T H E R E S O U R C E F O R B A N K R U P T C Y, C O L L E C T I O N S A N D D E B T R E C O V E R Y
de bt
3
Vol. 23 • Issue No. 6
November/December 2008
ATTORNEYS
BuyingDebt?
IN THIS ISSUE
Why Not Get Into the
Debt Buying Game?
“Build it and They Will Come”
vs. Common Sense
Market Research
CRS Election Results
L E A D I N G T H E WAY
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L E A D I N G
T H E
W A Y
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SPRING MEETING
&115th
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CONVENTION
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Phone: 312-641-6111
email: abramspc@aol.com
Leonard O. Abrams
Midwestern Region Arrangements Chair
Phone: 312-641-6111
email: abramspc@aol.com
1.800.978.(CLLA)2552 or
visit our website
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D3
contents
Vol. 23 • Issue No. 6
November/December 2008
Debt3 (ISSN 0888-8000) is published bi-monthly by the Commercial Law League of America®, 70 E. Lake Street, Suite
630, Chicago, IL 60601; (312) 781-2000. POSTMASTER: Send address changes to Debt3 70 E. Lake Street, Suite 630,
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Copyright ©2008 by the Commercial Law League of America®. Permission to reprint materials in Debt3 may be
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The views and conclusions expressed in articles are those of the authors and are not necessarily those of the
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copy price is $15.00. Write the Commercial Law League of America®, 70 E. Lake Street, Suite 630, Chicago, IL 60601;
(312) 781-2000.
16
features
8
Attorneys Buying Debt—
Who Knows How to Collect Better than You?
16
league views
5
Why Not Get Into the Debt Buying Game?
The President’s Page
32
Viewpoint by Oliver Yandle
lifestyle
20
Tale of the Horrible Pro se Debtor
marketing
18
Build It and They Will Come vs. Common Sense Market Research
league business
24
Member Benefits • Report from CLLA New York Meeting •
CRS Election Results • CLLA Programming at the 2008 NCBJ •
member news
28
Among Our Members • ABC Report • Newly Admitted Members
18
Commercial Law League of America
L E A D I N G T H E WAY
20
32
about clla
meeting notices
Chicago/Spring Meeting
New York, New York
April 16-19, 2009
Vol. 23 • Issue No. 6
November/December 2008
officers and board of governors
Board of Associate Editors
President
David Reid Gamache,
St. Louis (Crestwood), MO
President-Elect
CLLA Annual
Breakfast & Education at the
National Conference of
Bankruptcy Judges
Las Vegas, NV
October 19, 2009
editorial staff
Ernest “Rick” V. Thomas, III,
Cincinnati, OH
Treasurer
Charles R. Johanson, Birmingham, AL
Recording Secretary
Ivan Jac Reich, Fort Lauderdale, FL
Immediate Past President
Elliott D. Levin, Chair, Indianapolis, IN
David A. Rubin, Vice Chair, Toronto, ON
Manuel Newburger, Vice Chair, Austin, TX
Richard G. Baumann, Los Angeles, CA
Lawrence C. Brown, Buffalo, NY
Harry W. Greenfield, Cleveland, OH
Nancy Hamilton, Cleveland, OH
Lee M. Mendelson, Van Nuys, CA
Robert Schatzman, Coral Gables, FL
Nicholas Krawec, Pittsburgh, PA
Editor
Oliver P. Yandle
Wanda Borges, Syosset, NY
Design/Publication Consultants
Board Members
the vision of DEBT3
To promote a reading resource
along with a tool kit which will
promote and advance the recovery of debt, including collections
and bankruptcy, with a primary
emphasis on commercial and a
secondary emphasis on
retail so that readers become
more successful as a professional,
leader, manager and a person.
Robert A. Bernstein, Charleston, SC
Joel H. Klein, San Antonio, TX
Alan I. Nahmias, Encino, CA
Jeff E. Rubin, Miami (Coral Gables), FL
Gary Weiner, Springfield, MA
Christine Hayes Hickey, Indianapolis, IN
Donald B. Scott, Mount Kisco, NY
Bruce Godwin, Boca Raton, FL
Beau Hays, Atlanta, GA
Marc Hirschel, Lakeville, CT
Barry J. Gammons, Nashville, TN
Deborah K. Ebner, Chicago, IL
Executive Vice President
Oliver P. Yandle
Newcomb Integrated Marketing Solutions
Editing Director
Joshua Greene
Contributing Editors
David Franklin, Montreal, PQ
Steven A. Frieze, London, England
Louis S. Robin, Longmeadow, MA
Joseph A. Marino, Clifton, NJ
Neil S. Abbott, Toronto, ON
Gregory A. Goetz, Chicago, IL
Creditors’ Rights Representative
Joshua D. Greene, Wheaton, IL
Bankruptcy Section Representative
Timothy Wan, Commack, NY
Young Members’ Representative
the CLLA mission
To be the pre-eminent source of professional services
To promote the highest standards of professionalism and,
To foster economic opportunities for its members in service to the credit industry
the CLLA objectives
To elevate the standards and improve the practice of Commercial Law.
To encourage an honorable course of dealing among its members and in the
profession at large.
To promote uniformity of legislation in matters affecting Commercial Law.
To foster among its members a feeling of fraternity and mutual confidence.
Commercial Law League of America
L E A D I N G T H E WAY
League members and other readers are invited to submit previously unpublished articles on commercial practice or topics relating to
the general practice of law. Articles should be submitted electronically via e-mail or by disk. The preferred format is Microsoft Word
or plain text. WordPerfect is accepted but not preferred. All articles will be promptly reviewed. Send articles to clla@clla.org. Disks
or manuscripts can be sent to Editor, Debt3, 70 E. Lake Street; Suite 630; Chicago, IL 60601. The phone is 312-781-2000 or
800-978-2552. The fax number is 312-781-2010.
president’s page
President, Commercial Law League of America®
W
hy does someone join a trade or professional
association? I suppose there are many reasons.
Some people join for educational opportunities.
Others may join for fellowship and friendship. Yet others
join for certification and professional development. Each of
these rationales is perfectly legitimate and should not be discounted. With that said, today’s economy has thrust upon
many of us an increased urgency to secure a tangible business
return in the form of new business, increased fees and more
accounts.
report also showed placements increased 28% in 2008 over
the same period last year. Further, the average account balance is considerably up and one might suggest that those
accounts are the most likely to be sent to an attorney by an
agency partner for collection. What does this mean? It means
our members have the chance to secure a larger number of
accounts and open doors with CCAA members to increase
business opportunities. Looking at the business that we are
seeing come into our firm, we have certainly observed a large
increase in agency work.
The leadership of the League understands each of these
important rationales and is working hard to enhance each
opportunity. However, I want to concentrate the focus of this
article on two considerable business opportunities currently
available and others that are being developed. Please note I
used the phrase “business opportunities”. There is no guarantee of business being handed to a member by any organization including the CLLA, but many opportunities are present
within the League. A member must be willing to work for the
business, as rarely does business fall from the sky. I will share
more on that point in my next President’s Page.
What has the League done to assist the
attorney members in seeking out this
business opportunity?
What opportunities are available?
The first opportunity that is available comes from a traditional source. That is the business that is available for the
attorneys from Agency members of the League.
One would expect that the current economy downturn
would be driving large numbers of collection placements and
the statistics support that supposition.
I visited with Emil Hartleb, the Executive Director of the
CCAA, which represents one of the three important components of ”the triad”. The traditional triad is composed of the
commercial agencies, the attorneys and the Law List
Publishers. Emil had some striking statistics to share concerning the placements with CCAA members. According to
a recent report published by the CCAA, the dollars placed
for collection on a 12-month basis hit a new record of
$13,498,720,606 in the third quarter of 2008, up from the
previous record of $13,159,677,099 in 2002. That same
There are several things that the League has done to assist the
attorneys in their efforts to capitalize on this opportunity,
but time limits me to highlighting only three. First, there has
been an increase in the number and quality of networking
events between the Agencies, the Law lists and the attorneys.
For example, at the New York meeting, there were two spotlighted events: on Thursday there was the “Agency –
Attorneys Networking Day” and Friday, the “CCAA Legal
Forwarding Round Table”. Both events were packed with
people and seem to just get better each time they are held.
The member evaluations on both events were very positive.
We are grateful to the CCAA and Law List Publishers for
their support of these events. Many business relationships
were fostered as a result of these opportunities.
Secondly, the League also provides for more intimate networking opportunities that allow for greater one-on-one
relationship building and business development, particularly
the Western Meeting we host each fall in California. An
added benefit of this gathering is that the agency-attorney
ratio is much higher. Arlene Miller of Colorado is the
arrangements chair and has established a tradition of excellent programming and networking. Last year, I attended this
meeting and met with several agencies for the first time.
In addition to the above, a third opportunity to build on the
traditional business model has arisen with the Affiliate
(continued on page 6)
Email:
davidgamache@gmcollects.com
David Gamache is a principal in the
collection law firm of Gamache &
Myers, P.C. which is headquartered in
Suburban St Louis, Mo.The firm
maintains offices in both Missouri
and Arkansas.
He is a past president of the
International Credit Association St. Louis Chapter and is a frequent
speaker for many CLLA, NARCA,
NACM – St Louis, Missouri Bar
Association, and for a number of
other associations at continuing legal
education programs. He has spoken
on creditors’ rights, judgment
recovery, creditor liability and the
FDCPA. He is the author of the
chapter entitled “Handling
Collections” for the Missouri CLE
publication Creditor-Debtor
Remedies.
In addition to the Commercial Law
League of America, Mr. Gamache is
a member of the American Bar
Association, Missouri Bar Association,
the St. Louis Metro Bar Association,
NARCA, an ACA MAP participate
and an associate member of
the IACC.
He served as chair of the CLLA’s
FDCPA Committee for four years. He
is currently the President of the CLLA
and a member of the Board of
Governors. In addition, David has held
all officer positions in the Midwestern
Regional Members Association of the
Commercial Law League including
chair. He recently completed a term
as Chair of the Creditors’ Rights
Section of the Commercial Law
League. He also previously served
as Secretary,Treasurer and Chair-elect
of that Section as well as having
served as a member of the
Executive Council.
Mr. Gamache has served as
a member of the National
Education Committee,
Government Relations
Committee, Marketing
Committee and the National
Meetings Committee
of the CLLA.
Debt3 November/December 2008
“The Commercial Law League
Stands for Business–Share the News”
David Reid Gamache Esq.
Gamache & Myers, P.C.
1000 Camera Ave Suite A
St. Louis (Crestwood), MO 63126
P: 314-835-6600
F: 314-835-6604
5
Program developed by the CCAA. Several years ago a proposal was made to provide for
Affiliate membership within that section. The idea was that there needed to be an additional forum for those with a similar business purpose to network and share common interests.
Since the program was adopted, there has been a substantial increase in Affiliate memberships
and networking events. Again in New York, there was a networking event that was both well
attended and received. Many business cards were exchanged.
