Companies

ASK THE EXPERTS: Starting or Locating A Small Collection Agency

2009-08-18T09:17:24-07:00

Ask the Expert is an interactive section where readers can ask direct questions to the experts at Kaulkin Ginsberg, the leading strategic advisors to the ARM industry – and a sister company of insideARM.com -- as well as other seasoned industry executives.

Question: I am an experienced ARM industry executive and I have been thinking of starting or acquiring a small collection agency. Are there any small agencies (less than 10 collectors) for sale and how do I find one, or how can I get information on starting my own?

-- Matt, Connecticut

Answer: From Michael Lamm, Associate at Kaulkin Ginsberg

Steps for Acquiring a Small Collection Agency

1. Tap into your local network. To acquire an agency, the first step is finding one. Your best bet is to start voicing your acquisition interests with your network of ARM industry contacts.

2. Get involved with your ACA unit. Another suggested path is getting involved with your local ACA chapter which tends to attract many small agencies that have under 20 collectors. Local chapters typically have owner/executive networking events that you can attend throughout the year to get to know the other members.

3. Search the ACA membership directory. If you know the name of the agency or the owner you are targeting and don’t have their contact information, another resource is the ACA membership directory at http://www.acainternational.org/memberdirectory.aspx.

4. Register your acquisition interests with Kaulkin Ginsberg. Many small agencies contact us when looking to sell. Please let us know your criteria and if we come across an agency that meets your criteria (i.e. size, location, how you plan to finance the acquisition, consumer vs. commercial, etc.) we will let you know. Feel free to email your criteria to mlamm@kaulkin.com

Tips for Starting an Agency

1. Understand the regulatory environment. 20 years ago it was a lot easier to start an agency -- all you needed was a phone and a client to give you some accounts to call. Fast forward to 2009, the ARM industry has become heavily regulated and with the current administration, more regulation is likely to come. Be sure you have a complete understanding of the licensing you will need and any other regulatory requirements you must meet in the state(s) in which you will do business. You may also consider joining the ACA or other industry associations to stay on top of regulatory updates in your region and industry specialty.

2. Investigate start-up costs. If you plan to operate a consumer-focused agency that is national in scope, you will need to become licensed nationally which can typically cost $75,000 to $100,000 plus the costs of collection software, buying call center equipment (desks, chairs, work stations), leasing a facility and any other requirements a client may require before you obtain placements from them, like a SAS70. Just to get a consumer agency started, you could be looking at spending a $1 million before you start collecting on any accounts!

3. Weigh the benefits of start-up vs. acquisition. As a result of these start-up costs, many former executives have been leaning toward acquiring an agency that at least gets them started and then they can build on the platform. On the flip side, when you acquire another person’s agency, you may be walking into someone else’s headache. It may be better to create your own headache than start with someone else’s!

4.Utilize resources. If you end up going the start-up route, our portal site, www.insideARM.com has a lot of informational resources (market data, current news, publications) that you can access to help you develop your plan.

Michael Lamm (http://www.linkedin.com/pub/0/61/a2b) advises owners on their growth and exit strategies for Kaulkin Ginsberg’s Strategic Advisory team. Michael can be reached directly at 240-499-3808 or by email. You can also read his other blogs/articles at http://www.insidearm.com/go/blogs/Lamm.

For Consumers, Food as the Breaking Point?

2008-07-24T11:49:34-07:00

With recent reports of Costco and Wal-Mart limiting the amount of rice their customers may buy per trip, it would appear that Americans too are feeling the pressure of the global increase of food costs.

In an April 18 to April 20 poll conducted by Gallup, 46 percent of Americans reported that the current cost of food was causing them financial hardship. When broken down by income, 28 percent of respondents making $75,000 or more said that food price increases were causing them financial hardship, while 50 percent of respondents making $30,000 to $75,000 agreed with that statement.

But of all respondents those who described being most heavily burdened by the rising cost of food were Americans making less than $30,000 a year, the lowest income demographic, with 64 percent of this group reporting that food prices were causing financial hardship.

The bad news for consumers has been spelled out in a recent three-part series of statistical analysis from Trend Data, a database of 27 million anonymous consumer records sampled from TransUnion, the consumer information house. Trend Data uses the database to create a quarterly consumer lending analysis with a focus on the credit card, auto loan, and mortgage sectors.

In the auto loan arena, Trend Data projected that the national 60-day auto loan delinquency rate would rise by 33 percent through 2008 to reach 1.05 percent at year’s end.

