates directly from the web, without collection software. YGC users can also take advantage of our partnership with Fair Issac and makes use of all Scorenet data services (analytics, scoring, skip tracing, etc.). Interfaces/other software programs: YouveGotClaims can process data in the YGC/EDI standard or by a CSV format and is a licensed interface format which is presently available to all major debt collection software vendors.
Pricing: As low as $1.25 per new account sent, depending on volume. Alternative pricing plans are also offered.
Maintenance: $49.00 per month for attorneys and agencies receiving accounts through YGC.
Upgrades: All upgrades/enhancements to the YouveGotClaims EDI standard are available immediately and free of charge.
Training: Training *eSeminar (on YouveGotClaims DataLink) is available via the Internet and free
of charge. On site training and group webinars are also offered, usually free of charge.
Support: Unlimited and free of charge.
Date first introduced: 2000
Number of current installations: Over 425 customers are YGC compatible.
For more information, contact:
Celeste Anderson, Director of Sales
Automated Collection Control, Inc. (YouveGotClaims)
170 Changebridge Rd, Suite D-4
Montville, NJ 07045
Phone: 888-321-3415
Fax: 973-529-0414
E-mail: sales@youvegotclaims.com
Website: www.YouveGotClaims.com
CDS Software
Product Name: CollectOne
Designed for: Collection Agencies: retail & commercial; Collection
Attorneys: retail & commercial
Number of users/volume: 325 users/15,000+ seats
Hardware environment: Client server application that runs on an open database.
Software environment: Oracle/Sybase/MS SQL
Product capabilities: CollectOne is an award-winning, single source debt collection solution that provides a feature-rich set of automated business processes designed to minimize costs and maximize results.
CollectOne provides you with the flexibility to manage multiple debt categories and the scalability to eliminate the necessity of upgrading software applications to meet your growing business needs. Real-time payment processing and an industry leading suite of third party vendor integrations are included without additional investment. Web based connectivity is offered via a secure portal that includes real-time portfolio views and a debtor payment center. Reporting can be customized, scheduled and fully automated using best in class technology. Open Database Connectivity (ODBC) provides a standardized platform and allows for unrestricted accessibility to your database.
Interfaces/other software programs: Skip tracing/Letter outsourcing/Payment processing/Data analysis/Credit reporting/Accounting-All vendor interfaces provided at no additional charge.
Pricing: Based on database selection and user licenses.
Maintenance: All maintenance and enhancements provided at no additional charge under monthly client care agreement.
Upgrades: Please see maintenance response.
Training: Ongoing online and onsite training provided as well as our annual CollectOne User. Conference & Training.
Support: Unlimited technical support from 6:00AM-5:00PM PST Monday through Friday. After hours technical support provided at an additional charge.
Date First Installed: First generation of CollectOne installed in 1974. Currently operating under our 6th generation of CollectOne.
Number of current installations: 325
For more information, contact:
Mark Bergmann, Vice President, Sales & Marketing
CDS Software
2225 First Street
Suite 102
Simi Valley, CA 93065
Phone: 888-816-3333
Fax: 805-577-1765
E-mail: sales@collecttone.com
Website: www.collectone.com
Chesapeake Interlink, Ltd.
Product Name: Needles Case Management Software
Designed for: Collection Attorneys: retail & commercial; Bankruptcy Professionals: attorneys
Number of users/volume: Over 1,700 law firms nationwide.
Hardware environment: Windows 2000
Software environment: Sybase SQL Anywhere Studio 10
Product capabilities: Needles Case Management Software…Case Management Software that Works! Are you tired of managing your cases by hand, frustrated by your current case management solution's lackluster support and lack of customization options? Do you constantly worry about forgetting or missing an appointment, task, or Statute of Limitation date? Consider Needles, the most customizable Case Management Software for law firms. Needles Case Management Software brings stability into the law firm by providing a sound set of procedures and significantly reducing the amount of wasted time. All case information becomes available to all authorized users at any time, day or night. The instant access to information helps the law firm work more proactively and as a unified team. With Needles Case Management Software in place, your law firm will thrive. Needles' legal case & practice management solution delivers the technology required to transform your firm into a more efficient and profitable law office. Interfaces/other software programs: Adobe, WordPerfect, Docs Open, eDrawer, Mapi-complaint email, Hot Docs, Interwoven Worksite, Lucion Technology's File Center, Mediconnect, Word, Outlook, PCLaw, Peachtree, QuickBooks, Timeslips, Wordox.
Pricing: $1000/user + training + support
Maintenance: 18% of software purchase price.
Upgrades: Included with maintenance.
Training: $680/ day + trainer expenses
Support: n/a
Date First Installed: 1985
Number of current installations: 1,700 law firms
For more information, contact:
Richard Paresky,
National Sales Manager
Chesapeake Interlink, LTD dba Needles
8 E Music Fair Road
Owings Mills, MD 21117
Phone: 410-363-1976
Fax: 410-363-7685
E-mail: info@needles.com
Website: www.needles.com
Computer Software for Professionals, Inc.
Product Name: Legalmaster
Designed for: Collection Attorneys: retail & commercial
Number of users/volume: smallest installation: 1 attorney; largest: 300 attorneys
Hardware environment: PCs
Software environment: Windows, Microsoft networks, Novell Netware, Linux
Product capabilities: We wrote Legalmaster for firms who demand powerful reporting and billing
capabilities. In business since 1977, over 20,000 attorneys use our
software in firms of from one to 300. We have received phenomenal reviews from our clients as well as from independent reviewers. The ABA has been kind enough to call our support "unmatched". Price Waterhouse said we were the "most flexible" of the packages that they reviewed. The National Law Journal has stated that we are the oldest company in this business in the country. Some of our clients have used Legalmaster for as long as 20 years. Legalmaster is modular; you may license only the portions you want now and add others as you see the need. We offer Time and billing, Task billing, Split billing, Electronic billing, Management reporting, Trust and retainer accounting, Case management, Conflict of interest, Calendaring and hooks to over four dozen other applications.
Interfaces/other software programs: Dozens: cost recovery systems, accounts payable systems, case management systems, time entry programs, etc.
Pricing: from $695 to $8,000 depending on firm size and application requirements. We offer eight optional integrated add-on modules to our billing software.
Maintenance: Glitches and bugs generally fixed within 1 day of reporting, patches uploaded to our website immediately.
Upgrades: Offered about every 15 months, but we continue to support old versions.
Training: We conduct 3-4 classes per year around the country; we also offer on-site training.
Support: Called "unmatched" by the ABA, average response time (2007) is 12 seconds. We do not require that you upgrade to receive our support. We are supporting at least one client with a version released in 1991.
Date First Installed: 1977
Number of current installations: 2,000
For more information, contact:
Phillip Rubin
Computer Software for Professionals, Inc.
5346 College Avenue
Oakland, CA 94618
Phone: 510-547-8085
Fax: 510-547-8159
E-mail: csp@legalmaster.com
Website: www.legalmaster.com
Comtech Systems Inc.
Product Name: Collect!
Designed for: Collection Attorneys: Retail, Commercial; Bankruptcy
Professionals: Attorneys; Collection
Agencies: Retail, Commercial
Hardware environment: A minimum of a AMD or Intel 1
GHz processor, a 40 GB hard drive and 256MB RAM.
Software environment: Windows® a 2000/XP Professional/ Vista Busi-ness/ Vista Ultimate/2003 Server.
Product capabilities: The Collect! Software system has been satisfying business needs for almost 20 years, leading the way with the latest technology and the needs of our ever-growing user base. Collect! is fast, efficient, versatile and easy to use. You get instant access to vital information. Standard features include: Collect!'s versatile report writer, the ability to mail merge your legal documents to Word, or use Crystal Reports, schedule
letters and forms to print auto-matically only if a debtor meets a condition, attach documents and images to debtors, and unlimited user definable fields, account archiving, complete transaction history, fast data access, checks over the phone, WebHost (Internet data access), e-mail, account management controls, total system security (SSL and SHA technology), multi currency, multi language. Collect! is fully scaleable to any size operation. You can customize your system to suit your needs. Custom reports can be made using any field in the system. You will quickly see the benefits of this proven collection software. At Comtech our focus is on customer satisfaction. Our long list of satisfied clients is a testimonial to our dedication and service. You can see the difference dedication makes. Satisfaction guaranteed.
