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T-1 How to be a Collector

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					How to Be a Collector
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                          1
EXHIBIT: FUNDING OPTIONS




           Funding Options Obtained Through the Financial Profile 

Open Lines of Credit (Credit Cards, Home Equity Lines of Credit) = Possible instant 
payments or down payments to establish good faith effort.  
 
Car Payments = Car Deferment (Most financial institutions allow 2 car deferments per year 
the average car payment is 350.00‐650.00 that can make a good faith effort for a down 
payment or beginning of payment program. 
 
Car Equity Loan = Pay off of arrears. There are many companies out in the world now who 
will do loans base on the equity of a vehicle. (See exhibit B for examples) These companies 
work with individuals with challenged credit and use the value of the vehicle to base the 
loan amount on and then use the vehicle as collateral.   
 
401 K with‐drawl= possible account payoff the NP may be able to do and emergency with 
drawl from their 401k account and pay the case in full. (There can be tax ramifications of 
15% off the top to the federal government and at the end of the year there will be state 
taxes possible owed, this may be your objection from the NP you must counter with the 
ramifications of continuing contempt on the case) 
 
401 K Loan‐ This is a product offered where a holder of a 401 K can take a loan against 
their retirement fund through the investment company, the interests is generally in the 
range of 5% and the payments for the loan are taken out of the payroll. The selling point on 
this product is it is a lower interest rate than what is being charged on the child support 
case and it will resolve the arrears and contempt completely.  
 
Friends and Family – Send your NP out to borrow from his friends and family the approach 
on this is one that has to be delivered properly to get true consideration for the funding 
source from the NP. 
 




                                                                                           2
EXHIBIT: OVERCOMING OBJECTIONS



                  Overcoming Objections of the Funding Sources  

                                                                                                
I am not using my credit cards no way! I use those for emergency only, plus my 
interest rate is higher!!   
 
Mr. /Ms NP I understand your reluctance to utilize your line of credit, but your child 
support is court ordered and compliance is required, if you continue on this path of 
delinquency, not only will you be effecting your child’s lifestyle but there are alternative 
repercussions that can effect you directly such as; license suspensions, bank levies, tax 
return intercepts, and even possible contempt hearings. 
 
I am not touching my 401k fund, which is for my future!!    
                           
The Loan Approach­ 
 
 Mr. /MS. NP  I understand your apprehension but you’re currently being charged 10 
 percent interest on the arrears on this case, a 401k loan is really a “win‐win” solution for 
 you. You can borrow against the fund at a much lower interest rate, you set the terms of 
 the loan and you then will not be subject to alternative enforcement actions from our 
 agency. In then you will be saving yourself not only money but the stress as this will relieve 
 the stress of the other processes that happen when you’re not in compliance with our 
 agency. 
  
I am not withdrawing from my 401k, there are tax ramifications!! –  
 
The Withdrawal Approach­ 
 
Mr. /Ms. NP I understand your reluctance even with the tax ramifications that a retirement 
withdrawal may incur. The continued non compliance of your court ordered can also affect 
your lifestyle.  
Some of these include but are not limited to license suspensions, bank levies, tax return 
intercepts, and even possible contempt hearings. Utilizing this resource can prevent these 
actions for you, and can be beneficial for your credit rating as you will show now as paying 
current or paid off thus enhancing your income to debt ratio. 
 
 




                                                                                              3
EXHIBIT: OVERCOMING OBJECTIONS



                  Overcoming Objections of the Funding Sources  
                                    
I am not going to use my car payment for child support, I will lose my car!
                 
The Deferment­            
 
Mr. /MS. NP there is a product called a car defer most financial institutions offer up to two a 
year for the life of the loan. The deferment does not affect your financial standing with the 
finance company and will free up some money while you look into alternative solutions on 
this case this seem the best solution to free up some income to make this payment during 
your financial quandary.  
 
I am not going to use my car to make child support payments I have bad credit no 
one will lend to me! 
 
The Car Equity Loan­ 
 
Mr. / Ms. NP there are many lenders out there who work with individuals just like you, who 
own their vehicle and have verifiable income but have had some credit challenges. By 
utilizing this option you are relieving yourself of possible further enforcement actions on 
this case such as license suspensions, bank levies, tax return intercepts, and even possible 
contempt hearings. Also you could possibly improve your credit through this option as it 
will reflect on your credit that your arrears are paid off with our agency and every month 
you make your new loan payment you are building your credit score. Can I suggest some 
lenders I have heard of that have this product available for you?  
                                                      
                                 
 
 
You want me to ask friends and family?!! No way am I asking them to help me pay MY 
child support!!  
 
