Federal Supply Schedule GS23F0368K

GENERAL SERVICES ADMINISTRATION

Federal Supply Service

Authorized Federal Supply Schedule Price List

On-line access to contract ordering information, terms and conditions, up-to-date pricing, and the option to create an electronic delivery order are available through GSA Advantage!, a menu‑driven database system. The INTERNET address for GSA Advantage! is: GSAAdvantage.gov.

Schedule Title: Financial and Business Solutions

FSC Group: 520

Contract Number: GS-23F-0368K For more information on ordering from Federal Supply Schedules click on the FSS Schedules at fss.gsa.gov.

Contract Period: August 4, 2005 through August 3, 2010 with three five-year options Contractor Name: Value Recovery Holding, LLC Address:

919 Old Henderson Road

Columbus OH 43220 Phone Number: 614-324-5959 Fax Number: 614-324-5950 Web site: www.valuerecovery.com Contact for contract administration: John G. Ritchey, CFO Business size: Small Prices Shown Herein are Net (discount deducted) Supplement Number: PO02 Date: 8/3/2005

CUSTOMER INFORMATION PAGE

1a.

SIN 520-4 Debt Collection

SIN 520-5 Loan Servicing and Asset Management 1b.

Please see government pricing beginning on page 26.

1c.

Please see labor category descriptions beginning on page 24.

2. Maximum order: $1,000,000.00

3. Minimum order: $300.00

4. Geographic coverage (delivery area): Contractor will provide domestic and overseas delivery.

5. Point(s) of production (city, county, and state or foreign country):

Value Recovery Holding, LLC 919 Old Henderson Road

Columbus, OH 43220

{Franklin County, Town of Columbus, Ohio}

6. Discount from list prices or statement of net price: Prices as stated are net prices.

7. Quantity discounts: Not applicable.

8. Prompt payment terms: Net 30 9a.

Government purchase cards are accepted at or below the micro-purchase threshold.

9b.

Government purchase cards may be accepted above the micro-purchase threshold with terms being negotiated at the task order level by Value Recovery Holding, LLC and the ordering agency.

10.

Foreign items: Not applicable.

11a.

Time of delivery: To be negotiated at the task order level.

11b.

Expedited delivery: Items available for expedited delivery are noted in this price list and are available to be negotiated at the task order level.

11c.

Overnight and 2-day delivery: To be negotiated at the task order level.

11d.

Urgent requirements: See contract clause I-FSS-14-B. Agencies can contact the contact for contract administration to obtain faster delivery.

12.

F.O.B. point(s): Destination.

13a.

Ordering address:

Value Recovery Holding, LLC

919 Old Henderson Road

Columbus, OH 43220

Tel: 614-324-5959 Fax: 614-324-5950 Email: info@valuerecovery.com 13b.

Ordering procedures: For supplies and services, the ordering procedures, information on blanket purchase agreements (BPA’s), and a sample BPA can be found at the GSA/FSS schedule homepage (fss.gsa.gov/schedules).

14.

Payment address:

Value Recovery Holding, LLC

919 Old Henderson Road

Columbus, OH 43220 15.

Warranty provision: Not applicable

16.

Export packing charges: Not applicable.

17.

Terms and conditions of Government purchase card acceptance (any thresholds above the micro-purchase level).

Government purchase cards may be accepted above the micro-purchase threshold with terms being negotiated at the task order level by Value Recovery Holding, LLC and the ordering agency.

18.

Terms and conditions of rental maintenance, and repair – Not applicable.

19.

Terms and conditions of installation – Not applicable.

20.

Terms and conditions of repair parts – Not applicable.

20a.

Terms and conditions for any other services – Not applicable.

21.

List of service and distribution points – Not applicable.

22.

List of participating dealers – Not applicable.

23.

Preventative maintenance – Not applicable.

24a.

Special attributes such as environmental attributes: Not applicable.

24b.

If applicable, indicate that Section 508 compliance information is available on Electronic and Information technology (EIT) supplies and services and show where full details can be found (e.g. contractor’s website or other location.) The EIT standards can be found at www.Section508.gov/.

Not applicable.

25.

Data Universal Number System (DUNS) number: 15-877-8311 26.