Interfaces/other software programs: Virtually any program can connect to Collect! with ODBC or the Import/Export module. Please view our Partners page.
Pricing: Starting at $695.00
Maintenance: Technical services priced per hour.
Upgrades: Included with annual Membership package.
Training: Available per hour, please discuss your needs. Video tutorials included with annual membership on membership portal.
Support: Mon – Fri 6:00 am – 5:30 pm, then our Australian office takes the phones and answers until 11pm Pacific time. Saturdays & Holidays
10 am – 4 pm emergency call
back service available; Pacific Standard Time. All other times
by appointment.
Date first installed: 1991
Number of current installations: 1200 in 36 countries
For more information, contact:
Comtech Systems Inc.
107 - 859 Orono Ave,
Victoria, BC Canada V9B 2T9
Phone: 800-661-6722
Fax: 250-474-2622
E-mail: sales@collect.org
DAKCS Software Systems, Inc.
Product Name: ASCENT, Beyond.net, VICIII, @Client Services, RESOLVE
Designed for: Collection Agencies: Retail, Commercial; Collection Attorneys: Retail, Commercial; bankruptcy professionals: Attorneys
Number of users/volume: Greater than 1200
Hardware environment: Linux, UNIX
Software environment: Linux, UNIX, and Microsoft.NET
Product capabilities: DAKCS Software Systems, Inc. is a proven leader in accounts receivable management solutions. Established in the early Eighties by and for collection professionals, DAKCS has been providing clients with innovative and creative solutions for over twenty years. With a diversified client base, ranging from attorneys to first party collections companies, its primary focus has always been and continues to be addressing the needs of its existing clients; staying current with industry issues and concerns, listening carefully to client requests and making things happen, quickly and cost effectively. The DAKCS product portfolio includes Ascent (the small business solution), Beyond.net (medium-large business solution), VIC III (next generation Dialer/IVR), @Client Services (24/7 secure access), Resolve (a robust legal package) and more. DAKCS provides custom solutions for clients large and small. DAKCS Software Systems: Collection Software for Peak Performance.
Interfaces/other software programs: YES
Pricing: Available upon request: 1-800-873-2527
Maintenance: Monthly rate based upon system size and configuration.
Upgrades: Free annual upgrade program.
Training: Comprehensive initial and follow up training for all products and services.
Support: Knowledgeable support team available to assist clients.
Date first installed: First installation 1981.
Number of current installations: Greater than 250.
For more information, contact:
Deborah Kilroy
DAKCS Software Systems, Inc.
8017 Taylor Avenue
Ogden, Utah 84403
Phone: 800-873-2527
Fax: 801-778-2382
E-mail: sales@dakcs.com
Website: www.dakcs.com
EZ SOFT, INC.
Product Name: EZ COLLECTOR
Designed for: other: retail, commercial, in house
Number of users/volume: 1000's
Hardware environment: Windows
Software environment: Any windows
Product capabilities: EZ Soft has the finest reputation in the industry! We have watched our competitors come and go in droves, but EZ Soft has provided unwavering support for our customers since 1983. Our products contain all of the experience of thousands of companies all combined into an affordable software solution. We combined all this experience with the latest Windows technology to make our products not only superior in every way, but also easy-to-use! We have always prided ourselves on providing personal attention and expert service. We care about our customers!
Interfaces/other software programs: Metro2/global connect/accutinit/collection advantage.
Pricing: $3495.00
Maintenance: Included- 2 years
Upgrades: Included 2 years
Training: Video training makes it easy!
Support: Unlimited
Date First Installed: 1983
Number of current installations: 900
For more information, contact:
Mark Stock, Sales Manager
EZ Soft
PO 811828
Boca Raton, FL 33481
Phone: 561-997-9003
E-mail:
mail@collectionagencysoftware.com
Website:
www.collectionagencysoftware.com
The Forwarders List of Attorneys
Product Name: The Forwarders List of Attorneys
Designed for: Collection Agencies: Retail & Commercial; Collection Attorneys: Retail & Commercial; Bankruptcy Professionals: Attorneys
Number of users/volume: N/A
Hardware environment: Any
Software environment: Any
Product capabilities: THE FORWARDERS LIST OF ATTORNEYS is the leading source for locating premier collection law firms. We make referrals that match your specifications and ensure that the service you receive is what you expect from a receiving law firm. We have attorneys anywhere in the world, and all of them are just a phone call or click of the mouse away! In addition to providing your legal department with referrals and the best customer service in the industry, we also protect you and your clients with our surety bond. For more information about our service and how we can improve your legal collections, please call 800-638-9200 or email us at gtier@forwarderslist.com. Come experience a better way to do business.
Interfaces/other software programs: ALL
Pricing: FREE to collection agencies. For attorney pricing, please contact us at 800-638-9200 or info@fowarderslist.com.
Maintenance: Not applicable
Upgrades: Not applicable
Training: N/A
Support: 24/7 customer support
Date first installed: N/A
Number of current installations: N/A
For more information, contact:
Gary Tier
The Forwarders List of Attorneys
100 Overlook Drove 2nd Floor
Princeton, NJ 08540
Phone: 609-375-2012
Fax: 609-375-2753
E-mail: info@fowarderslist.com
Website: www.forwarderslist.com
Hubbard Systems, Inc.
Product Name: Colipso, Collection Partner
Designed for: Collection Agencies: Retail & Commercial; Collection Attorneys: Retail & Commercial; Bankruptcy Professionals: Attorneys Other: Financial Institutions
Hardware environment: Collection Partner - Client-Server Colipso: Browser based and SaaS (Software as a Service)
Software environment: Windows® 98, 2000, XP, NT, Novell, UNIX, VMS
Product capabilities: Collection Partner - Our mainstay product, Collection Partner, was one of the first debt collections systems on the market. It is now the heart of a full-scale collections system that addresses virtually every aspect of the debt collections process. Colipso is a browser-based collections system is built on the Microsoft.Net framework and provides powerful flexibility. Attorneys and collectors can work from virtually any location via the Internet. In addition to meeting all collection needs, the system streamlines the collection process by incorporating features such as skip tracing, bankruptcy searches, document outsourcing, predictive dialing, credit bureau searches, credit scoring, and more without leaving the system. Internally managed systems as well as SaaS versions are available.
Interfaces/other software programs: Numerous interfaces.
Pricing: Unlimited seats. Price based on your number of active claims. Please contact for pricing.
Maintenance: Monthly Software Maintenance Agreement.
Upgrades: Annual Upgrades and maintenance releases.
Training: Introductory, advanced and on-site training available for all products.
Support: M/F 7:30am - 5:30pm CST
Date first installed: 1983
Number of current installations: 350+
For more information, contact:
Gregory Jones
Hubbard Systems, Inc.
31 Inverness Center Parkway,
Suite 425
Birmingham, AL 35242
Phone: 800-933-4822, option 3
Fax: 205-871-3155
E-mail: sales@hubbardsystems.com
Website: www.hubbardsystems.com
Hubbard Systems, Inc.
Product Name: Partner-To-Partner
Designed for: Collection Agencies: Retail & Commercial; Collection Attorneys: Retail & Commercial; Bankruptcy Professionals: Attorneys
Other: Financial Institutions
Hardware environment: PC, PC Network, UNIX, VAX Alpha
Software environment: Windows® 98, 2000, XP, NT, Novell, UNIX, VMS
Product capabilities: Partner-To-Partner - Hubbard Systems, Inc. provides an array of complemen-tary debt collections applications in addition to its Colipso and Collection Partner products. The Partner-To-Partner software allows Hubbard Systems, Inc. clients to electronically forward cases among themselves and to users of other debt collections software, thereby increasing the likelihood of recovering delinquent claims.