Trend Data also projected that the national 90-day user delinquency rate on bankcards would increase to 1.9 percent by the end of 2008 from 1.36 percent in the fourth quarter of 2007.

Consider the fact that from 1983 to 2004 growth in credit card use was sharpest among families making $30,000 year or less, rising from 11 percent to 37 percent of families in 2004, suggesting that any additional financial pressure this year on these households carries additional risk of default.

Trend Data also projected that the national 60-day mortgage delinquency rate would increase from the nearly 3.0 percent reported in the fourth quarter of 2007 to 4.0 percent by the end of 2008, a 33 percent increase.

Consumer economic perception may not exactly match consumer economic reality but one thing is for certain - Americans are indeed finding it harder to pay their debts. Whether this trend continues throughout the year remains uncertain, but the impact to creditors and their agency partners is sure to be felt.

Executive Changes: Centene Corporation Announces Key Management Appointments

2008-07-07T08:21:50-07:00

St. Louis-based Centene Corporation (NYSE: CNC) today announced key management appointments in support of its growing business.

Steven A. White has joined the company as President and CEO of Centene’s Ohio subsidiary, Buckeye Community Health Plan (Buckeye), effective July 7, 2008. Mr. White will report to Christopher Bowers, Senior Vice President, Health Plan Business Unit for Centene, and will be based in the Buckeye corporate office in Columbus, Ohio.

Mr. White brings more than 20 years of experience in the health insurance and managed care industry to his new position. In his previous role as President of Southeast Region for Great-West Healthcare, he oversaw the operations of HMO and PPO companies in seven states comprising 300,000 members. White has also held executive positions at CIGNA HEALTHCARE and HEALTHSOURCE, where he was responsible for profit/loss and strategic direction for the managed care companies. Mr. White received an honorary B.S. in Accounting from Southern College in Tennessee and an M.B.A. in Finance from Indiana University.

Mark Eggert, Centene’s Executive Vice President, Health Plan Business Unit, said, “The addition of this strong leader exemplifies the strength and depth of Centene's senior management. Steve has a clear understanding of the managed care industry and will strive to help Buckeye provide better health outcomes at lower costs.”

Jeffrey A. Schwaneke, CPA, has been named Corporate Controller for Centene Corporation. Effective July 7, 2008, Mr. Schwaneke will oversee the Company’s business activity and financial position in areas of income, expenses and earnings for operations. He will report directly to Eric R. Slusser, Executive Vice President and Chief Financial Officer.

“Mr. Schwaneke has a unique blend of technical accounting expertise, communication skills and leadership,” said Mr. Slusser. “He brings to Centene both a demonstrated financial leadership and a wealth of experience that will enable us to achieve the next level in our growth and development.”

Previously, Mr. Schwaneke worked as the Vice President, Controller and Chief Accounting Officer at Novelis Inc. In that role, he managed global financial and technical accounting activities across multiple divisions. Prior to his position at Novelis, he worked as Controller for the SPX Corporation and also Marley Cooling Technologies. Mr. Schwaneke received a B.S. in Accounting from the University of Missouri-Columbia and has also earned his C.P.A.

About Centene Corporation
Centene Corporation is a leading multi-line healthcare enterprise that provides programs and related services to individuals receiving benefits under Medicaid, including the State Children's Health Insurance Program (SCHIP), Supplemental Security Income (SSI) and Medicare (Special Needs Plans). The Company operates health plans in Arizona, Georgia, Indiana, New Jersey, Ohio, South Carolina, Texas and Wisconsin. In addition, the Company contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, life and health management, long-term care, managed vision, nurse triage, pharmacy benefits management and treatment compliance. Information regarding Centene is available via the Internet at www.centene.com.

Striata Credit and Collections Reduces Billing Costs

2008-07-07T08:21:49-07:00

Striata, a recognized leader of electronic presentment and payment applications, talks today about how their innovative electronic credit and collections solution is designed to help billers reduce the significant costs associated with delinquency and past due accounts.

The uniqueness of the Striata solution is the strategic presentment of collection and reminder notices, delivered as secure electronic documents directly into the customer’s inbox. Striata incorporates an instant, one-click payment facility from within the collection notice itself, providing a powerful direct payment channel.

Garin Toren, Chief Operating Officer for Striata North America, describes the collections challenge facing billers and financial institutions: “Billing costs are an inevitable expense. A debt, however, that moves into the collection cycle, incurs considerable additional expense for the biller. These include printing and postage costs; longer Days Sales Outstanding (DSO); outsourced collection agency fees; payment negotiation discounts and significant contact center resources. As a result, the biller only receives a small percentage of the original bill amount.”