“The Commercial Law League Stands for Business,
Share the News”
(continued from page 5)
Agency networking certainly provides an opportunity
to compete for additional business for the attorney members, but
there is a second very important business opportunity that needs to
Agency networking certainly provides an opportunity to compete for additional business for
the attorney members but there is a second very important business opportunity that needs
to be discussed much more openly and the success stories shared. That is the attorney to attorney referrals that take place as a result of membership within the League and networking at
our meetings. For those of us that have been around for a while, we know that years ago it
was almost taboo to talk about this business stream. Things have certainly changed, but the
word is still not getting out like it should. Collection and bankruptcy work is referred among
our members on a daily basis.
For any one that has had an opportunity to visit with Bruce Godwin, a respected agency
member, he has suggested for quite a long time that the League should gather statistics on
attorney-to-attorney business referrals and share the information. In the coming months, we
plan to survey our members on many topics and this is certainly an important topic to
address. However, it does not take a survey to talk up this business opportunity. We all have
stories to share, and we should especially share those stories with our new members who are
evaluating their membership. Just this past month, I personally can point to a dozen or more
matters, which our firm received directly from attorney League members. Further, we should
not discount the business introductions we secure from other League members.
be discussed much more openly and the success stories shared. That
is the attorney-to-attorney referrals that take place as a result of
membership within the League and networking at our meetings.
Right after the New York meeting, while waiting for my plane home, I had an opportunity
to grab a bite to eat and a beer with Dick Schascheck. I recalled that in the very restaurant
we were eating, I first had an opportunity to get to know Louis Wade from Kansas City.
Shortly after visiting with Lou, he introduced me to an agency that remains an important
agency partner many years later. There are substantial and growing networking opportunities within the CLLA -- share the word!
In addition to the traditional substantial business streams within the League, what new
opportunities, are being developed? I want to highlight two.
First, there is the League’s effort to reach out and into the consumer collection business
stream. For a couple years now, we have been actively engaged in reaching out to consumer
collection agencies and debt buyers. We are making progress and are putting on great educational programs in the process. In Chicago 2009, we will have our third consumer educational track. We are visiting now and developing marketing materials for this prospective group.
The education programming that is being developed under consumer program co-chairs Rick
Thomas, our president elect, and Jerry Myers, past president, is phenomenal. Please plan to
join in on this track program.
Debt3 November/December 2008
Secondly, a brand new initiative is being developed to form a new practice group. Less than
a year ago, Walid Tamari, an enthusiastic young CLLA member began to talk about developing a commercial litigation practice group. The practice group would focus on complex commercial litigation. I am pleased to share that CRS has formed a committee to help define and
develop this practice group. Once developed it is anticipated the group will be marketed
internally and externally with the intention of developing a business stream for those that
share this business interest.
6
There are many other business related initiatives in development within the League. Each
section within the League is working hard to expand your business opportunities. Our
organization has historically stood for, and will continue to stand for business and practice
development as a critical benefit of membership. It is indeed a great time to be a member of
the CLLA! Hop on board the express to business success.
You can expect
results when
you talk
to leaders
debt
3
readers are their company’s key decision makers:
82%
are involved in the purchasing process and make
the final purchasing decisions.
74%
89%
are partner/owner/president/chair/CEOs.
of Debt3 readers have recommended, specified or approved
the purchase of products and services, including:
• Computer/office software, e.g. collection, bankruptcy, organizational
• Law office automation services
• Legal support services, e.g. skip tracers, auctioneers,
process server services
• Office supplies and equipment
• Online information services
Source: 2004 Debt3 Independent Reader Survey
For more information on how your company
can target this exclusive audience, contact:
Commercial Law League of America
70 East Lake Street, Suite 630
Chicago, IL 60601
PHONE: 312.422.1653
FAX: 312.781.2010
www.CLLA.org
Commercial Law League of America
L E A D I N G T H E WAY
ATTORNEYS
BuyingDebt?
WHO KNOWS
HOW TO
COLLECT
BETTER
THAN YOU?
Debt3 November/December 2008
ATTORNEY
8
A = ANYONE
T = TAKING
T = THE
O = OPPORTUNITY
R = RISK
N = NEEDS
E = EXPERTS
Y = like - YOU!!!
By John Russo
You just need the best questions to ask. I’ve assembled some information from my 20 years
in the collection industry and 14 years of buying and selling debt.
• How? – Get started by setting up an LLC or a corporation as the buying entity. Consult
with your other legal and tax advisors as to which would be better for you. The reason
for this is many states don’t allow attorneys to own or have vested interest in their files –
known as “champerty”. You should also consider having the mail for this entity go to a
separate PO box. There are also companies that can provide a physical address, when in
theory it’s truly a PO box. You should consider having certain collectors work the purchase files vs. a pooled environment. The tax process commonly used on purchased
portfolios is “cost recovery method” for each individual portfolio.
• Why? – This is your chance to be your BEST client, and to become less dependent on
contingency business. Have your contingency rates gone up or down? What about your
cost to work a file? What about the quality (suit ready) files and the “promised” volume
of files? Get out your red pen and grade your clients… work standards and audits benefit who? Debt buying provides you full authority to manage the files the way
YOU want too. Has your association with the legal networks provided better and
more profitable ventures? Another key issue is the reallocation of “client support”
representatives/ FTE’s into income producing positions such as…collectors, skip tracers.
quality vs. quantity of files may still be the bottom line question.
• What? – Buy files - credit cards, commercial cards and loans (with
or without personal guarantors), Consumer Loans, Auto loans,
NSF checks, Telecom, medical (don’t forget HIPAA
compliance issues), etc. that your firm is most familiar with eliminate the learning curve. If you work first-placement files, think of
what your collection staff will do if you fill their ques with tertiary
files. The way you get collectors to buy into working older files is
to let them know the “client” has reasonable settlement levels.
Documentation is KEY here. Are you going to make outbound
phone calls or just send the first notice and then file your
summons and complaint? - Do you have a model of
what files work best for you? Have you considered a
joint venture with a collection agency that would
make phone calls and “cream” the files prior to
suing. Are you going to report the files to the
Credit Reporting Agencies? Skiptracing – what
resources are you using? And how much are you
willing to spend?
• When? – How often can you afford to buy and can
you “work” the files you’re buying? Buy as you need or
buy under a “forward flow” arrangement, but make sure you
review each file for
consistency, such as – average balance, months from charge off,
and number of first payment defaults. Files that sit… tend to have
poor liquidation rates. DON’T buy more than you can handle,
unless you plan to outsource some of the work.
• Confirmation – Make sure all definitions describing the inventory
are the same as yours… zero agency vs. fresh charge off and prime
vs. one agency. A questionnaire (seller survey) to the
seller is quite helpful in eliminating any confusion, and will have
a large impact on the pricing!
• Samples – It’s time to ask questions. Ask broker/seller for samples of
- Record layout
- Terms and conditions for the files
- Documentation including affidavits
- chain of title
- Bill of sale from everyone in the chain of title
- Purchase agreement – How you tie to the seller and
how the seller ties to you. The agreement should be reasonable,
fair and mutually acceptable. At the end of the day the “spirit”
of the agreement will be what both parties agreed to.
• Checklist – Among the items you need to know have been
addressed.
- Confidentiality Agreement
- Seller Survey
- File scrubbed – bankruptcy and deceased
-
Commercial files with documented personal guarantors
Copies of “chain of title”
Delivery of files
Additional contacts names
Referrals of other buyers
Sale balance – current or charge off balance?
Cost of media/documents – per request or per item?
Putbacks & recalls- how long do you have for a
repurchase of “bad” files? (120 days is the average)
Statute of limitations- I use the last payment date
Knowledge of seller – have they ever purchased and
or do they collect on accounts?
Arbitration clause
Do the files fit your model?
• The final item, pricing – This part of the process has several
variables; age, prior work effort, “supporting documents,” and the
time frame for the delivery of such items. In addition, take into
consideration the economy of the area where the debtors are located. What is the unemployment rate and what is the status of the
current housing market? Most brokers/resellers will have an “asking” price, so work your numbers backwards. If you pay X can
you collect Y and is that a return your group can live with?
I suggest using the “Match Game” process. Find a comparable
contingency client and examine the batch tracks on their
placements. If the portfolio for sale can be acquired at _____%
and your firm has the ability to liquidate ____% over ____
months; then that’s an acceptable return on your
money….
Welcome to the land of debt buying. If you don’t
receive the items listed in the checklist it’s okay to walk
away and wait for the next offering. Remember, every
file available out there in the marketplace makes sense
to buy, if the price is right.
Example #1 is from a collection attorney over
8 years of buying debt.
Debt Buying Atty results ’95 to ’03
%
500
400
300
200
100
0
1
2
5
4
3
Years since purchase files
6
7
Here are the numbers –
Paid $6,879,845.21 for $130,861,967.73 in face amount of debt.
Average sale price 5.26%
Gross Collections - $24,878,246.78
Collection Costs - $10,484,984.63
Net Collections - $14,397,813.49
Net Monthly Cash Flow - $430,142.03
Over 8 years the Net Return to Investor – 209%
Still collecting on judgments
STARTED WITH $12K
(continued on page 10)
8
Debt3 November/December 2008
• From whom? – Direct from issuer is the cleanest “chain of title.”
Start with your local Credit Issuers then explore referrals of
brokers/resellers. It’s time to network, so ask other attorneys who
they’ve purchased from and why. If you can only buy files in
one state, you might be limited to working with a broker/reseller.
I suggest exploring membership with the Debt Buyers Association
and/or Asset Buyers Association, a division of the American
Collectors Association. Buying files from other buyers requires
information on what prior collection efforts have been done.
Explore companies that are going out of business or reach out to
the business owner who’s retiring. Doctors in medical practices
that are current clients may be retiring one of these days. Ask them
if they might want to explore the idea of having you cash them out
on their files.
9
Seller Survey
Questionnaire
(continued from page 9)
Example #2 is from a collection attorney over 9 years of buying debt.
Debt Buying Atty results ’94 to ’02
Y e a r s s in c e p u r c h a s e d
fi l e s
%
600
500
400
300
200
100
0
-100
2
4
3
1
5
6
7
8
9
Years since purchase files
Here are the numbers:
Paid $834,217 for $36,487,923 in face amount of debt.
Average sale price 2.28%
Gross Collections - $2,284,917.
Collection Costs - $1,378,329 = attorney fees & court cost
Net Collections - $906,588
Over 9 years the Net Return to Investor – 176%
Still collecting judgments
STARTED WITH $10K
I appreciate the opportunity to share a few items on a subject that requires more time and discussion.
Here is a Seller Survey that has been passed around over the years. Getting this document completed from
the seller is the best place to start. There’s no need review an Excel spreadsheet, if you don’t like the write up
regarding the offering. This information is the opinion of the author and not of American Debt Sales, LLC
and all information should be reviewed and validated with your legal and tax professionals.
Seller Survey - Questionnaire
Please complete the following questions and then both email and fax a signed copy to
________________________________________________________________________________________.
1. What is the dollar amount on this portfolio and
how many accounts are there?
6. How many agencies/attorneys have these accounts
been to? (Check all that apply)
____________________________________
Dollar Amount
# of Accounts
7. Have all accounts that have been out to
agencies/attorneys been recalled?
2. Are you the originator, reseller/broker on this
portfolio?
3. What types of accounts are these?
(Check all that apply) and define the balance
(Principal, Interest, Fees)
Debt3 November/December 2008
4. What is the charge-off policy that applies
to these accounts?
