01120dhPMT.pdf

EXHIBIT A2 – BIDDER’S PROFILE PAGE 1

(Rev 2019-07-30)

EXHIBIT A2 – BIDDER’S PROFILE

Competitive Solicitation No.: 01120 – Debt Collection Services

Bidder: PMT Solutions, LLC

BIDDER INFORMATION

Legal name (from Business License) and address:

PMT Solutions, LLC___________ Business Name 2330 130th Ave. NE, Suite C101_ Address Bellevue, Washington 98005___ City, State, Zip Code

Washington State Department of Revenue Registration Number Note: This is the Unified Business Identifier (UBI)

_203264792________

Federal Tax ID No. (TIN):

Note: If your TIN is a Social Security number, provide only the last four digits.

_602-527-182_______

Is your firm certified as a minority or woman owned business with the Washington State Office of Minority & Women’s Business Enterprises

(OMWBE)?

Yes No If yes, provide MWBE certification no.

M3F9319820__

Is your firm a self-certified Washington State small business?

Note: See definitions of ‘microbusiness,’ ‘minibusiness,’ and ‘small business,” set forth in

RCW 39.26.010.

Yes No

If yes, what is your business size?

Small Mini Micro

Is your firm certified as Veteran Owned with the Washington State Department of Veteran Affairs?

Yes No

If yes, provide WSDVA certification no.

EXHIBIT A2 – BIDDER’S PROFILE PAGE 2

CONTRACT MANAGEMENT POINTS OF CONTACT

Authorized Representative Name: Ollie Garrett Email: ollie@pmt-solutions.com Phone: (425) 881-1312

Contract Administrator Name: Ollie Garrett Email: ollie@pmt-solutions.com Phone: (425) 881-1312

Sales Reporting Representative Name: Ollie Garrett Email: ollie@pmt-solutions.com Phone: (425) 881-1312

Sales Reporting Alternate Name: Elsia Bland Email: elsiabland@pmt-solutions.com Phone: (425) 882-4800, ext 109

Management Fee Representative Name: Ollie Garrett Email: ollie@pmt-solutions.com Phone: (425) 881-1312

Management Fee Contact Alternate Name: Elsia Bland Email: elsiabland@pmt-solutions.com Phone: (425) 882-4800, ext 109

Address for Enterprise Services to send management fee invoices:

Company name: PMT Solutions, LLC Attn: Ollie Garrett Address: 2330 130th Ave. NE, Suite C101 City/State/Zip: Bellevue, Washington 98005

ORDERING/SALES POINTS OF CONTACT (expand as necessary)

Name Phone Number E-mail Area of Responsibility

Ollie Garrett (425) 881-1312 ollie@pmt-solutions.com

CEO/Owner Coordinates entire project as it relates to sales, reporting, ramp up, operations, IT, SLA’s, and capital expenditures, etc.

EXHIBIT A2 – BIDDER’S PROFILE PAGE 3

REFERENCES

Provide a minimum of three (3) commercial or government references for which bidder has delivered goods and/or services similar in scope as described in the Competitive Solicitation.

Reference 1

Company Name:

Contact:

Phone:

Email:

King County District Court Sandy Hanks, Program Manager & Contracts Compliance

(206) 263-9717 Sandy.Hanks@metrokc.gov

Reference 2

Company Name:

Contact:

Phone:

Email:

Seattle City Light Alfred Love, Jr. Credit and Collections

(206) 684-3358 Alfred.Love@seattle.gov

Reference 3

Company Name:

Contact:

Phone:

Email:

Seattle Municipal Court Jerry Stein, Court Administrator

(206) 615-0770 Jerry.Stein@seattle.gov

Return this Bidder’s Profile to Procurement Coordinator at:

DESContractsTeamCedar@des.wa.gov mailto:DESContractsTeamCedar@des.wa.gov

EXHIBIT C1 - DEBT COLLECTION SERVICES BID PRICE

EXHIBIT C1

01120 - DEBT COLLECTION SERVICES BID PRICE

The sole consideration to be paid to the Bidder for its services shall be the agreed-upon collection fee percentage of any monies recovered. Bidders are instructed to propose a collections fee percentage for each kind of collection in the table below, even though the contract will not be awarded by category, and also based on total debt owed by debtor.

For example: If the total debt owed is $1,200 and the Bidder charges a collections fee percentage of 3%, the total owed by debtor would be $1,236 ($1,200 x 1.03). Bidder must record this in the table below as 3%, not .03 or .03%.

PRICE PROPOSAL (300 POINTS)

Pricing Fee Percentage (%)

Debts Below $15,000

Fee Percentage (%) Debts Between

$15,000 - $50,000

Fee Percentage (%) Debts Above

$50,000

General Collections 25% 20% 15%

Educational Collections 25% 20% 15%

Legal Services Collections 30% 30% 30%

Enterprise Services will not be awarding by category but below are examples of the most common debts the awarded Bidder may be asked to collect:

1. General Collections – Unsecured debts owed by individuals or businesses.

2. Educational Collections – Unsecured educational student loans. The methods for collecting private student loans are generally the same as any other type of consumer debt (like credit card debt, medical debt, etc.). It is fundamentally different from federal loans, where the Department of Education has fairly broad and far-reaching rights to collect the debt without a lawsuit.