Striata’s Electronic Credit & Collections offering provides an efficient, cost effective alternative that dramatically reduces the time and expense involved in collecting delinquent payments, by replacing paper collection activity with rich, interactive electronic payment notices that are delivered directly to customers via email. These electronic collection notices are uniquely able to generate quick payment with just a single click, without the need to visit a single web page.

Striata’s electronic billing solution for credit & collections:

* Avoids the high expenses associated with credit and collections by emailing bills for delinquent payments;
* Allows billers to collect more of the original payment due, by eliminating outsourced costs associated with late payments;
* Notably shortens the payment cycle by enabling instant delivery of collection notices and immediate, one-click payment;
* Considerably improves biller cash flow: in one example, a very large North American utility reduced the DSO cycle from an average of 45 days across their customer base to 9.3 days for customers paying through Striata’s EBPP solution.

The Striata process utilizes the biller or financial institutions existing electronic payment capabilities. We have partnered with the leading payment processors in North America and can rapidly configure the application to work with any existing payment processing system.

Paper billing, unfortunately, does not provide billers with an effective means to minimize delinquent payments: Explains Toren, “Sending payment reminders by mail adds to already burdensome printing and postage costs. The long delivery cycle is simply not a practical option. By the time the customer gets the reminder it may be out of date, have already paid, and not include current late charges.”

By replacing costly paper reminders with cost and time effective electronic payment notices, billers can make use of automated payment reminders as a viable way to prevent delinquent payments and their associated expenses.

Striata’s electronic billing solution for credit & collections:

* Provides a more efficient, immediate way to reach delinquent customers: when not at home or work, the majority of consumers now have remote access to email via public computers and mobile devices, allowing them to view secure, emailed collection notices when they don’t have access to their postal mail;
* Reduces the number of customers falling into the credit and collections cycle by sending automatic reminders;
* Sends additional reminders via mobile phone text messaging. (SMS).

Designed to encourage faster payments, improve biller cash flow, and mitigate the expenses associated with delinquent payments, the Striata Electronic Credit & Collections solution also specializes in driving customer adoption of paper turn off. For more information and case studies about successful eBilling strategies, visit www.striata.com.

Striata’s Secure eDocument Delivery and Email Bill Presentment & Payment (EBPP) are solution sets that deliver a rapid reduction in operational costs, quicker payments and an enhanced customer experience.
Striata revolutionizes the way bills, statements, policies, collection notices, letters, paystubs and other high volume system-generated documents are delivered and paid. Registration requirements are eliminated by emailing feature rich, interactive, encrypted documents directly to the inbox and enabling innovative 1-click electronic payment from within the document itself.

Direct email delivery of bills and statements dramatically increases customer adoption of electronic documents, paper turn off and ePayments. This enables Striata’s clients to achieve rapid ROI, to complement their existing self-service and e-communication strategies, to significantly reduce paper output and to meet their carbon footprint / environmental impact targets.

As a leading international provider of electronic messaging since 1999 with more than 200 blue chip customers, Striata has operations in New York, London, Sydney, Johannesburg and partners in North, Central & South America, Europe and Asia Pacific.

Is it Recession Yet? � Umm, Youre Kidding, Right?

2008-07-03T06:56:53-07:00

The first half of 2008 marked the continuation of the credit crunch, increasing delinquencies and chargeoffs and a weakening economy. How does the second half of the year look? InsideARM spoke with several industry executives to get their take on the economy and the receivables business. This article, which examines the views of call center technology industry executives, is one of a series of articles looking at the next six months.

Allyson Boudousquie, director of business process marketing for Aspect Software, agreed that collection companies are looking for ways to maximize their resources in order to be successful in the current economic environment, which she expects to stay slow for a while.

“We’re seeing increased delinquencies across all verticals,” Boudousquie said. “All of our customers are looking at how to work smarter. Collection companies have to think outside the box, they can’t just work down a list. Debtors are getting smarter about avoiding [collections] calls. Collectors need to be more flexible, too.”

The most effective collection firms in the next six months are the ones that are the most effective in getting a debtor committed to a payment plan on the first successful contact, Boudousquie added.

Many observers are brushing off the debate whether the U.S. is officially in a recession, defined as two quarters of negative movement in the Gross Domestic Product.