Interfaces/other software programs: Standard interface to all collections software available.
Pricing: Please contact for pricing.
Maintenance: N/A
Upgrades: On-going
Training: Introductory training provided with set-up and implementation.
Support: M/F 7:30am - 5:30pm
Date first installed: 1983
Number of current installations: 350+
For more information, contact:
Gregory Jones
Hubbard Systems, Inc.
31 Inverness Center Parkway, Suite 425
Birmingham, AL 35242
Phone: 800-933-4822, option 3
Fax: 205-871-3155
E-mail: sales@hubbardsystems.com
Website: www.hubbardsystems.com
Hubbard Systems, Inc.
Product Name: Web Attorney Network
Designed for: Collection Agencies: Retail & Commercial; Collection Attorneys: Retail & Commercial; Bankruptcy Professionals: Attorneys
Other: Financial Institutions
Hardware environment: Internet access
Software environment: Internet browser
Product capabilities: Web Attorney Network - Eliminate the daily requests for status updates from your clients by giving them the option to view their collection files via the Internet. Collection file data is transferred to a secure website and is available for view twenty-four hours a day. Web Attorney Network provides clients the option to view comprehensive file information, including history, notes, balance, costs, payments and much more. Monthly and yearly statistical reports can also be run for the files on the site. Visit www.webattorneynetwork.com
for a demonstration.
Interfaces/other software programs: N/A
Pricing: Please contact for pricing.
Maintenance: N/A
Upgrades: Web site is updated daily.
Training: Introductory included with set-up and implementation.
Support: M/F 7:30am - 5:30pm CST
Date first installed: 1983
Number of current installations: 350+
For more information, contact:
Gregory Jones
Hubbard Systems, Inc.
31 Inverness Center Parkway,
Suite 425
Birmingham, AL 35242
Phone: 800-933-4822, option 3
Fax: 205-871-3155
E-mail: sales@hubbardsystems.com
Website: www.hubbardsystems.com
ISI of Lisle, Inc.
Product Name: Collection-Manager
Designed for: Collection Agencies: Retail & Commercial; Collection Attorneys: Retail & Commercial; Other: In house collection departments & debt buyers
Number of users/volume: 215
Hardware environment: PC, AS1400
Software environment: PC Windows, UNIX, AS1400
Product capabilities: Collection-Manager™ is an integrated
collection system which manages all aspects of the in-house Pre-Collect, Retail or Commercial collection process. The system tracks the entire collection cycle from the time of initial entry, through
litigation and final settlement.
A summary of some of the features follows: Client Modeling – Allows our users to set up unique system processing criteria with automatic letter and document preparation facilities. Automatically handles unique fee structures, forms,interest rates etc. Flexible Forms Generator – Allows user and ISI to generate custom forms and letters for virtually any reporting requirement. Your standard Demand and Acknowledgment letters can be prepared by the system or automatically exported into your word processor. Integrated Trust Accounting & Billing Manages the trust account and the operating account. Prepares checks to clients, forwarders, courts etc. Processes the remittance checks and payments from the debtors with gross and net billing options. Prepares the statements to the clients. Ability to report to all three Credit Reporting Agencies
Interfaces/other software programs: Word processors, spread sheet & accessible software
Pricing: Depends on the number of users.
Maintenance: Depends on the number of users.
Upgrades: Included with our software maintenance contract.
Training: On site at clients location.
Support:Online via modem/internet.
Date first installed: 1987
Number of current installations: 215
For more information contact:
Joseph M. Speziale
ISI of Lisle, Inc.
4736 Main Street
Suite 4
Lisle, IL 60532
Phone: 800-474-2656
Fax: 630-969-2363
E-mail: isioflisle@aol.com
Website: www.isioflisle.com
JST
Product Name: CollectMax™
Designed for: Retail and Commercial Collection Attorneys, Bankruptcy Attorneys, In-House Collection Departments, Subrogation Firms
Number of users/volume: 1-100 users; Capacity is limited to approximately 250,000 accounts.
Hardware environment: PC or PC Network
Software environment: Windows NT, 2000, XP Professional, Vista Business, and Vista Ultimate.
Product capabilities: CollectMax™ from JST is advanced collections software that is specifically designed to be exceptionally user-friendly. It provides a high level of automation, impressive capabilities including top notch EDI interfaces, and is uniquely flexible. Easily expandable and upgradeable, CollectMax™ offers attorney network interfaces, debtor account import programs, dials interfaces and an internal imaging module. When you look at the options JST is just smart. CollectMax™ is used by hundreds of collection firms nationwide, who trust our proven software and knowledgeable support staff to keep their businesses running smoothly. It is a good fit for almost any practice, whether you manage 200 or 200,000 files. JST is the smart choice for your collections practice.
Interfaces/other software programs: Numerous client interface programs such as YouveGotClaims and NCO. Numerous industry vendor interfaces such has Accurint, and Experian. Dialer interfaces include Global Connect, Access, Touchstar and Spitfire. Contact JST for complete listing.
Pricing: Prices start at $6,400 for a single user system. CollectMax can also be rented on a monthly basis starting at $270/month.
Maintenance: Annual contracts available. Without an annual contract, support is provided at an hourly rate.
Upgrades: Customers can upgrade their system to a higher edition for the difference in price.
Training: Contact JST for training options.
Support: 60 days of free support is included.
Date first installed: 1987
Number of current installations: 800+
For more information contact:
Kurt Baese or Laura Boehling
JS Technologies, Inc
1516 Willow Lawn Drive, Suite 202
Richmond, VA 23230
Phone: 800-827-1457 /
804-288-7850
Fax: 804-288-8957
E-mail: sales@CollectMax.com
Website: www.CollectMax.com
Legal Files Software Inc.
Product Name: Legal Files 7.0 and Legal Files for the Web 6.0
Designed for: corporate legal departments, government agencies, leading law firms, legal aid clinics and insurance companies
Hardware environment: Please visit: www.legalfiles.com/products.html.
Software environment: Please visit: www.legalfiles.com/products.html.
Product capabilities: Legal Files: Saves time by automating routine tasks; Improves client relationships; Assembles and manages documents; Guards against missing deadlines; Monitors time and expenses; Protects institutional knowledge; Helps you become more organized; Helps you communicate more efficiently; Helps you provide better service; Helps you better manage cases, staff and the entire firm or department. Legal Files Software, Inc. develops and markets its Legal Files case/matter management software to corporate legal departments, government agencies, leading law firms, legal aid clinics and insurance companies.
Interfaces/other software programs: MS Office Suite including Outlook; Lotus Notes; Novell Groupware; CompuLaw; Juris; Interwoven; CT Summation; Omega; US CourtForms; Fujitsu; Worldox
Pricing: Please call.
Maintenance: An annual Maintenance and Support Agreement includes all new releases, upgrades and unlimited Legal Files Help Desk support.
Upgrades: All upgrades are included with Maintenance and Support Agreement. Legal Files ensures all new releases and upgrades are compatible with the customization and configuration that clients have made to the system.
Training: Legal Files Software Inc. offers an extensive variety of courses to help leverage the full power of the software. Training is available on site or at the company's corporate headquarters for end-users and administrators. All courses are taught by certified Legal Files trainers. For a complete list of courses, please visit: www.legalfiles.com/training.html
Support: An annual Maintenance and Support agreement includes unlimited Legal Files software support from the Help Desk. The Help Desk is open during regular business hours and may be reached by telephone or e-mail. After-hours support is available by appointment. Legal Files provides three levels of support for problems or questions relating to our software: telephone and e-mail user support for every-day "how-to" questions; telephone and e-mail technical-support for "talk-through" system maintenance; and on-site, technical support for "walk-through" system administration. Documentation, user manuals and other helpful information are available for download at any time from the customer-only section of our web site.
Date first installed: mid 1980s.