The Family Loan­ 
 
Mr. /Ms. NP I understand your reluctance it is hard to go to your loved ones and ask for 
help. Your case is being reviewed for lack of compliance and at this point maybe an outside 
opinion may be able to help you think of ways to gather the funds needed to move forward 
on this. I would like to help you but in order for me to do so we need to see validated effort 
on your behalf 




                                                                                              4
EXHIBIT: AN EXAMPLE OF CHILD SUPPORT SCRIPTING FOR THE “TEN STEPS”


Hi Non Custodial Parent’s Name.  This is Child Support Enforcement Officer’s name.  
 
I am calling you in regards to information on your child support order here in our office for 
Dependant’s name.  I have some information for you; do you have a pen and paper to write this 
down?  
 
Our address is to mail correspondence to our office is give the office’s mailing address, or if you 
need to come into our office directly, it is give the office’s physical address.  To mail your payment 
the address is  the State Disbursement Unit P.O. Box 989067 West Sacramento, CA. 95798‐9067 
 
My direct phone number is CSO direct line # and I will be working with you on your case.  The case 
number I am calling you about is give case #.  Your participant number is give par #.  Your balance 
on your case is ___________ and is currently accruing interest at a 10% rate. 
 
I need to update your information for our records.  
 
(Ask questions in the manner they are written this is your financial profile that you will base what 
direction you will lead the account in the future.) 
 
What is your current physical address? Do you also receive your mail there? (If not ask for mailing 
address) 
 
Where are you working?          
 
What is your net monthly income? 
 
What is your spouse’s net monthly income? (Let them tell you if they are not married) 
 
How much is your mortgage? (Let them tell you if they rent verses a mortgage) 
 
How much is your car payment? Who are you financed through? What day is the payment due? 
How many more payments are left on the loan? 
 
How much is your credit card debt? Are there any open available lines at this time? 
 
Do you contribute to a 401 K plan or a mutual fund? 
 
How much do your miscellaneous costs run? (I.e. groceries, utilities, car insurance) tally up the 
expenses. 
 
Mr. /Mrs. noncustodial parent’s last name your balance is ____________ and due today. 
 
(Pause here this is called a psych pause listen to what they respond to, follow up with the listed 
questions and wait for their response.) 
 
 Can you pay the balance today? How much can you pay today? How much can you pay this month? 
 
Mr. /Mrs. non‐custodial parent’s last name you are currently in contempt of your court order. At 
this time our agency is looking at filing a contempt case against you. If a contempt case is filed, you 
will be served and then required to appear before a commissioner and face possible jail time, and 
alternative sentencing. Our agency would like to prevent this. Are you willing to work with me to 
prevent these actions from going forward? 
 
(Now use the information obtained through the questioning process to negotiate a funding source 
and get as much money towards the case up front) If the NP answered that he/she has a credit card, 
solicit payment of the arrears balance onto the lines of credit available, based on the financial 
profile taken. 



                                                                                                          5
         EXHIBIT: EXAMPLES FOR CAR EQUITY LOANS AND SUBPRIME SIGNATURE LOAN LENDERS

          

                                                                                                               FICO 
       Lender                        Website                 Contact Number         Products Offered       Requirements         Lending Requirements  


                                                                                                           will work with 
                                                                                                           challenged         varies by state‐ lends all 50 
Wells Fargo Financial    http://financial.wellsfargo.com/    1‐877‐246‐1075      Car Equity Loans          credit             states  



                                                                                                           works with         Applicant must have gainful 
                                                                                                           challenged         employment or verifiable 
                                                                                   Signature Loans‐        credit charges     income, and checking 
Cash Call                www.cashcall.com                    1‐866‐590‐2274        no collateral needed    high interest      account fico score of 570. 




                                                                                                           works with         Loans in CA, New Mexico and 
                                                                                                           challenged         Arizona only.  Must have 
1‐800‐LoanMart           www.800loanmart.com                 1‐800‐562‐6627        Car Equity Loans        credit             verifiable income. 




                                                                                                           works with         Only lends to applicants in 
                                                                                                           challenged         Northern CA. must have 
CAR 916                  www.carloan916.com                  1‐866‐496‐6900        Car Equity Loans        credit             verifiable income.  