3. Legal Services Collections – Legal Services associated with acting on filed warrants and judgments. This will include the levying of any money sources, as well as the garnishing of wages. All legal action will be taken in the name of the awarded bidder, in accordance with RCW 19.16.270.

https://en.wikipedia.org/wiki/Debt

EXHIBIT C2- DEBT COLLECTION NON-COST FACTORS

EXHIBIT C2 – DEBT COLLECTION SERVICES NON-COST FACTORS

BIDDER NON-COST FACTORS - BID SUBMITTAL INFORMATION

Bidder must respond to all questions below to be considered responsive. This submittal has a total of 750 points possible. Scoring for this section of the Competitive Solicitation will be completed during the bid evaluation phase by the evaluation committee. The evaluation committee will review the answers and assign points based on the Bidder’s ability to meet the qualifications. Once all of the points have been received from the evaluation committee, Enterprise Services will take an average from the evaluators’ scores to determine the Bidder’s non-cost factors score. This form must be used for responses. Enterprise Services recommends the Bidder not include any company names in their responses as the non-cost factors will be done by a blind evaluation.

1. COMPANY PROFILE (62 POINTS)

Bidder must have sufficient capacity (i.e., personnel and equipment) to perform the contract.

Provide information about the firm, and information about the relevant qualifications of staff who will be assigned to the contract, if awarded. Please include: training, certifications, experience, years in industry, key clients, assignments/projects, tenure with Bidder’s firm, employment status (i.e. employee or contractor) and any related work experience with Washington State or other state or local governmental entities.

Company Profile

The offeror is a privately held, Washington State Limited Liability Company that provides full-service accounts receivable management assistance. The firm was founded in August 2005 by Ms. Ollie Garrett, who serves as the CEO and President. The firm has experienced steady growth since its founding and currently manages over $243 million in receivables. The firm has adequate capacity to manage the anticipated Enterprise Services workload as well as its existing backlog with staffing increases already planned.

The firm is certified as a Small Business Enterprise (SBE), Minority/Woman-owned Business Enterprise (M/WBE) and Disadvantaged Business Enterprise (DBE). The firm is an equal opportunity employer and maintains a diverse workforce. Policies and procedures are developed locally and designed to meet client needs.

At the present time the firm has a total of 10 full-time equivalents (FTEs), which represent seven full-time employees and three part-time employees. Due to new clients being added to the portfolio, it is anticipated the staffing levels will increase, prior to contract award. Table 1 provides a summary of the relevant qualifications and experience of our proposed key personnel who will be assigned to the contract.

The firm has gained a breadth of experience working specifically with the Washington State Master Contract since 2012 as a subcontractor to prime contractor, AllianceOne. Our partnership allowed us to work with all stakeholders utilizing the contract which includes but not limited to the Educational, WSDOT and Municipal accounts. The firm’s primary collections customer since inception has been State and Local government. Additional local experience includes, however is not limited, to Seattle Municipal Court, King County District Court, Seattle Department of Transportation Permit and Damage Claims Division, and City of Seattle License and Tax Revenue Department. In 2015 the firm gained experience working with North Texas Toll Authority and City of Philadelphia Water Revenue Department. This experience allowed the firm to scale quickly and efficiently to optimize performance and service.

Table 1. Personnel Qualifications and Experience

Name/ Title/ Certifications

Education and Training

Years in Industry/ Tenure with Firm/ Employment Status

Key Clients/ Assignments/Projects/ Related WA State or Other State or Local Government Experience

Ollie Garrett, CEO &

President/ Project Manager

2 years, Jackson State University

2 years, Wayne County Community College

32 years in Collections industry; 14 years with the firm

Current CEO & President

Coordinates entire project as it relates to implementation, operations, IT, SLA’s and capital expenditures, etc. Direct contact with Client on all aspects of the Scope of Work and Contract.

Ms. Garrett has worked on the Washington State Master Contract since 2012 as a part of the AllianceOne team.

Under this contract, Ms. Garrett works with all stakeholders utilizing the contract which includes, but is not limited to, the Educational, WSDOT, and Municipal accounts. Since its inception, the firm’s focus has been on State and Local government as primary collections customers.

Additional local experience includes Seattle Municipal Court, King County District Court, Seattle Department of Transportation Permit and Damage Claims Division, and City of Seattle License and Tax Revenue Department. In 2015 the firm worked with North Texas

Name/ Title/ Certifications

Education and Training

Years in Industry/ Tenure with Firm/ Employment Status

Key Clients/ Assignments/Projects/ Related WA State or Other State or Local Government Experience Toll Authority and City of Philadelphia Water Revenue Department.

