This document summarizes collection strategies and statistics for checks that are returned from check services. It recommends starting the collection process as soon as a check is returned due to the rapid depreciation in amount owed over time. It provides national collection statistics for third-party collection agencies compared to doing collections in-house. It also describes the features of a debt collection service including 24/7 online account access and reporting, localized contact strategies, and customized demand letters sent over multiple intervals to increase payment rates compared to traditional methods.

1. Kick Back Check Collections

2. As soon as a check is kicked back from Check Service, start the collection process ASAP due to the Check Depreciation 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Days Past Due 7 14 21 28 45 60 10.5% 21% 32% 42% 67.5% 90%

3. National Stats (company average) TSI Collected 56% (company average) TSI Cost: 7¢ per dollar collected Average Agency Collected 14% (ACA Average) Average Agency Cost: 33% (ACA Average)

5. Debtor Contact Map – Local Presence

7. 5 Contacts in 40 days 2 nd Demand

8. 5 Contacts in 40 days 3 rd Demand

9. 5 Contacts in 40 days 4 th Demand “ Legal Demand”

10. 5 Contacts in 40 days 5 th Demand

11. 5 Contacts in 40 days Optional “Thank You” letter sent whenever your customer pays

13. Monroe Design – Status Report