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									NCS Plus Inc The FDCPA specifies that if a state law is more restrictive than the federal
law, the state law will supersede the federal portion of the act Thus, the more restrictive
state laws will apply to any agency that is located in that state or makes calls to debtors
inside such a state

In addition to state and federal laws, a majority of US collection agencies belong to trade
group ACA International and agree to abide by the association's code of ethics as a
condition of membership ACA's standards of conduct require its members to treat
consumers with dignity and respect, and to appoint an officer with sufficient authority to
handle consumer complaints Consumers may also resolve disputes brought against a
collection agency who is a member of ACA through ACA's consumer complaint
resolution program

Debt allows people and organizations to do things that they would otherwise not be able,
or allowed, to do. Commonly, people in industrialised nations use it to purchase houses,
cars and many other things too expensive to buy with cash on hand. Companies also use
debt in many ways to leverage the investment made in their assets, "leveraging" the
return on their equity. This leverage, the proportion of debt to equity, is considered
important in determining the riskiness of an investment; the more debt per equity, the
riskier. For both companies and individuals, this increased risk can lead to poor results, as
the cost of servicing the debt can grow beyond the ability to pay due to either external
events (income loss) or internal difficulties (poor management of resources).

Excesses in debt accumulation have been blamed for exacerbating economic problems.
For example, prior to the beginning of the Great Depression debt/GDP ratio was very
high. Economic agents were heavily indebted. This excess of debt, equivalent to
excessive expectations on future returns, accompanied asset bubbles on the stock
markets. When expectations corrected, deflation and a credit crunch followed. Deflation
effectively made debt more expensive and, as Fisher explained, this reinforced deflation
again, because, in order to reduce their debt level, economic agents reduced their
consumption and investment. The reduction in demand reduced business activity and
caused further unemployment. In a more direct sense, more bankruptcies also occurred
due both to increased debt cost caused by deflation and the reduced demand.

It is possible for some organizations to enter into alternative types of borrowing and
repayment arrangements which will not result in bankruptcy. For example, companies
can sometimes convert debt that they owe into equity in themselves. In this case, the
creditor hopes to regain something equivalent to the debt and interest in the form of
dividends and capital gains of the borrower. The "repayments" are therefore proportional
to what the borrower earns and so can not in themselves cause bankruptcy. Once debt is
converted in this way, it is no longer known as debt.

NCS Plus : These agencies are called "first party" because they are part of the first party
to the contract (ie the creditor) The second party is the consumer (or debtor) Typically,
most creditors will retain accounts with first party agencies for several months before the
debt is written off and passed to a third party agency
The term collection agency is usually applied to third-party agencies, called such because
they were not a party to the original contract The creditor assigns accounts directly to
such an agency on a contingency-fee basis, which usually initially costs nothing to the
creditor or merchant, except for the cost of communications This however is dependent
on the individual service level agreement (SLA) that exists between the creditor and the
collection agency The agency will then take a percentage of the debt that is successfully
collected; sometimes known in the industry as the "Pot Fee" or potential fee upon
successful collection This does not necessarily have to be upon collection of the full
balance and very often this fee is paid by the creditor if they cancel collection efforts
before the debt is collected The collection agency makes money only if money is
collected from the debtor (often known as a "No Collection - No Fee" basis) Depending
on the type of debt, the age of the account and how many attempts have already been
made to collect on it, the fee could range from 10% to 50% (though more typically the
fee is 25% to 40%)

Some debt purchasers who purchase sizable portfolios will often utilize a Master Servicer
to assist in managing their portfolios (often ranging in thousands of files) across multiple
collection agencies Given the time sensitive nature of these assets, many in the ARM
industry believe there is a competitive advantage in utlizing this technique as it gives the
debt purchaser more control and flexibility to maximize collections Master Servicing fees
may range from 4% to 6% of gross collections in addition to collection agency fees

Term loan:

Term Loan are the counter parts of Fixed Deposits in the Bank. Banks lend money in this
mode when the repayment is sought to be made in fixed, pre-determined installments.
This type of loan is normally given to the borrowers for acquiring long term assets i.e.
assets which will benefit the borrower over a long period (exceeding at least one year).
Purchases of plant and machinery, constructing building for factory, setting up new
projects fall in this category. Financing for purchase of automobiles, consumer durables,
real estate and creation of infra structure also falls in this category.

NCS Plus Inc : Cash Credit

This is the primary method in which Banks lend money against the security of
commodities and debt. It runs like a current account except that the money that can be
withdrawn from this account is not restricted to the amount deposited in the account.
Instead, the account holder is permitted to withdraw a certain sum called "limit", "credit
facility" in excess of the amount deposited in the account. Cash Credits are, in theory,
payable on demand. These are, therefore, counter part of demand deposits of the Bank.

Debt bondage is classically defined as a situation when a person provides a loan to
another and uses his or her labor or services to repay the debt; when the value of the
work, as reasonably assessed, is not applied towards the liquidation of the debt, the
situation becomes one of debt bondage. See United Nations 1956 Supplementary
Convention on the Abolition of Slavery. This was very common in Ancient Greece. Debt
Bondage was terminated by Solon the ruler of Greece at the time.

NCSPlus Letter of Credit:

The LC can also be the source of payment for a transaction, meaning that redeeming the
letter of credit will pay an exporter. Letters of credit are used primarily in international
trade transactions of significant value, for deals between a supplier in one country and a
customer in another. They are also used in the land development process to ensure that
approved public facilities (streets, sidewalks, stormwater ponds, etc.) will be built. The
parties to a letter of credit are usually a beneficiary who is to receive the money, the
issuing bank of whom the applicant is a client, and the advising bank of whom the
beneficiary is a client. Almost all letters of credit are irrevocable, i.e., cannot be amended
or canceled without prior agreement of the beneficiary, the issuing bank and the
confirming bank, if any. In executing a transaction, letters of credit incorporate functions
common to giros and Traveler's cheques. Typically, the documents a beneficiary has to
present in order to receive payment include a commercial invoice, bill of lading, and a
document proving the shipment was insured against loss or damage in transit. However,
the list and form of documents is open to imagination and negotiation and might contain
requirements to present documents issued by a neutral third party evidencing the quality
of the goods shipped, or their place of origin.

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