Notification regarding registration in Central Contractor Registration (CCR) database: Value Recovery Holding, LLC is registered.

Company Overview

Value Recovery Holding, LLC (VRH) stands ready, willing, and fully prepared to help the Federal Government implement and achieve its public policy and financial objectives. VRH is an industry-leading collection firm that uniquely meets the many technical requirements and service standards required by the Congress, Federal agencies, and important consumer protection groups. We are equipped to successfully recover debt owed to the Government while maintaining the respect, dignity, and privacy rights of American citizens. VRH pursues innovative teaming and subcontracting partnerships with qualified small businesses that strengthen our ability to recover funds, improve service, and help public agencies meet important socioeconomic goals.

Our clients recognize VRH s commitment to performance, solutions, and integrity, as well as the following benefits:

· Reputation as One of the Nation s Most Results-Driven Collection Agencies

· Successful Track Record with Sensitive Client and Consumer Privacy Issues

· Extensive Safeguards to Ensure Data and Facility Security

· Industry-Leading Technology and System Interface Capabilities

· Experience Working Large-Balance, Highly Sensitive Collection Accounts

· Proven Experience that Supports a High Level of Operational Scalability

· Employees Midwestern Work Ethic and Job Satisfaction Drive Success VRH is a privately held debt collection firm with more than 85 years of collective experience. We have adopted explicit standards for client partnership that exceed the expectations of those we serve. Our solutions are innovative, intensely focused, secure, and efficient, and we enjoy operational flexibility with in-house services for legal, investigative and forensic accounting not ordinarily found in large, investor-owned corporate agencies. VRH is a stable, profitable, dynamic company that maintains financial stability and protects the financial interests of our clients. Strong financial strength and the highest levels of fiscal integrity are VRH hallmarks.

VRH is a partnership of Value Recovery Group, Inc.(“VRG”) who through affiliated entities have been performing under programs for the benefit of the following:

· Federal deposit Insurance Corporation (“FDIC”)

· Resolution Trust Corporation (“RTC”)

· Export-Import Bank of the United States (“EX-IM”)

· Department of Education

· Attorney General for State of Ohio

VRH is currently a holder of SIN 520-5, Loan Servicing and Asset Management and SIN 520-4, Debt Collection on the General Services Administration (GSA) Financial and Business Solutions Federal Supply Service Schedule.

Activities under the GSA Schedule that VRH has performed include:

· Servicing, monitoring and maintaining Government held loans/assets

· Refinancing Government-held loans/assets

· Averting defaults and collecting on delinquent and defaulted loans/assets

· Restructuring loans

Assets may be any type including, consumer loans, current and distressed bank loans, single family and multifamily project mortgage loans, education loans, small business loans, agricultural loans, premiums, etc. An expanded description for many of these services may be found under our GSA Schedule Contract for Financial Asset Services, Description of Services – Loan Servicing and Asset Management.

This is but a small portion of the services that VRH is capable of providing. For the most current details of VRH’s experience and capabilities, please visit our website at www.valuerecovery.com .

Description of Services Loan Servicing and Asset Management Special Item Number 520-5

SERVICE, MONITOR, AND MAINTAIN GOVERNMENT-HELD ASSETS

The Government operates programs which provide direct loans or loan guarantees to individuals or businesses and may be responsible for servicing, monitoring, and maintaining these loans. Contractor support services are required to maintain a high level of customer satisfaction, to ensure the integrity of the programs, and an agency’s financial services.

Contractor loan services are required to provide all support necessary for the effective servicing of Government loans/assets, including providing all necessary processes, facilities, hardware, software, and personnel. Task orders issued against a contract resulting from this solicitation may require servicing of borrower accounts at time periods prior to and during the repayment period, establishing repayment plans for borrowers, maintaining and updating accounts on a database and providing updated information to the ordering agency’s central database, providing customer service, billing and collection services, collecting on delinquent loans, reporting to credit bureaus, and all other activities necessary to properly service a loan. Task orders may also require such related services as data entry, storage of printed materials, printing and mailing, clerical support, provision of office space for government personnel, providing training to Federal agency personnel and quality assurance and quality control activities. The loan servicing and asset management contractor is required to report to and consult with the ordering agency regularly about the contract and the status of the work being performed.