Number of current installations: 475+
For more information contact:
Sales@LegalFiles.com
Legal Files Software, Inc.
801 S. Durkin Drive
Springfield, IL 62704
Phone: 800- 500-0537 (toll-free in U.S. and Canada) or 217-726-6000
Fax: 217- 726-7777
E-mail: Info@LegalFiles.com
Web site: www.LegalFiles.com
LE Technologies
Product Name: Digital Dictation
Designed for: Collection Agencies: retail; Collection Attorneys: retail; Bankruptcy Professionals: attorneys, trustees & accountants
Number of users/volume: Unlimited
Hardware environment: Sound card
Software environment: Windows/Vista
Product capabilities: LE Technologies is the nation's leading provider in digital dictation and transcription software. Cutting edge software allows you to transcribe both digital audio and video files. LE Technologies provides both the hardware and software to meet all of your needs. Free training, free updates and free technical support. www.letechnology.com
Interfaces/other software programs: Voice recognition Software
Pricing: $279.90 per transcriptionist; recorders vary in price.
Maintenance: Free online troubleshooting
Upgrades: Free
Training: Free
Support: Free
Date first installed: 1998
Number of current installations: >200
For more information, contact:
Shelia Youngblood
LE Technologies
1105 E. 32nd Street
Suite 5
Joplin, MO 64804
Phone: 417-781-311
866-534-2539
Fax: 417-781-9706
E-mail: syoungblood@letechnology.com
Website: www.letechnology.com
Omega
Product Name: Omega Legal
Designed for: Other: Law Firm Billing, Accounting & Firm Management
Hardware environment: Windows 2000/2003 based Server and the TCP/IP communications protocol.
Software environment: Written in Delphi running on InterSystems CachéDatabase
Product capabilities: Since 1975, Omega has been solving critical business issues for hundreds of law firms nationwide, improving their productivity, profitability and efficiency. Its flagship product, Omega Legal, is an integrated accounting and practice management system based on a high-performance database that maintains detailed historical information with sophisticated financial and management reports generated instantly. Trust accounting, G/L, client relationship management and marketing automation are standard features, with case management and calendar/docket modules optional. Omega's unprecedented 96% customer retention rate is the result of exceptional system performance, service and support. Call us today and see why Omega will be the last financial and practice management decision your firm will ever have to make.
Interfaces/other software programs: Crystal Reports, Excel, Word, Outlook and others.
Pricing: Starts at 10 Timekeeper systems from $25,000.
Maintenance: Yearly maintenance based on current software cost.
Upgrades: Included with maintenance.
Training: Omega University online instructor - led interactive training. Onsite training available.
Support: Included with maintenance 8:00am - 5:00pm Monday through Friday all Continental US Time zones plus web support.
Date first installed: Installed first client in 1976. First client is still an Omega Legal user.
Number of current installations: 260
For more information, contact:
Sales Department
Omega Legal Systems, Inc.
3875 North 44th Street, Suite 200
Phoenix, AZ 85018
Phone: 800-356-1339
Fax: 602-952-5250
E-mail: info@omegalegal.com
Web site: www.omegalegal.com
Practice Technology, Inc.
Product Name: Prevail Case Management System
Designed for: Bankruptcy Professionals: attorneys & trustees
Number of users/volume: Over 1,200 firms nationwide
Hardware environment: PC; Peer to Peer; Client/Server
Software environment: Windows 98 & Above (PC); Windows Sever 2000 or higher; Novell Netware 4.11 & higher
Product capabilities: Prevail is a dynamic and robust case management system designed to be used in virtually every type of legal practice. Prevail seamlessly integrates document generation and tracking, calendaring and tasks and a definable workflow management system. Easily track cases and staff activity with robust reporting capability. If you're not using Prevail to manage your practice, you should rethink your approach to case management.
Interfaces/other software programs: Word, WordPerfect, Outlook
Pricing: Averages about $1000 per user including training and tech support.
Maintenance: N/A
Upgrades: Included in price of Premium Support.
Training: Live trainer online or onsite or at our Headquarters in Orlando, FL.
Support: 9-5 Monday through Friday Eastern. Three levels available with annual agreement.
Date first installed: 1993
Number of current installations: Over 1,200 firms nationwide
For more information, contact:
Robin Ventura or David Webber
Practice Technology, Inc. (Prevail)
1312 E. Robinson Street
Orlando, FL 32801
Phone: 407-228-4400 (Option 2 for sales)
Fax: 407-228-4414
E-mail: sales@prevail.net; info@previal.net
Website: www.prevail.net
The Growing Trend of Women Filing Bankruptcy and the Effect of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005*
By Arthur W. Rummler*
Springer, Brown, Covey,
Gaertner & Davis, LLC
1. Introduction
This article addresses two issues: first is the growing trend of women filing individual bankruptcy cases and a review of possible contributing factors. Second is a summary of some of the changes that women (and to a lesser extent men, see infra) can expect as a result of the not so recent amendments to bankruptcy law.
As you may have heard, the Bankruptcy Code1 was revamped in 2005 with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act. With a name like that, it's no wonder that everyone refers to the amendment as "BAPCPA" (pronounced bap-see-puh). While the Bankruptcy Code aims to treat men and women the same, it would appear that certain sections affect women differently both generally and specifically.
Additionally, there is a growing trend towards higher bankruptcy rates among women. While the exact causes are not certain, there are enough commonalities that commentators have reduced the reasons to perceived core causes.
The higher rates of bankruptcy combined with the changes from BAPCPA present a challenge for women and the attorneys who represent them. But before exploring the specifics, let's take a brief journey through the history of bankruptcy laws.
2. Short History of Bankruptcy Laws
"Neither a borrower nor a lender be,
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry."
(Hamlet, Act I, Scene 3, William Shakespeare.)
Perhaps Polonius' advice to his son Laertes would seem more on point if our modern world didn't revolve around credit, debt, borrowing, lending and when necessary, bankruptcy. Today we accept them simply as de facto parts of life that have been part of civilized societies for ages. Indeed, the origins of bankruptcy laws can be traced to the Old Testament of the Bible.
"At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother . . . " (Deuteronomy 15:1-2).
The word "bankruptcy" originated in medieval Italy, where it was common that when a merchant did not pay his debts, his creditors would have his trading bench destroyed. In Italian, the phrase for broken bench is "banca rotta" and hence the term bankruptcy.2
In England, the first bankruptcy laws were enacted in 1542.3 In English law it was common for debtors to be imprisoned for not paying their debts. However, after several centuries of sending debtors off to penal colonies, the English reformed the law and began allowing debtors to "discharge" their debts. Early laws in Colonial America varied amongst the colonies and generally favored punitive measures over rehabilitation.4
Our venerable United States Constitution authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States."5 Congress enacted several bankruptcy laws during the 1800s but they were intended to address short term problems such as land speculation busts and post Civil War rebuilding. "Modern" bankruptcy law began in 1898 when Congress enacted the Bankruptcy Act of 1898. The law evolved for another 80 years until Congress replaced the grand old Bankruptcy Act with the then newly minted Bankruptcy Reform Act of 1978, now commonly referred to as simply the Bankruptcy Code.
The Bankruptcy Code itself has been amended from time to time including major amendments in 1984, 1986, and 1994. The BAPCPA amendment in 2005 (a major, major amendment) was intended to address perceived abuses and at the same time provide new protections, though it is still unclear whether it succeeded on either account. Probably the most ballyhooed provision of BAPCPA was the now infamous "means test" which put income limits on the eligibility for Chapter 7 bankruptcy cases with the intent that more debtors would file for Chapter 13.6
BAPCPA is now part and parcel of the Bankruptcy Code and attorneys and courts are still adjusting to its new mandates. While some viewed the changes to the law as mostly negative for women, there are many positive aspects which must also be considered. When examined in the light of higher and higher rates of bankruptcy among women, these issues become increasingly important.