Hernandez Ruffin, Director of Operations

Novi High School

2 years of College coursework in business marketing

24 years in Collections industry; 14 years with the firm

Full-time employee

Coordinates operational staffing, analytical evaluations, performance forecasting, inventory control, and effective execution of strategic work standards. Eight years of experience working under the State of Washington Master Contract as a subcontractor to AllianceOne. Additional work experience includes 14 years of experience managing the operations of Governmental clients including City of Seattle all divisions, King County District Court, Seattle Municipal Court, and Seattle Department of Transportation.

Elsia Bland, Director of Client Support Services

Associates of Arts Degree, Apparel and Textile Marketing and Business

25 years in Collections Agency; 14 years with the firm

Oversees all phases of contractual agreements related to proper implementation and execution of the Scope of Work. Develops customized procedures for Client. Facilitates weekly meetings with key personnel for Quality Assurance. functions as the direct contact for Client, including daily, weekly, monthly, reports, remittance, concerns, meeting coordination, etc.

Has worked for the past 20 years with Washington State Governmental clients including eight years working on the State of Washington Master Contract as a subcontractor to AllianceOne.

Additional work experience includes:

City of Seattle (all divisions), King County District Court, Seattle Municipal Court, Name/ Title/ Certifications

Education and Training

Years in Industry/ Tenure with Firm/ Employment Status

Key Clients/ Assignments/Projects/ Related WA State or Other State or Local Government Experience and Seattle Department of Transportation.

Fereshteh Demehri, Finance Manager

Bachelor of Applied Science in International Business (BAS IB)

Associate Degree in Accounting

7 years in Collections and with the firm

Oversees all phases of financial-related functions pertaining to the contract requirements, e.g., ACH remittances, billing, insurance, trust account management, etc. She has 7 years of experience working on the State of Washington Master Contract as a subcontractor to AllianceOne.

Additional work experience includes City of Seattle (all divisions), King County District Court, Seattle Municipal Court, and Seattle Department of Transportation.

2. TRAINING - FEDERAL AND WASHINGTON STATE DEBT COLLECTION LAWS (62 POINTS)

Describe the training given, or other specific measures taken by your firm, to ensure an active understanding and adherence among your management and employees of Federal and Washington State law governing debt collection. This includes the rights, restrictions, and exemptions on general collections, student loan collections, related legal services, and any special requirements in law of any kind of debt collection that might be assigned under this contract.

This answer should include your firm’s knowledge and practice in compliance with the Washington State’s personal bankruptcy law, the rights and restrictions on collecting after bankruptcy has been declared, and your firm’s knowledge and practice in pursuing the debt of limited liability corporations.

Training for Federal and Washington State Debt Collection Laws All our project staff are required to complete mandatory training that is based on the firm’s procedures and quality and customer service standards, as well as client-specific requirements. This training is designed to ensure that our project staff understand and comply with Federal and Washington State laws and regulations governing debt collection, as well as company practices designed to the performance of professional, quality debt collection services that meet the applicable firm and contract requirements. Project staff are trained on contract-specific requirements prior to beginning work on the contract. For new hires, training is two weeks in duration and includes specific training on the client’s portfolio as well as legal requirements and company policies and procedures. Training is provided in a classroom setting.

No collector at the firm will be allowed to work client accounts without completing this training. Refresher courses will be completed at least annually, employees will receive additional formal training. Vendors will be required to use the firm’s training program or to develop one that is similar in purpose and is approved for use by the firm.

Our training places a high level of focus on compliant handling of bankruptcies, disputes, cease and desist, and fraud. Project staff are training on the following as applicable to their jobs: Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA) and the Health Insurance Portability and Accountability Act (HIPAA), and applicable State Laws. Trainees are tested on the subject matter, and a score of 90 percent is required prior to advancing to the next training module.

Project staff are trained on Collector Skills. A high level of focus is placed on the notation of accounts, proper codes, Client-specific methodologies, bridging with customer/debtors, full and complete information, payment solutions versus payment arrangements, overcoming objections, negotiations, and closing. A score of 90 percent is required before the trainee advances to the next training module.

Upon completing training, our agents are monitored by our Quality Assurance Team throughout contract performance.

Bankruptcy and Limited Liability Corporations Training

The firm tries to work with the debtors on a voluntary basis to get the delinquent account resolved. However, when other avenues for voluntary resolution have failed, if the contract allows, we initiate legal activity to resolve the debt as a last alternative.

The legal process is initiated by the collection representative, who makes a final demand for payment usually after several unsuccessful attempts, verifies the debtor’s address and asset (job, bank account or property ownership) information, and sends a written request for verification of debt to the client for signature. The collection supervisor reviews and must approve the account handling and account information prior to any written request to the client.

The supervisor pays special attention to previous payment history, the recovery-potential represented by the asset (e.g., bank account with known balances, viable employment-minimum wage vs. higher income employment, and information verification (including such things as confirming that the debtor’s identification information matches that of the employee or bank account holder to be garnished). The Social Security information is on the file to ensure proper service. Employer fax and corporate information is properly stored on the account, etc.

