Conference California Identity & Expo Recap FDCPA Sick ...s Ink/November_Decem… · Synectic...

COLLECTOR’SPUBLISHED BY THE CALIFORNIA ASSOCIATION OF COLLECTORS | NOVEMBER/DECEMBER 2014 | VOL. 66, NO. 11

Conference & Expo Recap

California Mandates Sick Leave

Identity Theft & the

FDCPA

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Kelly Parsons O’Brien CAC Member-at-Large

NOVEMBER/DECEMBER 2014 2 COLLECTOR’S INK

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Region Presidents...REGION 1 Francesca Strucksberg Tel: 510-632-3366 [email protected]

REGION 2 Kelly Parsons O’Brien Tel: 707-432-2401 [email protected]

REGION news

UPCOMING REGION EVENTS

UPCOMING STATEWIDE EVENTS

REGION 1+2Program: TBDLocation: TBD

REGION 3Thursday, January 22Ft. Washington Country ClubFresno

REGION 4Tuesday, January 20Sheraton Mission ValleySan Diego

REGION 5Friday, February 6Lunch meeting and programSanta Barbara

2015 LEGISLATIVE DAY AND PAC FUND RAISERMarch 22-23, 2015Sacramento

98TH ANNUAL CONFERENCE & EXPOOctober 12-13, 2015Monterey

REGION 3 Courtney Reynaud Tel: 559-485-7900 [email protected]

REGION 4 David Cotter Tel: 619-295-1200 [email protected]

REGION 5 Shawn Suhr Tel: 805-899-4431 [email protected]

TABLE OF contents

Editor in Chief/Executive DirectorVickie Kirk [email protected]

Member Services CoordinatorRachel [email protected]

COLLECTORS

©2014 California Association of Collectors, Inc. All rights reserved. Materials may not be reproduced without written permission.

CAC’SVENDORHIGHLIGHT

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CAC Volunteer Leadership 5

President’s Article 7

Director’s Message 9

Legislative Update 11

General Counsel Update 13

ACA International Update 15

Member’s Corner 17

2014 Annual Conference & Expo Recap 22-25

Motivation 27

California Mandates Sick Leave 30

Fire Safety 33

Identity Theft & the FDCPA 35

Office Chair Ergonomics 38

Member Spotlight: Kelly Parsons O’Brien 46

YOUR GROWTH IS OUR BUSINESS

NOVEMBER/DECEMBER 2014 COLLECTOR’S INK 3

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Immediate Past President Matt Logan Collection Consultants of California Glendale Tel: 818-551-5600 [email protected]

Collector’s Ink welcomes letters to the editor and submissions from CAC members, however, we cannot guarantee that we publish any of the articles we receive. Collector’s Ink editors also reserve the right to edit all submissions.

Advertisement of products or services in Collector’s Ink does not constitute an endorsement by CAC.

Collector’s Ink (ISSN 0199-2341) is published bi-monthly by the California Association of Collectors.

The annual subscription rate for members of the Association is $30 included in the annual membership dues. Collector’s Ink is the official publication of the California Association of Collectors, Inc.

Information contained in Collectors Ink is not intended to be legal advice and may not be used as legal advice. Every effort has been made to ensure this information is up-to-date as of the date

of publication. It is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own counsel. You are encouraged to seek the advice of counsel relating to any matters affecting you or your business.Mailing Address:Collector’s Ink1455 Response Road, Suite 240Sacramento, CA 95815Phone: 916-929-2125Fax: 916-929-7682Website: www.calcollectors.netEmail: [email protected]

CAC Executive Committee

President Patrick Collins Herbert P Sears Company, Inc. Bakersfield Tel: 661-283-0229 [email protected]

Vice President/Secretary Sandy Lubin Credit Bureau of San Luis Obispo & Santa Barbara Counties Grover Beach Tel: 805-481-3155 [email protected]

President-Elect/CFO Linda Guinn CB Merchant Services Stockton Tel: 209-944-9001 [email protected]

COLLECTORS

Member-at-Large Kelly Parsons O’Brien Credit Bureau Associates Fairfield Tel: 707-432-2401 [email protected]

CAC VOLUNTEER leadership

Budget Linda Guinn 209-944-9001 [email protected]

Communications Sandy Lubin 805-481-3155 [email protected]

Education Kelly Parsons O’Brien 707-432-2401 [email protected]

Legal & Legislative Fund Sean Escobar 213-985-2111 [email protected]

Legislative Council Cindy Marler 916-631-7085 [email protected]

Membership Rodney Meeks 800-679-6888 [email protected]

Vendor Membership TBD

PAC Robert Tavelli 707-509-5565 [email protected]

Committee Chairs

FoundationEducation Scholarship Foundation Matt Logan 818-551-5600 [email protected]


Patrick CollinsPRESIDENT

PRESIDENT’S article

I opened my remarks at the installation dinner on October 23rd at the Annual Meeting with the following quote—

“The only constant is change.”

And no, it wasn’t from one of our famous change gurus; it was from Heraclitus, a Greek philosopher from 500 BC. So, all this “stuff ” about change, has been around a long time so we need to deal with it.

At the risk of repeating myself for those who attended the conference and dinner, I would like to take this first article and review some of the same topics for the benefit of those members that were unable to attend the event.

I am excited by the challenge and honor of serving as the association President. And while it is a “change” (there’s that word again), it is really the third year of a transition for the association. This period of time has been driven primarily by bud-get and membership issues, but has led to a much more responsive and transpar-ent governance that is only beginning. We have eliminated many dormant and/or duplicative committees and reconsti-

tuted our Board of Governors in a more effective structure; it is now made up of the Executive Committee, the five Region Presidents and a representative of the members at large.

We are bringing a new focus to leader-ship development which is essential to the sustainability of the association. This year includes several new region presidents that we will be meeting in future articles, as well as working on a path so they may continue to grow in the organization and tackle other responsibilities. And the re-gions’ Presidents will now also meet as the Education Committee to research, develop and share successful programs that can be replicated throughout the state. We want the region leadership and meetings to help us dive deeper into the membership on a regional level, to increase the spread of education, trends and value to a wider group of participants.

We are also taking a new look at our Vendor Partners, and once again I’d like to thank them for their support and participation in our industry. The confer-ence would not be possible without you.

I will be spending time with the Vendor Committee going forward to explore the best way for both of us to gain the most effective benefits from our mutual relationships. And we already have had a group of Vendors volunteer for the com-mittee, as well as additional volunteers to help with planning and execution of next year’s conference.

And through all this “change” we still maintained an active, aggressive and involved legislative group that, along with our advocacy professionals, has kept us in the battle and at the table of the most criti-cal elements of new laws and regulations affecting our industry.

Thanks to all who participate and support in a variety of ways, and along with the staff, Executive Committee and Board of Governors we hope to make it a growing and learning year, and of course deal with all that CHANGE!!

Patrick Collins is the owner of Herbert P Sears Company, Inc.He can be reached at [email protected] or (661) 283-0229.


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DIRECTOR’S message

Vickie KirkEXECUTIVE DIRECTOR

CAC has an outstanding team working on your behalf through-out the state including volunteer leadership, legislative advocate, general counsel, and staff. Let me introduce them to you:

During the recent CAC Annual Conference and Expo the mem-bership elected new officers:

- President, Patrick Collins with H.P. Sears in Bakersfield- President-elect/CFO, Linda Guinn with CB Merchants Ser-

vices in Stockton- Vice President/Secretary, Sandy Lubin with Credit Bureau of

San Luis Obispo and Santa Barbara Counties in Grover Beach- Member at Large, Kelly Parsons O’Brien with Credit Bureau

Associates in Fairfield- Past President, Matt Logan with Collection Consultants of

California in Glendale

These volunteer leaders face many challenges in providing the strategic oversight of this organization, please send them a note of appreciation and answer your phone when they call to ask your suggestions or opinions. You will hear frequently about the focus on membership and PAC support as the top two priorities for the association. We need your engagement in both of these areas. You know when a new agency opens up near you; please contact them and invite them to join CAC, bring them with you to a region meeting or invite them to Legislative Day in March. It is our hope that those entering the business are representing this industry well and there is no better place to learn the industry than from active CAC members.

Legislative Advocate, Cliff Berg, has been representing CAC at the State Capitol for about 20 years. Yes, he has long-established rela-tionships with legislators and their staffs, he is excellent at building strong coalitions and keeping the business interests of CAC mem-bers at the forefront of important conversations as he educates and advocates on behalf of this generally misunderstood industry. We are very fortunate to have him serving our association.

General Counsel, Tom Griffin, has been answering questions and developing policies and offering sage advice since the Honorable Ron Sargis (CAC General Counsel for about 25 years) joined the bench of the U.S. Bankruptcy Court about five years ago. The two worked together for a number of years and continue to consult and swap stories on your behalf.