“We may not be in a technical recession, but if we aren’t, this is about as recession-like as I’ve ever seen it,” said John McNamara, chief marketing officer for LiveVox. “During this downturn, the volume of business [for collection firms] goes through the roof, but the cost of collections is much higher.”

McNamara expects collection firms to make increasing use of technology in order to reign in those costs.

Eight Health Care Systems Honored for Revenue Cycle Management

2008-07-03T06:56:53-07:00

In today’s lackluster economy and rising self-pay account environment, a hospital’s ability to get the money is a success story. That’s why SearchAmerica, a Minneapolis-based company specializing in patient address verification, payment prediction and screening for financial assistance, is recognizing eight health care systems and inducting them into its Best Practices Hall of Fame.

The annual award honors health systems that have achieved enhanced efficiencies, implemented innovated best practices and seen significant return on investment using SearchAmerica’s solutions and recommended best practices. The 2008 Best Practices awards go to:

• Integris Health of Oklahoma City, Okla., for workflow redesign that resulted in payment received prior to going to a collection agency in 98 percent of its accounts.
• The Methodist Hospital System of Houston, for resolving a significant degree of accrued bad debt and properly classifying patients eligible for more than $20 million in charity care.
• Novant Healthcare of Winston-Salem, N.C., for reducing its bad debt by 50 percent and reducing its charity enrollment processing time by 90 percent.
• Resurrection Health Care of Chicago, for improving Emergency Department Point of Service collection by 250 percent.
• SSM Healthcare of St. Louis, for continued advances in leveraging SearchAmerica solutions into its processes and substantiating their mission in the community.

SearchAmerica also recognized Northside Hospital of Atlanta, St. Raphael’s Hospital of New Haven, Conn., and Sutter Delta Medical Center of Antioch, Calif., for their strong commitment to revenue cycle improvements.

“These organizations exemplify the innovative spirit and commitment to excellence that is truly admired by its patients and industry,” Daniel Johnson, Search America’s president and chief executive said in a statement.

RealtyTrac Partners with Coldwell Banker to Provide Foreclosure Data

2008-07-03T06:56:53-07:00

RealtyTrac, the leading online marketplace for foreclosure properties, and Coldwell Banker Platinum Properties, a leading real estate brokerage in Orange County, recently announced a new agreement and strategic partnership that will allow Coldwell Banker agents and their clients to have real-time access to RealtyTrac’s nationwide foreclosure database of default, auction and bank-owned properties.

“This is an exciting partnership between Coldwell Banker Platinum Properties and RealtyTrac,” said Rick Sharga, vice president of marketing at RealtyTrac. “Agents and brokers at Coldwell Banker Platinum Properties will have access to real-time data directly from RealtyTrac’s nationwide foreclosure database, and users of Coldwell’s website will also be able to access distressed properties, including properties in pre-foreclosure, auction or bank-owned properties. That in turn will help drive more traffic and leads to the agent websites.”

With real estate in a downturn in most markets nationwide, foreclosures continue to grow. During 2007, there were more than 2.2 million foreclosure filings — default notices, auction sale notices and bank repossessions — reported on nearly 1.3 million properties nationwide, a 75 percent increase in total filings from 2006. Foreclosure activity increased 112 percent in the first quarter of 2008, according to the RealtyTrac U.S. Foreclosure Market Report.

“We are delighted to integrate RealtyTrac’s database into the Coldwell Banker Platinum Properties’ website,” said Richard Moore, president and broker-owner of Coldwell Banker Platinum Properties. “We are always looking to enhance our services, and the addition of an industry-leading partner like RealtyTrac certainly meets with this goal. Both Coldwell Banker and RealtyTrac are well positioned to take advantage of the ever-changing real estate market.”

Ranked as the third largest real estate site by MediaMetrix and No. 53 on Inc. magazine’s 2006 Inc. 500 list of the nation’s fastest-growing private companies, RealtyTrac Inc. is the leading online marketplace for foreclosure properties, providing all the resources that home seekers, investors and real estate agents need to locate, evaluate and buy properties below market value.

Founded in 1996, RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure, foreclosure, For Sale By Owner, resale and new construction properties, with more than 1 million properties across the country, property reports, productivity tools and extensive professional resources. RealtyTrac hosts nearly 3 million unique visitors monthly and has been chosen to supply foreclosure data to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.

As a leader in the real estate industry, Coldwell Banker has built its reputation over the course of the last 100 years as a highly recognized real estate brokerage firm! The brokerage firm of Coldwell Banker Platinum Properties has adopted the philosophies of its predecessors in implementing the finest in expertise for our clients, and has continued to be a leader within the real estate community. Coldwell Banker Platinum Properties is the premier firm to meet your real estate needs.