10
5. Have you ever sold charged-off accounts before?
If so, how many times?
Times:________________________________
Please explain:
8. Which agencies/attorneys have these accounts
been to?
9. When was the last time that these accounts were
at an agency/attorney for collection?
10. What were your agency/attorneys average recovery
rates, gross, on a 12 month period - by
placement level?
11. How did you require your agencies / attorneys to
work the accounts?
12. What settlement offers have been made to these
accounts?
22. Once sold, how will you be reporting these to the
credit bureau?
23. Have you reported the co-makers to the credit
bureaus?
Please make any comments that you have on the
line below.
______________________________________
13. When was the last time a mass settlement offer
was made?
______________________________________
14. How long were these accounts at the agencies /
attorneys at each placement level?
24. What kind of solicitation practices were used to
obtain these customers? (Check all that apply)
15. What kind of legal efforts do you use? What are
your suit guideline requirements?
25. What level of credit did these customers
originate? (Check all that apply)
Comments:
______________________________________
16. Have these accounts been scrubbed for
bankruptcies and deceased?
Please make any comments that you have on the
line below.
_______________________________________
______________________________________
26. What guidelines did the customers have to meet
to be approved for credit?
_______________________________________
17. Have these accounts been scored since charge-off?
Please make any comments that you have on the
line below.
_______________________________________
18. What kind of selection process were these
accounts put through to determine what to sell?
19. If you have a "second" name on your data file,
please indicate whether that represents a
comaker/responsible party or just an authorized
user. If both, please describe how to differentiate.
27. Did these accounts originate with you? If not,
please describe acquisition of accounts and attach
proof of ownership.
28. If the accounts did not originate with you, can
you provide copies of the chain of title?
29. Do these accounts have any security interest?
30. Are there any commercial accounts
included? How many?
31. If installment, are they direct
or indirect loans?
21. Which credit bureaus are these accounts reported
to? (Check all that apply)
Seller Survey
Questionnaire
(continued on page 12)
Debt3 November/December 2008
20. How EXACTLY does your name and reporting
currently read on the credit bureaus?
11
Seller Survey
Questionnaire
(continued from page 11)
32. If auto - is force placedinsurance included?
33. Do these accounts include post charge-off interest or fees?
34. What interest rate or money factor was charged on these accounts prior to charge-off?
35. How delinquent did the customer become before they could not use services/account provided?
36. What type of documentation/media is available, what percentage is available and how long does it take
to obtain such documentation?
TYPE
Payment Histories
% AVAILABLE
TIME FRAME
DESCRIPTION
Screen Prints
Applications
Charge Slips
Loan Agreement
Billing Statements
Other (Describe)
Complete Files
37. Please describe the way that your documentation is kept and the process you have to go
through to pull such documentation/media?
43. Have these accounts been a party to litigation
against the original creditor via class action or
otherwise? Explain.
38. Are you aware of any past statute accounts?
If yes, will they be repurchased?
44. Is there anything in your card member agreement or contract that requires arbitration
rather than litigation? Explain.
39. Are you aware of any disputed accounts in
this portfolio?
45. Has the original lender been fined, scrutinized
or sanctioned by the FTC or any other state or
federal agency regarding its collection practices
or underwriting guidelines?
40. Are you aware of any accounts which have
retained attorneys included in this portfolio?
46. Have any of the accounts that you are selling
received a 1099-c?
Debt3 November/December 2008
41. Upon sale, are you able to indicate if the
address you have is a good address or a bad
address?
12
42. Have you or any of your agencies ever put
these accounts through a debt conversion or
credit-card conversion program?
47. For reference under the FDCPA, when a
debtor requests the original creditors name and
address, please list what address we are to use.
48. If there are any additional comments you feel
would be helpful in our evaluation of your
portfolio, please indicate.
49. How many other bidders are there?
53. Are you willing to sell portfolios by state/region?
50. Who are the other bidders?
54. Please list all of the available fields that will be
made to purchaser at the time of closing
on the final data run.
John Russo is a partner with
American Debt Sales, LLC in
51. How much did your previous package go for?
55. Is the re-sale of accounts permitted?
Lake Mary, FL. Mr. Russo started
his career in the credit and
collection industry in 1988 with
ACB Financial Services with his
52. What price are you looking at for these
accounts?
primary focus in the areas of
Healthcare Receivables. Prior
to becoming a partner with
American Debt Sales he
represented Cypress Financial,
USCB, Arrow Financial, securing
new contingency business and
the acquisition of purchased
receivables. His duties at
American Debt Sales consist
of acquisitions and the re-selling
I am an authorized representative of: ____________________________________________________________
of purchased receivables to
collection attorneys. He
and the above answers to __________________ due diligence questions are true and accurate to the best of
attends several industry
related conferences including
my knowledge.
the Debt Buyers Conference
annually and he can be
contacted at:
Signature / Date
John Russo
If you would like additional information or you would like to discuss debt buying, you may contact me directly at
714-692-2261 after 6am PST
American Debt Sales, LLC
So. Calif Office
Phone – 714-692-2261
Thank you for the opportunity to share –
John Russo, VP – American Debt Sales, LLC
john@americandebtsales.com
Emailjohn@americandebtsales.com
Debt3 November/December 2008
Seller Survey
Questionnaire
13
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WHYNOTGETINTOTHE
By Todd Gurstel
In these times of tremendous financial instability and uncertainty, what is a creditors’ remedies
attorney supposed to do? My advice is to stop sitting on the sidelines and get into the debt buying game. The time has never been better. You might be surprised to see me advocating this in
view of the current economic crisis, but given the right situation, I can’t think of a better place
to put your investment dollars.
Debt3 November/December 2008
The reasons are simple. These are investment dollars that you control unlike the kinds of dollars that you invest in third parties and companies who control your money. I watched as my
401(K) portfolio and my other stock holdings went down nearly 25% over the last three
months and I was relieved it was only that much. At the same time, my debt buying company
showed a 20% profit for the same time period. In addition, my law firm generated fees on all
the dollars that were collected to add to my personal profit. All the while, I did not have a client
telling me what my goals were, how to report my data, how to remit, when to remit, how to
give statuses, when to give statuses and lowering my fees. Most importantly, I do not have to
chase myself to get paid for my costs expended. If I want to litigate my case that I own, I litigate it. If I want to settle a case, I settle it. I set the fee and away we go. It is a wonderful and
ideal situation. It may not be for everybody depending upon your state laws and licensing
requirements, but I have found for me the best of all worlds to leverage our practice. We are
able to experiment and be innovative with new collection techniques on our in house accounts
without worry of client ramifications.
16
DEBTBUYINGGAME?
The time has never been better to purchase. Market conditions as a result of the economic times have forced prices
down, especially in the secondary market. More than likely, you are going to have to go to this market to start. My
strategy is to buy state specific in the states that we litigate
so I can take full advantage of the leverage available with
my law firm. The purchase packages come in all shapes and
sizes ranging from less than three thousand to in the several hundreds of thousands.
My advice in getting started would be to contact the Debt
Buyers Association (DBA), a national trade association of
debt buyers, sellers and brokers, for information on the
number of sellers. I never purchase a package from anybody
that I do not know personally. There are a number of sellers out there who are selling paper that they truly do not
own or that has already been sold to others. It is therefore
critical to only do business with people that you know.
Another cardinal rule of debt buying is to make your
money on the buy and not on the collection. Accounts that
have traded hands several times go for a lot less than
accounts that come directly from the issuer. The asking
price is just the asking price and you are free to counter
with a price that fits in your model. Do not feel that you
must take the deal; there are deals all the time and plenty of
them in this market. Always, review your contract before
finalizing a deal and make sure you are protected in the
form of getting your money back for accounts that are a
product of fraud, bankruptcy or deceased. You should not
have to worry if you are dealing with a person that you personally know or were recommended from the Debt Buyers
Association. In addition, since you will be litigating a
majority of your accounts, you want to make sure that
media is available and the expense for the same.
The form of media, at a minimum, should be the last statement with the last purchase or payment along with the
terms and conditions that accompanied the credit card or a
copy of the original debt instrument. Finally, being able to
get a copy of the original credit application would be a
bonus as it can result in expanding the statute of limitations
for your state.
How to buy is another art. I buy my portfolios like mutual
fund payments. I tend to buy every month to diversify my
purchases. In doing this, I shield myself from one terribly
large purchase and average out my return on investment
along with risks. I am also able to use my net dollars
collected from the month before to invest in the next
month. As you grow from month to month, you will see
your collected dollars grow along with the average size of
your portfolio purchase. As you develop your network of
sellers, you will be able to better manage your investment
dollars as well.
In today’s market, there are all kinds of products to buy;
from credit cards to consumer loans to mortgage notes to
bad checks to even utility bills. There are even judgments
that can be purchased. I tend to stick to the basic credit
card receivables since this is what we know best. It is important to focus on what you do best to maximize your return.
In analyzing your portfolio you want to use common sense
to build your litigation model. You want to ask how many
homeowners are in the bunch; the higher the percentage,
the better the files. The higher number of phone number
and place of employment numbers, the better the file. Stay
away from files that have been scored by your seller for legal
or have been given a legal talk off. Keep it simple and small
for the short run and you should be fine. Once you are able
to build up your number of purchases over the course of a
year, you should be able to see some returns which will
enable to you to expand your focus on your accounts and
watch your money come in.
I have been purchasing accounts since 1999 with an initial
investment of $5,000.00 and now regularly see an average
net return of about $50,000.00 per month from all my
debt buying entities with no additional equity contributed.
To top it all off, there is no debt associated with this investment. Obviously, not everybody is going to have the results
that I have experienced, given our current economic crisis.
However, if I am going to lose money in this venture, it is
money that I controlled. Who wants to rely on the Wall
Street people to be able to retire? Put it in your hands and
get into the debt buying game.
Todd L. Gurstel is currently
the Chief Executive Officer of
Gurstel, Staloch and Chargo, PA,
a full service creditors rights
law firm, with offices in
Minnesota and Arizona and
litigating in Minnesota, Arizona
as well as Iowa. He has been
representing creditors for over
21 years and is recognized as a
Creditors Rights Specialist by
the American Board of
Certification as well as the
State of Minnesota. He has
also been a debt buyer
for the last 9 years.
Debt3 November/December 2008
In today’s world, there has never been a better time to
jump in and get started.
First, you need to form an LLC with your partners or yourself and make sure to get your proper licenses in order, if
needed, in your respective state. To find out about licensing
requirements, call your state Department of Commerce or
licensing bureau. Thereafter, make sure to put together a
legal services agreement between your debt buying entity
and your law firm. The beauty of this is that you can set the
price. You must make sure to set some common sense market rate to keep the Internal Revenue Service off your back.
Once you’re set up, you are ready for your first purchase.
17
marketing
“Build It and They Will Come”
versus Common Sense
Market Research
How to effectively learn and understand what is best to
provide to the market place.
Debt3 November/December 2008
O
18
ne of the surest ways to waste money, time and resources is to spend effort creating a
product or service without first determining if there is a real need or market for it.
Determining whether a product and/or service has a market may seem like common
sense for most, however over the years in my consulting, I have found this omission to check first
with market to be very a common practice. Businesses as well as professional associations tend
to feel they know what their customers (members) need. However, not checking in and finding
out can lead to unnecessary expense and more importantly failure.