Rachel Myers is Member Services Coordinator…she is who you talk to about your membership renewal, accounts receivable, the CAC Educational Scholarship Foundation, the Vendor Member program, the Expo during the Annual Conference and any data-base updates that you need to make.

I am the Executive Director. Please contact me about member-ship, region meetings, Board of Governors, Collectors INK article submissions or ads, finances, donations (to the PAC, Scholarship Foundation or to the L&L Fund), Annual Conference, Legislative Day, or to ask if I watered the office plants last Friday. In a small association (association size is measured by staff size, not number of members) the employees have “one head, many hats”.

We are all here to serve you, the CAC members…..

The California Association of Collectors (CAC) provides advocacy, education, networking, resources, and is the public advocate for California collection industry professionals. And, just how do we do that for you, our members?


LEGISLATIVE update

Cliff BergGOVERNMENTAL ADVOCATES

The November election saw the Governor win re-election by a substantial majority as expected. There were no surprises in the statewide contests as the Lieutenant Governor, Attorney General, Superintendent of Public Schools and Insurance Commissioner all won re-election. In addition, Democrat John Chiang is the new State Treasurer replacing Bill Lockyer who retired. Senator Alex Padilla won the Secretary of State’s job held by Debra Bowen who retired, and Betty Yee replaces John Chiang as State Controller.

The State Legislature however was in play and going into Election Day outcomes in most contested seats were in doubt, most races were too close to call. Going into the 2014 election, Democrats held two-thirds majorities in both Houses. A combination of term limits and reapportionment appeared to give Republicans the opportunity to pick up seats in both Houses and break the Democrats 2/3 hold. In addition, the open primary in California resulted in a number of contests between two Democrats where there was a choice between candidates with different philosophies, moderate business friendly

Tuesday, November 4th was Election Day in California. California State Government plays a critical role in balancing the economic interests of stakeholders in the California economy. As a result, literally tens of millions of dollars can be spent to determine the outcome of a single seat in the State Legislature because the stakes are so high. A hundred votes or less may separate the winner and loser in a State Assembly or Senate seat and one or two votes may determine the passage of an increase in the minimum wage or require employers to provide mandatory sick leave. The financial stakes are huge and election outcomes often are decided by a few votes.

Democrats vs. liberal pro-labor Democrats. Republicans also had a number of R vs. R contests.

While a few contests are still in question because the margins are so close and there are thousands of uncounted ballots still outstanding, it appears clear that Republicans

did make modest gains in the Senate and the Assembly reducing the Democratic majorities in both Houses below 2/3.

In the State Senate, moderate Democrat Lou Correa was forced out of an Orange County seat that would lean Republican. Former Democratic Assemblyman Jose Solorio faced Republican County Supervisor Janet Nguyen. Nguyen won handily, picking up a Senate seat for Republicans. Democrats made a major effort to unseat Republican State Senator Andy Vidak which fell short by a wide margin. Senate Republicans increase their numbers to 14 and Democrats will have 26 when the special election is held to replace Rod Wright, who resigned after sentencing for his convic-tion of voter fraud.

In other Senate changes, Mike McGuire replaces Noreen Evans who chose not to run for re-election in Napa, Dr. Richard Pan defeated Roger Dickinson in a Sacramento D on D race to replace Darrell Steinberg, Bob Wieckowski replaces Ellen Corbett, Bob Hertzberg replaces Alex Padilla, Connie Leyva replaces Norma Torres who


gave up her Senate seat to run for Congress, Ben Allen defeats Sandra Fluke in another D on D contest, Jeff Stone, the Riverside County Supervisor defeats former Assemblywoman Bonnie Garcia in an R on R race, Tony Mendoza replaces Ron Calderon and Pat Bates replaces Mark Wyland from San Diego.

In the State Assembly Republicans may have picked up three seats, also reducing the Democrats majority below 2/3. Repub-lican Tom Lackey defeated Democratic incumbent Steve Fox, Young Kim defeated Democratic incumbent Sharon Quirk-Silva and it appears that David Hadley unseated Democrat Al Mu-ratsuchi, (this could change, margin under 2,000). In addition, in open seats, Republican Catharine Baker defeated Demo-crat Tim Sbranti in the East Bay seat vacated by Joan Buchanan. However, Democrat Jacqui Irwin captured the seat vacated by Republican Jeff Gorrell who ran for Congress resulting in a net gain for Republicans of three. Democrat Adam Gray turned back a Republican challenge in Modesto as did Ian Calderon in Los Angeles. Meanwhile, more moderate Democrat David Chiu defeated David Campos in San Francisco. In an election surprise, Democrat Raul Bocanegra was trailing unknown Democrat

Patty Lopez in the San Fernando Valley by 12 votes. There will be thousands of uncounted ballots, so this race’s outcome may not be known for a while. In Sacramento, D Jim Cooper defeated Darrell Fong another D and in Los Angeles Mike Gipson defeated fellow D Prophet Walker. New Assemblymembers include Jim Wood, James Gallagher, Bill Dodd, Kevin McCarty, Tony Thur-mond, Kansen Chu, Devon Mathis, Evan Low, Jay Obernolte, Marc Steinorth, Chad Mayes, Miguel Santiago, Ling-Ling Chang, Eduadro Garcia, Autumn Burke, Bill Brough, Matthew Harper, and the previously mentioned.

Now that the election is over, leadership in both Houses will be appointing Members to Committees. Due to the turnover, there will be new Chairs of at least the Assembly Judiciary, Banking and Health Committees, the Senate Appropriations, Banking and Busi-ness and Professions Committees. The new Legislature begins the 2015 Legislative Session on Monday, December 1, 2014.

Cliff Berg is CAC’s Legislative Advocate. He can be reached at [email protected] or by phone at (916)448-8240.


Legislative Update continued from previous page

GENERAL COUNSEL update

Tom GriffinCAC GENERAL COUNSEL

ConferenceCAC’s annual conference occurred on October 22-24 in

Carlsbad. To put it simply, it was great! The venue was terrific, the presentations were informative and there was a special surprise to conclude the installation dinner. Dessert took the form of a cake decorating contest involving Matt Logan, Pat Collins, Linda Guinn and Sandy Lubin. Dressed in CAC chef coats, the partici-pants were tasked with each decorating a sheet cake. After three cakes were auctioned, the auctioneer, Robert Tavelli, then offered to plant his face in the fourth cake if those in the room pledged $100 each to CAC’s PAC. After a near unanimous response from those gathered, Robert plunged his bearded visage into the sweetened rectangle and then raised his face, dripping with frost-ing, for pictures – many, many pictures. This twist on dessert was great fun and it helped raise significant funds for CAC’s PAC. The lingering question was whether this would become a tradition. Those in attendance hope so!

Thank you, Robert, for your good spirits and congratulations to Cindy Marler for receiving the Hershey Award, presented by Matt Logan. Well deserved. And, many thanks to the Honorable Ronald Sargis for participating in the legal panel discussion and for joining Lloyd Dix in installing the new officers, including Kelly Parsons O’Brien, CAC’s new Member-at-Large.

Legislative MattersAt the conference, the membership discussed with Cliff Berg,

CAC’s lobbyist, and Cindy Marler, chair of CAC’s Legislative Coun-cil, the legislative landscape and potential affirmative steps that CAC may take to assist members in their businesses. Two of the

ideas that emerged were reviewing the potential for unifying the at-torneys’ fees schedules in the counties and finding a way to address the Greentree issue.

This issue stems from Greentree Financial Grp., Inc. v. Execute Sports, Inc., a 2008 California appellate court decision, which cast doubt on the enforceability of a stipulated judgment that permits the entry of judgment for the full amount claimed in the complaint after a debtor defaults on the settlement payments for an agreed-upon lesser sum due under a settlement agreement.

This troubling idea was echoed in Purcell v. Schweitzer, a 2014 decision from the same appellate division. In Purcell, the court held that, despite the best efforts of counsel to ensure that a breach of a settlement agreement would result in a default judg-ment for the full balance of the debt claimed in the complaint, rather than the lower settlement amount, California law does not permit such a default judgment.