VERIFY AND MAINTAIN BORROWER DATA

Agencies may require a contractor to perform some or all of the tasks associated with the maintenance of borrower data for the assets being serviced by the contractor. Agencies may issue task orders that include requirements for loan remittance processing services which are similar to the services described below. A task order may require any combination of these services. These services itemize some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include borrower data maintenance services which may require, but are not limited to the following types of tasks:

· Consistently maintain all data elements required to service loans in accordance with requirements established by the ordering agency. The loan servicing and asset management contractor may be required to match each borrower and all loans for that borrower to a borrower master account.

· Maintain the same loan identification number assigned to the loan when it was originated to facilitate easy identification of all loans.

· Maintain the most current and correct borrower data, including updating borrower data on its own system within time frames specified by the ordering agency in the task order. The contractor may be required to process status changes received from multiple sources.

· Maintain and link all loan records and documents (e.g., letters, forms,) to each loan and borrower it services. For records and documents related to a borrower with multiple loans, ensure that these records and documents are referenced by each loan. Provide immediate, direct access to borrower master accounts, loan records and documents to authorized users (e.g., auditors, agency on-site monitors, other agency representatives, etc.).

· Record into its system a record of all contacts, both written and oral, with a borrower or a borrower's representative. Records of oral conversations may be required to be made in plain English without the use of special codes other than standard abbreviations.

· Contact the borrower on other sources of information to verify data on the loan application

EXCHANGE DATA WITH AN AGENCY’S CENTRAL DATABASE

Exchange data with an agency’s central database for the loans being serviced by the contractor. Agencies may issue task orders that include requirements for remittance processing services which are similar to the services described below. A task order may require any combination of these services. These services include some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include data exchange services which may require, but are not limited to the following types of tasks:

· Electronically exchange all loan servicing and asset management data with an agency’s central database. The contractor may be required to accept data from an agency’s central database on a regular basis as defined in the task order. This data may include, but is not limited to such elements as:

· New assets being assigned for servicing

· Data regarding payments made by borrowers

· Income contingent repayment eligibility information

· Updates to borrower demographic data

· Transmit data to an agency’s central database on a schedule and in a format established jointly by an agency, an agency’s central database contractor (where applicable), and the loan servicing and asset management contractor, including payment data and borrower contact information/records.

· Reconcile all transactions and financial data elements exchanged with an agency’s central database on loans with the data in an agency’s central database on a schedule to be determined jointly by the ordering agency and the contractor.

· Image, all hard copy documents (e.g., death certificates and notices of bankruptcy) received from an agency’s central database or any other source that pertain to the servicer's loan accounts. The contractor may be required to maintain the images and provide copies of the documents as required by the ordering agency.

ISSUE FORMS, DISCLOSURES AND LETTERS

Agencies may require a loan service contractor to perform some or all of the tasks associated with issuing forms, disclosures, and letters for the loans being serviced by the contractor. Agencies may issue task orders that include requirements for these services which are similar to the services described below. A task order may require any combination of these services. These services include some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include form/disclosure/letter issuance services which may require, but are not limited to the following types of tasks:

· Issue to borrowers standardized forms, letters and disclosures for routine activities, and one-of-a-kind customized letters to respond to correspondence or inquiries. The ordering agency may provide the text, names, formats and version numbers for all standard or system generated forms, disclosures and letters in use or in development or may require the contractor to design appropriate correspondence. If designated by the ordering agency in the task order, the contractor shall use the specified texts, names, formats and version numbers when generating these documents and a letterhead approved by the ordering agency for all letters.

· Include in each letter specific information such as an accurate point of contact (i.e., agency name and office symbol, mailing address, electronic mail address, and phone number) for further information as required in a task order. The contractor may be required to duplicate the likeness of agency approved correspondence provided in the task order throughout the life of the task unless a change is approved by the ordering agency.

· Agencies may require the contractor to exclude all extraneous information or enclosures in loan mailings not specified in a task order unless advance written approval from the agency is obtained. The contractor may be required to notify the agency of any problems or issues concerning correspondence format, font, etc., as soon as possible so that the issues may be resolved in a timely fashion.

