EPL contracts Unique Management Services to provide collection services for customers whose balances remain over $40 for more than 60 days. Upon referral, a $15 referral fee is automatically billed to the user's account, and UMS begins contacting the customer on EPL's behalf. UMS sends 3 letters and attempts to phone each customer twice over the next 120 or until the account is paid in full. After 120 days, the customer is credit reported if the balance outstanding is still over $40.
UMS vs. Collection Accounts
What are the differences between accounts referred to UMS and accounts referred to Collections before we started using UMS (“Collection Accounts”)?
UMS referral
- An account referred to UMS has the account status “COLLECTION.”
- An account referred to UMS has an alert message that can be viewed by clicking on “Alert” at the top left-hand corner of the customer account screen:
- An account referred to UMS has a $15 referral fee placed on it at the time it is sent to UMS.
Collection Account (NorDon/NCN)
- A Collection Account has the account profile EPL-COLLECT and the account status set to BARRED.
- A Collection Account has a note placed on it: “COLLECTION ACCOUNT [date of referral.]”
- A Collection Account has a $10 referral fee placed on it at the time it is sent to NorDon/NCN.
What is the difference between Unique International Recoveries and Unique Management Services/UMS?
There is no difference. Unique Management Services does business as Unique International Recoveries in Canada, which is on the letterhead of the documents our customers receive from them. UMS’ head office is located in Jeffersonville, Indiana.
Do I need to inform Finance and/or the Manager of Circulation about payments on UMS accounts?
No. UMS gets a nightly update from EPL that tells them of any payments made on accounts that have been referred. “Payments” include actual payments, bills that are cancelled, and bills that are forgiven.
Do I still need to inform Finance and/or the Manager of Circulation about payments on Collection Accounts?
Yes. Please continue to document any payments received on Collection Accounts and forward the payment information to Finance or the Manager of Circulation so that they may update the customer’s file with NorDon/NCN.
Do I need to inform Finance and/or the Manager of Circulation about address changes on UMS accounts?
No. UMS gets a nightly update from EPL that tells them of any address changes made on accounts that have been referred.
Do I still need to inform Finance and/or the Manager of Circulation about address changes on Collection Accounts?
Yes. Please continue to document any address changes on Collection Accounts and forward the information to Finance or the Manager of Circulation so that they may update the customer’s file with NorDon/NCN.
Return Mail and skip tracing
How are RETURN MAIL accounts handled by UMS?
We modify any account for which we have mail returned by removing its postal code, and setting the RETURNMAIL field to YES. UMS knows that the missing postal code means we do not have a current address for the customer, and initiates skip tracing to attempt to locate a current address for the customer.
What is skip tracing?
Skip tracing is an attempt to locate a customer for which a current address or phone number is not available. It is often performed through a credit bureau or other agency. UMS does not currently have strong skip-tracing ability in Canada, though it hopes to improve this over time.
Juvenile accounts
Are juveniles referred to UMS?
No. The guarantor on a juvenile account is legally responsible for the materials and activity on the card, and so it is the guarantor and not the child who will be referred to UMS.
Referral progress
Is there a way to stop UMS from following up on a customer account once the account has been referred to them?
Yes. It is possible to suspend UMS action in certain circumstances. Managers should contact the Manager of Circulation to discuss UMS suspensions.
Is there a way to tell what contact a customer has had from UMS, and when it occurred?
Yes. UMS has an online system that permits tracking of all customer notifications. Managers should contact the Manager of Circulation if they would like details of this kind.
Is there a dispute process for customers to challenge a UMS referral?
Yes. UMS has a formal dispute procedure. Customers must contact UMS to indicate that they wish to dispute EPL’s referral. Once UMS receives notification of the dispute, the company suspends its activity on the account and informs EPL. EPL must then verify details of the debt with UMS.
Payments
When a customer comes to the branch to pay, can we accept any money at the branch, or does it all go through UMS?
Payments on accounts sent to UMS are handled just like any other account payment: we handle them at our service points. UMS does not handle any payment transactions for us, and all letters and phone contact with customers whose accounts have been referred to UMS tell the customers to make payments at any service point or online.
Whenever we receive an account payment, it’s reflected on the customer account, and nightly electronic updates to UMS ensure that all payments are documented with UMS within 24 hours.
Can we accept any amount in payment, or only the entire sum owing?
Payments of any amount are welcomed, and all are seen as expressions of “good faith” by UMS. They don’t have to pay off the entire amount owing, but will not be able to borrow until they pay the entire amount down to $0.00, at which point the COLLECTION status disappears.
We’re no longer making partial payment agreements with our customers. What happens if a customer isn’t able to pay all of the outstanding balance at once?
We no longer engage in formal partial payment agreements with customers, in which we document the payment plan in the NOTES field and offer borrowing privileges to customers in exchange for regular payments on the outstanding balance on their accounts.
This does not mean, however, that customers must pay their outstanding balances in full.
Customers are welcome to pay as much or as little as they wish on their outstanding balances, but will not be permitted to borrow any more materials until their balance is paid off in full. All payments will be seen as expressions of “good faith” by UMS and will be visible to UMS within 24 hours of being made.
After a customer is referred to UMS, even if they have not yet received a letter and they bring their fines down under $40, will they still be a UMS account until the balance is paid in full, or will bringing the balance under $40 stop them from going to UMS?
