1. Ensuring a Successful Sale of Performing and Nonperforming Accounts Receivables
Speakers:
Mark Naiman, Board President, Receivables Management Association
Jan Stieger, Executive Director, Receivables Management Association

2. Making the Decision to Sell Your Debt
Evaluate Options
In-house collections
Third-party collections
Law firms
Sales
Ways to Sell Your Accounts in the Default Process
Portfolio sales
Forward flow agreements
Pooled or “league” selling

3. Valuing the Portfolio of Debt
Appropriate data to estimate the value
Asset type
Borrower type
Characteristics of debt, including:
Age of debt
Account balance
Principal
Interest/fees
Forgiveness
Other
Collection efforts thus far
Account integrity
Quality of documentation
Accuracy of balances
Detailed payment history
Each buyer has their own evaluation process, and Certified Buyers can help educate Sellers on many state-specific requirements.

4. Preparing Your Portfolio for Sale
Selecting the accounts for sale
Bankruptcies
Judgments
Accounts with good documentation
Okay to sell deceased or bankruptcy debt, but need to identify as such
What not to sell
Accounts you have issued a 1099 on
Disputes – need to disclose

5. Selecting Debt Buyers to Bid
Working with Certified debt buyers to minimize risk
Best practices and industry standards
Size and reputation of company
Company’s expertise in the asset type or location of the consumers

6. Creating an RFP
Information that needs to be included on an RFP in order to obtain bids from potential buyers
Nondisclosure agreement
Resale, especially to state or specialty buyers
Bankruptcy accounts
Formal RFI process substantiating the P&P’s and validation of acceptable levels of Data Security and Compliance.
Importance of data security in the purchase and sale bidding process

7. Purchase and Sale Agreement
What needs to be in a purchase/sale agreement
Representative and Warranty Clauses
Guidance on work standards
Guidance on legal strategy
Guidance on post-sale communication Requirements
Correspondence Exchange
Training Payments
Regular Audits

8. After-Sale Communications with Purchaser
Direct pays
Documentation
Put backs
Open communication is probably the most important factor in maintaining risk-averse and consumer-friendly reputation.

9. How the CFPB/OCC has changed the process
Minimizes reputational risk
Vendor management
What happens to your accounts after sale
Resale—to Certified companies
Insuring data security
Post-sale support (media/direct payments/correspondence)
Clarity, guidance and recommendations surrounding customer experience and protection.

10. Interactive Q&A Discussion
Complimentary Originating Creditor Membership:
Receivables Management Association (RMA) offers complimentary membership to creditors (application is required). Membership in the association provides access to other members, timely communication on regulatory changes and trends in the industry, online and in-person education and discounts to RMA conferences and education.
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