Once approved, a written request for verification of debt is sent to the client. These forms are programmed in the system for efficient execution of legal process. The forms to be utilized with the Client for verification of the debt will be submitted for written pre-approval by the Client. At this time the Client will have the ability to review the account to determine appropriateness to proceed with the legal process. When the approval/verification is received back, Administration sends the account and supporting documentation to one of our attorneys for final approval and execution.

All letters and pleadings to be utilized in the legal process for the Client’s contract will be prepared in compliance with all statutory requirements and submitted for pre-approval by the Client. The legal process is electronically monitored, and accounts have to be worked within specified time periods at each stage of the process.

Collector Legal Handling

1. Collector makes final demand to debtor for payment, prior to starting legal action.

The collector verifies address and asset such as (bank account, employment) and requests assignment for legal is sent to supervisor for approval to litigate.

a. Debtor cannot be in military or tribal member

b. Debtor cannot be on State or Federal assistance

c. Debtor must make over minimum wage. A person making minimum wage of $9.34 working fulltime is making a gross monthly income of $1494.40

d. For infractions account balance should be a minimum of $50.00

e. Debtor’s take home income after taxes should be a minimum of $1300. This means that a person making 10.00 hourly will have a gross income of $1600 and take home of $1300.

i. You would therefore ask the debtor when getting employment information this question: How much do you make an hour or what is your monthly take home after taxes?

f. Judgment date is located in the UDF Window in Debtmaster. Legal referrals must be a minimum 6 months after the Judgment date to request an abstract from client.

g. Employment must be verified as well as any other asset.

h. Address and phone must be verified and placed in the account

i. Employer information must be placed in the employer window in

Debtmaster.

2. Collection Supervisor reviews, approves/ denies request. If request is approved the account information is sent to Administration Dept. to verify employment one more time then the account is forwarded to client requesting abstract information

3. Once all information is received from our client, the account and supporting information is forwarded to our legal team for legal action.

4. The Attorney reviews, approves and signs summons and complaint and routes to process server. The original documents are filed with the courts for filing and copies are served on the defendants. The Administration department monitors these accounts.

5. The defendant has to file an answer within 20 days. If no answer the account is in default at day 21. The account is sent back to the collector to make demand for payment/ and or re-verification of assets and request garnishment after 30 days.

6. If the defendant answers, our legal team will try to settle the balance or obtain a stipulated judgment. If no resolution the account set for a hearing /trial.

7. Garnishments to employers are served within 3 to 5 days of being picked up by server. Bank garnishments are valid for one year from the issued date and are held by the server until the firm notifies them to serve. The firm will fax a list of bank garnishments that are ready to be served daily to the server and the accounts on the list are served that same day.

Garnishment Process

1. Legal department pulls all imaged Abstract of Judgment and Collection Referral from each debtor account.

a. A worksheet is printed, attached and sent to our client requesting the Abstracts for each account and is given the legal clerk.

b. The Judgment Summary is printed, attached with the worksheet and given to the attorney for review and signing.

c. A check is printed if required to file and the Judgment Summary.

d. The signed Judgment Summary is attached with the check (if required) and is forwarded to the court for filing.

2. Filed Judgment Summary back from the court.

a. The debtor file is noted, and the legal account is set up.

b. If the asset verification is over 90 days, the account gets sent back to the collector to re verify. If under 90 days, the account gets moved to be garnished.

3. Registered agent information is required to properly serve a garnishment.

a. Garnishee debtor information is verified with the Secretary of State or Department of Revenue web site if we do not already have current information.

b. Once this information is obtained the information is input into the legal library and the account is moved to the garnishment request desk.

4. Garnishment figures are calculated.

a. Civil filing fee ($12.00 Court, $20.00 Superior Court)

b. Service cost approximated at $60.00

c. Certified mail cost to Debtor and/or Garnishee

d. Garnishment attorney fee calculated at 10% of the judgment balance

(min $50.00 - max $250.00).

5. Documents are printed daily, reviewed and sent to our legal team for processing. Our legal team provides monthly and quarterly updates of all stages of our legal process.

6. Garnishment funds received are posted daily until accounts are resolved. If the debtor becomes unemployed the account is routed back to the collector for further collection action if needed.

Bankruptcy Process

Cases involving Bankruptcy will be handled in accordance with operating guidelines negotiated between the State and the firm upon contract award. The firm can represent the State in these matters, filing appropriate Proof of Claim forms and filing them with the appropriate Bankruptcy Court. Many court fines/fees MAY NOT be discharged, and the firm would ensure that the State’s claims were accurately filed to reflect the nature of the debt.

The firm, at the courts request, can direct payments to us for posting and reconciling, or we can direct the courts to directly remit funds to the State.

The firm proposes to utilize AllianceOne as the legal services provider for the firm, and the process of litigation for Bankruptcy and Limited Liability Corporations is handled by AllianceOne as described in our response to No. 6 of this response (Legal Services).