The facts in Purcell were as follows: The debtor owed $85,000.00 on a promissory note. After the debtor defaulted on the loan, plaintiff filed suit to recover the amount owed. The parties reached a settlement for $38,000.00, plus interest, to be repaid in monthly installments over two years. The settlement agreement provided that, if the debtor was late with his payments, he would be in breach of the agreement and plaintiff could take a default judg-ment for the entire $85,000.00. After the debtor defaulted, the trial court granted plaintiff ’s motion for default judgment to recover the full balance ($85,000.00), less what had been paid, for a total of $58,829.35. The debtor then filed a motion to set aside the default judgment as an unlawful penalty, and the superior court granted

The Conference, Legislative and Legal Matters, and some Levity


that motion. On appeal, the Fourth Appellate District affirmed.The Purcell case reaffirms the approach of many Califor-

nia courts that, once a plaintiff settles a case for less than the full amount of a debt, the debtor is likely limited to recovery of the lower settlement amount, even if the debtor has breached the settle-ment agreement and even if the parties entered into a carefully-crafted stipulation for default judgment for the full balance. In the end, these courts treat the settlement agreement as a contract separate and distinct from the underlying litigation. The breach of the settlement is at issue—not the breach of the underlying con-tract. Therefore, the amount owed on the initial promissory note

agreement is seemingly irrelevant in determining the damages in the event of a breach of the settlement agreement.

Since the reasoning in Greentree and Purcell is gaining steam and as a result of the membership discussion in Carlsbad, CAC will be looking to address this issue before the Legislature and, in particular, whether the relevant code section (Civil Code Section 1671(b)) may be amended to remedy this situation.

Diaz v. Kubler UpdateIn this case, a judge in the Southern District of California ruled

that, when the underlying contract fails to state that interest after a default may be collected, a debt collector’s attempts to collect inter-

est without filing a lawsuit violates the FDCPA. This author, on behalf of CAC, and ACA filed a joint amicus curiae brief before the Ninth Circuit in this case in an attempt to have the lower court’s decision reversed. June Coleman filed the briefs on behalf of Kubler Corporation, a CAC member. This is obviously an important decision. At this point, the parties are waiting for the Ninth Circuit to set oral argument and/or render its decision. We will keep you informed.

Voicemail MessagesLeaving messages for consumers continues

to be a challenging area for collectors. The courts are certainly inconsistent, even when the messages consist of the ACA message, the “pure message” (“This is Jane Smith from ABC, Inc. Please call me at 1-800-123-4567”), or a different message. CAC is interested in supporting the right case (a messaging case without other issues) to gain, hopefully, some clarity in this area, at least in the Ninth Circuit. If you are involved in, or know of, such a case, please contact this author or Vickie Kirk.

Some LevityA client shared with this author correspon-

dence from a consumer to a credit reporting agency in which the consumer signed off with the follow-ing: “This is communication from a Consumer in accordance to make a Debt Collector/Creditor obey the law. All information gathered will be used for this purpose.”

An interesting twist on the mini-Miranda.

Tom Griffin is CAC’s General Counsel and can be reached at [email protected] or (916)925-6620.


General Counsel Update continued from previous page

With one busy year for the credit and collection industry almost over and another on the horizon, now is a good time to think about how to keep up with the seemingly unending calls for more compliance and more regulation. In 2015, ACA International will be offering a collection of leading-edge events and education to help you be ready, and I encourage you to include our association events in your plans.

ACA has a lot to look forward to in 2015, including:

Spring Forum & Expo will be held March 25-27, 2015, in a new and historic location, San Antonio, Texas. This popular event combines professional development and networking opportuni-ties for industry, along with the latest information on compliance and federal regulation.

The annual Legislative Conference will be held on Capitol Hill in Washington, D.C., from April 14-16. Now more than ever, it is important for our elected representatives, especially those new members, to understand the issues and complexities of our industry. The strength of our industry is the number of people employed in almost every legislative district in the country. We have a great story to tell about the credit economy, helping consumer escape from the stranglehold of continuous debt, and

the contributions of our industry to our local communities. And regulators and elected leaders need to hear it from business lead-ers from back home in their district and state. It is a tremendous and powerful experience that I encourage you to try!

Our 76th Annual Convention & Exposition will be held in Boston from July 19-21. The industry’s largest, must-attend event will move to a new fabulous location with our theme of “NEXT,” and promises cutting-edge education and certification training, world-class speakers, dazzling entertainment and networking opportunities that are only available at an ACA event. This is one event you can’t afford to miss!

As we look ahead to 2015, embracing professional development opportunities, networking with peers and continuing to effect the legislative and regulatory process —both in California and nationally—will go a long way toward ensuring the continued success of your company and the industry. Here’s to embracing what is NEXT.

Pat Morris is CEO of ACA International. He can be reached at [email protected].

ACA INTERNATIONAL update

Pat MorrisCEO, ACA INTERNATIONAL

THE

NEW YEAR



MEMBER’S corner

Do you have news or accolades to share about your agency? Please let us know at [email protected].

If you would like to submit editorial ideas, contact: Vickie Kirk at CAC916-929-2125 or [email protected]

ATTENTIONMEMBERS

Welcome the newest CAC members:■ Advanced Payment Systems

– Vendor C■ Integrity Credit - Visalia■ Valle De Oro Financial

Services Inc – El Cajon■ Zamucen & Curren, Inc. -

Irvine

Congratulations to the following for attaining their Fellow Designation from ACA:■ June Coleman■ Stephen Turner

Congratulations to the following for attaining their Scholar Designation from ACA:Joanne Apusen, Caryn Carpenter-Cadez, Jeff Fletterick, Sean Flynn, Brian Frary, Yvonne Garcia, Gregory Gerkin, Angela Gilardi, Dennis Hammond, Scott Hyman, April Lindauer, Charles Messer, Andrew Steinheimer, Shawn Suhr, Chris Thompson, and Jeanne Zimmer.

Congratulations to two California agencies noted to be the Best Places to Work in Collections by Collection Advisor magazine:■ Conrad Credit Corporation, Escondido■ Investment Retrievers, El Dorado Hills

Great news for the CAC Educational Scholarship FoundationAt a time when the CAC ESF was getting toward shaky financial ground, CAC had three members step forward to sponsor the three scholarships for 2015:

FIRST PLACE: USCB America

SECOND PLACE: CB Merchant Services

THIRD PLACE: Collection Consultants of California

THANK YOU to three outstanding supporters! We still need support (dollars!) from more of you to fund the travel for the students and the dinner during which they read their essays to the judges. You can donate by clicking the DONATE but-ton on the calcollectors.net home page or see page 41 for a pledge form.

HRRG and States Recovery Systems both moved to new offices last month…congratulations!

Your California colleagues serving on ACA International committees on your behalf:■ Rodney Meeks (Credit Consulting

Services, Inc) and Mel Shaw (USCB America) – Interstate Committee

■ Patrick Collins (HP Sears) – Education■ Linda Guinn (CB Merchant Services) –

Special Unit Study Committee


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As a Collections Manager, I ask myself, “What keeps em-ployees motivated to do their jobs?” During October at Credit Bureau Associates, the collections department had a Trick or Treat contest, a desk decorating contest, Hal-loween potluck and best costume contest. These festivities are just some of the things our office does to keep our employees engaged and motivated. But, I still question, “Can motivation really stem from potlucks and contests alone?” For some, I think the answer is yes but for many others we, as employers, need to do more to motivate our employees.

We all know debt collections can be a thankless job. It is important for employees to see the value of what they do. Knowing the value of what they do, each day, helps collectors get over the frustrations of being hung-up on, cursed at, and told “no.” I think the value of what a debt collector is doing and what is expected of them

go hand and hand.Rodney Meeks of Credit Consulting Services, Inc, told me about his expectations of his employ-ees. Rodney puts employees into one of three categories; exceeding expectations, meeting expecta-

tions, and not meeting expectations. His quality assurance team works together with their collectors who are not exceeding expectations to establish an action plan.

Within the 90-day action plan, the team looks for significant

MOTIVATIONBy Kelly Parsons O’Brien, Member-at-Large


improvement from those that are not meeting expectations and moderate improvement from those that are meeting expectations. The goal is for each employee to be exceeding your expectations. These employees are recognized as the most motivated and pro-ductive within your department.

Striving to get all employees to exceed your company’s ex-pectations can be achieved more easily with improved employee job satisfaction. Frederick Herzberg, an American business icon, proposed a “Two Factor” Theory on job satisfaction. Herzbergs’ two factors are basic needs and motivational factors. Basic needs are an understanding of company policy, good supervisor rela-tions, work conditions and, of course, compensation. The second factor is motivational factors; including achievement, recognition, feeling value in their work, and responsibility.

Let’s talk more about these factors that impact job satisfaction and ultimately impact motivation of employees. Basic needs won’t necessarily increase motivation in itself; however, if employee’s basic needs are not met it will restrict a company’s ability to build motivation. Questions to ask yourself as an employer, while walking through your office, are; “Do your collectors have enough space? Do they have the right tools for the job? Is the temperature

too hot or cold?”

Answering questions like these can highlight areas of needed improvement to make your employees’ work environment more enjoyable, allowing for them to stay motivated and productive.