· Agencies may require contractors to design standard borrower correspondence related to loan servicing and asset management and obtain agency approval of correspondence designs and changes prior to implementation. Agencies may further require the contractor to have the capability of tracking the versions of forms and letters as they change and have the capability of determining which version of a form or letter was sent to a particular borrower and compare results.

· Include any additional appropriate materials, (e.g. forms, remittance document, return envelope) with each letter. If requested by the ordering agency, the contractor shall include a return envelope with each piece of correspondence requiring a response. Ordering agencies may require all correspondence, including letters, forms, and billing statements, to provide for reporting borrower change of address.

· Send/transmit all correspondence via the appropriate vehicle and paid by the method specified in the task order.

· Supply envelopes for all mailings. Agencies may require the contractor to print specified notices on the envelopes.

· Note in its system that correspondence has been sent and maintain an image of all correspondence sent that is not standard.

PRODUCE PROJECT MATERIALS

Agencies may require a loan service contractor to produce project materials for the loans being serviced by the contractor. Agencies may issue task orders that include requirements for this service which are similar to the services described below. A task order may require any combination of these services. These services itemize some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include the production of project materials which may require, but are not limited to the following types of tasks:

Generate, store and distribute loan materials needed to perform loan servicing activities. As required by a task order, the contractor shall generate or provide documents such as, but not limited to the following:

· Individualized repayment schedules

· Deferment forms

· Forbearance forms

· Billing statements

· Coupon books (including different payment options)

· Pre-authorized debit forms

· Annual statements

· Quarterly Statements

· Income Contingent Waiver Forms

· Escrow analysis statements

These forms may be required to be generated in a format approved by the ordering agency.

PROCESS STATUS CHANGE UPDATES

Agencies may require a contractor to process status change updates for the assets being serviced by the contractor. Agencies may issue task orders that include requirements for this service which are similar to the services described below. A task order may require any combination of these services. These services itemize some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide. When required, agencies may issue task orders that include the processing of status change updates which may require, but are not limited to the following types of tasks:

· Process status change updates, including electronic updates and printed paper updates received from an agency or the borrower, in a timely manner or as required by a task order.

· Update the borrower's account and associated asset records with changes in the borrower’s status and implement required changes to loan servicing triggered by status changes.

· Notify the borrower of all changes in status that trigger the beginning of a borrower's grace period, or the beginning, or resumption of the borrower's immediate obligation to make scheduled repayments as specified in the task order.

CANCEL LOANS

A task order may require the contractor to process loan cancellations. A loan cancellation is the complete reversal of a loan. For example, if a borrowers status changes and the borrower is therefore not eligible for the loan, than the loan will be completely canceled.

Agencies may require a contractor to cancel loans being serviced by the contractor. Agencies may issue task orders that include requirements for this service which are similar to the services described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

A task order for this service may include, but is not limited to the following types of tasks:

· Reverse all financial entries on booked loans (as specified in a task order) after receipt of notification that a loan is canceled and transmit the account adjustments to an agency’s central database during the next transaction transmission.

· Send a written notification of loan cancellation to each applicable borrower and a revised repayment schedule if the borrower has additional outstanding loans that are in repayment.

· Confirm loan cancellation amounts and account adjustments through periodic reconciliation.

CONVERT LOANS TO REPAYMENT STATUS

For some Government loans, a borrower is not required to make any payments (although a borrower may choose to make interest payments on certain unsubsidized loans) during the time the borrower is in deferment status (e.g. Stafford school loans). When the borrower no longer meets the requirements for no-payment, a grace period begins during which no payments are required (although a borrower may choose to make interest payments on certain unsubsidized loans). At the end of the grace period, the repayment period begins. For other Government loans, the repayment period begins immediately on disbursement of the loan. The first payment on a loan is customarily due from the borrower within a specified time period (a grace period) after the loan is fully disbursed.

Agencies may issue task orders that include requirements for loan conversion services which are similar to the services described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide. Agencies may issue task orders for servicing these loans requiring, but not limited to, the following types of tasks

· The contractor may be required to identify loans entering the grace period through status changes provided by an agency’s central database, borrowers, or other sources.