                                                                                                           works with         Lends in all of CA only. 
                                                                                                           challenged         Applicant must have 
123TitleLoan.com         http://123titleloan.com/            1‐818‐996‐7280        Car Equity Loans        credit             verifiable income. 


Don't be afraid to send your NCP out to lending institutions they already have an established relationship with for a car equity loan. If they are credit 
union members they may want to try there. These are just a few resources you can name to the NCP to get them in the direction of utilizing the 
alternative resource for a Car Equity loan. If you Google Car Equity loans you will see there are thousands of companies and all kinds of options for the 
NCP to look into to resolve the arrears on their case and current support issues.  



          
          
          




                                                                                                                                                     6
    EXHIBIT: COAP ELIGIBILITY CHECKLIST


                      A Tool for Demystifying Review for COAP Eligibility
    The following document is an example of a checklist available to Caseworkers in Santa Cruz
    County to assist them during their review of cases for the Compromise of Arrears Program
    (COAP) eligibility. This checklist was developed in by COAP Analyst Anne Kelly, Santa Cruz
    County Department of Child Support Services.


                     COAP REFERRAL WORKSHEET
                           A-K to Esperanza                             L-Z to Anne
    Preliminary Questions for COAP review:

1   Does NP owe any of the following accounts?      YES        NO
    NAA: ____________
    CAA: ____________
    UPAA:___________
    ***NP will need to pay these accounts IN FULL BEFORE he/she will be approved for COAP.

    Is NP able to pay these accounts?                YES        NO      (if no, COAP will be denied)

    Is CP willing to WAIVE/COMPROMISE any of these monies?               YES         NO

  (if yes, please do STIP to waive Unassigned Arrears)
2 Does NP have multiple cases?            YES         NO

        (if yes, NP will need to make LUMP SUM payment)

3   Does NP owe TAA and UDAA?             YES        NO

    (These accounts are due AFTER COAP PA’s are paid. If CP doesn’t waive the UDA’s, case will return
    to enforcement once COAP is completed)

4   Does NP owe between $500-$4999.99 in PAA?          YES         NO
    (if yes, NP will make Lump Sum pay)
5   If NP has multiple cases or owes TAA he must make lump sum payment, if NP only has one case
    With PERM arrears he has a choice of lump sum or payment plan.

    Is NP able to make a Lump Sum payment?           YES        NO
    Does NP want payment plan?       YES             NO

    •   If NP has multiple cases, he MUST make a Lump Sum payment or he is NOT eligible.

    •   If NP owes TAA accounts, he MUST make a Lump Sum payment on the PAA’s


    **If   you checked YES for #5, please send NP a COAP application.

                                                                                                 7
    ***Family Reunification COAP: In order to be eligible for Family Reunification, the
        DEP must go from NP to Foster Care and then placed back with NP (ie beginning and ending with
        SAME parent).


                       COAP APPLICATION RECEIVED
                         A-K to Esperanza                                 L-Z to Anne

Which of the following supporting documents did NP provide? (all are REQUIRED for processing):

       Completed I&E
       3 months copies of pay stubs or proof of income
       Most recent tax return (if NP has not filed within last 3 years, do not request them).
       3 months worth of bank statements WITH account activity (do not need if they state they do not
       have a bank account)
       3 months proof of rent paid (ie cancelled check, bank statements, ltr from landlord)
       3 months proof of utilites paid (ie cancelled check, bank statements, ltr from landlord)
       copy of title/registration for ALL vehicles listed on COAP app
       copy of title/mortgage payment for any property listed on COAP app
.      copy of life insurance policies if listed on COAP app

       *Please collect all the supporting documents prior to referral to COAP analyst.




                                                                                                    8
EXHIBIT: WELFARE TO WORK (WTW)




                        Demystifying Welfare to Work (WTW)
All Welfare/Cash Assistance recipients are required to participate in Welfare to Work unless
they are exempt. Exemptions are generally only granted when there is a disability or inability to
work.

                             People can work and get welfare.

The next page of this handout shows the earned income screen from Napa County. The current
rule for calculating earned income is: Earned Income, $255 and ½. An example of rules for
calculating earning income is as follows:

           If the participant has earned income of $1,242
           Deduct $255 for a total of $1,017
           Divide $1,017 by ½ for a total of $508
           $508 is the amount deducted from the possible grant total
           If the grant amount is $561 maximum for 2 eligible participants on a grant, the total
           grant paid for this month would be $561 minus earned income of $508 for a total
           grant amount of $53.

