Contacting the DebtorGary M. Sabean

FIRST THINGS FIRST

• INFORMATION DRIVES THE COLLECTION PROCESS

• NOTE ALL CONTACT WITH THE DEBTOR

WHY CONTACT THE DEBTOR FOR COLLECTION?

• BECAUSE IT’S YOUR JOB• BECAUSE THE LAW SAYS SO (§ 58.1-3919)

– The treasurer, after the due date of any tax, shall call upon each person chargeable with such tax who has not paid the same prior to that time,…and upon failure or refusal of such person or agent to pay the same he shall proceed to collect by distress or otherwise.

• BECAUSE GOVERNMENT CANNOT OPERATE WITHOUT REVENUES

• BECAUSE EVERYONE SHOULD PAY THEIR FAIR SHARE FOR THE BENEFITS OF A CIVILIZED SOCIETY

To the extent that some people are dishonest or careless in their dealings with the government, the majority is forced to carry a heavier tax burden.

President John F. Kennedy April 20, 1961.

Notices

• WHERE TO SEND THEM

• WHAT INFORMATION DO YOU INCLUDE

WHERE TO SEND NOTICES

• ADDRESS ON TAX ROLES– PROPERTY ADDRESS?– RESPONSIBLE PARTY ADDRESS?– RUN NCOA (NATIONAL CHANGE OF ADDRESS)

• MAY HAVE PLACED A CHANGE OF ADDRESS ORDER– NOTE ADDRESS WHERE NOTICE WAS MAILED

INFORMATION ON BILL(SOUNDS SIMPLE DOESN’T IT, BUT NECESSARY)

• DETAILS ON BILL– WHAT THE BILL IS FOR (NATURALLY)

– WHO TO CONTACT IF THEY HAVE QUESTIONS (with most actions, you will get a reaction, be there to answer the phone, correspondence needs to be responded to quickly and verify/note return address)

– HOW TO PAY• CREDIT CARD OR E-CHECK

– ONLINE OR OVER THE PHONE

• WHERE TO MAIL PAYMENT • RETURN ENVELOPE (MAKE IT EASY)

Late Notices

Notices

• WHERE TO SEND THEM• WHAT INFORMATION DO YOU INCLUDE

• HOW MANY SHOULD YOU SEND– NOTICE SERIES

Notices• WHERE TO SEND THEM

• WHAT INFORMATION DO YOU INCLUDE

• HOW MANY SHOULD YOU SEND– Notice Series

• TREATMENT OF RETURNED MAIL–Forwarding orders–Update tax records–Restart Notices

Notices• WHERE TO SEND THEM

• WHAT INFORMATION DO YOU INCLUDE

• HOW MANY SHOULD YOU SEND– Notice Series

• TREATMENT OF RETURNED MAIL– Forwarding orders– Update tax records– Restart Notices

• SKIP TRACING

SKIP TRACING

Sometimes, a taxpayer will move without paying his taxes…

Now the hunt begins….

SKIP TRACING

• Telephone Directories• Criss-Cross Directories• Internet

– Phone books/reverse lookup

– Accurint.com– Google

• U.S. Post Office• Landlord• DMV records• State tax records ***

• Caller ID ***• Bankruptcy petitions• Utilities records• Credit Reports• Last Employer• Other Creditors• Former Addresses• New Ideas?

SKIP TRACING

• CALLER ID– WHERE DID THEY CALL FROM

• WORK (most people do personal business at work)

• HOME• CELL(Note the Number- COULD BE A LIEN SOURCE)

• DEBT SET OFF– GOOD ADDRESS

CONTACT INFORMATION CAN BE ANYWHERE

• PHONE CALLS– LEAVE A MESSAGE (WITH ANYONE)

• NO DETAIL

• PAYABLES–WHERE ARE THE CHECKS GOING

• PAST PAYMENTS –WHEN WAS LAST PAYMENT–WHAT BANK• POSSIBLE LIEN SOURCE

OTHER CONTACT ACTIONS

• COURT ACTION– JUDGMENT WILL PLACE A BLEMISH ON CREDIT

REPORT

• SEIZE• SUMMONS DEBTOR IN• LIEN (BANK OR EMPLOYER)

– (EVEN IF THEY DON’T WORK THERE YOU MAY GET A RESPONSE FROM OLD EMPLOYER WHERE THEY WORK NOW)

• DELINQUENT LIST IN PAPER OR WEBSITE– (PEOPLE GOOGLE THEMSELVES AND THEIR FRIENDS)

DON’T FORGET TO BE COURTIOUS

SOME THINGS THAT WE’VE TRIED

• BANK BLITZ– CALL AND ASK

• 567 PROJECT–MAIL A CHECK

• ORDER SOMETHING– TRY AND BUY SOMETHING

CONTACTING THE DEBTOR

THANK YOU

GARY M. SABEANGARY.SABEAN@GOVCOLLECT.ORG