· If the contractor has not been notified by the borrower of the repayment option chosen, the contractor may be required to notify the borrower that it provides loan counseling and repayment information specific to the borrower. The contractor may be required by some agencies to use text for this letter and repayment information approved by the ordering agency.

· Provide a repayment schedule to the borrower by a specified time period before the grace period ends which contains the disclosure of repayment information. In disclosing the borrower's repayment schedule, the contractor may be required to use the repayment option chosen by the borrower, if applicable, or if none was chosen, use the standard repayment option required by regulations.

· Prior to the loan's first payment due date, the contractor may be required to provide the borrower a billing statement based on the repayment schedule previously disclosed unless an alternate repayment schedule has been negotiated with the borrower. In addition to loan counseling and repayment options information, the contractor may be required to provide borrowers with default prevention notices by a specified time period from the beginning of the grace period, as frequently throughout the grace period as specified in an agency's request, or if the agency did not define, as frequently as required.

· Prior to the loans first payment due date or at times specified thereafter, the contractor may be required to contact the borrower or otherwise facilitate the borrower’s compliance with the loan repayment terms.

· For any loan which is deferred for any reason and for loans in forbearance, the contractor may be required to provide a repayment schedule at a specified time before the deferment or forbearance ends. Prior to the first payment due date, the contractor may be required to provide the borrower a billing statement.

· The contractor may be required to provide loan counseling upon borrower request and respond to borrowers' telephone or written inquiries.

· The contractor may be required to provide alternative repayment plans at the borrower's request. Alternative repayment plans are designed to meet the borrower's needs, yet must meet any prescribed regulations and Government program policy guidelines.

· The contractor may be required to notify the borrower to confirm the agreed upon repayment plan. As provided for in the applicable loan regulations, some borrowers have the option of changing repayment plans at any time.

CALCULATE INTEREST

As part of the contractors’ duties, agencies may require the contractor to perform the interest calculations on the loans being serviced. Agencies may issue task orders that include requirements for interest calculation services which are similar to the services described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include this service which may require, but are not limited to the following types of tasks:

· The contractor may be required to calculate the interest that accrues on borrowers' accounts in accordance with the applicable regulations and the loan terms and conditions.

· The contractor may be required to post accrued interest to borrower's accounts at time intervals specified by the ordering agency in a task order and report posted interest to an agency’s central database daily.

· The contractor may be required to provide amortization schedule to the borrower.

ASSESS FEES AND LATE CHARGES

If an agency chooses to impose fees or late charges on Government loans, it may require contractor services to assess, post and collect them. Agencies may issue task orders that include requirements for this service which are similar to the services described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include this service which may require, but are not limited to the following types of tasks:

· Assess and post to borrowers' accounts applicable fees and late charges on a loan in accordance with the applicable loan regulations and the loan terms and conditions. Amounts posted may be required to be transmitted to the agency’s central database regularly.

· For borrower payments that are not honored by a bank, agencies may require the contractor to assess a dishonored payment fee in an amount specified by the ordering agency, post the fee to the borrower's account, and transmit the information to the agency’s central database. The contractor may also be required to provide notification to borrowers of dishonored payment fees and late charges assessed on their accounts.

BILL THE BORROWER

Agencies may require a contractor to perform some or all of the billing tasks related to the loans it is servicing. Agencies may issue task orders that include requirements for loan-billing services which are similar to the services described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include billing services which may require, but are not limited to the following types of tasks:

· Bill the borrower as directed by the ordering agency. Common examples include sending consolidated bills or coupon books to borrowers for loans on which payments are due in the interval and method established in the task order.

· Notify borrowers of upcoming changes in interest rates, repayment schedule changes, etc. Some agencies may require the contractor to store any such messages on the database, so as to be easily retrieved in cases where the information must be regenerated.

· Have the ability to link specific text fields with the correct billing cycle.

· Provide several payment due dates each month. The contractor may assign borrowers a payment due date or allow borrowers to choose from the payment due dates offered by the contractor. However, the contractor may be required to allow a borrower to change his/her payment due date upon request and at no additional cost to the borrower.

· Provide billing statements to borrowers by a specified time period prior to the payment due date. Some agencies may require billing statements to contain all materials required for remittance.

· Provide information regarding advance payment, or additional amounts which could be applied to the principal to reduce the amount owed or reduce the time for paying off the loan.