3. RECOMMENDED APPROACH AND METHODOLOGY (65 POINTS)

Describe Bidder’s overall debt collection process, tools, and methodologies. Also describe Bidder’s processes supporting effectiveness, efficiency, and greatest continuity of debt collection engagements spanning multi-year engagements. In addition, Bidder should address the Bidder’s capabilities on how they will handle the debt collection efforts of Washington State agencies and political subdivisions if awarded. Describe clearly the collection methods used and criteria for determining appropriate actions for accounts (for example an account less than $500 vs. an account of more than $5,000). Attach a sampling of collection letters used. These sample letters MUST NOT include real debtor names or identifying numbers or addresses.

Collection Methods and Criteria

Our overall debt collection process, tools, and methodologies are described below. The firm’s system is designed to facilitate differing workflows by type of placement, and accounts are separated accordingly in the system. The firm believes the basic flow of work will be the same among all case types. These processes, tools, and methodologies have been used successfully on other contracts to provide debt collection services for Washington State agencies and subdivisions. The firm has collected $9,006,792.00 for our government clients.

Pre-Collect Accounts Process

1. Client will transmit files to the firm containing all pertinent data relevant to the case for which they wish to have a pre-collect letter generated to the debtor.

2. The firm will establish a record in the firm’s system that will:

a. Acknowledge receipt of file to the Client

b. Create a new debtor record in the firm’s system or

c. Match to existing records if applicable

d. Set the account for pre-collect letter generation

3. At least weekly, and as volume dictates (possible daily), the firm will generate an electronic file of pertinent debtor/case information in letter format and transmit that data to the firm’s bulk mail subcontractor.

4. Our bulk mail subcontractor will validate addresses using databases approved by the U.S. Postal Service (USPS) to comply with mailing regulations (Coding Accuracy Support System [CASS] and National Change of Address [NCOA]) and will notify the firm of changes.

5. The firm will update records where addresses must be updated.

6. Our bulk mail subcontractor will send letters using the firm’s letterhead.

7. The firm will generate the remit validation file and submit to the Lock Box, which will use this data to validate incoming payments.

8. The firm will flag the account for follow-up at 31 days after letter generation to determine if payment has been received. At the end of each day, accounts not having payments will be consolidated and sent to Client for review on possible placement as collection account.

9. The firm will transmit to the State, payment and account update files daily on pre-collect accounts.

Collection Process

The firm will segregate placements into two (2) primary groupings, Commercial and Consumer. Each of these will be segmented into three (3) balance break groupings: Small Balance ($25-$150), Mid-Range ($151-$325) and Large Balance (>$325). All accounts, regardless of whether they are commercial, or consumer will receive the following initial treatment:

• Account received for assignment.

• Acknowledgment sent of receipt of placements.

• Account downloaded into placement file to firm’s proprietary database system within

24 hours.

• Account sent to third-party vendor to be scrubbed for bankruptcy or deceased status.

• Accounts segmented based on Commercial / Consumer.

• Accounts with good phones loaded into daily dialing lists.

• Accounts without good phones sent to initial skip trace data vendor.

• Initial demand letter mailed to consumer within 72 hours of download.

At any time subsequent to assignment, the firm will complete the following steps with assignments, based on specific activity as follows:

• If, at any time, it is determined a consumer is or has filed for bankruptcy, is determined to be deceased, indigent or the account has been validated as disputed or fraud, the firm will cease collection activity against the consumer immediately. The placed account shall be closed and returned within three business days of notification. The firm will properly code the account for further handling by Client.

• If at any time Client determines an account was assigned in error and Client wishes to recall the account, the firm will cease collection activity, close the account, and return the account.

Written Communications

The firm uses a series of letters to inform consumers of their financial obligations and obtain additional information, which can aid in skip tracing, follow-up, and legal proceedings when necessary. The firm can design any letter or notice to meet client needs. The firm also analyzes the effectiveness of letter campaigns on a monthly basis and can make virtually instant changes to the firm’s letter strategy on different portfolio segments and ages without any IT involvement. This allows agility and flexibility to react to changing portfolios and seasonality.

The first letter sent to consumers is typically a standard Notice of Default. The firm also has a second option, which integrates an open-ended settlement offer used for clients who place a heavy premium on the time value of money. These notices are sent before an account ever reaches a collection representative’s desk.

The firm will then integrate a series of subsequent letters into a cohesive strategy using champion-challenger assessments over time. A series of settlement letters with percentage offerings is used that vary over time and may be tailored to individual portfolio segments. The firm has a second demand letter with stronger verbiage, which can be used before settlement strategies, or, as we’ve found in some champion-challenger experimentation, may be even more effective as a demand for balance-in-full subsequent to a settlement letter campaign.

Letter options vary from address verification requests to inquiries about employment verification to time-limited settlement offers. The firm also sends notices with color logos or text and can provide custom content for the Client. All firm notices are sent in both English and Spanish.