Creating a product or service without thoroughly determining its true value in the marketplace is
often phrased as a “build it and they will come” strategy this is opposed to the more disciplined
strategy of starting first with researching the market.
marketing
Perhaps the best way to view market research is as on ongoing activity, continually evolving to keep pace with customer
(member) needs. Organizations generally progress through
one or more phases - product, production, or sales - before
moving into a customer (member) focus. In the customer or
marketplace focus, information is compiled about the needs
of a specific market, a product is developed to respond to
that need, and the value of the product is then communicated to the targeted audience. Only under a customer (member) approach is research generated to learn customers’
(member) needs. Typically, market research effort calls for a
mix of primary (original) and secondary (previously collected) research, and proceeds through eight stages, from setting
the objectives to monitoring the results.
To understand and use market research appropriately, one
needs to understand the fundamental differences between a
customer (member) orientation and a product, production,
or sales orientation. Typically, organizations move through
one or more of these phases before they arrive at the customer (member) stage and thus at the need for market
research.
An organization (association) is usually product-or-service
oriented during the period when it faces little competition.
Customers (members) have few alternatives other than that
association for certain types of services. During this phase,
leadership provides a menu of typical services that they feel
customers (members) may need. Often the credo is “design
the product soundly, provide high quality, and the customer
(members) will buy it," (typically a “build it and they will
come” approach). For associations, a more specific example
might be, "Give them the best convention meeting and trade
show that we can put together, with plenty of education and
glitz, and the members will turn out!"
A customer (member) orientation, however, identifies a specific need of a particular group or target market, develops a
product or service tailored to that target group, packages
the product, and communicates its value to this group. Such
a process maximizes value for the consumer and for the
association providing the product or service. With this orientation, the need for targeted information becomes
essential. For example: What are the needs? What will be the
specific attributes of the product or service? How does the
firm or the association best reach this target audience? Will
the target audience see, accept and pay for the service and/or
products value? How does it price the product or service?
Only under a customer (member) approach is research
driven by a desire to learn customers’ (members’) needs:
marketing is the generating force behind the research. The
question is no longer, “How can we increase sales or attendance at a convention and trade show?’ but rather, “Do our
customers even want a need for what we are proposing to
offer or build?”
This article is the first of a series of articles created to help businesses and our association understand market research and its
value in helping promote healthy growth. Coming Next…What
is Market Research? Primary and Secondary Research. Step one
in the research process – Setting Objectives.
Kelly Newcomb is the president and CEO of Newcomb
Integrated Marketing Solutions, a two-division company that
develops digital and print marketing communications and
provides consultative services for strategic planning, marketing
plan development, organizational development, and
Unfortunately, during times of economic distress or increased
competition, customer bases (membership) may shrink and
costs may begin to eat away revenues. Often at this point, the
production mindset develops. For associations, during this
period, leaders may begin to make statements such as, “We
need to develop a more financially-oriented approach. All
product and serviced decisions should be based upon their
potential contribution to the association. Let’s look at that
convention and trade show and see what should be cut.
Perhaps we can increase the show hours and raise the cost
to exhibitors.” For businesses, owners and partners may
begin to focus on adding value-added services thinking that
this will build additional revenue to those clients that they
have retained.
leadership training.
Kelly spearheads the collaborative marketing efforts of five departments in
Newcomb’s Integrated Marketing Services Division, which provides marketing,
creative, web/multimedia, print, and mailing/fulfillment services to clients seeking
to build and implement their marketing communications efforts. Utilizing
components of his two other enterprises, the Can Do! Success-Building Programs
and the Leaders Resource Network, Kelly also leads Newcomb’s recently
established Integrated Consulting Division and advises clients in the areas of
strategic planning, business/organizational development, leadership training,
team-building, and marketing and brand-building.
With over 20 years of experience in the field, Kelly has developed a particular
expertise in developing programs that add value to businesses – both among
groups of stakeholders, leaders, and staff members within a company and the
loyal clients and prospective customers that comprise its marketplace. He holds a
Master’s degree in Strategic Communications and Leadership from Seton Hall
University, a Bachelor’s degree in Business Operations from Indiana University,
and an Associate’s degree in Manufacturing Engineering Technology from
Purdue University.
He can be reached at kelly@newcombsolutions.com or at 1-800-921-1221.
Debt3 November/December 2008
Still another approach may be to decide that the sales
process - not the product - is important. Low attendance at
an annual convention and trade show, or a drop in sales in a
business is interpreted to mean that the their needs to be an
increase in sales efforts. “We need to develop more eyecatching brochures and mail out twice as many! Perhaps we
should start telemarketing.”
19
lifestyle
or Sometimes a Little Bit of Knowledge is a Lot Dangerous
Debt3 November/December 2008
By Timothy Wan, Esq.
20
A
About that time, the client called. They asked what we were
doing with the case, and for the first time, we found out that
the defendant had sent a subpoena to them, asking for their
retainer agreement with my firm. They also said that he had
furnished his employment information and he was, in fact, a
second year law student at a local New York law school.
We represent a fairly well-known national bank, for which, I
shall use the pseudonym, Goliath National Bank (no offense
to Barney Stinson). With the monthly statement, account
holders of Goliath credit cards typically receive a page of
blank checks, which could be drawn to any denomination,
up to the credit limit. In any event, one particular debtor,
who I shall refer to as, Mr. Boris Badenov, apparently signed
one of these checks in the seemingly arbitrary sum of
$3,677.55, and made it out to himself.
A week later, we received a letter from Boris asking for a
payoff amount affirming that he would “make good” on
the debt, if we supplied him an accurate amount, to the
penny, with interest. We prepared the letter, and sent it to
him. Three days later, one day before Boris’s time to
interpose an answer was to be served, we received an order
to show cause to dismiss the action for, (ready for this?)
a frivolous action! Irate, I decided to leave it until
tomorrow before doing any opposition. And it was a good
thing I waited. The next day, we got a Verified Answer, containing a “General Denial”, and a counterclaim for
$10,000,000.00, for “groundless and frivolous complaint,
harassment, abuse of process and malicious prosecution.”
Goliath referred us the case, no differently than any other.
As standard operating procedure, we sent our demand letter signed by my senior partner. Three days later, (a speed
that would make Newman cringe and Cliff Clavin jealous),
we received a very neatly typed, multi-page letter signed by
Mr. Badenov, citing the FDCPA (in handy dandy block
quotes) and demanding verification of the debt, stating
that he wanted to reach an “amicable resolution”. (Ah,
those words that tease us like an empty bottle of milk to a
starving baby). Armed with the account agreement, the
endorsed check made out to himself and the account statement, (not even needing to crack my trust, copy of the
FDCPA, since I knew we had everything we needed, as this
was not a purchased debt case) I forwarded the
documents to him with all speed.
The very next day, I received an unusual demand for discovery from Boris. I knew he could not have possibly gotten
the documents yet. However, despite the fact that no action
had yet been commenced, here it was, a formal demand,
which, among other things, demanded a copy of our retainer agreement with Goliath, as well as a demand for my
senior partner’s attorney registration number, home address,
social security number and date of birth. (Mr. Badenov
could have thought we might be interested in purchasing a
bridge as well.) Obviously, reticent to respond to such a
ridiculous piece of paper, we recommended that the Goliath
commence suit. To which, they agreed.
We started suit, and lickety split, we were served with another discovery demand, this time, addressed to me asking for
my registration number, home address, social security
number and date of birth. The very next day, we received a
letter rejecting the documents we previously forwarded,
demanding that the originals be mailed to Mr. Badenov so
that he could inspect them. The next day, we received a
letter telling us to cease and desist from proceeding, stating
that the verification of documents was fraudulent. All the
letters were very nicely typed, each one signed by Boris
Badenov, and each one promptly ignored by me. I had this
image in my head of a tiny little man, mm-ha-ha-ing, as he
fired off a new missive each day designed solely to perplex.
But since at that time, we had already commenced suit and
service was imminent, if not yet already effectuated, I knew
that we didn’t need to respond.
I prepared opposition to the defendant’s motion, and
appeared in court for oral argument. When we got there, I
saw a tiny man in his mid twenties, dressed in a suit. The
clerk called the case.
“Goliath versus Badenov.”
~
Almost anyone who does
retail collection litigation
has that infamous epic
horror story where the
twenty-percent
“Plaintiff ready for oral argument”, I replied.
Badenov stood up. He paused for an uncomfortable period.
“No English. Need Russian interpreter.”
Yes, at that moment I turned into Popeye, when Bluto hid
his spinach. Apparently, Boris forgot how to speak English.
Three hours later, a Russian interpreter appeared and we
argued the case. The judge summarily denied the defendant’s motion. Victorious, I returned to my office to prepare a motion to dismiss the counterclaim and for
summary judgment. I prepared the appropriate documents
and sent them to Goliath. No more than two days passed
when I received a notice of appeal. Apparently, Boris now
remembered how to communicate in English and was
appealing the decision which denied his motion.
contingency fee was
eaten up the millisecond
litigation was commenced.
~
Nevertheless, I brought my motion, and an associate attorney in my office appeared in court for the oral argument.
Boris appeared, but this time, seemed to still have his
knowledge of English and did not ask for an interpreter.
After the argument, the court found that there was
absolutely no basis for the counterclaim and that Mr.
Badenov has no defense to the action.
Erroneously thinking that I would be free to enter judgment, I began receiving a deluge of papers from Boris
Badenov that procedurally fall into no legal, statutory, or
common law category, and a “Request for Verification”
once again asking for a whole lot of my personal information. I was surprised he didn’t start asking me for my shoe
size, inseam or collar circumference. We also received a
document asking about my associate’s credentials including
whether she was an American citizen and whether she was
(continued on page 22)
Debt3 November/December 2008
lmost anyone who does retail collection litigation has that infamous epic horror story
where the twenty-percent contingency fee
was eaten up the millisecond litigation was
commenced. Or in some cases, the prospective fee is devoured pre-suit. I, of course, have more of these
than I can store in my long-term memory. Here’s one such
Tale from the front!
21
lifestyle
THETALE
OFTHE
HORRIBLE
PRO SE
DEBTOR
(continued from page 21)
indeed an attorney. We also got another notice of appeal of
the summary judgment decision, and a motion to reargue.
We obviously opposed the motion to reargue. At the oral
argument for that date, despite Boris asking for a Russian
interpreter (apparently, knowledge of English was akin to
Guy Pearce from the movie “Memento”), the court denied
his request, and directed the motion to the original judge
who promptly denied the motion. We then received a third
notice of appeal. Boris then brought a motion to disqualify
the judge as biased (this was clearly denied), and lo and
behold, a notice of appeal.
Debt3 November/December 2008
Timothy Wan is a
partner at
Smith Carroad
Levy & Finkel
in Commack,
New York and
can be reached at
twan@sclf.com
and really really needs to
watch less television.
22
To make a long story short (too late), Mr. Badenov
appeared at every appeal and perfected each of them. He
tried to proffer new arguments, beyond the conclusory,
insufficient ones he had raised before. This time, he argued
that he never had a Goliath account as his name was not
“Badenov” but was “Vadenov”. He also argued that Goliath
never produced a handwriting expert to prove that the signature was his, and that we never produced the original
documents therefore he didn’t know if they existed or were
forged. The court summarily denied all the appeals and
warned Boris that if he tried any other motions or appeals
he would be sanctioned.