· Have the capability to regenerate billing statements when those initially prepared have erroneous or misleading information on them or when requested by the borrower. These regenerated statements may be required to reflect the account status as of the appropriate billing cycle as it should have been if the correct information had originally been used. In addition, the contractor may be required to adjust the mailing dates on the billing statements and the payment due dates, both on the billing statements and in the loan servicing system, to reflect the delay in mailing correct billings.

· Upon the receipt of adequate consecutive monthly payments from a borrower who has entered the repayment period, the contractor may cease sending billing statements and may be required to instead send payment coupons to the borrower. However, the contractor may be required to continue to send billing statements to borrowers who have income contingent repayment plans and borrowers requesting such service.

· Provide coupon books to the borrower by a specified time period prior to the due date of the next regularly scheduled payment for which no billing statement will be sent. The contractor may be required to provide replacement coupon books as requested by borrowers. Each coupon may be required to contain appropriate information such as the account identification, payment amount, payment number, etc.

· The contractor may not be required to issue coupon books or billing statements to borrowers who are paying by pre-authorized electronic debit.

· Incorporate specific rules into its system for billing and collecting final payment.

PROCESS BORROWER REMITTANCES

Agencies may require a contractor to perform some or all of the tasks associated with processing the borrower’s remittances for the loans the contractor is servicing. Agencies may issue task orders that include requirements for loan remittance processing services which are similar to the services described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include loan remittance processing services which may require, but are not limited to the following types of tasks:

· Post data received from the ordering agency’s Central Database regarding payments to borrower accounts within a specified time period of receiving the data. Payments may be required to be posted with an effective date of the date of receipt at the lockbox.

· Deliver any borrower payments received at the servicing site to a specified loan lockbox for processing. The contractor may be required to provide and retain for its records a manifest of all payments being sent to the lockbox. The contractor may be required to resolve any discrepancies within a specified time period of receipt of this notification.

· Apply payments fees, collection costs, interest, and principal in the order specified by the ordering agency. The contractor may be required to correctly apply payments when a single payment is received with and for multiple billing coupons.

PROCESS BORROWER REQUESTS FOR REMITTANCES VIA PRE-AUTHORIZED DEBIT

Agencies may require a contractor to perform some or all of the tasks associated with processing the borrower’s remittances via electronic debit for the loans being serviced by the contractor. Agencies may issue task orders that include requirements for loan remittance processing services which are similar to the services described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include loan remittance processing services via electronic debit which may require, but are not limited to the following types of tasks:

· Provide the borrower with information and request forms for repayment via pre-authorized debits. The contractor may be required to provide these forms when providing the borrower a repayment schedule and may be required to provide the selection form through the life of the loan, upon borrower request.

· System generated loan lockbox approved pre-authorized debit form.

DETERMINE INCOME CONTINGENT REPAYMENT (STUDENT LOANS)

Agencies may require a contractor to perform some or all of the tasks associated with determining the repayment amount based on the borrower’s income, in accordance with agency guidelines, for the loans the contractor is servicing. Agencies may issue task orders that include requirements for this service which contains services which are similar to those described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include determining the repayment amount based on the borrower’s income which may require, but are not limited to the following types of tasks:

· Determine income contingent repayment (ICR) schedules in accordance with ordering agency guidelines. Some agencies may require the contractor to incorporate these guidelines into the loan servicing system so that calculations can be made automatically.

· When converting a loan to repayment status, send the borrower any agency required forms regarding income contingent repayment and, the release of income tax data, and obtain other information necessary to calculate the monthly ICR payment amount.

· Image and review any waiver form returned by a borrower. If the form is not correctly completed, the contractor may be required to send the borrower a new form to complete, along with an explanation indicating the error(s). If an acceptable form is received, the contractor may be required to transmit the electronic image of the waiver form in a separate file to an agency’s central database to be forwarded in turn to the IRS for approval.

· Upon (and under no other circumstances) receiving notification of IRS approval of the waiver from an agency’s central database, the contractor may be required to send a transaction file to the ordering agency’s central database containing a request to obtain income tax data from the IRS. The ordering agency’s central database will obtain the necessary information from the IRS (Adjusted Gross Income and Filing Status) and transmit this information to the contractor. The contractor may be required to use this information, along with information obtained from the borrower, to calculate the ICR payment amount, and begin billing the borrower for this amount.