3. Bankruptcy: A Growing Trend Among Women
A. More Women File Bankruptcy Than Men
Statistically, more women file bankruptcy than men. Post-BAPCPA statistics are still being analyzed but studies of prior years indicate that of the total bankruptcy filers, women filing individually comprised 40% of the total.7 The same study indicates that men filing individually accounted for 28% and joint filings (husbands and wives together) were 32%. These numbers represent a huge increase from prior years. Why are so many women filing bankruptcy? Single parenting, job uncertainties, lower pay and reliance upon unsteady child support payments are just a few of the reasons.
B. Why Women File Bankruptcy: Social and Economic Factors
It's too easy to generalize that someone filing for bankruptcy is simply a spendthrift who couldn't resist the temptations of the material world. Spend too much on the credit cards today and it will eventually catch up to you. Can't pay the bill? Well, just file bankruptcy. That stereotype is far from the truth when it comes to the upward trend of women in bankruptcy.
i. Single Parenting: Caring for Our Children
Perhaps the largest contributing factor to women filing bank-ruptcy is raising children as a single parent. When two parent households collapse or fail to emerge in the first place, mothers typically have the main responsibility for raising the children.8 Single parents bear the burden of increased expenses of maintaining the household. At the same time, single mothers have constraints on their career growth as they are stretched between responsibilities at home and the workplace. Single mothers are 50% more likely than married parents, and three times more likely than childless people to file bankruptcy. 9
ii. Women Earn Less than Men for the Same Jobs
Despite what you might think, women continue to earn less than men for the same job. This income inequality is recognized as a major contributing factor to the prevalence of women seeking bankruptcy protection.10 According to the Institute for Women's Policy Research, in 2002 women working full time year round earned 76.2% of what men earned for the same job.11 This disparity increases the volatility that women experience when it comes to unexpected expenses and reduces the margin for error in the household budget. As any bankruptcy practitioner will tell you, falling behind on bills is a slippery slope not easily overcome and an all too frequent trigger of further financial trouble.
iii. Unexpected Medical Bills and Job Loss
The strains on custodial parents often prevent women from obtaining good jobs with decent benefits. With the high costs of decent child daycare, there is sometimes no choice but part-time jobs in order to balance work and home. The result is little or no medical insurance to cover unexpected illnesses and routine medical bills.
Further, as women strive to care for children, the volatility of their job increases, causing less job security and more job losses. Untimely days off from work caring for a sick child or being called away during work are problems for many employers. The net result is that single parents have more job stress and more turnover than their counterparts.12
A Harvard University study found that half of all bankruptcy filings were the result of unexpected medical expenses.13 Women are not immune from these statistics and they also list medical bills as a major cause of bankruptcy. One estimate is that 9 out of 10 women filing bankruptcy do so because of unexpected medical bills or loss of a job. 14
iv. Instability of Child Support Payments
According to a report by the U.S. Census Bureau, 9 out of 10 persons due to receive child support payments were women. From the total of all people due to receive child support payments, 23.6% received no payments at all. Another 31.1% received only partial payment and 45.3% received all of the payments they were due.15 The lack of child support payments to custodial parents is another factor which adds to the overall instability of the economic realities of many women.
Some women face difficult odds when it comes to economic security. Whether it is the disparity in incomes between their male counterparts, custodial parenting with unstable contributions from non-custodial parents, job uncertainties or unexpected medical bills, the fact is that more women are seeking relief by filing bankruptcy than before.
4. The Effect of BAPCPA on Women Who are Filing Bankruptcy
A. Higher Costs of Bankruptcy May Limit Access
One expected result of the BAPCPA amendment was that the costs of filing bankruptcy would have to rise dramatically. The law added several layers of requirements upon bankruptcy lawyers which in turn added to the time necessary to complete a case. As predicted by many, the costs have been passed onto the clients. While attorney fees for a typical Chapter 7 case might have cost an individual debtor $1500 under the old law, the current cost is averaging around $2500.
In addition, BAPCPA mandated "credit counseling" as a precursor to the filing of a bankruptcy petition. While altruistic in theory, practice shows that the "counseling" is little more than getting your ticket punched on the way to the bankruptcy court. The cost of credit counseling varies, but is typically around $100.00. Lastly, the court costs for filing bankruptcy also increased after BAPCPA from $209 to the current $299 (for Chapter 7 cases).
While these costs are borne equally among the sexes, because of the salary/pay inequalities, it follows that they are likely to fall harder upon many women. In fact, one commentator has suggested that the costs of filing bankruptcy are so high that they may actually prevent women from seeking bankruptcy relief at all.16
B. Bad News Is Good News: Salary Gap May Allow for More Chapter 7 Cases
As mentioned above, the BAPCPA amendments added an income qualification test, commonly called the "means test" to the Bankruptcy Code. If a person has income in excess of the median income for their household, they may be required to file a Chapter 13 debt repayment plan instead of a Chapter 7 case. This would require the debtor to be in bankruptcy for three to five years and pay back some or all of their debt during that time. Contrast that with a Chapter 7 which would typically allow the debtor to discharge their debts in full and begin a fresh start within four to five months.
All potential debtors are measured by the same yardstick: the median income in your state for the number of people in your household as measured by the U.S. Census Bureau. The census bureau website does not indicate that it takes into account any gender parameters when calculating median income, nor whether the household is a custodial parent or otherwise.
The effect of measuring women against the entire pool of adult households with the same number of people in a specific geographical region is that the relative income disparity is not taken into account. In Illinois, the median income for a single adult household is approximately $44,673 (as of April 2008). If you consider the plight of two workers, Mr. XY and Ms. XX, who have identical job classifications in a large company, Ms. XX statistically makes 23.8% less on average than Mr. XY.
In a bankruptcy analysis, if Mr. XY makes $50,000 per year he may have to file Chapter 13 because his income exceeds the median. However, Ms. XX who likely earns less—approximately $31,800—is far under the median income and is not subject to further analysis. She passes (or fails, as the case may be) the means test.
C. Elevation of Priority Divorce Support Payments
BAPCPA amended the bankruptcy code to change the priorities of who gets paid first when a bankruptcy estate has funds. The overwhelming majority of bankruptcy cases are "no asset" cases with no payments to unsecured creditors, but sometimes assets are available to be collected. The bankruptcy trustee typically collects the assets and liquidates them to reduce them to cash. Creditors share this pool of cash according to priorities established by Congress and listed in the Bankruptcy Code.17
Because of BAPCPA, Domestic Support Obligations (DSOs)18 are now provided first priority over other unsecured creditors. In asset cases this should be a boon to women who are owed domestic support.
D. Broader Definition of Domestic Support Obligations
BAPCPA included a definition of Domestic Support Obligations, such that virtually all alimony, maintenance or child support payments and obligations regardless of whom they may be owed to are included within the definition. This greatly expanded and clarified the prior law which differentiated between support and property division settlements/orders in divorce proceedings, with the latter often being dischargeable.
E. Stricter Non-Dischargeability for DSOs and Other Divorce Obligations
Another positive modification from BAPCPA is the increased non-dischargeability of Domestic Support Obligations. Under 11 U.S.C. §523(a)(5), all Domestic Support Obligations are non-dischargeable. Furthermore, debts to a spouse, former spouse, or child whether or not designated as a "domestic support obligation," are non-dischargeable pursuant to 11 U.S.C. §523(a)(15). If the debt is a support obligation incurred in a marital dissolution, it is non-dischargeable under §523(a)(5). If it is a non-support marital obligation incurred in a marital dissolution is it non-dischargeable under §523(a)(15) (such as an award of Attorney fees to the non-debtor former spouse).
F. Notice Provisions for Support Obligors
Domestic Support obligees should receive adequate notice of the bankruptcy case because of changes enacted by BAPCPA. This change requires that the bankruptcy trustee must notify holders of domestic support claims of their rights to access state child support agencies and also provide notice of the bankruptcy to the State Child Support Enforcement Agency. Notices must be made at the time of filing and also at the end of the case.