Apparently dissatisfied, clearly exasperated and surely crying out “Raskolnikov!” Mr. Badenov brought a plenary
action against Goliath and subpoenaed my firm as a witness. Goliath’s in house counsel brought a motion to dismiss, which was granted. Mr. Badenov then filed a, you
guessed it, notice of appeal.
We attempted to enforce the judgment and located a
whole host of bank accounts, one in the name of Boris
Badenov with a whopping $7.44 in it. We found a series of
bank accounts owned by Boris Karamazov with the same
social security number. We located joint bank accounts
with Natasha Fatale, which had been after the commencement of suit, but before we obtained judgment. We even
found accounts held by Ivan Petrovitch Voinitsky and
Michail Lvovich Astroff! But alas, that was it. We even
searched the local law school records, and apparently, Mr.
Badenov did not graduate. It seems that while he had
enough knowledge to make life difficult for us he didn’t
have enough to pass his classes.
I never heard what happened from that appeal as we were
not retained as counsel. But last week, while I was
researching some case law regarding the standards of a
motion to reargue, I located a case of Mr. Boris Badenov
versus the Bank of Pottsylvania. Nosily, I searched for all
cases with Mr. Badenov as a litigant and counted no less
than eleven appeals, only four of which were the ones I was
involved with.
SeventH Annual
DePaul Business &
Commercial Law JOURNAL
Symposium
HELD IN CONJUNCTION WITH THE COMMERCIAL LAW LEAGUE OF AMERICA
Into the Sunset: Bankruptcy as Scriptwriter of the
Dénouement of Financial Distress
T H U R S DAY, A P R I L 1 6 , 2 0 0 8 • 1 0 : 3 0 A . M . - 5 : 0 0 P. M .
Westin Michigan Avenue, Chicago, Illinois.
Commercial Law League of America
L E A D I N G T H E WAY
For Better or Worse: Chapter 11 in the Post-BAPCPA Downturn
BAPCPA, the 2005 Bankruptcy Code overhaul, brought some significant changes to corporate reorganization,
leading some to dub Chapter 11 as the “National Foreclosure Act.” This panel will examine the myths and
realities behind this description by focusing on the more sweeping BAPCPA amendments: time restrictions on
assumption or rejection of commercial leases, the limited plan exclusivity period, 20-day administrative
expense claims and the attempted reigning in of executive compensation.
Luncheon Sponsored by the Development Specialists, Inc.
A Fistful of Dollars: Hedge Funds, Private Equity and Bankruptcy
The presence of hedge funds and private equity in bankruptcy has become more prevalent in recent years,
altering, sometimes dramatically, the outcome of troubled companies' reorganization efforts. In addition to
exploring the impact of these non-traditional bankruptcy players, our experts will also discuss the latest
twist—what happens when these entities themselves are threatened with insolvency.
The Importance of Being Earnest: Bankruptcy’s Disclosure Rules
Bankruptcy’s transparent process begins with the disclosure requirements of Bankruptcy Rules 2014, 2016
and 2019. These rules require that certain professionals working in the bankruptcy system disclose their
connections with a variety of entities, including their past or present engagements, their fee arrangements
with their client in the case, the identity of clients, if more than one is represented, and more. This panel will
discuss pertinent provisions of these important bankruptcy rules, highlighting what must be disclosed and the
sometimes dire consequences that follow a failure to comply.
Sponsored in part by:
Golan & Christie — LexisNexis — Development Specialists, Inc.
Tickets are $85.00 on or before March 13, 2009 and $100.00 after that date.
Price includes luncheon and written materials • Judges and students are free • CLE credit offered
league business
Member Benefits
A Report from CLLA’s New York Meeting!
By Mark V. Matz (Teller Levit & Silvertrust P.C.) – Membership Benefits Committee Chair
T
he 88th CLLA New York Meeting was a great success! A mixed gathering of attorneys, collection agency personnel and law list publishers all
gathered to exchange their ideas and business cards along with swapping stories about the current state of the credit industry. Continuing legal
education programs offered many different perspectives on how to meet the challenges of the future. As you can imagine, everyone was
talking about how they are working harder handling a greater volume of claims in order to achieve the same financial return.
But beyond the talk of the economy in the education sessions, meeting rooms
and social functions, this event once again demonstrated how truly beneficial it
is for all of us to meet face to face in order to build our professional networks.
For almost 90 years at the New York meeting and even further back in history
to the first Commercial Law League of America’s meeting in1895; spending
quality time getting to know those with whom you conduct business continues
to be an important member benefit that no organization in our industry does
better than the CLLA! If you missed New York, your next chance to interact
live with other professionals will be at the CLLA Chicago Meeting & National
Convention held at the Westin Hotel in Chicago from April 16 - 19, 2009.
When you look at it from a purely cost analysis perspective, attending a New
York or Chicago meeting is a highly efficient method to meet agency and attorney forwarders along with the added bonus of your lists being around to help
with the introductions. If you had to calculate the actual travel costs and time
spent away from your office required to meet even a fraction of the people at a
meeting, you would see what a genuine benefit these CLLA events truly are. So
mark your calendars to take advantage of the League’s most important and cost
effective benefit.
The exhibit hall was filled with a number of vendors who view the membership
of the CLLA as valuable customers. Participating in the 2008 New York
Meeting as exhibitors were: American Board of Certification, American Check
Management, Benchmade of Buffalo, CaseTtracker Law, DebtWatcher, Frenkel &
Co.,Inc., JST, Lexis-Nexis, Nationwide Tracers, Newcomb Integrated Marketing
Solutions, Practice Technology (Prevail Case Management), The Legal Dog and
Unifund. The CLLA booth featured information about the organization for
attendees to learn more about the League’s mission and services. If you would
like to learn more about the various products and services being offered by these
companies and how to reach them, contact the CLLA Office in Chicago via
email at info@clla.org or by phone at 312.781.2000. We encourage you to take
some time to learn about these companies who have demonstrated their support
for the CLLA. Perhaps one of them has just the product or service that you are
looking for today in order to improve your operations?
There are also a number of affinity programs that the CLLA offers to members.
These can be found by visiting the League’s website (www.clla.org) and logging
in under “Members” with your last name and password (contact the CLLA
office if you need this information). Only members logging in with their password will be able to access the codes and contacts in order to obtain the CLLA
Members’ special discounted rates. The current programs are: Lois Law,
Majestic Travel, US Data Trust, US Legal Forms, Avis, Acclaim Products, Top Ten
Marketing, CLLA Ethics Panel and INSOL.
New programs that were presented of possible interest are long term health
insurance and office management software. These were discussed when the
National Committees met in New York and passed along for further research to
determine interest and viability. The committee also suggested that when the
League’s website is updated and optimized, the benefits be made more visible to
prospective members (while keeping access to discounts open only to members). It was also suggested to include more information about our programs in
additional issues of Debt 3 magazine. We will keep you posted and as always
look to you for leads on new products or services that you feel will make a good
fit for the Commercial Law League.
On behalf of Brenda Majewski (The Kohn Law Firm, Milwaukee) and me, we
would like to thank all those companies, members and staff who support the
League and this committee. ■
We specialize in providing insurance coverage
for the Collection Industry. Both attorneys and collection agency malpractice
coverage available.
Todd Associates, Inc
Debt3 November/December 2008
23825 Commerce Park Road
Suite A
Beachwood, OH 44122
24
For Information contact:
Gary Ochi
1-800-878-2450
e-mail:gochi@toddassociates.com
We are the insurance broker for the $3,500,000 bond carried by American Lawyers
Quarterly and The General Bar.
league business
Loislaw
CLLA Ethics Panel
U.S. Legal Forms
High quality online legal research from of the
Loislaw primary law databases and Aspen
treatises at an incredible discount (25%-60%)
The Ethics Panel is used to assist in answering
your ethics questions with trained duty officers
available to provide prompt, professional &
confidential advice.
U.S. Legal Forms is the original and premiere
site for legal forms on the Internet. Over 36,000
legal documents and forms, including wills,
name change, real estate and more.
Top Ten Marketing
Acclaim Products
Web design and optimization company.
CLLA members received special discounts on
projects.
Welcome to Corporate Gift Pens, your ONE
STOP SHOPPING SOURCE for all types of
Cross Writing Instruments.
U.S. Data Trust
INSOL International
U.S. Data Trust's online server backup
solution eliminates unreliable tapes while
providing critical offsite data storage for
disaster recovery
INSOL is a world-wide federation of national
associations for lawyers and accountants who
specialize in turnaround and insolvency. CLLA
members can join at a discounted rate of
$60.00 (a $40.00 savings!)
Majestic Travel
Majestic has experienced agents to help you
with all your travel needs. Receive exclusive
discount by saying you are CLLA member.
Exclusive benefits with Avis allow CLLA
discounts and the highest level of service.
Request a rate, create, modify and review or
cancel your reservation. Make sure to enter
CLLA’s discount number!
Debt3 November/December 2008
Avis
25
league business
CRS Election Results
Chair, Mark Sheriff
WILES, BOYLE, BURKHOLDER &
BRINGARDNER, CO. LPA
300 Spruce St. Floor One
Columbus, OH 43215
Chair-Elect, Stuart Blatt
MARGOLIS, PRITZKER,
EPSTEIN & BLATT P.A.
West Corporate Center 110 West Road
Towson, MD 21204
Treasurer, Nicholas Krawec
BERNSTEIN LAW FIRM, PC
2200 Gulf Tower 707 Grant Street
Pittsburgh, PA 15219-1900
Secretary, Liviu Vogel
SALON MARROW DYCKMAN
NEWMAN & BROUDY LLP
292 Madison Avenue
New York, NY 10017
NEWLY ELECTED EXECUTIVE COUNCIL MEMBERS
SERVING A THREE YEAR TERM
Ian Bardin
LAW OFFICES OF IAN BARDIN
212 Yacht Club Way Suite A4
Redondo Beach, CA 90277
Lawrence Brown
LAW OFFICE OF LAWRENCE C. BROWN
385 Cleveland Dr.
Buffalo, NY 14215
Faye Feinstein
QUARLES & BRADY LLP
500 West Madison Suite 3700
Chicago, IL 60661
Brenda Majewski
KOHN LAW FIRM, SC
312 East Wisconsin Avenue Suite 501
Milwaukee, WI 53202
CLLA Programming at the 2008 NCBJ
O
n Sept. 25, 2008, CLLA held its annual breakfast and education events at the National
Conference of Bankruptcy Judges in Phoenix, Arizona. The breakfast featured the presentation of the King Award to the Honorable Robert Ginsberg, who served as a U.S.
Bankruptcy Judge in the Northern District of Illinois from 1985 to 2003. After this presentation, Herb Cohen, internationally-renowned negotiator, entertained the audience.
The brain trust of speakers at the 23rd Annual Frank Koger Memorial Current Developments
in Hot and Emerging Areas program discussed such topics as Chapter 11 bankruptcy sales, the
impact of the subprime meltdown and the techniques used by unsecured creditors and other
constituencies to maximize recoveries in chapter 11.