Letters are also available upon customer request. For example, should a customer call in to solicit a paid-in-full notice, the collector may submit a request for such a letter to be sent.

Upon review of the letter request, our operations manager may approve the notice for delivery to the customer.

In addition, the firm can implement or modify letter strategies instantaneously without involvement from the IT department. This allows the IT department to focus on development of customized content for deployment in the control panel-driven operational performance-centric model. The IT department dedicates two internal programmers and three contractors from three different organizations to lend the maximum possible breadth of knowledge, experience, and creativity to tailoring specialty Client account notices, within FDCPA and FCRA guidelines, to meet Client’s needs.

Sample letters are provided in Figures 1 through 3 below.

Sample Letter 1

<<DATE>>

«DEBT_ID_NO» AR

AMOUNT DUE: «CUR_BAL»

«MAIL_NAME»

«MAIL_ADDR1»

«MAIL_ADDR2»

«MAIL_CITY_ST_ZIP»

Dear «MAIL_NAME», «ORIG_CLT» values your business and would like to resolve this matter. Your debt(s) have been assigned to [Firm’s Name] for payment processing and collection. If you have any questions or need assistance, please call TOLL FREE (877) 881-4854.

RE: «ORIG_CLT»

REFERENCE NUMBER: «CLT_REF_NO»

DEBT DESCRIPTION: «DEBT_TYPE_DESCR»

OTHER DESCRIPTION: «COMMENTS»

AMOUNT: «ORIG_PRINC_AMT»

INTEREST FEE: «INT_BAL»

TOTAL: «CUR_BAL» (US FUNDS ONLY)

You are directed to address all future correspondence and payments concerning this account to this address:

Firm Name Address City and State

This communication is from a debt collector. This is an attempt to collect a debt, and any information obtained will be used for that purpose. Unless you notify this office within 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days from receiving this notice, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

Figure 1. Sample Letter 1

Sample Letter 2

<<DATE>>

«DEBT_ID_NO» AR2

AMOUNT DUE: «CUR_BAL»

«MAIL_NAME»

«MAIL_ADDR1»

«MAIL_ADDR2»

«MAIL_CITY_ST_ZIP»

Dear «MAIL_NAME», «ORIG_CLT» values your business and would like to resolve this matter. Our Customer Service Department has made several attempts to contact you regarding the referenced account(s) below. Since you have refused to respond to our attempts to resolve your check(s), further collection is being recommended. If you need assistance, please call TOLL FREE (877) 881-4854.

After analyzing the results of the item(s) below, we will determine the most efficient collection efforts to recover the monies due to «ORIG_CLT». To AVOID the possibility of further collection efforts, you must contact our office immediately to make payment arrangements.

RE: «ORIG_CLT»

REFERENCE NUMBER: «CLT_REF_NO»

AMOUNT: «ORIG_PRINC_AMT»

INTEREST FEE: «INT_BAL»

TOTAL: «CUR_BAL» (US FUNDS ONLY)

You are directed to address all future correspondence and payments concerning this account to this address:

Firm Name Address City and State

This communication is from a debt collector. This is an attempt to collect a debt, and any information obtained will be used for that purpose. Unless you notify this office within 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days from receiving this notice, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

Figure 2. Sample Letter 2

Sample Letter 3

<<DATE>>

«DEBT_ID_NO» DRC

AMOUNT DUE: «CUR_BAL»

«MAIL_NAME»

«MAIL_ADDR1»

«MAIL_ADDR2»

«MAIL_CITY_ST_ZIP»

Dear «MAIL_NAME», This account has been referred to [Firm’s Name] for collections and payment processing. We have made several attempts to contact you regarding your reference account with «ORIG_CLT».

Since you have refused to respond to our attempts to resolve your debt, further collection is being recommended.

You MUST contact our office within 10 days to avoid the possibility of reporting your account to all credit bureaus. Please call TOLL FREE (877) 881-4854.

RE: «ORIG_CLT»

REFERENCE NUMBER: «CLT_REF_NO»

AMOUNT: «ORIG_PRINC_AMT»

INTEREST FEE: «INT_BAL»

MISC FEE: «FC_MIS_AMT»

TOTAL: «CUR_BAL» (US FUNDS ONLY)

You are directed to address all future correspondence and payments concerning this account to this address:

Firm Name Address City and State

This communication is from a debt collector. This is an attempt to collect a debt, and any information obtained will be used for that purpose. Unless you notify this office within 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days from receiving this notice, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor

Figure 3. Sample Letter 3

4. DATA ENCRYPTION CAPABILITIES (64 POINTS)

Bidder will provide a written description of current data encryption capabilities (if applicable), systems access, and information technology security protocols for all systems and/or file transfers. If selected for a contract, Bidder must conform to any system and file security protocol standards that are required by the Department of Enterprise Services and/or State.

Data Encryption The firm currently employs a PGP encryption system for file and e-mail handling with the firm’s largest client, which requires knowledge of the proper encryption key at the Client site as well as the firm’s site. This key may be changed on a regular basis or as necessary.