Once a customer has been referred to UMS, their account status is set to COLLECTIONS and will remain at that status until the outstanding amount on the account is paid down to $0.00. They are considered “referred” as soon as UMS receives the referrals from us, which takes place electronically, on Tuesday of each week. Letters are sent out shortly after referral, and will take several days to arrive at the customer’s address.
Once a customer makes a partial payment following referral to UMS, s/he receives a letter after 35 days encouraging him/her to clear the account completely. If s/he doesn’t clear the account, would the account eventually go to a collection agency even if the balance were under $40?
Every payment that takes place on an account (either an actual payment, the return of materials, or our forgiving charges) is seen as an act of good faith by UMS, and is recorded within 24 hours of it taking place. If the account balance is below $40.00, the account will not be credit reported.
If a customer wishes to cancel his/her account with us as a result of the fines, are we allowed to do that when there are still fines owing – above or below $40?
It’s certainly possible to set the account profile to EPL-CANCEL at any time, which would ordinarily purge the account from the system. However, once the account status is set to COLLECTIONS, it is not possible to change that status to BARRED or anything else, standard practice when cancelling an account, until the outstanding bills are paid down by actual payment or by our forgiving charges. Also, the account will never purge from the system if there are outstanding bills, checkouts, or holds on it, regardless of the EPL-CANCEL status. EPL-CANCEL status means that the card cannot be used to borrow materials; however, without the BARRED status, it can still be used for computer access.
Waiving charges
Can any of the bills owing be waived once the account is sent to UMS, or at that point are they all due?
The intent behind UMS is that they help us to get the materials back in the collection. While waiving LOST charges on referred accounts is still not acceptable, waiving OVERDUE charges certainly is – please follow the guidelines in the Borrower Services Policy, which give staff the discretion to waive up to $25.00 under their own discretion and larger amounts upon discussion with their manager or designate.
Why can I forgive or waive charges on accounts referred to UMS, but not on Collection Accounts?
We pay both UMS and NorDon/NCN a fee for each account that is referred to them, but the fee structure is different for each company. We pay a flat fee to UMS, which is charged back to the customer as the $15 referral fee. Using UMS is revenue-neutral for EPL when the customer pays the referral fee. We pay a fee of $10 to NorDon, and also pay a percentage of the monies we collect on each account, so if we waive or forgive charges, EPL could be out-of-pocket.
Is the $15 referral fee ever waived?
Waiving the referral fee is a notable exception rather than a rule.
In extenuating circumstances where a customer has experienced major life challenges (e.g., a major injury and/or long hospitalization, a fire, flood or theft at home, or fleeing an unsafe home situation), EPL can waive the referral fee on compassionate grounds.
When a customer is referred to UMS as the result of a staff error (e.g., an unrecorded Claims Returned), the referral fee will also be waived.
Each referral fee waiver request is considered individually. All referral fee waivers are made only by the Associate Manager, Circulation and ILL, who keeps a record of them.
COLLECTION status after referral
When does COLLECTION status change on an account referred to UMS?
A referred account remains at COLLECTION status until the outstanding balance is reduced to $0. At that point, the COLLECTION status changes to OK, and the nightly update will inform UMS that the account is “ALLPAID.”
Public workstation use
Are accounts sent to UMS ever blocked from public computer use?
No. Customers are only blocked from public computer use for violating EPL's policies and not for fees owed.
Credit-reporting
What is credit-reporting?
Credit-reporting occurs when UMS sends information to consumer reporting agencies (a.k.a. credit bureaus) about outstanding debts that have not been paid.
What are credit profiles and credit scores?
Credit bureaux (TransUnion and Equifax, in Canada) compile credit profiles and credit scores for individuals which lenders use to evaluate creditworthiness. Potential creditors (lenders, insurers, landlords, employers, utility companies and others) review consumers’ credit scores when determining whether or not to extend credit to them.
When does UMS credit-report customers?
UMS will credit-report customers after the referred account has been with UMS for 120 days, and the balance remains over $40.
How does being credit-reported affect an individual?
When any organization reports a customer debt, the debt shows up on the customer’s credit record. Credit record entries can lower a customer’s credit score and affect his/her ability to get credit in various forms, including mortgages and other loans, credit cards, insurance, and even housing and utilities.
How long do debts show up on customer credit records?
Once a customer pays their debt in full, it will take 4-6 weeks for credit bureaus to update their information.
What are the consequences at EPL of being credit-reported?
EPL cardholders will not be able to borrow material until the collection status is cleared from their account. There are no other consequences at EPL.
How can I tell whether a customer’s account has been credit-reported?
A credit-reported account will have the following characteristics:
- Status: COLLECTION
- Bill on account for $15.00: Reason REFERRAL
How should a staff member handle a credit-reported account?
Handle a credit-reported account just as you would handle any account with bills for overdue or lost items:
- Encourage the customer to return items marked as LOST
- Do not waive the $15 referral fee
- Ensure that the address we have on file for the customer is correct
- Remove the RETURNMAIL: YES field if an address update is provided
What should happen when a customer pays off an outstanding account to $0?
As with any referred account at any stage of the referral process, UMS will receive notification within 24 hours of any payment or waived charge. They will also receive notification of any address changes within 24 hours.
For further information
Who is the contact for further information or questions about UMS?
Contact the Manager, Circulation and Materials Delivery
Marquita Bevans
mbevans@epl.ca