We wish to thank the CLLA-NCBJ Program Planning Committee:
Jay Welford (Chair), Judge Jeffery Deller (NCBJ Liaison), Judge Judith K. Fitzgerald, Judith
Greenstone Miller, Catherine Vance, William Schorling and Ivan Reich
We wish to thank the speakers:
Judge Judith K. Fitzgerald, William Schorling, Dean Robert K. Rasmussen, Professor Edward
R. Morrison, Judge James M. Peck, Robert Simons, Bradley Sharp, Richard Mikels, Judge Joy
Flowers Conti, Jo Ann Brighton, and Mark Freedlander
Debt3 November/December 2008
■
26
Getzler Henrich & Associates, LLC
10 S. Riverside Plaza, Suite 1800
Chicago, IL 60606
312-474-6177
Bilzin Sumberg Baena Price &
Axelrod, LLP
200 S. Biscayne Boulevard, Suite 2500
Miami, Florida 33131-5340
305-350-7935
Adorno & Yoss, LLP
2525 Ponce De Leon Boulevard, Suite 400
Coral Gables, FL 33134
305-460-1000
Jaffe Raitt Heuer & Weiss, PC
27777 Franklin Rd., Suite 2500
Southfield, MI 48034-3000
248-351-3000
Bernstein Law Firm, P.C.
Suite 2200 Gulf Tower
Pittsburgh, PA 15219
412-819-8101
LEND A HAND
and help lead the way
• Education
• Professional Responsibility
• Government Affairs
• Fair Debt Collection
Practices Act
• Marketing
• Forwarders & Receivers
• Meetings
• Membership
Please submit this request immediately
To: David R. Gamache
Gamache & Myers, P.C.
1000 Camera Ave.
Suite A
St. Louis, MO 63126
Fax: 314-835-6604
YES! I want to join a committee,
My committee choices are:
1._________________________________________________
2._________________________________________________
3._________________________________________________
CC: CLLA
70 E. Lake Street
Suite 630
Chicago, IL 60601
Fax: 312-781-2010
NAME
FIRM NAME
ADDRESS
PHONE
FAX
Commercial Law League of America
L E A D I N G T H E WAY
member news
Among Our Members…
Submissions for Member News
may be sent to the Commercial
Law League of America by mail,
fax or e-mail to:
Member News,
Commercial Law League
of America®
70 E. Lake Street
Suite 630, Chicago, IL 60601
312-781-2000
fax: 312-781-2010
e-mail: clla@clla.org
The Commercial Law League®
reserves the right to determine
whether to publish submissions
or photos and to edit
submissions without prior
notice to those submitting the
announcement.
Commercial Law League of America
L E A D I N G T H E WAY
▲ Emil Hartleb, Executive Director of the Commercial
Collection Agency Association (CCAA) reported that business-tobusiness accounts placed for collection with members of the
CCAA rose to a record level for the twelve months ending
September 30, 2008, reaching $13,498,720,600. The previous
record took place in 2002, placements reached $13,159,677,099.
Hartleb noted that this increase does not fully reflect the effect
of the recent credit market and banking situation.
“The effect of these events will be seen in future placements,” he
said. Ninety percent of CCAA members surveyed believe that the
next quarter of 2008 will show moderate to significant increases
in accounts placed for collection and new record might be
achieved. Eighty percent of CCAA members surveyed indicated
that they have experienced a decline in the collectability of
accounts placed with them for collection. The median decline
in collectability reported was approximately 5.6 percent.
Hartleb indicated that this decline in collectability has caused
CCAA members to “work out” a greater number and more
protracted payment schedules to liquidate debts. Hartleb noted
that 90 percent of CCAA members surveyed believed that the
next quarter of 2008 will show moderate to significant declines
in the collectability of accounts placed and that decline in
collectability will continue into the first half of 2009.
▲ The New York law firms of Giskan Solotaroff Anderson &
Stewart LLP and Hartman & Craven LLP, along with the
Columbus law firm of Luper Neidenthal & Logan, L.P.A., have
filed a class action lawsuit in the United States District Court for
the Southern District of Ohio against Petland, Inc., and others,
on behalf of Petland franchisees who purchased Petland franchises
from November 26, 1993, until the present.
Contacts:
Darnley D. Stewart, Esq., Giskan Solotaroff
Anderson & Stewart LLP
11 Broadway, Suite 2150, New York, NY 10004
(212) 500-5106
Greg Melick, Esq., Luper Neidenthal & Logan, L.P.A.
12 LeVeque Tower, 50 West Broad Street
Columbus, OH 43215
(614) 229-4414
Read the full press release online in the member news’ section.
Debt3 November/December 2008
▲ Alternative Legal Services and Judgment Recovery (“ALS”),
A Seattle-based private investigative firm (WA Lic #1679) and
full-service collection agency proudly announces the upcoming
release of Nancy Sundt’s new debt collection handbook entitled
“Keep Your Clients; Collect Your Receivables, Collection Tools
and Techniques for Lawyers and Law Firms”.
ISBN#9781604813982 Retail price $23.99.
28
This handbook contains valuable collection tools and techniques
applicable to every business enterprise, including an overview
of Federal Fair Debt Collections Practices Act, practical guidance on
how the FDCPA applies to collection communication, as discussion
of recent case law involving claims arising from the use, or misuse
of collection letters, practical checklists for ensuring compliance with
the FDCPA, psychology of debt collections, developing an effective
recovery strategy for optimum success while operating in a compliant
and ethical manner, and providing collection letters through all
phases of the collection process that get desired results.
Contact:
Nancy L. Sundt d/b/a; Alternative Legal Services
& Judgment Recovery;
www.altlegalservices.com
nsundt@altlegalservices.com
206-817-8930 (cell); 206-363-4519 (phone)
206-260-1346 (fax)
▲ Caine & Weiner expands as the economy falters. Demand
for their global receivable solutions spurs growth. As the battered
global economy stumbles through the 4th quarter, cash-strapped
businesses are relying on the global receivables expertise of Caine
& Weiner with greater frequency to generate increased cash flow.
To handle the increased demand for their domestic and
International accounts receivable management services, which
includes 3rd and 1st party collection service; Caine & Weiner
has increased its production staff and is relocating its Mid-South
Center to larger facilities in Louisville, KY on December 5th.
The move is similar to ones made in January 2007, when Caine
& Weiner relocated their West Coast Center to Woodland Hills,
CA. In April 2008, their Midwest Center in Schaumburg, IL
relocated nearby to larger facilities.
Contact: Frank Draper, Vice President—Marketing
21210 Erwin St.; Woodland Hills, CA 91367
818-251-1725; 818-703-0846
frank.draper@caine-weiner.com
▲ Rausch, Sturm, Israel & Hornik is pleased to announce that
Attorneys Ryan Peterson and Brandon Bowlin have been named
Wisconsin Rising Stars. Only 2.5 percent of the total lawyers in
Wisconsin are listed as a Rising Star. Ryan and Brandon join
Greg Enerson and Julie Rausch who were previously named
Wisconsin Rising Stars and William Sturm Sr. who was
previously named a Wisconsin Super Lawyer. RSIH practices
Retail Collection Law and is headquartered in Milwaukee,
Wisconsin with offices in Wisconsin, Michigan, Minnesota,
Iowa, North Dakota, South Dakota, Nebraska, Oklahoma,
Montana, Nevada and Texas.
▲ Alan D.Lasko of Alan D. Lasko & Associates, PC has
met the requirements of the AICPA to earn the CFF Credential
(Certified in Financial Forensics). This newly established
certification is granted to qualified CPA's with considerable
experience in Financial Forensics. In addition to the CFF
credential, Alan Lasko is also a CIRA (Certified Insolvency
& Restructuring Advisor).
▲ Robert S. Bernstein, managing partner of Bernstein Law
Firm, P.C. was recently selected by his peers for inclusion in The
Best Lawyers in America® 2009 in the field of Bankruptcy.
(Copyright 2008 by Woodward/White, Inc., of Aiken, S.C.).
Since its inception in 1983, Best Lawyers has become universally
regarded as the definitive guide to legal excellence. Bernstein Law
Firm is located in downtown Pittsburgh with satellite offices in
Washington, Lycoming and Philadelphia counties. The firm
concentrates on Creditors’ Rights, Bankruptcy and Restructuring
and Business Law.
For more information please contact:
Victoria Caugherty, Bernstein Law Firm, 412.456.8113
or vcaugherty@bernsteinlaw.com
Please visit www.bernsteinlaw.com or call 412.456.8100
▲ Weiner and Lange, P.C. and Matthew Burkinshaw are
pleased announce that they are joining forces to serve the credit,
collection and bankruptcy communities in Massachusetts.
Attorney Joseph Flanagan will also make the move with
Matthew Burkinshaw to Weiner and Lange, P.C.
▲ John T. Podbielski, Jr. has authored Bringing Home the
Bacon: Getting a Firm’s Clients to Pay Their Bills in the
September/October edition of the Association of Legal
Administrators’ Legal Management magazine. The article
references the Commercial Law League of America and its
website as a resource for locating attorneys to collect law
firm receivables. Mr. Podbielski and his firm specialize in
foreclosures, evictions, replevins, subrogation as well as
commercial and retail collections throughout the state of
Wisconsin. The firm also provides accounts receivable
management consulting services for professional service
firms and businesses.
The Podbielski Law Group, Ltd.
9809 S. Franklin Drive, Suite 104; Franklin, WI 53132
Ph: (414) 433-0290; Fax: (414) 433-0294
jpodbielski@wilegalcollections.com;
www.wilegalcollections.com.
member news
ABC Report
American Board of Certification Elects
New Officers and Board Members for 2009
The American Board of Certification announced that new officers and directors were elected at the organization’s Board of Directors Meeting
on November 15, 2008. The American Board of Certification held their Board of Directors Meeting during the CLLA Fall New York Meeting.
New Officers:
Chairman: Lawrence R. Ahern, III – is a Partner in the Nashville,TN office of Burr & Forman, LLP. He has been board certified in Business Bankruptcy
by the ABC since 1994.
President: William I. Kohn - is a Partner in the Cleveland, Ohio office of Benesch, Friedlander, Coplan & Aronoff LLP. He has been board certified in
Business Bankruptcy by the ABC since 1993, and has been very instrumental in the long range planning efforts of the organization.
President-Elect: C. Daniel Motsinger - is a Partner in the Indianapolis, Indiana office of Krieg DeVault LLP. He has been board certified in Business
Bankruptcy by the ABC since 1994, and served as the Treasurer of ABC in 2008.
Secretary: John F. Young – is a member of Block Markus Williams LLC in Denver, Colorado. He has been board certified in Business Bankruptcy by the
ABC since 2000.
Treasurer: Bettie Kelley Sousa – is a Partner of Smith Debnam Narron Drake Saintsing & Myers, LLP in Raleigh, North Carolina. She has been board
certified in Creditors’ Rights by the ABC since 1993.
Claude R. “Chip” Bowles, Jr. – is a member of the law firm of
Greenebaum Doll & McDonald PLLC in Louisville, Kentucky. He has
been board certified in Business Bankruptcy by the ABC since 2002.