What does your office wall space look like? I believe it is imperative for employees to know what management does for the company outside of the immediate work setting to build good relations. Posting newspaper or trade magazine advertisements, fliers that clients or prospective clients receive, and pictures of trade show booths broadens employee’s perspective on the work that is done to ensure their own job security. Another suggested use of wall space is to post slogans, quotes, reminders on the importance of federal and company policy compliance.

Motivational factors are the other half of Herzbergs’ Two-Factor Theory. As we always have, our office posts the daily col-lection totals for each day. The collectors can compare the last two months of totals, so they can determine if they are ahead of last month’s totals. This practice provides them an avenue to be recog-nized by other staff and to hold them responsible to produce.

Depending on the needs of employees, I’ve heard some com-panies use flat screen TVs around the office to post collection to-tals, compliance updates, reminders, and sports scores. One thing we have done, to adapt to the needs of our office, is make graphs that don’t include fees but a percentage. This allows for manage-ment to keep some of the numbers private while still allowing the collection department to exceed expectations and strive to reach company goals.

A wise man once told me, “If I cannot afford to supply coffee to my employees we should shut the doors.” While we

are talking about coffee, let me share an interesting idea on how to get closer to your employees, Coffee Friday.

During Coffee Friday, supervisors or managers have an informal meeting with an employee. The goal is that the employee feels open to share information about them and management does the same. Both par-ticipants get to know each other’s interests, find out what gets them motivated, what their career goals are and share something that others are not likely to know about them. Employees are encouraged to be open about feedback and hopefully they will share a suggestion on how to improve employee motivation,

production, and their job.Food is a great motivator as well. Take for instance

the “collector of the month” goes to lunch with the boss or for every payment over $5000 the collector gets

a candy bar or $5 Starbucks card. Some other things that


Motivation continued from previous page

I know offices do, is supply employees with bottled water, sodas, teas, popcorn, chips, and snack bars. I realize that these costs effect the bottom line, however if you have more motivated and productive employees, it would be cost effective.

Along with basic needs, employees want and need to be mo-tivated. Some employees receive this motivation through rewards and recognition. In CAC’s recent survey, “How do you motivate your collectors?” the first question was “What do you find are the best prizes to motivate your collectors?”. What do you know, money was the top motivator, second was gifts and gift cards, then a close 3rd was time off. I know these top three motivators are spot-on in our office, I wonder if this is true for every office.

Investment Retrievers of El Dorado Hills has been placed in the top 35 places to work by the ARM industry. I am sure one rea-son is because their employees get a massage once a month. What a great way to reward your staff. Some other rewards that were provided in the survey were, Lottery tickets, time off for perfect attendance, IPads, casual days, 49er game bus trips, Sacramento Rivercats’ suites, tickets to Kings games, weekends in San Fran-cisco, and trips to Hawaii. A few responses indicated that compa-nies do not do prizes; rather they provide increased base pay and bonus structures based on profitability.

Rewards and recognition do not have to be a high cost motivation solution. Some low cost rewards that mean a lot to employees are, casual days, small gifts, movie tickets, gift card to a store or restaurant, and time off. Each week at our office we have a bell ring Friday. Each time a payment of over $1000 is received the employee rings a bell and everyone claps, recognizing their hard work. The employee that rings the bell gets to leave 5 min-utes early. If a second employee rings the bell, both bell ringers go home 10 minutes early and it goes up in 5 minute increments depending on how many bell rings.

Contests, the last thing that I would like to touch on. Con-tests are a tried and true motivator for debt collectors. Here is a list of contests that our company uses or contest ideas shared in a recent survey by CAC:

• TRICK OR TREAT: The first three collectors that reach X dollars in collections for the day, pull a treat bag from a box. A “treat” bag had a dollar amount that will be added to their paycheck. A “trick” bag has a slip inside that says “trick” and they get the candy inside.

• COLLECTOR POKER RUN: This week long contest starts with each collector setting a payment value to qualify. Each qualifying payment they receive, they get a card to keep. They

can only hold 5 cards at a time. If they receive a 6th qualifying payment, they have to decide if they want to keep their 5 cards or discard one and draw another. At the end of the week, each hand is worth a different prize. For example a pair is worth $10, full house worth $30, royal flush worth $50.

• CHRISTMAS TREE PRESENTS: Eight weeks before Christ-mas, collectors earn points thru urgency payments. These points can be used to buy presents off the tree at the Christmas Party.

• SPIN THE WHEEL: Once a collector has met their daily goal, they get a spin on the wheel for cash and prizes.

• BOMB/ALARM CLOCK CONTEST: A toy bomb starts on the supervisor’s desk in the morning. When a collector gets a payment, they get the bomb. The next collector to receive a payment takes the bomb for the last and continues until a bell rings at a certain time of the day. The employee that has the bomb on their desk wins the prize. A variation of this game is an alarm clock in a box. Rules are the same but take out the responsibility of the supervisor having to remember to ring the bell at a certain time.

• DRESS UP THE MANAGER: The management team brings in a few costumes, the more pieces the better. As collectors get payments throughout the day they get to dress up members of the management staff.

• URGENCY CONTEST: All walk-ins, e-checks, credit card payments get raffle tickets. At the end of the week there is a drawing for prizes, gift cards, movie tickets, etc.

• WHITE ELEPHANT RAFFLE: Raffle tickets are earned for urgency payments. At the end of each week there is a raffle for wrapped prizes. These prizes can be exchanged within the de-partment until the end of the month, when they are all opened.

• ENVELOPE CONTEST: Envelopes are filled with gift cards, cash, lottery tickets, and inspirational sayings. When a collector gets a qualifying payment they get to pull an envelope. The other collectors love when someone else gets an inspirational saying. (Feel free to reach out to me for my inspirational sayings!)

• GRAB BAG: Collectors earn a chance to pull from the Grab Bag based on urgency payments. The Grab Bag has DVD’s, candy, cash, fancy pens, board games, etc.

• DRAW THE BOSS: The goal is to draw a picture of the su-pervisor. Groups of collectors get to earn body parts based on urgency payments. Once the collectors earn all the body parts and draw the supervisor, they get free lunch reward.


By Jennifer Brown Shaw and Alayna SchroederReprinted with permission from the Daily Recorder, a Daily Journal Corp. publication

Recently, California became the second state to require private employers to provide paid sick leave. The new law, called the Healthy Workplaces, Healthy Families Act (“A.B. 1522”), goes into effect on July 1, 2015, and will affect private employers of every size operating in the state.ELIGIBILITYA.B. 1522 applies to all private and public employers, regardless of size. Employees who work 30 or more days per year within the state are eligible for paid sick leave, including part-time, tempo-rary, and out-of-state employees working the minimum number of days in California. Certain employees covered by collective bargaining agreements, flight crew members, and providers of in home support services are not entitled to paid sick leave under the new law.

ACCRUALSick leave accrues at the rate of one hour for every 30 hours worked, and is paid at the employee’s base hourly wage. (White collar, exempt employees accrue sick leave based on a 40-hour workweek.) Employers may limit accrual to a maximum of 48

hours, and may limit employees to using 24 hours of sick leave in a 12-month period.

Unused sick leave need not be paid out at termination of employ-ment. But if an employer rehires a former employee within one year of termination, the employee is entitled to use previously accrued sick leave.

USEEmployees may begin using sick leave 90 calendar days after commencing employment. An employer may require employees to use sick leave in minimum increments of no greater than two hours. An employee must give reasonable advanced notice of the need to use sick leave when foreseeable; otherwise, the employee must give notice as soon as is practicable.

California Mandates Sick Leave


An employee may use sick leave for a personal health condition, or the health condition of a qualifying family member, including a child (regardless of age), parent, spouse, registered domestic part-ner, grandparent, grandchild, or sibling. While the law does not de-fine “health condition,” it appears to encompass any absence related to illness or injury. Employees may also use sick leave for certain reasons related to domestic violence, sexual assault, or stalking.

NOTICE REQUIREMENTSA.B. 1522 also includes notice requirements. In addition to put-ting up a poster explaining an employee’s rights (the Labor Com-missioner will create one), an employer must include information about sick leave in the written “Wage Theft Prevention Act” notice it is already legally obligated to provide to non-exempt employees. Finally, employers must include accrued, available sick leave bal-ances on employee wage statements.

ENFORCEMENT AND PENALTIESAn employee who believes an employer has violated the law may bring a complaint to the Labor Commissioner. There is a rebut-table presumption of retaliation if an employer takes an adverse action within 30 days of an employee complaint, participation in an investigation or prosecution of an alleged violation, or other opposition by an employee to a policy, practice, or act prohibited by A.B. 1522. The Labor Commissioner can award unlawfully withheld sick pay and can require reinstatement and back pay at an administrative hearing.