Community Health Systems Acquires Partners Shares in Alabama Facility

2008-07-03T06:56:52-07:00

Franklin, Tenn.-based Community Health Systems, Inc. (NYSE: CYH) announced that a subsidiary has acquired from Baptist Health Systems, Inc. of Birmingham, Alabama, that entity's 35% interest in Affinity Health Systems, LLC, which indirectly owns and operates Trinity Medical Center of Birmingham.

The 560-bed hospital has been operated in a joint venture between a Community Health Systems, Inc. affiliate, as the 65% owner, and Baptist Health System, Inc. since the fall of 2005. This transaction closed effective June 30, 2008.

Community Health Systems, Inc. is the largest publicly-traded hospital company in the United States and a leading operator of general acute care hospitals in non-urban and mid-size markets throughout the country.

Through its subsidiaries, the Company currently owns, leases or operates approximately 116 hospitals in 28 states, with an aggregate of approximately 17,000 licensed beds. Its hospitals offer a broad range of inpatient medical and surgical services, outpatient treatment and skilled nursing care. In addition, through its QHR subsidiary, the Company provides management and consulting services to independent general acute care hospitals located throughout the United States.

Leadership Guru Steve Farber to Keynote TNB Card Services 2008 Payment Conference

2008-07-03T06:56:52-07:00

Leadership guru Steve Farber, author of The Radical LEAP, will talk about “extreme leadership” as the keynote speaker at TNB Card Services’ 2008 Payments Conference, October 8-10 at the Westin Stonebriar Resort in Frisco, Texas.

Farber, known for his LEAP leadership philosophy, will discuss how credit union executives and managers can use Love, Energy, Audacity, and Proof to positively influence and transform their credit unions, members, and the industry to radically improve their organization and the individual lives of everyone it touches.

The 2008 Payments Conference brings together leading industry figures and credit union management, from CEOs, CFOs, and Chief Lending Officers to debit and credit card program managers, ATM managers, and marketing professionals. The conference will address pressing issues that credit unions face in today’s competitive payments market, and strategies they can implement to stay ahead of the curve. The event will also provide attendees with actionable recommendations on how to leverage TNB’s processing platform, which is one of the most robust processing systems in the world.

The three-day conference includes Chip Filson, president of Callahan & Associates; Patrick Adams, CEO of St. Louis Community Credit Union; Candace DeBarger, vice president and team lead for MasterCard International’s U.S. Debit Product Sales Group; and Frank Martien from First Annapolis Consulting. The conference will also feature nearly a dozen breakout sessions divided into core strategies related to performance, marketing, and changing environments.

“The economic and competitive pressures in the credit union industry are growing daily,” said Scott Wagner, executive vice president of TNB Card Services. “The goal of the Payments Conference is to give credit unions practical and strategic ideas, as well as tools that will enable them to grow their card programs, improve their bottom line, and increase member loyalty.”

Registration for the conference is open to all TNB processing and agent issuing clients, as well as credit unions interested in partnering with TNB. To register for the conference, visit www.tnbcard.com

About TNB Card Services
TNB Card Services, owned and directed by credit unions since 1976, provides electronic payments processing, as well as an agent issuing solution for credit unions nationwide. Serving more than 550 financial institutions of all sizes and managing more than 2 million cards, Dallas-based TNB enables credit unions to enhance member loyalty through credit union-branded card products. For more information about TNB, go to www.tnbcard.com

Collection Tech Vendors See Slow Down Continuing

2008-07-03T06:56:52-07:00

The first half of 2008 marked the continuation of the credit crunch, increasing delinquencies and chargeoffs and a weakening economy. How does the second half of the year look? InsideARM spoke with several industry executives to get their take on the economy and the receivables business. This article, which examines the views of call center technology industry executives, is one of a series of articles looking at the next six months.

“We think that the economic trends that we saw in the first half will continue in the second half of the year,” said Brian Moore, executive director of executive solutions for Seattle-based Varolli Corp., a hosted communications services provider. “We will continue to see an increased use of hosted services among lenders, creditors and [collection agencies].”

Moore also expects to see an increased use of analytics as collection firms seek to maximize their collections by going after those accounts expected to provide the best results. Analytics will help firms be more effective in deciding the accounts to pursue as both the number of accounts rise, and the value of balances increase.

“Collectors have to be able to isolate those customers that need temporary assistance to get them through a difficult time,” Moore said. “I don’t think the consumer is throwing in the towel. Many are amenable if you get to them early and offer them payment arrangements.”