G. Domestic Support Payments Not Preferences
One of the confounding sections of the Bankruptcy Code to many outside the halls of the Bankruptcy Courts is 11 U.S.C. 547 which allows the Bankruptcy Trustee to avoid certain payments by the debtor to creditors made within a 90-day window prior to filing as preferences. Recipients of a trustee demand letter for repayment of a preference are never pleased and often have to return monies paid to them. BAPCPA excludes payments under Domestic Support Orders from the reach of the bankruptcy trustee as preferences. Again, the benefit falls mostly to women who are the majority recipients of domestic support payments.
H. Expanded Exceptions to Automatic Stay
BAPCPA expanded the exceptions to the automatic stay provisions of 11 U.S.C. §362. No longer must a creditor seek relief from the automatic stay – or pay the $150 filing fee for doing so – in cases of child custody, visitation, divorce proceedings (except proceedings concerning the division of assets) and protection from abuse cases. Under the old law these proceedings came to a screeching halt when one of the parties filed bankruptcy. No longer.
I. Expanded Power for Spouses to Pursue Debtor's Exempt Assets
Typically a debtor in bankruptcy can claim certain assets as exempt. The exemptions allow the debtor to retain some assets and use them to get a fresh start. 11 U.S.C. §522(c)(1) allows a domestic support creditor to pursue assets that would otherwise be exempt from other creditors or the bankruptcy trustee. For instance, if a debtor has a sizeable 401(k) account, but had not paid his (or hers) Domestic Support Obligations, the obligee of those payments could seek payment by liquidation of the asset inside the bankruptcy.
J. Requirement that Chapter 13 Debtors Pay Domestic Support Obligations
BAPCPA also provided that Chapter 13 Debtors must 1) remain current on all post-petition payments of DSOs and 2) fully cure any past due DSOs through their Chapter 13 Plan. Combined with the new notice provided by the trustee, this change could greatly benefit recipients of support payments, provided they actually file a claim in the case.
4. Conclusion
This article is not exhaustive. There are certainly trends, causes and changes to the law that have not been explored. However, what is clear is that the realities of the economy and modern society are having an effect on women. For some, the effect is economic uncertainty and accumulation of debt. As the trends show, more and more women are filing individual bankruptcy cases seeking relief from their debts. The BAPCPA amendments to the Bankruptcy Code changed many aspects of bankruptcy. Some of the changes were negative for women, but many were also positive. Having a working knowledge of these trends and the changing legal landscape will help you advise your clients in the most effective way.
* Arthur Rummler is an attorney practicing in the area of bankruptcy as an associate with the law firm of Springer, Brown, Covey, Gaertner & Davis, LLC in Wheaton, Illinois. He began his practice in 1992 and he has extensive experience in all phases of bankruptcy including trustee, debtor and creditor representation.
* This article was originally published in the July 2008 issue of The DCBA Brief: The Journal of the Dupage County Illinois Bar Association. Volume 20, Issue 10.
1All references to the Bankruptcy Code relate to Title 11 United States Code.
2Maurizio Pontani (2004) "Pre-Bankruptcy Crimes and Entrepreneurial Behavior. Some Insights From American and Italian Bankruptcy Laws", German Working Papers in Law and Economics: Vol. 2004: Article 14. http://www.bepress.com/gwp/default/vol2004/iss1/art14.
3See Civil Aspect of Bankruptcy, The Catholic Encyclopedia, http://www.newadvent.org/cathen/02252b.htm.
4The 13th colony of Georgia was established as a debtor's colony in 1733.
5See U.S. Constitution Article 1, Section 8
6Chapter 7 is commonly called "straight bankruptcy" or "fresh start". Chapter 13 is a debt repayment "plan" of three to five years often employed as a tool to prevent foreclosure or repossession.
7See http://www.abiworld.org/,"Women in Bankruptcy", Sullivan and Warren, 1999
8According to "Custodial Fathers and Mothers 2003", U.S. Census Bureau, July 2006, 14 million parents had custody of 21.6 million children while the other parent lived somewhere else. Of these custodial parent 5 out of 6 were mothers and 1in 6 were fathers.
9"Bankruptcy Reform would Hurt Women in Transition", Women Work!, March 2005
10Jeffrey Freedman, Buffalo Law Journal, Vol. 77, No. 10, February 2005
11Marianne Sullivan, "Wage Gap Is Wider for Women of Color", Women's Enews, April, 2004 http://www.womensenews.org/article.cfm/dyn/aid/1800
12U. S. Department of Labor: Futurework, Trends and Challenges for Work in the 21st Century, September 1999
13David U. Himmelstein, Elizabeth Warren, Deborah Thorne, and Steffie Woolhandler, "Illness And Injury As Contributors To Bankruptcy", February, 2005; http://content.healthaffairs.org/cgi/content/full/
hlthaff.w5.63/DC1
14"Bankruptcy Reform would Hurt Women in Transition", Women Work!, March 2005
15"Custodial Fathers and Mothers 2003", U.S. Census Bureau, July 2006
16Sandra Guy, "Bankruptcy Law Pushes Women Closer to Edge", Women's Enews, October, 2005. http://www.womensenews.org/article.cfm?aid=2504
17See 11 U.S.C. § 507 (a)(1)
18See 11 U.S.C. §101 (14A)
Lucy, her football and the TCPA
By Barbara A. Sinsley & Manuel Newburger
Remember Lucy baiting Charlie Brown to once again take a running kick at the elusive football? So goes the Federal Communications Commission and the United States District Court for the Northern District of California in their rulings pertaining to the collection industry. In this case, the "football" is the right of debt collectors to place collection calls to debtors' cell phones. As the FCC in the role of Lucy, pulled away the football from the collection industry, the District Court stepped in while Charlie Brown was flat on his back to kick him in the more sensitive portions of his anatomy.
In the winter of 1991, Congress enacted the Telephone Consumer Protection Act1 (TCPA). Although one of the better-known provisions of the TCPA is the penalty that it provides for the unauthorized sending of advertisements to fax machines, the TCPA generally regulates the use of automated telephone equipment.2 While Section 227(b)(1)(A) prohibits the use of autodialers to call cell phones, Section 227(b)(2)(B) authorizes the FCC to make exceptions to the general rule. Although cell phones were already ubiquitous in 1991, today they all-too-often serve as a replacement for traditional land lines. A recent study by the CDC revealed that lower income debtors are far more likely to have a cell phone as their only household phone. That study revealed that:
• 12.8% of households did not have a traditional landline telephone, but did have at least one wireless telephone.
• More than one-half of all adults living with unrelated roommates (54.0%) lived in households with only wireless telephones.
• Adults renting their home (26.4%) were more likely than adults owning their home (5.8%) to be living in households with only wireless telephones.
• One in four adults aged 18-24 years (25.2%) lived in households with only wireless telephones.
• Nearly 30% of adults aged 25-29 years lived in households with only wireless telephones.
• Adults living in poverty (22.4%) were more likely than higher income adults to be living in households with only wireless telephones.3
Since financially distressed consumers are far more likely to be in collections, the ability to call those households is vital to the effectiveness of debt collectors. Recognizing the need to be able to reach consumers whose primary phone is a cell phone, ACA International ("the ACA") made a formal request that the FCC allow for programmed dialing to a consumer's cell phone. On January 4, 2008, the FCC issued a Declaratory Ruling in response to the ACA's Petition for Expedited Ruling.4 Instead of ruling that debt collectors may place cell phone numbers on autodialers or predictive dialers, the FCC instead declared that the original creditor must obtain "prior express consent" directly from the consumer allowing the consumer's cell phone to be called and that a debt collector could place autodialer calls to that consumer's cell phone only after the consumer has given the creditor express consent as part of the transaction that resulted in the debt. Although this ruling provided at least some assistance to the collection industry in the face of the far-more-restrictive text of the TCPA itself, the ruling put Charlie Brown on his back with a resounding thud.5
Just five months after the issuance of the FCC's ruling the United States District Court for the Northern District of California stepped in to give the already-downed Charlie Brown a well-placed kick in the case of Leckler v. Cashcall Inc.6 The ruling in the case states that, not only must express consent be given by the consumer to the creditor as a part of the original credit transaction but the consumer must also expressly consent to allowing a prerecorded message to be left on his or her cell phone. That ruling, if not eventually overturned by other courts or legislative action, could impair the ability of the collection industry to make effective use of autodialers. Such a result is ultimately harmful to consumers. Creditors will be forced to step up the number of collection suits that they file if consumers cannot be reached by phone for the purpose of achieving amicable resolutions of their past due accounts. These suits increase the debt burden to the consumers against whom they are directed by frequently adding court costs and legal fees to the burden of the original debts. At the time this article was written, the Defendant in Leckler had pending a Motion for Certification of Order for Interlocutory Appeal and Stay of Proceedings (which is set for hearing on October 31, 2008) and a Motion to Dismiss and Vacate Prior Orders.