A.B. 1522 does not include a private right of action allowing an individual employee to sue for an alleged violation, however. Instead, the Department of Labor Standards Enforcement and California Attorney General are responsible for enforcing the law. But, the law potentially may allow employees to bring a suit on behalf of the public (i.e., a claim under the Private Attorney General’s Act) for equitable, injunctive, or restitutionary relief, and attorney’s fees and costs.

Finally, the law allows allow various penalties to be paid to em-ployees for violations, up to $4,000 per employee.

CREATING COMPLIANT POLICIES AND PRACTICESEmployers with existing, qualifying, paid time off (PTO) policies do not need to provide additional sick leave if these policies are at least as generous as the new law. However, even employers with existing PTO policies likely must amend them to comply with the new law. Many PTO policies do not comply with the law’s required accrual rate of one hour for every 30 hours worked, and instead base accrual on the pay period, without accruing the ben-

efit on overtime hours. Similarly, many employer PTO policies do not comply with eligibility requirements, providing benefits only to full-time employees or certain other qualifying groups.

Employers with existing PTO or sick leave policies must decide whether to amend their current policies to comply or to create additional, compliant policies. If an employer elects to provide PTO instead of sick leave, it should also consider the increased fiscal impact, because PTO must be paid out at the termination of employment.

Fortunately, the law provides adequate opportunity for employers without sick leave policies to develop them. While the law does not specifically require employers to create policies, doing so enables employers to clearly communicate expectations sick leave use to employees. It also allows employers to evaluate the practical impli-cations of administering sick leave, such as training supervisors, amending payroll practices, and conforming attendance policies and absence reporting to ensure compliance with the law.

REMAINING QUESTIONSA.B. 1522 leaves some questions unanswered, particularly as it re-lates to the application of other related laws or rules. For example, the law does not address what, if any, medical paperwork an em-ployer may require an employee to provide in conjunction with a sick leave absence, or what steps an employer may take if it be-lieves an employee is using sick leave dishonestly or fraudulently. Similarly, while the law states that an employee determines how much sick leave to use, it does not address whether an employer may require the use of sick leave according to the terms permitted under various leave laws such as the Pregnancy Disability Leave law or the California Family Rights Act.

Because the law is still new, additional guidance may be forthcom-ing from the Labor Commissioner. In the meantime, employers should review their current practices and policies and prepare to offer sick leave consistent with the new requirements by July 2015.

Jennifer Brown Shaw is a founding partner of the Shaw Valenza LLP, a Sacramento/San Francisco employments law boutique. The Firm’s practice exclusively focuses on representing management in employment law advice, training, investigations, litigation and appeals. Ms. Shaw may be reached at 916-326-5150 or [email protected]. This article was co-authored by Alayna Schroeder, an associate in the Firm’s Sacramento office. Ms. Schroeder may be reached at 916-326-5150 or [email protected].


mailto:[email protected]



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FIRE SAFETYOctober is National Fire Safety Month and while the main focus is on preventing residential fires, it is also a good time to revisit workplace fire safety and prevention. Fatal injuries involving fires and explosions resulted in 148 occupational fatalities in 2013. That coupled with the threat of fire to business equipment and buildings demands that all business owners and safety professionals avoid having a fire emergency.

1 Get Organized – Practice good workplace housekeeping. Clutter contributes to fires by providing fuel and by preventing access to exits and emergency equipment.

2 Designated Smoking Areas – Smoke only in designated areas, and extinguish smoking materials safely. Never smoke in storerooms or chemical storage areas.

3 Fire Extinguishers – Maintaining the appropriate type and number of fire extinguishers and learn how to properly use a fire extinguisher.

4 Electrical Hazards – Report all electrical hazards. Many fires start in faulty wiring and malfunctioning electrical equipment.

5 Access to Control Panels – Electrical control panels need to have free access maintained so that the electric could be shut off easily.

6 Maintenance – Maintain machinery to prevent overheating and friction sparks.

Prevention is always better than cure and it’s best to avoid catastrophe in the first place or at least minimize the damage. The simple truth is that fire emergencies and disasters can strike anyone, anytime, anywhere. So if a fire does break out in your workplace A-C-T, Don’t Panic...

7 Sprinkler Systems & Smoke Detectors – Never block sprinklers, firefighting equipment or emergency exits. Observe clearances when stacking materials. Testing of sprinkler systems and smoke detectors at least annually.

8 Chemical Safety – Use and store chemicals safely. Read the label and the Material Safety Data Sheet to determine flammability and other fire hazards. Provide adequate ventilation when using and storing these substances.

9 Waste Control & Storage – Control the accumulations of flammable and combustible waste materials and residues so that they do not contribute to a fire emergency.

10 Prevent Ignition – Use all precautions to prevent ignition in potentially explosive atmospheres such as those containing flammable liquid vapors or fine particles. Use non-sparking tools, and control static electricity as required.

11 Exits – Emergency exit diagrams should be posted and emergency exits should be well lit with neon- regulation signs.

12 Contact Info – Employees should have a list of emergency contact phone numbers in case of emergency. Remember that people will often panic in an intense situation; therefore basics such as the company address, phone number and floor plan should be posted.

12 TIPS TO ENSURE A FIRE-SAFE WORKPLACE:

A – ASSESS THE SITUATION

C – CHOOSE YOUR RESPONSE

T – TAKE ACTION


Source: The Safety Center Incorporated, Inside Safety October 2014. Reprinted with permission.

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An issue that has not received the attention it deserves is the application of the Fair Debt Collection Practices Act (FDCPA)1 to debts arising from identity theft. The FD-

CPA is limited to debts incurred primarily for personal, family, or household purposes. In the context of the FDCPA, these are often referred to as consumer debts. Because victims of identity theft typically have little or no information about the purpose for the transactions giving rise to the fraudulent debts, it is often difficult or impossible for identity theft victims to demonstrate that their underlying debts were incurred primarily for personal, family, or household purposes. Few courts have squarely addressed this dilemma, despite the many FDCPA cases in which plaintiffs deny knowledge of, or responsibility for, the underlying debts.

A debt is defined under the FDCPA as “any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services

which are the subject of the transaction are primarily for person-al, family, or household purposes, whether or not such obligation has been reduced to judgment.”2

A threshold requirement for application of the FDCPA is that the prohibited practices are used in an attempt to collect a debt as defined by the FDCPA.3 Under this reasoning, it is well established that the FDCPA does not apply to commercial debts.4 And there are numerous other exceptions falling outside the FDCPA’s narrow definition of a debt—e.g., unemployment insur-ance contributions,5 tort damages,6 bank fees mistakenly credited to an account,7 towing and impound fees,8 parking tickets,9 child support obligations,10 and taxes.11

But there are few cases specifically addressing whether the FDCPA applies to a victim of identity theft unable to establish that the underlying debts were incurred primarily for personal, family, or household purposes.

By Keith A. Yeomans & David J. Kaminski, Carlson & Messer LLP

& THE FDCPAIDENTITY THEFT


In Anderson v. AFNI, Inc., the court granted summary judg-ment against the alleged victim of identity theft who failed to demonstrate that the underlying debt was a consumer debt.12 In support of her argument that the debt was subject to the FDCPA, Plaintiff argued that the identity thief was an individual, the ad-dress used by the thief was a residential address, and defendant had included disclosures in its correspondence with plaintiff that referred to defendant’s attempt to collect a ‘debt.’13 The court rejected plaintiff ’s arguments, reasoning that individuals often conduct commercial transactions from residential addresses.14 The court also determined that a the debt collector’s inclusion of disclosures mandated by the FDCPA was insufficient to char-acterize a debt as a consumer debt subject to the FDCPA—a “debt collector’s treatment of an obligation is irrelevant to an inquiry regarding the nature of that obligation itself.”15 The court concluded that plaintiff ’s inability to establish that the underlying debt was subject to the FDCPA was fatal to plain-tiff ’s claims.