Roy S. Kobert – is a Partner of the law firm of Broad and Cassel in
Orlando, FL. He has been board certified in Business Bankruptcy by the
ABC since 2003.
J. Scott Bovitz – is a member of the law firm of Bovitz & Spitzer in Los
Angeles, California. He has been board certified in Business Bankruptcy
by the ABC since 1993.
John S. Mairo – is a Principal of the law firm of Porzio, Bromberg &
Newman, P.C. in Morristown, New Jersey. He has been board certified in
Business Bankruptcy by the ABC since 2007.
Steven T. Buquicchio – is a member of the law firm of Varnum, Riddering,
Schmidt & Howlett LLP in Grand Rapids, Michigan. He has been board
certified in Creditors’ Rights by the ABC since 2006.
Michael K. McCrory – is a Partner of the law firm of Barnes & Thornburg
LLP in Indianapolis, Indiana. He has been board certified in Business
Bankruptcy by the ABC since 2003.
John R. Burns, III – is a Partner of Baker & Daniels in Fort Wayne,
Indiana. He has been board certified in Business Bankruptcy by the ABC
since 2004.
Christine L. Myatt – is a member of the law firm of Nexsen Pruet, PLLC
in Greensboro, North Carolina. She has been board certified in Business
Bankruptcy by the ABC since 1993.
James H. Cossitt – is a sole practitioner of James H. Cossitt Law, P.C. in
Kalispell, Montana. He has been board certified in Business and
Consumer Bankruptcy by the ABC since 1995.
Joseph I. Terkell – is the Principal of The Terkell Law Firm in New City,
New York. He has been board certified in Creditors’ Rights by the ABC
since 1996.
David J. Doyaga, Sr. – is a Principal in the Doyaga & Schaefer law firm in
Brooklyn, New York. He has been board certified in Business and
Consumer Bankruptcy since 1994.
David M. Warren – is a Partner of the law firm of Poyner & Spruill LLP in
Rocky Mount, North Carolina. He has been board certified in Business
and Consumer Bankruptcy by the ABC since 1993.
Daniel L. Freeland – is the senior attorney in Daniel L. Freeland &
Associates, P.C. in Highland, Indiana. He has been board certified in
Business and Consumer Bankruptcy since 1992.
Alan H. Weinberg – is a Partner of the firm of Weltman,Weinberg & Reis
Co., L.P.A. in Cleveland, Ohio. He has been board certified in Creditors’
Rights by the ABC since 1997.
Robert C. Furr – formed Furr & Cohen, P.A. in Boca Raton, Florida
where he practices today. He has been board certified in Business and
Consumer Bankruptcy by the ABC since 1994.
William H. Widen – is a Professor of Law at the University Of Miami
School Of Law. Previously, he was a Partner at the law firm of Cravath,
Swaine & Moore, LLP in New York. He teaches commercial law, contracts,
and other business subjects.
Edward M. King – is a member of the law firm of Frost Brown Todd LLC
in Louisville, Kentucky. He has been board certified in Business
Bankruptcy by the ABC since 2006.
Richard L. Wynne – is a Partner of Kirkland & Ellis LLP in Los Angeles,
California. He has been board certified in Business Bankruptcy by the
ABC since 1995.
Debt3 November/December 2008
The new additions to the American Board of Certification Board of Directors are:
29
member news
Newly Admitted Members
T
he following individuals appeared as applicants in the League’s electronic publication in September and October, 2008.
They became members in November and December, 2008.
Members before whose names an asterisk (*) appears are lay members under Article 2; Section 1, of the League’s Constitution. Individuals
before whose names a bullet (·) appears are lawyers devoting the major portion of their time to their lay business organizations listed after the
new member’s name. Members before whose names a star (❖) appears are those who have recently reinstated their membership with the
Commercial Law League.
The name of the League member, if any, referring the new member to membership is listed after the new member’s contact information
in italics.
UNITED STATES
CALIFORNIA
Riverside
James M.Willison
James M.Willison
3870 LaSierra Ave #239
Riverside, CA 92505
Glendale
Edmond B. Siegel
Sequoia Financial Services
500 N. Brand Blvd #1200
Glendale, CA 91203
Seal Beach
Robert Laymon
Commercial Collection
Solutions, Inc.
P.O. Box 4156
Seal Beach, CA 90740
San Diego
James P. Catranova, II
Kirby & McGuinn, A P.C.
600 B Street
Suite 1950
San Diego, CA 92101
San Francisco
Nathaniel L. Dunn
Cook Collection Attorneys, PLC
165 Fell Street
San Francisco, CA 94102
David J. Cook
CONNECTICUT
Wallingford
Debt3 November/December 2008
❖Geoffrey T. Einhorn
30
General Counsel Connecticut
Capital Investments, LLC
994 North Colony Dr. PMB #311
Wallingford, CT 06492
D E L AWA R E
Wilmington
ILLINOIS
Bloomington
LOUISIANA
Gretna
Raymond H. Lemisch
Benesch, Friedlander,
Coplan & Aronoff
222 Delaware Avenue
Suite 801
Wilmington, DE 19801
Donald L.Wilber
The Wilber Law Firm
816 Eldorado Rd
Bloomington, IL 61704
Michael Dendy
D. Michael Dendy
901 Derbigny Street
Suite 200
Gretna, LA 70053
FLORIDA
Jupiter
Lorraine O. Rogers
Schwarzberg Spector
Duke & Rogers
4455 Military Trail Suite 202
Jupiter, FL 33458
Melbourne Beach
* Tracee V. Moecker
Firm Options, Inc.
125 Delmar Street
Melbourne Beach, FL 32951
Miami
Andrew T.Trailor, Esq.
Andrew T.Trailor, P.A.
8603 South Dixie Highway
Suite 303
Miami, FL 33143
Sarasota
Malcolm J. Pitchford, Esq.
Abel, Band, Chartered
240 S. Pineapple Ave.
Sarasota, FL 34230
GEORGIA
Atlanta
* Matthew R.Warner
Emory University
1233 Druid Oaks Drive NE
Atlanta, GA 30329
Scott Stevenson
Adorno & Yoss
1349 Peachtree Street
Suite 1500
Atlanta, GA 30309
Chicago
Tope K. Odoffin
The John Marshall Law School
315 South Plymouth
Chicago, IL 60604
INDIANA
Indianapolis
Daniel J. Ridenour
American Credit
Association of Indiana
415 S. Shortridge Road
Indianapolis, IN 46219
Rachel L. Hazaray
Hostetler & Kowalik, P.C.
101 West Ohio Street
Suite 2100
Indianapolis, IN 46204
Jeffrey A. Hokanson
KANSAS
Lawrence
❖Brandy L. Sutton
Pendleton & Sutton
Attorneys at Law LLC
1031 Vermont
Suite B
Lawrence, KS 66044
Oliver Yandle/David Gamache
KENTUCKY
Lexington
Ashley Ryan
Fowler Measle & Bell PLLC
300 West Vine Street
Suite 600
Lexington, KY 40507
M A RY L A N D
Westminster
Catherine Ludwig
Official Debt Recovery
P.O. Box 2611
Westminster, MD 21157
M A S S AC H U S E T TS
Boston
John R. Mayer, Esq.
Law Offices of John R. Mayer
160 Federal Street, 22nd Floor
Boston, MA 2110
MICHIGAN
East Lansing
* Scott A. Renner
Michigan State University
College of Law
368 Law College Building
East Lansing, MI 48910
Wixom
Jeffrey D. Lindemann
Lindemann Law Firm
PO Box 930454
Wixom, MI 48393
MISSOURI
St. Louis
Charles E. Rendlen, III
US Bankruptcy Court
Eastern District MO
111 So 10th 7S
St. Louis, MO 63102
NCBJ 2008 Attendee
NEW JERSEY
Gibbsboro
P E N N S Y LVA N I A
Harrisburg
Bryan E. Leib
Leib Recovery Solutions
20 E. Clementon Road
Suite 100
Gibbsboro, NJ 08026-1165
Robert Leib
Thomas D. Perrotta
Penn Credit Corporation
916 South 14th Street
Harrisburg, PA 17104
Michael M. Kouser
Slater,Tenaglia, Fritz and Hunt
301 3rd Street
Ocean City, NJ 08226
John Tenaglia
NEW MEXICO
Alamogordo
John Wheeler
John D.Wheeler & Associates, PC
500 East Tenth Street
Suite 305
Alamogordo, NM 88310
NEW YORK
Brooklyn
* Kerry Fontana
Brooklyn Law School
250 Joralemon Street
Brooklyn, NY 11201
L. Blake Morris
Huntington
Todd E. Houslanger
Houslanger & Associates, PLLC
372 New York Avenue
Huntington, NY 11743
Oliver Yandle/David Gamache
New York
Leslie M. Schneider
Leslie M. Schneider, PLLC
324 East 85th Street
Suite 4C
New York, NY 10028
OHIO
Columbus
* Victoria Ring
713 Training.Com LLC
1601 West Fifth Ave.
Suite 123
Columbus, OH 43212
PQ
Montreal
Neil G. Oberman Esq.
Michelin & Associates
4101 Sherbrooke West
Montreal, PQ H3Z1A7
Dany Perras
PQ
Montreal
Dany S. Perras
Michelin & Associates
4101 Sherbrooke West
Montreal, PQ H3Z1A7
Richard Payne
Jean K. FitzSimon
US Bankruptcy Court ED PA
900 Market Street
Suite 214
Philadephia, PA 19107
NCBJ 2008 Attendee
Upper Darby
❖H. Kenneth Seiverd, Jr.
CMI Credit Mediators Inc.
414 Sansom Street P.O. Box 456
Upper Darby, PA19082
Nancy Seiverd
P U E RTO R I C O
San Juan
Luis Vizcarrondo, Esq.
Vizcarrondo & Assoc. Law Office
PO Box 364522
San Juan, PR 00936-4522
TEXAS
Dallas
Paul A. Sartin
The Sartin Law Firm, P.C.
3102 Maple Avenue
Suite 450
Dallas,TX 75201
CLLA
members
encouraged to submit
articles for DEBT3
Have an idea for an article?
Why not write for Debt3?
Debt3 wants to increase the number of articles it
publishes written by members of the CLLA.
There is a tremendous wealth of knowledge among
CLLA members that would be beneficial
to all if shared. Debt3 regularly runs articles on
El Paso
David Moises Mirazo
Brown McCarroll, L.L.P.
221 N. Kansas Street
Suite 2000
El Paso,TX 79901
Mark C.Walker
law office or collection agency management,
technology and marketing. Articles on practical tips
in practicing law are welcome as well.
Feature articles and analysis of new and significant
cases are encouraged.
San Antonio
Antoinette Delgado
Warren, Drugan & Barrows, PC
800 Broadway
San Antonio,TX 78215
George S. Drugan
VIRGINIA
Fairfax
Douglas H.Wood, Esq.
Law Offices of
Douglas H.Wood, PLLC
4023 Chain Bridge Road
Suite 4
Fairfax,VA 22030
Charles J. Sonnhalter
* Mike Homant
CR Software, LLC
4035 Ridge Top Rd., #600
Fairfax,VA 22030
If you have an article idea
or would like to submit an article, simply e-mail it to:
clla@clla.org, fax it to 312-781-2010
or call the CLLA headquarters
at 312-781-2000.