The environment will be challenging for collectors, and some will exit the business, Moore predicted. Those that survive will be the ones that keep in close and early contact with the customers.

Darrin Bird, executive vice president of Global Connect in Mays Landing, N.J., also sees the economy slowing in the second half of the year. There should be recovery some time in 2009, but credit will likely remain tight until well into next year, said Bird. He expects the economy will weaken again before 2009 following the artificial lift now in the market due to the economic stimulus checks.

Therefore, collection firms will need to see how they can keep costs down while continuing to make increased contacts, not only for new accounts, but also for those debtors who will be looking to make smaller payments over a longer time period, Bird said. Collectors who can leverage technology can make more contacts with fewer people, providing better performance now and setting the company up for a future economic rebound.

“Once they leverage technology and the economy starts to turn around, recovery rates will increase,” Bird said. “They won’t get rid of [the technology].”

Compliance Coach Identifies 11 New Identity Theft Red Flags that Show Business Accounts are at Risk

2008-07-03T06:56:52-07:00

Compliance Coach Inc., a provider of automated regulatory compliance solutions to the financial services industry, announced that it has identified 11 new identity theft red flags and has updated its software, CompliancePal. CompliancePal is the industry’s leading software solution to enable compliance with the FACT Act Identity Theft Red Flags Rule.

The Federal regulation imposes new responsibilities on businesses to prevent consumer identity theft. The impact is broad and the rule affects every single bank, credit union, mortgage lender, auto dealer, credit card lender, payday lender, landlord, utility company, phone company, and any consumer or small business lender in the country.

The compliance deadline is November 1, 2008. Failure to comply can lead to civil money penalty for each violation, regulatory enforcement action, private plaintiff lawsuits, negative publicity and loss of business.

“The Rule applies not only to a consumer purpose account but also any other account with a reasonably foreseeable risk of identity theft. So a business account may also be susceptible to identity theft,” said Sai Huda, chairman and CEO, Compliance Coach. “CompliancePal is updated regularly for new red flags so affected companies can perform a detailed risk assessment to include consumer as well as business accounts and all relevant red flags to ensure full compliance,” continued Huda.

CompliancePal enables a financial institution or creditor to quickly and easily get into and stay in compliance. Under the rule, companies must monitor for new identity theft risks and update their program for new red flags. CompliancePal already contains the 26 identity theft red flags previously published by the government, as well as 23 new red flags identified by Compliance Coach. The red flags are based on recent identity theft cases and schemes affecting financial institutions, creditors and consumers.

These 11 new red flags identified by Compliance Coach and added to CompliancePal create a total of 60 red flags that affected companies must consider and indicate business accounts are equally at risk. For example, in both United States v. Perry and United States v. Williams cases, fraudsters used business accounts to commit identity theft that resulted in losses to businesses and financial institutions exceeding $500,000 and $400,000 respectively. In both cases, there were several red flags of identity theft that financial institutions failed to detect and take timely action.

“Compliance Coach’s team of legal and compliance experts monitor and analyze identity theft cases, schemes and trends daily to identify new red flags. CompliancePal is the only solution for millions of companies to easily stay on top of new red flags,” said Huda.

CompliancePal is a Web-based software that walks the user through a series of questions and produces: the required risk assessment, the mapping of red flags to appropriate detection and response procedures, the written program, the training materials and the compliance status report, everything necessary to pass an audit.

The software is updated regularly for new identity theft schemes and red flags so a company can easily update its identity theft program and maintain compliance. To use the solution, companies simply sign-up online and access the software via the Internet. A ComplaincePal demo can be viewed at here.

Compliance Coach is a leading provider of automated regulatory compliance solutions to the financial services industry. Five of the top 10 banks and hundreds of financial institutions throughout the U.S. rely on Compliance Coach’s solutions and services to mitigate compliance risk.

Compliance Coach provides risk assessment software, e-learning and other tools to enable compliance with applicable laws and regulations. Its products and services are supported by an in-house team of nationally recognized legal, compliance and technology experts. CompliancePal is the company’s latest revolutionary web-based software that uses a unique five step system to enable compliance with the new FACT Act Identity Theft Red Flags Rule, quicker and easier.

The company is privately held and venture capital backed by four of the top 10 banks: Wells Fargo, Bank of America, Citigroup and Washington Mutual are the company’s primary investors. It is based in San Diego, California and has a regulatory relations office in Washington, D.C.