The contractor may be required to obtain, update, or accept necessary information should there be a problem obtaining information from the IRS or if the borrower volunteers to provide alternate documentation.

· The contractor may be required to recalculate the ICR payment, in accordance with the ordering agency’s guidelines, at a borrower's request.

· The contractor may be required to provide counseling information to the borrower regarding repayment options and the effects of negative amortization. Unless the borrower or the ordering agency requests a different repayment plan, the contractor may continue servicing the borrower's account based on the income contingent repayment amount.

· The contractor may be required to recalculate the borrower's ICR payment amount in accordance with the ordering agency’s guidelines, and provide the appropriate disclosure to the borrower under various circumstances (e.g. change in family size).

· The contractor may be required to calculate joint repayment under the ICR plan. Under joint repayment, spouses who both have loans, and who file their federal income tax return jointly, may have the payment amounts on their loans calculated based upon their combined income.

Note: Contractor employees are subject to criminal prosecution for willful disclosure to third parties of information secured from Federal tax returns (26 U.S.C. Section 7213(a)).

PREPARE ANNUAL STATEMENTS

Agencies may require a contractor to perform some or all of the tasks associated with determining the preparation of annual statements for the loans being serviced by the contractor. Agencies may issue task orders that include requirements for this service which contains services which are similar to those described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders preparing annual statements which may require, but are not limited to the following types of tasks:

Prepare and send an annual statement each year to every borrower. The annual statement may be required to contain information such as:

- Borrower Identification Number

- Borrower Name and Address

- Period Covered by the Statement

- Beginning Account Balance

- Account Activity

- Ending Account Balance

- Changes in Variable Interest Rates

- Toll-free Customer Service Telephone Number

- Free-form text area for additional information required by an agency

- Any additional information required for adequate reporting as specified by an agency

- Tax and Insurance Escrow Information

Provide endorsers annual statements. Agencies may require all endorsers or a selected group of endorsers (e.g. endorsers on loans that are delinquent) be provided annual statements.

Respond to telephone and letter inquiries regarding annual statements within timeframes established in the task order.

Have the capability to regenerate annual statements, when those initially prepared have erroneous, incorrect, or misleading information on them. These regenerated statements may be required to reflect the account status as it should have been when the statements were initially prepared.

RECONVERT LOANS

Agencies may require a contractor to perform some or all of the tasks associated with reconverting loans. Agencies may issue task orders that include requirements for this service which contains services similar to those described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include the reconversion of loans which may require, but are not limited to the following types of tasks:

· Reconvert borrower loans from repayment into a payment-not-due status if appropriate.

· Reverse any late charges assessed and any interest erroneously calculated in accordance with the ordering agency’s guidelines. In addition, the contractor may be required to correct reports sent to an agency’s central database and credit bureaus if the contractor reported the borrower as delinquent or defaulted.

· In the event of any reconversion, cease billing and provide the borrower with an adjusted statement of account balances. The contractor may be required to generate the appropriate transactions to an agency’s central database.

· Reconvert a loan within a specified time period of obtaining the required information and cease collection activities immediately.

COLLECT ON DELINQUENT LOANS

Agencies may require a contractor to perform some or all of the tasks associated with collecting on delinquent loans for the loans being serviced by the contractor. Agencies may issue task orders that include requirements for this service which contain services similar to those described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include the collection of delinquent loans which may require, but are not limited to the following types of tasks:

· The contractor may be required to follow the lender due diligence requirements specified in 34 CFR 682.411 for some student loans, or an alternative collection process approved by the ordering agency when collecting delinquent loans.

· The contractor may be held responsible for performance of collection activities in accordance with agency requirements.

· If the contractor is notified that a borrower received a loan for which the borrower was not eligible, the contractor may be required to send a final demand notice to the borrower requesting payment in full within a specified time period. If the borrower does not pay in full or provide reasons why the loan should not be paid in full, the contractor may be required to notify an agency’s central database that the loan is in default so that the loan will be transferred to an agency's debt collection service.