LAN/WAN Database Security Once customer information is stored on the firm’s local area network, wide area network, or internal database system and is protected by a hardware firewall, the only remote access is through VPN or secured shell technology (for firm’s clients) to prevent access by any unauthorized persons. All other ports are closed. The internal customer account database is stored on a Unix system for maximum security and data integrity. The firm chooses not to use any wireless networking capabilities to avoid potential security holes that are inherent in that technology. All users are automatically logged out of the firm’s database system after 30 minutes of inactivity.

The firm will conform to any system and file security protocol standards that are required by the Department of Enterprise Services and/or Client.

5. CONFIDENTIALITY AND DATA SECURITY (65 POINTS)

The Bidder must have an established history of ethical and legal collection practices, especially with confidentiality of client and debtor information and the level of professional standards displayed by the Bidder's employees. Describe your specific practices and processes to maintain confidentiality of clients and debtors. In addition, Bidder must have data security measures for hardcopy and digital files. Describe your specific data security practices.

Note: Any Bidder assigned to collect medical-related debt through this contract must show certification of compliance with the Health Insurance Portability and Accountability Act (HIPAA) before accepting such assignment or beginning any medical collections work.

Confidentiality and Data Security

The firm has eight years of experience working specifically with the State of Washington Master Contract and has never had any ethical, legal or confidential issues. Our goal is to provide the best-in-class services to all of our clients and their customers. We strive always to provide the highest standard of professional and ethical standards in all areas of services, including data security and confidentiality. Conversely, as a condition of employment all firm employees are trained on confidentiality, data security, and the firm’s work ethics prior to accessing any of our clients’ information.

Transmission of Data Between Firm and Clients

Customer information is stored on the firm’s local area network, wide area network, or internal database system, which is protected by a hardware firewall. Remote access is through VPN or secured shell technology (for firm’s clients) to prevent access by any unauthorized persons. All other ports are closed. The firm’s internal customer account database is stored on a Unix system for maximum security and data integrity. The firm chooses not to make use of any wireless networking capabilities to avoid potential security holes that are inherent in that technology. All users are automatically logged out of the database system after 30 minutes of inactivity.

Internal Personnel Security Access to the firm’s information systems is granted on an employee classification system that allows employees an established privilege level based on their job requirements. For example, collectors do not have the ability to print or save any information to an external device. They do not have the ability to access social security numbers or financial information such as credit card or bank account numbers. They also do not have the ability to input any payment information or change original debt information.

Remote Access Remote access to the firm’s system is granted only to clients and to upper management within the company. Such access is granted through multiple security features including specialized user account setup, multiple passwords, and virtual private network, and secured shell access to prevent unauthorized individuals from viewing or capturing any data. “Client Access” is a hosted service that automatically compiles and sends sanitized client data to a secure web server. The firm’s systems are built on industry standards, including Microsoft Server software and databases built on SQL.

Listed below are some of the firm’s data transfer experiences:

• The firm has multiple methods to transfer files. The firm currently uses automated and manual FTP, SFTP, via email and Website drop box protocols.

• The client transfers the majority of the files processed at the firm using a file server that is setup and maintained. Some clients utilize the firm’s file server for file transfers. In most cases, the client requires a custom process to handle placement and financial files. The firm provides encryption or decryption via PGP for some of the placement and financial files processed. The firm’s proprietary system provides the ability to meet these customized needs in an efficient and timely manner.

• Files are primarily processed utilizing a custom automated process. Some clients require a manual login and transfer to pick up login, transfer to pick up and receive files. Each file is picked up from the client’s file server and processed utilizing a pre-designed and tested process. Certain processes automatically generate an acknowledgement file for transmission to the client for validation prior to processing.

Other clients require validation via a website tool or a manual tool prior to processing.

• Some clients notify the firm when a file is ready to pick up for processing and some are automatically picked up for processing at the same time each day.

• All automated file processes are completed on a daily basis. Automated processes include picking up files from the client file server for processing or creating files and delivering them to the client file server.

• In some cases, clients require daily/weekly/monthly financial files to be created and transmitted including all of the transactions processed by the firm. The firm also sends paid agency transaction records electronically via the client remittance process using an ACH CTX addendum file when remitting payments to clients.

• The firm has some smaller clients that submit files using a standard Excel file template for placement and payment submissions. These files are processed with a standard process to load the contents of the Excel spreadsheet to create placement or transaction records.

• Some clients submit accounts and transactions manually via mail. These accounts and transactions are entered and processed through a manual entry process by the firm’s Bookkeeping Department.

• The firm currently uses multiple procedures to verify data file integrity:

- Acknowledgment files are created and sent for verification prior to loading the records.

- File totals are verified with client prior to loading records via email or website provided by client.

- By comparing totals in header and/or trailer records included in the data, file prior to loading records

Remote access to the system is granted only to the firm’s clients and to upper management within the firm. Such access is granted through multiple security features including specialized user account setup, multiple passwords, and virtual private network, and secured shell access to prevent unauthorized individuals from viewing or capturing any data. “Client Access” is a hosted service that automatically compiles and sends sanitized client data to a secure web server.