Interestingly, just four (4) days after the FCC issued its Declaratory Ruling, the Cellular Telecommunications Industry Association (CTIA) submitted a written, ex-parte communication to the FCC ("CTIA Communication") regarding the Annual Report Card analysis of Competitive Market Conditions and Termination Fees.7 The CTIA Communication notes that there are an estimated 243 million wireless users in the Unites States.8 The CTIA communication states:
Thanks to intense competition, as well as the minimal regulatory environment of the United States, wireless carriers are free to market services in increasingly large bundles and through more attractive and innovative service offerings. This equation encourages American consumers to make wireless their primary method of telecommunication, and creates a level of affordability that is the envy of consumers outside the United States.
For the collection industry, this is something of an understatement. The CDC study suggests that lower income and financially distressed consumers are far more likely to have a cell phone as the only telephone in the household. Those consumers are, of course, the persons most likely to be receiving calls from debt collectors.
Given the increasing number of Americans using cell phones exclusively, the ACA's inquiry to the FCC was clearly an appropriate effort to bring the TCPA into the 21st Century. A request both for clarification regarding the prohibition against autodialed or prerecorded calls to wireless numbers and a request for a ruling that this prohibition not apply to creditors and collectors when calling wireless telephone numbers was perfectly reasonable in light of current cell phone usage in the United States. Perfectly reasonable, just as Charlie Brown thought Lucy might be each time she held the football for him to kick.
It appears from its ruling that the FCC may not be in step with current cell phone usage as reflected in the CDC study and the Merrill Lynch report. By its declaration that only those autodialed calls made with the "prior express consent of the called party" are permissible and only if the number was provided as part of the transaction that resulted in the debt owed, the FCC left the industry with the impression that it is living in a 20th century, land line world. In fact, the FCC went to lengths to repeat the words "consumer to the creditor" and referenced in at least six instances in its ruling that the "prior express consent" be made to the "creditor." As consumers continue to give up their land lines it is likely that many who had land lines at the time their accounts were created will not by the time those accounts are placed for collection. The CDC study linking financial distress to exclusive cell phone usage suggests that such a result is inevitable.
Debt collectors and debt buyers generally do not offer or extend credit and yet can step into the shoes of the creditor as assignee for purposes of collection of a debt. By limiting its references to the "creditor" there is a disconnect in the FCC ruling with respect to the rights of a debt collector or debt buyer. The ruling fails to clarify the rights of those who buy defaulted accounts or take assignment for collection of those accounts to use autodialers to call consumers whose only phone line is a cell phone.
Faced with the alternatives of amicable resolution or becoming defendants in collection suits many of the 12.8% of consumers (and the 22.4% of adults living in poverty) who only have a cell phone may actually want debt collectors to call them on their cell phones. Unfortunately, those consumers cannot truly give "prior express consent" to the debt collectors to have their cell phones placed on the autodialer. It seems that the FCC unrealistically wants the "express prior consent" to go to the creditors "who are in the position to have records kept in the usual course of business showing such consent." 9
Since an assignee stands in the shoes of its assignor,10 the word "creditor" in the FCC ruling may in some situations benefit debt buyers and collection agencies who take assignments of debts. However, a far more sensible approach would have been to recognize that almost all collection efforts arise out of some form of contractual relationship involving the debtor, and implicit in that relationship is the implied consent to use non-abusive means to collect or enforce the debt. This is recognized in the Fair Credit Reporting Act, which states that a permissible purpose for obtaining a consumer report is to "use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the . . . collection of an account of, the consumer;"11 It is also recognized in the context of the FDCPA, which protects consumers from abusive collection practices but not from the annoyance and inconvenience occasioned by lawful, non-abusive debt collection practices or from the fact that the consumer is in debt.12
The Court in the Leckler case also appears to be out of step with technology, furthering the problem by holding not only that prior express consent for calls to cell phones must be given to the original creditor but also that such consent must also expressly allow a prerecorded message to be left on the cell phone. The Leckler court relied heavily on another Northern District of California opinion, Satterfield v. Simon & Schuster, 13 which discussed express consent in the context of a text message and held that express consent was not given when a consumer checked a box "yes, I would like to receive promotions from Nextone affiliates and brands."14
The consumer in Satterfield had checked a "submit" button above the words in an application "by clicking Submit, you accept that you have read and agreed to the Terms and Conditions" which provided that Nextone could call the applicants cell number "in connection with any text message offering or other campaign."15 The Leckler Court in following the reasoning of Satterfield, opined that it was just as simple to obtain consent from a consumer to leave a pre-recorded message on a cell phone.
In light of the FCC ruling, Leckler, and Satterfield, debt buyers and other third-party debt collectors should attempt to secure written affirmations from creditors that: (a) all cell phone numbers provided were given by the consumer as part of the transaction that resulted in the debt owed; and (b) the consumer expressly consented to having autodialed and prerecorded messages left on the consumer's cell phone. Debt buyers may want to include such a representation by the issuer in their account purchase agreements, and collection agencies and law firms may want to include in their engagement agreements a "representation and warranty" that the creditor obtained the consumer's permission for calls and pre-recorded messages to the consumer's cell phone as part of the credit transaction giving rise to the debt.
The real issue for the collection industry may be the feasibility of completely excluding cell phone numbers from autodialer campaigns. It appears that the FCC believes in the viability of such technology, and it has encouraged debt collectors to put in place systems that will ensure the removal of cell phone numbers from auto dialers.
Readers should also be aware that the FCC Ruling expressly held that predictive dialers were considered an automatic telephone dialing system and that "creditors and debt collectors may use predictive dialers to call wireless phones, provided the wireless phone number was provided by the subscriber in connection with the existing debt." The FCC refers the reader to paragraph 9 of its Ruling regarding express consent. If this ruling and the Leckler decision stand, a predictive dialer can only be used to call a cell phone when the consumer's express consent is obtained as discussed above. Such an outcome would have a detrimental effect on law firms, debt buyers, collection agencies, and even in-house collection departments for the original creditors.
The authors suggest that there may be relief for the collection industry, albeit at a high cost. Interestingly, the FCC admits that calls made for the purpose of debt collection are not "telephone solicitations" and do not "constitute telemarketing." Since debt collection efforts pertain to existing business relationships on which the creditors have a contractual right to collect, it is possible that a First Amendment attack might generate a ruling that there is no rational basis for the TCPA's restrictions in the case of collection calls and that the TCPA infringes commercial speech to a degree not permitted by the First Amendment. Of course, the cost of securing such a ruling, even if possible, would likely be quite high. Alternatively, and more realistically, the collection industry will need to look to Congress to bring the TCPA into this century. Sadly, the FCC (a/k/a Lucy) has already pulled away the football and the industry is feeling the bruises.
1Telephone Consumer Protection Act of 1991, Pub. L. No. 102-243, 105 Stat 2394 (1991) codified at 47 U.S.C. § 227 (TCPA).
247 U.S.C. §227(b).
3"Wireless Substitution: Early Release of Estimates Based on Data from the National Health Interview Survey, July – December 2006" by Stephen J. Blumberg, Ph.D., and Julian V. Luke, Division of Health Interview Statistics, National Center for Health Statistics (May 14, 2007).