Commercial Law League of America
L E A D I N G T H E WAY
Debt3 November/December 2008
Ocean City
Philadelphia
INTERNATIONAL
31
Oliver Yandle
is the Executive
Vice President
of the
Commercial Law
League of America.
He can be reached
at 312-781-2000
and via e-mail at
oyandle@clla.org.
“Zooming” Toward the Future
he bookstore shelves are filled with the latest management theories. We’ve seen them before: total quality
management, management by objectives, business
process management, knowledge management. Too often,
though, these theoretical management ideas don’t apply readily
to today’s fast-moving environment.
T
Like species, associations face similar dynamics. Competition
among associations is growing, as members have less time to volunteer but more options to choose from. Associations that have
successfully adapted to changes brought about by technology,
globalization, and generational issues are thriving. Those that
have failed to embrace those changes are struggling.
Seth Godin, author of Survival is Not Enough, has found a theory that just might help. It’s one you learned back in high
school, but not in your economics class. Godin argues that, in
today’s ever-changing business climate, only the fittest survive,
and only the exceptionally fit thrive. He’s applied the age-old
theory of evolution to management, and his ideas provide
CLLA with some important lessons in ways to ensure our organization continually meets the challenges of the future.
A New Vocabulary
Debt3 November/December 2008
Evolution theory applied to associations
32
The basics of evolution are pretty straightforward. More species
are born than can survive. Those that evolve slowly and constantly will triumph over others. Species must continually evolve
and adapt in order to succeed in changing environments. Those
that do not will die off. All species are capable of improvement
and modification, but limited resources create an intense struggle among members of the same species to survive. Those species
that have succeeded in becoming more diversified and adaptable
have the advantage in surviving their species. And finally, what
appears to be a somewhat chaotic and random process is actually quite rational.
Godin introduces a new vocabulary for describing some of the
behaviors required to survive association evolution. “Zooming”
happens when an association is responsive to new opportunities
and does not freeze in the face of an uncertain future. Zooming
associations are ones that are constantly measuring, testing, and
trying new ideas, incorporating successful strategies while on the
lookout for new ones. When CLLA was created, there was a lot
of experimentation and trial and error. The enterprise was new
and the founders and charter members were unafraid to test out
programs and processes until they found something that
worked. However, once we found our winning strategy, we
began to develop policies, procedures and structures to support
the winning strategy and create stability and certainty. Over
time, though, the world has changed. What worked in stable
times may not work as well anymore. Now, after years of struggling to protect the winning strategy (and do what we’ve always
done before), we find ourselves faced with a strategy that isn’t
quite as successful anymore, and an infrastructure that makes
changing it a challenge.
“Zooming” happens when an association is responsive to
new opportunities and does not freeze in the face of an
uncertain future. Zooming associations are ones that are
constantly measuring, testing, and trying new ideas,
incorporating successful strategies while on the lookout
for new ones.
—Oliver Yandle
Strategy 1:
To run the New York and Chicago Meetings at a
profit for the National organization.
According to the American Society of Association Executives,
dues revenue makes up an average of about 42% of total association revenue in organizations the size and scope of CLLA. In
our case, however, dues revenues make up 51.4% of total revenue. The Board has recognized the need for greater diversity in
our revenue stream and has established a directive to ensure
CLLA meetings are profitable. Ivan Reich, the champion for
this strategy, and his team have collected historical financial data
on past Chicago and New York meetings and are identifying
opportunities to streamline costs and increase revenue. Next up
will be an analysis of the programming and financial performance of the 2008 New York meeting, along with the Western
Meeting and Strategic Planning Meeting. In February, the team
will follow up with a series of recommendations to improve our
financial performance on these meetings.
Strategy 2:
To reorganize the Commercial Law League
of America around practice areas.
In order to achieve our core purpose of being the leader in providing legal, education and professional services to the business
and credit communities, CLLA’s leadership has recognized the
need to reorient the League around practice areas as a means to
enhance business and professional development opportunities
for our members. Gary Weiner’s team has reached out to various bar associations with interests compatible with the League
and obtained feedback from them to determine what needs and
opportunities may exist for the League to fill. His group will
next review recent experiences of CLLA’s Creditors Rights
Section and Consumer Committee to analyze their approaches
to attracting new practice areas to the League. By mid-February,
the team plans to have identified a proposed set of practice areas
and the key sources of business for each.
Strategy 3:
To consolidate financial resources at the national
level and allocate them according to need.
As part of the overall strategy to improve the League’s flexibility
and capacity to serve member needs, the Board has determined
it has become necessary to consolidate our financial resources so
they can be allocated in the most effective and efficient manner.
A project team led by Don Scott has conducted research on
identifying all existing financial resources. In addition, the
group proposed, and the Board adopted, a consolidated dues
billing statement and a policy on non-dues revenue. The new
policy will provide the League with expanded opportunities to
solicit sponsorship, exhibition, advertising, registration, sales
and other revenue to support CLLA programs. It will enable
sections and regions to focus on developing programs and services to members, rather than being bogged down in fundraising
activities. Next on the group’s agenda is the completion of its
investigation into the League’s financial assets and the development of reserve policies.
Strategy 4: To establish governance rules and
policies that firmly establish Board of Governors
control over League activities.
A critical part of the League’s efforts to streamline operations
and enhance its flexibility is the development of a governance
structure and process to support those objectives. Wanda Borges
is leading a team to do just that. The group has collected extensive detail on all existing League policies and is reviewing them
to determine which remain relevant and which require adjustment, with its recommendations expected in early January. It
also is reviewing the League’s Constitution and bylaws to determine any necessary changes. That report is due out in February.
(continued on page 34)
Debt3 November/December 2008
CLLA’s leadership is gearing up for zooming. In the last issue of
Debt3, you read about the strategic goals we’ve identified to
improve CLLA’s flexibility and better serve our members’ needs.
On November 13, 2008, key leaders met in New York to assess
our progress on those five goals and determine the next steps
required to advance them. Here is where we are with each of the
five strategies:
33
(continued from page 33)
“Zooming” Toward the Future
Strategy 5: To establish a process to ensure that all CLLA educational programming is coordinated through the National Education Committee.
One of CLLA’s greatest strengths is its educational programming. To further enhance that
reputation and to ensure CLLA programming retains its high-quality and timeliness, the
Board has established a strategy to have all CLLA educational programming coordinated
through the National Education Committee. Jeff Rubin and his team have developed a
process and timeline to ensure that educational programs are well-constructed, relevant
and timely, and do not overlap with other programming. It has also developed planning
calendars for meetings, teleseminars and other educational programming with specific
deadlines for each step in the planning process. Next, the group will work with CLLA’s
sections and regions to communicate and implement the policy and develop templates for
program coordinators to use in creating educational content.
In conjunction with the work of these project teams, CLLA will also conduct a comprehensive membership survey in the coming weeks to obtain critical information on member needs, level of satisfaction, and professional demographics. You can help us by watching your email and responding to the survey. Your thoughts, opinions and needs matter
to us and we need to hear from as many members as possible to ensure our future plans
and programs are meeting your needs. Your cooperation is very
much appreciated on this most important task.
Thanks to all of those who have participated in this process,
particularly Bob Bernstein for his facilitation and counsel on the
plan, Beau Hayes for his management of the implementation,
and all of the plan champions and teams for their efforts to
move the plan forward.
In his book, Seth Godin rejects the assumption that we can predict the future and influence its course through our actions.
Rather, he believes that the best strategy for dealing with the
future is to build an organization that is so flexible and responsive, in both the long- and short-term, that what happens in the
future doesn’t really matter. CLLA has embarked on a strong
start in that direction. We’ll be “zooming along” before you
know it!
Debt3 November/December 2008
Best wishes for a very happy holiday season and for a bright and
successful new year.
■
34
Many Join, but few are chosen
The President’s Cup Selection Committee is open to candidate recommendations from all
CLLA members. Please review the standards below, and if you have an individual you consider
a candidate for the President’s Cup Committee, please forward their name:
• Rendered outstanding service for the League
and its membership
• Elevated the image of the commercial lawyer
or lay members of the League
• Helped improve the practice of commercial law
or of the business activities of the lay members
of the League
• Conducted his/her personal, business, and professional
life in a way that gained respect from of his/her community
Summary of Qualifications and reason for this recommendation:
_______________________________________________
_______________________________________________
_______________________________________________
_______________________________________________
_______________________________________________
TO
Mr. Thomas W. Hamilton,The American Lawyers Quarterly
853 Westpoint Parkway, Suite 710
Cleveland, OH 44145-1532
Phone: 800.843.4000; Fax: 440.871.9997
E-mail: tom@alqlist.com
FROM:
RE:
CLLA PRESIDENT’S CUP RECIPIENT RECOMMENDATION
MEMBER NAME
CITY
STATE
Commercial Law League of America
L E A D I N G T H E WAY
Debt3 November/December 2008
Summary of the standards for the President’s Cup:
35
Have an ethics question?
We’re here.
Concerned about a potential
conflict of interest?
We can help.
The CLLA is pleased to announce a unique and worthwhile member benefit.
Available exclusively to CLLA members, the CLLA Ethics Panel is here to assist
in answering your ethics questions. The Ethics Panel will have trained duty
officers available to provide prompt, professional and confidential advice.
Want to know more about
the CLLA’s Code of
CLLA members may contact the Ethics Panel to discuss ethical questions
or issues related to their practice or business, including state ethics rules
Professional Conduct?
and League rules.
Let us assist you.
In our effort to continue to provide unparalleled value for your membership
dollar, this outstanding service is provided at no cost to CLLA members.
Want to discuss any of the above
in a completely
To learn more and access the current list of duty officers,
confidential manner?
We have
the answer.
log on to members section at www.clla.org
Not a member of the CLLA yet?
Become a member at www.clla.org.
Commercial Law League of America
L E A D I N G T H E WAY
ADVERTISERS
Debt3 November/December 2008
INDEX
36
Aries Data Collection
36
Bressler-Duyk Law Firm
34
Hesse and Hesse
35
JS Technologies
22
National Loan
Exchange, Inc.
25
Todd Associates, Inc.
24
Totality Software
Unifund
3
Back Cover
No need to beat the streets for
CLE requirements you must meet
The CLLA can save the day,
CLE available the 24 hour way
Whether fuzzy slippers adorn your feet
or in that cubicle or office seat
CLLA online education programming
at a cost you can’t beat
www.eondirect.com/clla
Commercial Law League of America
ONLINE EDUCATION
S P O N S O R E D
B Y
T H E
C L L A
F U N D
F O R
P U B L I C
E D U C AT I O N
CLLA online education programming is available thanks to funding from
the CLLA Fund for Public Education, a sponsor of quality education for
more than 26 years. The Fund seeks to provide education to those
interested in the credit, collections, or bankruptcy fields through programs
offered to the business community, the bar generally and, if appropriate, to
the public-at-large. The Fund is always seeking input from those in the
field about topics of interest and new trends in the area of the law. Please
email us at clla@clla.org for programming input and overall site reflections.
Commercial Law League of America
L E A D I N G T H E WAY
70 E. Lake Street, Suite 630 • Chicago, IL 60601 • 312.781.2000 • www.clla.org