In Toroussian v. Asset Ac-ceptance, the court also granted summary judgment against the alleged victim of identity theft who failed to demonstrate that the underlying debt was a consumer debt.16 The court recognized that, “FDCPA plain-tiffs who are victims of identity theft, or who have other worthy collection defenses, may find it impossible to document the nature of the debt incurred.”17 The court’s ultimate decision was influenced by plaintiff ’s lack of any attempt to identify the nature of the underlying debt.18 In dicta, the court suggested that in ap-propriate circumstances, an FDCPA plaintiff might be partially relieved of his or her responsibility for demonstrating the purpose for which the underlying debt was incurred: when “information about the nature of fraudulently incurred charges…[is] unavail-able or ambiguous…the origin of the debt may be sufficient to create a triable issue as to its nature.”19

Conversely, in Collins v. Portfolio Recovery Associates, LLC, the court allowed an FDCPA claim to proceed where Plaintiff was the alleged victim of identity theft and unable to demonstrate that the underlying debt was incurred for personal, family, or house-hold purposes.20 In reaching its conclusion, the Collins court implicitly reversed the evidentiary burden, stating that there was, “no evidence or suggestion that…[the original creditor] believed at the time that the account was opened…that it was extending an account for commercial debt.”21 In so holding, the court was par-ticularly concerned that victims of identity theft would often be

left without the protections of the FDCPA if forced to demon-strate that the underlying debt arose primarily for personal, family, or household purposes.22

Where debt collectors have admittedly attempted to collect a debt from the wrong person, some courts have gone a step further and held such debts sub-ject to the FDCPA, regardless of the nature of the debt.23 In Davis v. Midland Funding, LLC and Gonzalez v. Law Firm of Sam Chandra, APC, the courts both expressed concern that plaintiffs without knowledge of the underlying debts are often the most in need of the FD-CPA’s protections.24 The courts pointed to provisions within the FDCPA providing coverage for debts alleged to be owed25 in concluding that “the FDCPA encompasses claims brought by

individuals subjected to collection efforts for obligations they are falsely alleged to have owed.”26 In such cases, the courts deemed it appropriate to waive the plaintiffs’ obligation to demonstrate that the debts were incurred for personal, family, or household purposes.27

But when plaintiffs are themselves partially responsible for the lack of knowledge for the underlying debts, courts are less forgiving. In Salmas v. Midland Funding, LLC, plaintiff testified that he could not remember if the underlying account belonged to him.28 In granting summary judgment, the court concluded that

A debt is defined under the FDCPA as “any obligation or alleged obligation of a

consumer to pay money arising out of a transaction in which

the money, property, insurance, or services which are the

subject of the transaction are primarily for personal, family,

or household purposes, whether or not such obligation has been

reduced to judgment.”

Identity Theft continued from previous page


plaintiff was unable to satisfy his burden of proving the underly-ing debt arose from personal, family, or household purposes.29 Similarly, in Matin v. Fulton, Friedman & Gullace LLP, plaintiff was unable to recall what credit card purchases gave rise to the debt at issue.30 As a result, the court granted summary judgment against plaintiff for failing to carry her burden of proving the debt was subject to the FDCPA.31

Few cases the issue of an identity theft victim’s difficulty in proving the underlying debt is subject to the FDCPA. And there is substantial disagreement among the few cases that do. As written,

the FDCPA requires plaintiffs to demonstrate that the underlying debt was incurred primarily for personal, family, or household purposes. In practice, this often excludes particularly sympathetic groups of FDCPA claimants—victims of identity theft and per-sons mistakenly identified as the actual debtors. Faced with this dilemma, some district courts have modified or even abandoned the requirement that plaintiffs prove their debt is subject to the FDCPA. And until the circuit courts address this issue, district courts will continue to fashion ad hoc and inconsistent responses to FDCPA claims by victims of identity theft.

1 15 U.S.C. §§ 1601-1692p.2 15 U.S.C. § 1692a(5).3 Turner v. Cook, 362 F.3d 1219, 1227 (9th Cir. 2004); Zimmerman v. HBO Affiliate Group, 834 F.2d 1163, 1167 (3d Cir. 1987); Matin v. Fulton, Fried-

man & Gullace LLP, 826 F. Supp. 2d 808, 813 (E.D. Pa. 2011). Similarly, a plaintiff asserting claims under the FDCPA also bears the burden of establishing that the defendant meet the statutory definitions for a debt collector set forth in 15 U.S.C. § 1692a(6). James v. Wadas, 724 F.3d 1312, 1319 (10th Cir. 2013); Goldstein v. Hutton, Ingram, Yuzek, Gainen, Carroll & Bertolotti, 374 F.3d 56, 60 (2d Cir. 2004); Passa v. City of Columbus, 748 F. Supp. 2d 804, 810 (S.D. Ohio 2010).

4 E.g., Bloom v. I.C. Sys., Inc., 972 F.2d 1067, 1068-69 (9th Cir. 1992); Slenk v. Transworld Sys., Inc., 236 F.3d 1072, 1075 (9th Cir. 2001)5 Berman v. GC Servs. Ltd. P’ship, 146 F.3d 482, 485 (7th Cir. 1998).6 Fleming v. Pickard, 581 F.3d 922, 925 (9th Cir. 2009).7 Arnold v. Truemper, 833 F. Supp. 678, 686 (N.D. Ill. 1993).8 Betts v. Equifax Credit Info. Servs., Inc., 245 F. Supp. 2d 1130, 1133 (W.D. Wash. 2003).9 Waters v. Howard Sommers Towing, Inc., No. CV 10-5296 CAS AJWX, 2011 WL 1375292 (C.D. Cal. Apr. 11, 2011).10 Mabe v. G.C. Servs. Ltd. P’ship, 32 F.3d 86, 88 (4th Cir. 1994).11 Beggs v. Rossi, 145 F.3d 511, 512 (2d Cir. 1998).12 Anderson v. AFNI, Inc., No. CIV.A. 10-4064, 2011 WL 1808779, *13-14 (E.D. Pa. May 11, 2011).13 Anderson v. AFNI, Inc., No. CIV.A. 10-4064, 2011 WL 1808779, *13-14 (E.D. Pa. May 11, 2011).14 Anderson v. AFNI, Inc., No. CIV.A. 10-4064, 2011 WL 1808779, *13-14 (E.D. Pa. May 11, 2011).15 Anderson v. AFNI, Inc., No. CIV.A. 10-4064, 2011 WL 1808779, *13-14 (E.D. Pa. May 11, 2011) citing Slenk v. Transworld Sys., Inc., 236 F.3d 1072,

1076 (9th Cir. 2001).16 Toroussian v. Asset Acceptance, LLC, No. CV 12-03519 DDP AGRX, 2013 WL 5524831, *6 (C.D. Cal. Oct. 4, 2013).17 Toroussian v. Asset Acceptance, LLC, No. CV 12-03519 DDP AGRX, 2013 WL 5524831, *6 (C.D. Cal. Oct. 4, 2013) citing Boosahda v. Providence

Dane LLC, 462 F. App’x 331, 336 (4th Cir. 2012)(dicta).18 Toroussian v. Asset Acceptance, LLC, No. CV 12-03519 DDP AGRX, 2013 WL 5524831, *6 (C.D. Cal. Oct. 4, 2013).19 Toroussian v. Asset Acceptance, LLC, No. CV 12-03519 DDP AGRX, 2013 WL 5524831, *6 (C.D. Cal. Oct. 4, 2013).20 Collins v. Portfolio Recovery Associates, LLC, No. 2:12-CV-138, 2013 WL 9805805, *4 (E.D. Tenn. June 7, 2013).21 Collins v. Portfolio Recovery Associates, LLC, No. 2:12-CV-138, 2013 WL 9805805, *4 (E.D. Tenn. June 7, 2013).22 Collins v. Portfolio Recovery Associates, LLC, No. 2:12-CV-138, 2013 WL 9805805, *4 (E.D. Tenn. June 7, 2013).23 Davis v. Midland Funding, LLC, No. CIV. S-13-2316 LKK, 2014 WL 3889971, *3-8 (E.D. Cal. Aug. 7, 2014); Gonzalez v. Law Firm of Sam Chandra,

APC, No. 13-CV-0097-TOR, 2013 WL 4758944, *2-3 (E.D. Wash. Sept. 4, 2013).24 Davis v. Midland Funding, LLC, No. CIV. S-13-2316 LKK, 2014 WL 3889971, *3-8 (E.D. Cal. Aug. 7, 2014); Gonzalez v. Law Firm of Sam Chandra,

APC, No. 13-CV-0097-TOR, 2013 WL 4758944, *2-3 (E.D. Wash. Sept. 4, 2013).25 See, e.g., 15 U.S.C. §§ 1692a(3), (5), & (6).26 Davis v. Midland Funding, LLC, No. CIV. S-13-2316 LKK, 2014 WL 3889971, *3-8 (E.D. Cal. Aug. 7, 2014); Gonzalez v. Law Firm of Sam Chandra,

APC, No. 13-CV-0097-TOR, 2013 WL 4758944, *2-3 (E.D. Wash. Sept. 4, 2013).27 Davis v. Midland Funding, LLC, No. CIV. S-13-2316 LKK, 2014 WL 3889971, *3-8 (E.D. Cal. Aug. 7, 2014); Gonzalez v. Law Firm of Sam Chandra,

APC, No. 13-CV-0097-TOR, 2013 WL 4758944, *2-3 (E.D. Wash. Sept. 4, 2013).28 Salmas v. Midland Credit Mgmt., No. 8:13-cv-00679-DOC-SH (C.D. Cal. Mar. 3, 2014).29 Salmas v. Midland Credit Mgmt., No. 8:13-cv-00679-DOC-SH (C.D. Cal. Mar. 3, 2014).30 Matin v. Fulton, Friedman & Gullace LLP, 826 F. Supp. 2d 808, 812 (E.D. Pa. 2011).31 Matin v. Fulton, Friedman & Gullace LLP, 826 F. Supp. 2d 808, 812 (E.D. Pa. 2011).

n SNAP

118 comstocksmag.com | September 2014

The Principal offices of El Dorado Hills, Roseville, Elk Grove and Modesto areproud members of the Sacramento-area business community.