4Before the Federal Communications Commission (FCC) In the Matter of Rules and Regulations Implemented by the Telephone Consumer Protection Act of 1991, declaratory Ruling at the Request of ACA international for Clarification and Declaratory Ruling, CG Docket No. 02278.
5Id at p. 7.
6Leckler v. Cashcall Inc., 2008 U.S. Dist. LEXIS 42298 (N.D. Cal. May 20, 2008).
7CTIA-Written Ex-Parte Communication to Ms. Marlene H. Dortch Secretary, Federal Communications Commission re, Annual Report Card Analysis of Competitive Market Conditions with Respect to Commercial Mobile Service, WT Docket No. 07-71. In re: CTIA Petition for Expedited Declaratory Ruling on Early Termination fees, WT Docket No. 05-194. ("CTIA Communication").
8See Glen Campbell, et al. "Global Wireless Matrix 2Q07" Merrill Lynch, Oct. 4, 2007 at Table 1.
9FTC Ruling at 7.
10See, e.g., Olvera v. Blitt & Gaines, P.C., 431 F.3d 285 (7th Cir. 2005).
1115 U.S.C. § 1682b(a)(3)(A).
12See, e.g., Lewis v. ACB Bus. Servs., 911 F. Supp. 290 (S.D.Oh. 1996), aff'd, 135 F.3d 389 (6th Cir. 1998).
132007 WL 1839807 (N.D. Cal. June 26, 2007),
14Satterfield 2007 WL 1839807 at #1,6.
15Id at 1.
The CLLA Taps Top Ten Marketing as Its Newest Member Benefit
by Mark V. Matz (Teller Levit & Silvertrust)
Chair-CLLA Membership Benefits Committee
On behalf of the committee, I am pleased to announce the newest and potentially one of the most beneficial new affinity programs for members of the CLLA! With exponential growth of the internet, the ability to have your website found grows more important every day. As great as your current site may look, if your website cannot be found by those seeking your counsel, it's kind of like owning the Mona Lisa, then shoving it into the back of your hall closet where it can't be seen and appreciated!
Top Ten Marketing, a professional web design and search engine optimization (SEO) company for the collection industry, is privileged to have been chosen as a new member benefit for the Commercial Law League of America. This opportunity has provided the CLLA with an additional revenue stream which is based on sales to its esteemed members by Top Ten Marketing and has provided its members with discounted web design and search engine optimization from the leader in web services for the collection industry.
All CLLA members can benefit tremendously by utilizing Top Ten's services to design a website or spruce up their existing websites. Additionally, Top Ten Marketing has many other beneficial services including hosting, domain sales, website monitoring, search engine submission, website analytical reporting, website maintenance and last but certainly not least, search engine optimization. Many of the top positioned websites on the internet for the collection industry today are a direct result of the skilled SEO team at Top Ten Marketing.
The internet offers new business development opportunities for every type of company including the attorneys that practice collection law as a mainstay for their firm. Top Ten Marketing specializes in the successful search engine positioning of collection attorneys globally on the internet and has many success stories to share with those interested in attaining the same type of results for their firm.
Top Ten Marketing has developed over 700 professionally-designed websites and has helped many collection law firms attain global exposure on the web, which in turn, has yielded volumes of new business for the respective firms involved. Top Ten Marketing is the official web design and search engine optimization company for the Commercial Collection Agency Association of the Commercial Law League of America and is now part of the member benefits offered by the CLLA.
All collection attorneys should consider having a website on the internet and should also consider having their website optimized by the Top Ten team of SEO professionals. Not only does a website show your interest in keeping up with these technologically challenging times but it also portrays your desire to bolster new business development from the hundreds of millions of people who surf the internet each and every day. Hanging your shingle on the front of your professionally designed website shows that you are ready for business and are interested in getting business from the website viewers who visit your website. Having your website optimized to position your firm throughout your geographic practice area only makes sense. Without optimization, your site will never be seen by the core audience that you want to specifically target.
Top Ten Marketing can provide solid business solutions for your firm. Whether you want your collection firm to be in prime position on the internet to attract prospective clients or perhaps you just want to monitor the optimization that has already been done on your website, Top Ten has solutions for all of your web service needs. The professionals at Top Ten can provide your firm with precise statistics on where your site is currently being seen based on the keyword phrases that your site has been optimized for and can design an SEO plan that targets your prospective client base. If you are not thinking about optimizing your website, you should definitely reconsider. The internet is not just the future of how your prospective clients will find your firm but it is how they will find your firm today.
Top Ten Marketing has been highly successful over the years in providing collection firms with prosperous solutions which have yielded new found growth and profit for the respective firms who have utilized their services. As a member benefit for the CLLA, Top Ten Marketing can steer your firm on the same course as those which have come before you and you too can share in the prosperity that the internet provides.
A quote from Top Ten states: "To be chosen as a new member benefit for the Commercial Law League of America is a very special honor for Top Ten Marketing and we look forward to working closely with many of the CLLA members on web design and search engine optimization projects throughout the coming years". CLLA welcomes that opportunity.
Please visit Top Ten Marketing at www.top-ten-marketing.com or call 912.261.9133 and discover what they can do for your collection firm. You may also look for a link on CLLA's website (www.clla.org) under the membership area to find out more about the program and the special rates for their services you will receive as a member of the Commercial Law League of America.
Just a reminder, take a look at the CLLA's website at www.clla.org sign in under your member name and password to see the list of affinity programs that have been customized for members of the League. If you need your password, simply contact the League's office at 800.978.2552.
Currently, we have ten programs that are ready and waiting for you to use:
• Acclaim Products promotional items (including fine pens & jewelry)
• AVIS automobile rental for business and personal use
• CLLA Ethics Panel maintains & elevates the industry and the members of the League
• DHL worldwide express delivery services
• INSOL international federation of insolvency professionals (over 7700 members)
• Lois Law high quality online legal source for legal research
• Majestic Travel special discounts on cruises and tour packages
• Top Ten Marketing website creation and search engine optimization
• US Data Trust online computer system and file backup services
• US Legal Forms offering thousands of legal forms for attorneys by attorneys
We are also conducting a test by our members of "PhoneTag" which is a highly innovative service that offers the user transcribed versions of voicemail messages. This service was first unveiled at the CLLA's last Chicago Meeting in May. Please see a copy of Debt3 Magazine (Volume 23-Issue 3 from May/June 2008) and read all about the program in the article on page 28. This is also available in Debt3 Online at: http://www.debt3online.com. You may also contact Dan Guttman directly at 732.283.8700 or dan@bmsgo.com for specifics about this program and how you can benefit for using this new technology. If you try this program, please contact the CLLA Member Benefits Committee at clla@clla.org and let us know how you like it. Be sure to mention that you are a member of the Commercial Law League of America. Right now, we are also looking at some opportunities with long term health care that we hope might be of interest to the membership. As we explore those companies that are providing us with information, we will get the results of this research back to the general membership for review and consideration.
The CLLA Member Benefits Committee is always looking for other new ideas and offerings to review. If you're looking for something that we don't yet offer and that you would like the committee to consider, please let us know by contacting the CLLA Headquarters at clla@clla.org (800.978.2552) and ask Elizabeth Hart or Meghan Cook to forward your suggestions to the committee. With these challenging economic times, any thought or lead that you feel has merit and could benefit your fellow members plus turn into a real dollars and cents savings would be appreciated. I would like to offer special thanks to both Elizabeth and Meghan for all the great work they do for this committee behind the scenes each and every day at CLLA's office in Chicago.
Finally, we should all thank the committee's Vice Chair, Brenda Majewski of the Kohn Law Firm in Milwaukee for her continuing efforts that keep this committee moving forward and seeking new programs for our unique organization. She should be recognized not only for the work here, but all the time she volunteers to assist the many committees of the League, its Sections and Regions as we all move forward to help fulfill the CLLA's new "Strategic Plan 2008-2011".
Thank you! |
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