6. LEGAL SERVICES (62 POINTS)

Bidder will be required to have access to legal services, either through in-house attorneys or contracted attorneys. Describe how your firm handles legal services pertaining to debt collection, including a description of lawsuit and garnishment procedures and guidelines.

Collection Litigation Services

Should the firm be awarded a contract with the State of Washington DES, the firm proposes to subcontract legal services work to AllianceOne Receivable Solutions. The firm has worked with AllianceOne since 2011. AllianceOne will report to our project/contract manager, Ms. Ollie Garrett on all matters related to performance of the anticipated contract.

Ms. Garrett will assign tasks requiring legal services to AllianceOne and oversee them.

AllianceOne provides litigation services nationwide for their government clients. Their in-house Government Services division’s legal department monitors procedures of their national attorney network partners. All attorneys are pre-screened by their VP for Legal Affairs and their Corporate Counsel and come to them through the American Collectors Association approved legal network.

AllianceOne has the ability to provide comprehensive litigation services (if pre-approved by the State). They offer their clients the same service offerings as a collection law firm with the added expertise in comprehensive debt collection.

While legal action is never the preferred method of collection, it is a necessary tool that AllianceOne can utilize against reluctant consumers, when pre-approved by the client.

AllianceOne’s internal legal department within its Government Services Division consists of a staff attorney, department manager, eight legal clerks, plus a network of attorneys to handle court appearances in distant counties and states. The staff attorneys liaise with local counsel and process servers. Key staff include:

• Alexandra Filutowski, VP Legal Affairs, Attorney at Law

• K.C. Hawthorne, Corporate Counsel

• Robin Ward, Legal Department Manager

AllianceOne has devoted years to streamlining its legal policies and procedures. AllianceOne has a fully integrated legal system that is continuously upgraded. Court costs and fees are collected from the consumers, not from the State, where permitted by law.

AllianceOne will not initiate legal action against delinquent consumers without the prior receipt of written approval from the State. Before any litigation activity is initiated by AllianceOne, all procedures will be submitted in detail to the State for approval.

Litigation Process

The legal process is initiated by the collection representative, who makes a final demand for payment usually after several unsuccessful attempts, verifies the consumer’s address and asset (job, bank account or property ownership) information, and sends a written request for verification of debt to the State for signature. The collection supervisor reviews and must approve the account handling and account information prior to any written request to the State.

The supervisor pays special attention to previous payment history, attempts at settlements, the recovery-potential represented by the asset (e.g., bank account with known balances, “high-end” employment versus low-wage employment, known or suspected superior wage assignments or liens for such things as child support), and information verification (including such things as confirming that the consumer’s identification information matches that of the employee or bank account holder to be garnished).

Once approved, a written request for verification of debt is sent to the client. The form to be utilized with the State for verification of the debt will be submitted for written pre-approval by the State. At this time the State will have the ability to review the account to determine appropriateness to proceed with the legal process. When the approval/verification is received, the supervisor will send the account and supporting documentation to one of AllianceOne’s attorneys for final approval.

All letters and pleadings to be utilized in the legal process for the State’s contract will be prepared in compliance with all statutory requirements and submitted for pre-approval by the State. As with other collection processes, the legal process is electronically monitored, and accounts must be worked within specified time periods at each stage of the process.

Serving Garnishments

Garnishments to employers are served within three to five days of being picked up by the server. Bank garnishments are valid for one year from the issued date and are held by the server awaiting notice from AllianceOne to serve. AllianceOne faxes to the server daily a list of bank garnishments that are ready to be served, and the accounts on that list are served that same day.

AllianceOne’s collection system has the ability to break out fiscal fields to meet the exact needs of the State in segregation of fees. AllianceOne has a fully integrated legal system which is continuously upgraded.

Bankruptcy

If, at any time, it is determined a consumer is or has filed for bankruptcy, is determined to be deceased, indigent or the account has been validated as disputed or fraud, the firm will cease collection activity against the consumer immediately. The placed account shall be closed and returned within three business days of notification. The firm will properly code the account for further handling by the client.

Accounts that have gone through the collection process and will not pay on a voluntary basis will be checked for attachable assets such as employment, contracts, bank accounts, property, and other business ownership/assets. If an attachable asset is located, the firm will seek approval from the State. Upon receiving such approval, the account will be forwarded to the legal department to file a lawsuit or execute garnishment. If a blanket arrangement is clearly defined, the firm will qualify all legal actions against the pre-established arrangements, prior to requesting authorization from the State.

Once approval is received, the firm’s legal services provider, AllianceOne, then files the necessary paperwork with the County to execute on and attach any and all assets to collect the monies owed from attachable assets. Trial will be set, and the State will be notified of such occurrences.

Legal Staff

AllianceOne’s legal department has an experienced staff with many of the department members working for AllianceOne for over a decade.