* Based on number of total DC plans, The Principal Financial Group, as of December 31, 2013. **Based on number of recordkeeping plans, PLANSPONSOR Recordkeeping Survey, June 2013. Based on number of DB plans PLANSPONSOR DB Administration Survey, April 2013. Based on number of plans, PLANSPONSOR Recordkeeping Survey, June 2013. Based on 2013 PLANSPONSOR NQDC Buyer’s Guide, December 2013. †“Best in Class” ranking is defined by Chatham Partners as 85% of clients providing top satisfaction as of December 2013. ©2014 Principal Financial Services, Inc. Insurance issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co. Securities offered through Princor Financial Services Corp. 800-247-1737, Member SIPC. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Institutional Asset Management provided by Principal Global Investors. Principal National, Principal Life, Princor,® Principal Funds Distributor, Principal Global Investors and Principal Financial Services are members of the Principal Financial Group® (The Principal®), Des Moines, IA 50391. AD2668 | t14021202m4

At The Principal® most of our retirement-plan clients choose to stay with us year after year. Perhaps it’s our investment management experience. Or that we’re a leading service provider of retirement solutions – from defined contribution and defined benefit, to ESOP and nonqualified deferred compensation plans.** Maybe it’s simply our outstanding client service, which recently earned us “Best in Class” for customer satisfaction. Find out for yourself and you’ll understand why we’re a company worth keeping.

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O F F I C E C H A I R E R G O N OM I C S

SOURCE: HORWATH

It's been said that the shape of our spinal

columns are as unique as our fingerprints. Our individual spinal

length even varies by as much as 2 cm over the course of a day. The seat back

plays a critical role in supporting the spine and must adjust to accommodate these

di�erences. Asymmetric adjustable support is the best option, since research

has indicated that nearly 75 percent of people tend to prefer more support

on one side of their lower back than the other.

lumbarsupport

IMAGE COURTESY OF MILES TREASTER & ASSOCIATES

AT MINIMUM:

MOST DESIRABLE:

armrestsB

reclinea

In some cases, workers tend to sit on the front edge of the chair. This posture may increase ergonomic risks due to reduced support from the seat and back pan. A forward tilt of the seat pan can support this seating style while promoting ahealthy spinal posture that relieves lower back pressure.

tilt

seatC D

appropriate lumbar support with at least one axis of adjustment

adjustable lumbar support, including the height of the support and the

amount of support

AT MINIMUM:

MOST DESIRABLE:

vertically adjustable armrests with adequate padding

fully adjustable armrests that pivot, expand in width or have

a 360-degree rotation

AT MINIMUM:synchronous recline with tension adjustment and

lock settings

3-point pivot that allows the user to fine-tune the angle

AT MINIMUM:

MOST DESIRABLE:

2” depth adjustmentor

5” depth adjustment

3” depth adjustment

MOST DESIRABLE:

Intuitive design is essential to allow the user to get into a comfortable posture quickly and easily. Desirable control features include:

Low hand and finger forces to operate

Majority of adjustments are achievable while

seated

Control motions are intuitive and indicated by feel

controls

Movement is healthy. As we recline in our chairs,

we stimulate blood flow and relieve the pressure on our spine.

By reclining our chair only 20° degrees (from 90° to 110°) we

can reduce the stress on our spinal discs by approxi-

mately 40 percent.

The arms represent approximately 10 percent of a

person’s total body weight, which can result in a considerable exertion

of the muscles in the upper back, shoulders and neck. Arm positions held for extended durations — such

as reaching out to a keyboard — can dramatically increase

muscle fatigue.

118 comstocksmag.com | September 2014REPRINTED WITH PERMISSION. INFOGRAPHIC DESIGN: LILY THERENS.


The Educational Scholarship Foundation was founded in 2005 by the California Association of Collectors (CAC). The California Association of Collector’s Educational Scholarship Foundation (CACESF) awards three scholarships during the CAC Legisla-tive Day Conference in Sacramento each spring. First place is awarded $2,500, second place $2,000 and third place $1,500. To date, the foundation has awarded $54,000 to high school seniors. The scholarship requires a simple one-page application and an essay on “The Importance of Establishing and Maintaining Good

Financial Credit During Your College Years.” The scholarship is available to any California high school senior for their use at any accredited college, university, or vocational school.

Annually, CACESF receives nearly 800 scholarship applications. CACESF expects the numbers to grow each year. CACESF would like you to consider supporting the scholarship program. Help our future leaders by giving them the opportunity to research, learn, and share with others the importance of good credit while also demonstrating the generosity of the collection industry.

Financial Credit Network – Alicia Sundstrom

Credit Consulting Services, Inc – Rodney Meeks

Tavelli Co. Inc. – Robert Tavelli

Fresno Credit Bureau – Courtney Reynaud

CB Merchant Services – Linda Guinn

USCB America – Albert Cadena

Union Adjustment Co. – Nat & Alma Rubinfeld

States Recovery Systems – John Yaklin

Kronick Moskovitz Tiedemann & Girard – June Coleman

Collection Consultants of California – Matt Logan

Anonymous Donor

Tim McDonald

Billing Tree

Carlson & Messer – Jeffery Carlson

Vickie Kirk

Brian Wiggins

Collection Bureau of America – Shawn DeLuna

Continental Credit Control – Shawn Suhr

Credit Bureau Associates – Kathy Parsons

Credit Bureau of Ukiah – Bob & Melissa Burke

Dix & Associates – Lloyd & Mary Dix

HP Sears – Patrick Collins

Rash Curtis & Associates – Terry Paff

Credit Bureaus of San Luis Obispo & Santa Barbara Counties – Sandy Lubin

Techlock

Kris Davisson

If you would like to donate to the scholarship fund, a 501(c)3, charitable foundation, call the CAC office at 916-929-2125 to make a pledge and receive an invoice, or visit the website, cacesf.org, or print page 41 of this magazine.

2014 SUPPORTERS

CACESFCAC Educational Scholarship Foundation


CACESF Fund

CACESF Pledge Form

Card Holder’s Name: _______________________________________________________________________________________

Card Number: ___________________________________Expiration Date: ____________________Security Code: ______________

Billing Address: ____________________________________________________________________________________________

City: _________________________________________________________ State: ___________Zip: _______________________

Signature: ______________________________________________________ Date: _____________________________________

The CACESF is a 501(c)(3) non-profit charitable foundation. All donations are tax deductible. Tax ID Number: 56-2521491

Award LevelsFounder: ❏ $500 single payment OR ❏ $50 per month ($600)

Benefactor: ❏ $250 single payment OR ❏ $25 per month ($300)

Donor: ❏ Single contribution of

$ ______________________

Please select from the following choices:

Enclosed $ _____________________________

❏ Save me the paperwork! Renew my pledge annually until I choose to cancel.

❏ Check enclosed (Please make separate checks payable to CACESF.)

❏ MasterCard ❏ Visa ❏ AMEX

Company Name: __________________________________________________________________________________________

Contact Person: ___________________________________________________________________________________________

Address: ________________________________________________________________________________________________

City: _________________________________________________________ State: ___________Zip: _______________________

Phone: __________________________________________Email: ___________________________________________________

Name(s) under which donation will list in Collector’s Ink: _____________________________________________________________

Platinum Founder $7,500

Gold Founder $5,000

Silver Founder $2,500

Founder $500 per year OR $50 per month ($600)

Benefactor $250 per year OR $25 per month ($300)

Donor Any donation $25 - $249


PAC L&L

CAC needs your support for both the PAC and the L&L Funds to ensure the continued promotion of CAC’s principles in the legislative process. Remember, your donations, no matter what size, make a difference. With your help and support, we will continue to improve your business environment and protect your right to conduct business in California. CAC extends its thanks to contributors to the cur-rent PAC and L&L Fund campaigns. Contact the CAC office at 916-929-2125 to make a pledge and receive an invoice, or print page 43 of this magazine.