· The contractor may be required to provide information to ensure delinquent borrowers understand the collection process and their benefits, rights, and responsibilities. The contractor may be required to maintain borrower contact by means of letters, telephone calls, and other notifications as appropriate.

· The contractor may be required to take action to recover a debt from its endorser (if applicable) when a debt becomes delinquent. When collecting from an endorser, the contractor may be required to use the same types of letters and bills that it uses to collect from the primary borrower.

· The contractor may be required undertake a customer and results oriented focus to collection activities and ensure that all attempts to collect are fair and reasonable, and do not involve harassment, intimidation, false or misleading representation and that no communications concerning a debt involve persons other than the debtor or the debtor's attorney.

· The contractor may be required to record all collection activity occurring on an account. This information may include skip-trace attempts that have produced specific information on the location of the debtor, written and verbal contacts to, from, and concerning the debtor or the debtor's representative, repayment negotiations, and all other pertinent data on each account. The contractor may also be required to record the name, address, home and work telephone number changes, and information regarding the debtor's employment, (e.g., employer's name, address and telephone number).

· Maintain the results of all collection activities and provide summary and detailed reports, including account status reports when requested.

RESOLUTION OF COMPLAINTS

Agencies may require a contractor to perform some or all of the tasks associated with resolving complaints for the loans/assets being serviced by the contractor. Agencies may issue task orders that include requirements for this service which contains services similar to those described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include the resolution of complaints relating to loan servicing and asset management activities which may require, but are not limited to the following types of tasks:

· Upon receipt of any complaint from the ordering agency or directly from the borrower that alleges a violation by the contractor of state or Federal law, the contractor may be required to immediately cease collection activity on the account in question. The contractor may be required to provide to the ordering agency a copy of its collection activity record on the account within established timeframes, any other relevant information, and a draft response to the complaint so that the agency may respond to the complaint.

· The contractor may be required to cease collection activity on accounts identified in a complaint until resolution of the complaint has been approved by the ordering agency. After oral or written notification from the agency that a complaint has been satisfactorily resolved, the contractor may be required to immediately initiate the appropriate action on the account.

· An agency may require any inquiry from a U.S. Senator's Office, U.S. Congressional Office, State or Local Government Office, or other Government body regarding a loan account be forwarded to the ordering agency within a specified time period of receipt together with the contractor's draft response to the inquiry and any pertinent documentation.

· During the resolution of a complaint, the contractor may be required to take steps to ensure that the problem that caused the complaint will not recur.

DISCHARGE LOANS DUE TO DEATH, DISABILITY, BANKRUPTCY, ETC.

A borrower's obligation to repay a loan may be canceled due to death, total and permanent disability, bankruptcy or other specified reasons. Agencies may require a contractor to perform some or all of the tasks associated with discharging loans. Agencies may issue task orders that include requirements for this service which contains services similar to those described below. A task order may require any combination of these services. These services illustrate some of the types of tasks that the contractor may be required to perform under this contract, but this is not intended to be an all inclusive list. Rather, it illustrates the types of services a contractor may provide.

When required, agencies may issue task orders that include the discharge of loans which may require, but are not limited to the following types of tasks:

· The contractor may be required to write off designated loans in accordance with agency loan regulations.

· The contractor may be required to review, approve (based on specific agency guidelines), and image all documentation related to the cause for the loan discharge.

· The contractor may be required to report the loan cancellation and the reason to an agency’s central database within a specified time period. The contractor may be required to provide the borrower or the borrower's executor (in the case of a cancellation due to death) with written confirmation stating that the obligation to repay the debt(s) has ended.

· Within a specified time period of receiving notification that is not sufficient to write off a loan, the contractor may be required to obtain proper documentation which sufficiently justifies the loan discharge.

· After the contractor has proof that a loan discharge is warranted, the contractor may be required to not make any other attempts to collect on the loan from the borrower, cancel the remaining loan obligation, and generate the appropriate transactions to the agency’s central database.

· The contractor may be required to return any payments received from or paid on behalf of the borrower (including payments made by a cosigner) in accordance with agency procedures as specified in the task order.

LOAN CONSOLIDATION

Agencies may require a contractor to perform some or all of the tasks associated with the consolidation of loans for the loans being serviced by the contractor.