SUSTAINING DIAMOND FOUNDERSCollection Bureau of America – Shawn DeLunaCollection Consultants of California – Ewing Bartgis & Matt LoganCredit Consulting Services, Inc. – Rodney MeeksNorthern CA Collection Service, Inc. – Larry CassidyUnion Adjustments Co. Inc – Nat RubinfeldUSCB America – Mel Shaw & Albert Cadena

DIAMOND FOUNDERSFinancial Credit Network, Inc. – Alicia Sundstrom

CRYSTAL FOUNDERSRash Curtis & Associates dba Professional Recovery Systems – Terry PaffStates Recovery Systems, Inc. – John & Judy Yaklin

PLATINUM FOUNDERS Herbert P Sears Company, Inc. – Patrick Collins

GOLD FOUNDERS

FOUNDERS Credit Bureau Associates – Kathy ParsonsEllis Law Group – Mark EllisSuperlative RM – Jerry Terrill

DONORSButte County Credit Bureau – Patti SouzaCIR, Law Offices – Felipe Becerra

SUSTAINING DIAMOND FOUNDERSCollection Consultants of California – Ewing Bartgis & Matt LoganNorthern CA Collection Service, Inc. – Larry CassidyUSCB America – Mel Shaw & Albert Cadena

DIAMOND FOUNDERSierra Receivables Management, Inc. – Carmen Saylor

PLATINUM FOUNDERSCollection Bureau of America – Shawn DeLuna

GOLD FOUNDERSCredit Consulting Services, Inc. – Rodney Meeks

FOUNDERSEllis Law Group – Mark EllisRash Curtis & Associates dba Professional Recovery Systems – Terry Paff

BENEFACTORSButte County Credit Bureau – Patti SouzaCB Merchant Services – Linda GuinnCIR, Law Offices – Felipe Becerra

DONORSFinancial Credit Network, Inc. – Alicia Sundstrom

PAC and L&LPolitical Action Committee and Legal & Legislative Funds


L&L FundFounder: ❏ $500 single payment OR ❏ $50 per month ($600)



$ ______________________

Card Holder’s Name: _______________________________________________________________________________________

Card Number: ___________________________________Expiration Date: ____________________Security Code: ______________

Billing Address: ____________________________________________________________________________________________

City: _________________________________________________________ State: ___________Zip: _______________________

Signature: ______________________________________________________ Date: _____________________________________

Political Action Committee (PAC) Fund

Several thousand bills continue to be introduced into the Legislature every session. Several hundred of these bills may affect the collection industry and, ultimately, your busi-ness. The CAC PAC Fund needs your support to help elect legislators who favor creating a pro-business environment in California; an environment that allows businesses like yours to grow and prosper.

Legal & Legislative (L&L) Fund

The Legal & Legislative Fund may be utilized for CAC’s direct involve-ment in legal or legislative issues that affect the collection industry as a whole. The L&L Fund allows our Association to draft and support legislation beneficial to the collection industry, as well as to actively oppose anti-business and anti-industry legislation. It also provides the funding for the Association to support or oppose legal challenges in both state and federal courts on behalf of the collection industry.

Company Name: __________________________________________________________________________________________

Contact Person: ___________________________________________________________________________________________

Address: ________________________________________________________________________________________________

City: _________________________________________________________ State: ___________Zip: _______________________

Phone: _________________________ Fax: ___________________________ Email: _____________________________________

Name(s) under which donation will list in Collector’s Ink: ____________________________________________________________

Please select from the following choices:

PAC FundFounder: ❏ $1,500 single payment OR ❏ $125 per month



$ ______________________

Enclosed $ _____________________ Please make separate checks payable to CAC-PAC and/or CAC L&L Fund.

❏ Save me the paperwork! Renew my pledge annually until I choose to cancel.

❏ Check enclosed ❏ MasterCard ❏ Visa ❏ AMEX


Collectors Insurance AgencyA Subs id ia r y o f ACA In te rna t i ona l

Your future.Our purpose.

Collectors Insurance Agency—here for you, your business and your future. Together, we protect an industry.

Contact us today at (952) 926-6547 or [email protected].

Your professional staff at Collectors Insurance Agency apply the vital experience required to address your complex insurance, bond and licensing needs. Your business is our only business.

Commercial insurance – Statutory and client bonds

Licensing/qualifications/annual reports – Industry-specific loss prevention

Coverage review and audits – Contract reviews – Invested carrier partners

Proactive review of corrective measures – New service exposure analysis

Contact Us: (952) [email protected]

CIA Ad_Coll_6-11.indd 1 5/16/11 12:57:12 PM

INDEX OF advertisers

*denotes CAC Vendor Members

BUSINESS SERVICES

Expert Agency Appraisals from $300. Call Ray Edwards,

CAC Past President 1976-1977. 760-231-1147

COLLECTION network

ADVERTISE WITH CAC!The best strategy to reach collection agencies and potential

business partners is an integrated media program that combines the best of print and online communications. Our readers are likely to support your brand when you

become a part of their world.

California Association of Collectors, Inc.1455 Response Road, Suite 240

Sacramento, CA [email protected]

916-929-2125 • www.calcollectors.net

ACA 19, 44

Accurate Computer Technology, Inc.* 26

Applied Innovation* 12

CDS Software* 8

CLEAR, Thomson Reuters* 32

Columbia Ultimate* 6

Compumail* 20

Comtech Systems, Inc.* 20

Comtronic Systems, LLC* 39

Cornerstone Support, Inc.* 14

DAKCS Software Systems, Inc.* 21

DiBuduo & DeFendis Insurance Brokers, LLC* 10

eBureau* 34

Global Connect* 18

IAT Interactive Data* 32

LexisNexis* 16

NobelBiz* 34

Ontario Systems* 19

PDC4U – Pay Day Center, LLC* 16

RevSpring* Back Cover

Synectic Technologies* 4

TCN, Inc.* 4

TechLock, Inc.* 47

CACThe Association of Collection

Professionals in California

Business address changed?New website or email address?

Need to hire someone? Need to find a job?Selling office equipment or furniture?

Place an ad here!Call CAC at 916-929-2125 or visit

www.calcollectors.net today!

Help us keep our membership records current so that you receive the most

up-to-date information possible. Send your changes to [email protected]

or call 916-929-2125.


MEMBER spotlight

Kelly Parsons O’BrienCAC MEMBER-AT-LARGE

How long have you been in the collections industry? How did you hear about the industry as a career choice?

I grew up in the industry and officially started working for my grandfather in 1994.

Please give us a brief history of your company.

Credit Bureau Associates has been in business since 1947. My grandfather bought the business in the late 1970’s, then my mom bought it from him in 1996…I will be the third generation owner in January 2015.

We collect from all types of debtors. My grandfather prided himself in helping members of the community…mom and pop accounts as well as larger clients.

What brought you to your current position and upcoming ownership?

I went to college for a bit after high school. In 1998 I came back as a collection manager.

I left that position for a while to do sales and service. It was good for me to learn the sales and service side of the busi-ness since I had always been in operations. I have now been the collection manager for the last ten years.

Please describe your involvement in CAC and ACA committees.

Up until recently I had mostly just attended CAC events, and was not involved in any boards. I was invited to become a region president po-sition almost a year ago. Then I realized the importance of being involved in the associa-tion and decided to make an effort to become more engaged and active in the association. I never realized until asked how to become part of a committee or the board.

What is the best book on business, sales or leadership that you have read lately?

Can I admit that I am not a reader? There is a book that I

want to read…What do Cus-tomers Want?...it was highly recommended to me. I am more of an internet reader…I go out and find articles on par-ticular issues of interest. I am more of one who searches out knowledge in a specific area of interest.

Are you doing anything in your community to bring positive PR to your agency? Anything involved with financial literacy education?

Yes, we do classes for the peo-ple in Vacaville seeking help getting housing. We help them learn that they can get off of assistance, learn to read their credit report and learn what it takes to become qualified to get into housing or become a home buyer. We review credit reports with people and teach them how to pay their ac-counts off and address some of their credit issues.

What is your hometown? Where were you raised?

I was born in Pittsburg, Cali-

fornia, and raised in Fairfield, California…only about 30 minutes apart.

Do you belong to other organizations or associations?

No organizations currently. I was a Kiwanis member for awhile. It was hard to keep the business going and growing; I needed to focus on that. Now that we have a solid staff in place I am beginning to look at community organizations like Rotary and Kiwanis.

If you could meet any famous person or historical figure, who would it be and what would you ask/tell him/her?

Although she was not famous, my grandmother Elsa was a holocaust survivor and an amazing woman as the stories I have heard go. She passed many years before I was born and more than anything I would like to be able to hear stories of my dad as a child and the experiences of her life.


Is this consuming too much of your time?Contact us for more information: Phone: Email:URL:

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