Be sure to check your local Eligibility systems, such as CalWIN, MEDS and IEVS, or contact
the Eligibility Caseworker for information on a participant’s earned income and compliance with
WTW requirements.

         You can enforce child support if the participant has earned income.

Many times, the participant has been sanctioned for not complying with WTW. If this is the case,
the participant is not part of the cash grant.

    You may use all enforcement actions available against participants who are
          sanctioned, including legal actions such as SEEK WORK.



For more information about Welfare to Work, visit www.cdss.ca.gov or speak with your local
eligibility office.




                                                                                                    9
EXHIBIT: WELFARE TO WORK (WTW)


               Welfare to Work (WTW) earned income screen from Napa County

    Property Eligibility                                           Regular

    Data Month Property:                                               $       993.44
                                                                    




    Benefit Month Property:                                            $       993.44
                                                                    




    Property Limit:                                                    $     2,000.00
                                                                    




    Result:                                                                  Auto-Pass
 




    CalWORKs Budget                                                Regular

    IRT Test                                                                     Pass
                                                                    




    Unearned Income                                                    $         0.00
                                                                    




    Unearned Income Disregards                                         -         0.00
                                                                    




    Net Unearned Income                                                =         0.00
                                                                    




    Earned Income                                                      $     1,242.19
                                                                    




    Earned Income Disregards                                           -       733.60
                                                                    




    Net Earned Income                                                  =       508.60
                                                                    




    Total Net Nonexempt Income                                         $       508.00
                                                                    




    MAP Family Unit Size                                                            2
                                                                    




    Family MAP                                                         $       561.00
                                                                    




    Family MAP Test                                                              Pass
                                                                    




    Family Special Needs                                               $         0.00
                                                                    




    Potential Grant                                                    $        53.00
                                                                    




    Assistance Unit Size                                                            2
                                                                    




    Assistance Unit MAP                                                $       561.00
                                                                    




    Assistance Unit Special Needs                                      $         0.00
                                                                    




    Aid Payment                                                        $        53.00
                                                                    



 




    Aid Payment                                                    Regular

    Full Month Aid Payment                                             $        53.00
                                                                    




    Dates to Prorate                                                             1-31
                                                                    




    Aid Payment                                                        $        53.00
                                                                    




    Combined Aid Payment                                               $        53.00
                                                                    




                                                                                    10
    Final Aid Payment                   $    53.00
                                     




    Overridden Aid Payment              $
                                     




    Penalties                           -     0.00
                                     




    Potential Benefit                   =    53.00
                                     




    Previous Potential Benefit          -   561.00
                                     




    Overpayment Adjustment Amount       -     0.00
                                     




    Overpayment                         =   508.00
                                     




 
    Pay Code:




                                                11
EXHIBIT: EMPLOYMENT SITES, SUPPORT GROUPS AND OTHER RESOURCES

                                    EMPLOYMENT SITES

www.hardtohire.com - Assists those with disabilities, ex-offenders, older workers and many
others find potential job opportunities

www.indeed.com – Site searches thousands of company websites, job boards and newspapers for
job openings.

www.craigslist.org – Has job postings in various regions of California from high end positions to
service and labor positions.

www.headhuntersdirectory.com – Has links to various headhunters and temporary agencies all
over the county. Lists are broken down by state and then city.

www.caljobs.ca.gov/ - This site is the California Employment Development Department.

http://www.labor.ca.gov/ - This site is the California Labor and Workforce Development
Agency.

Local Workforce Development Centers – These job assistance centers are located in several
counties/cities across the state including Santa Cruz, Hemet, Riverside, Sunnyvale, etc.

Local Hiring Sites – example is in Santa Cruz we refer participants to the local paper as well as
sites like www.santacruzjobs.com

Temporary Staffing Agencies – This is a great source for temporary work or potential temp to
hire positions. Staffing agencies include: Manpower, Labor Ready, Westaff, Kelly Services, etc.

Job Search Magazines/Websites – These include magazines such as EmploymentGuide.com

Job Fairs – These events can be found on sites like
http://www.edd.ca.gov/jobs_and_training/job_fairs_and_events.htm
http://jobstar.org/resource/fairs/jobfairs.php - Service locations including the Bay Area and L.A.

                                      SUPPORT GROUPS

Divine Alternatives for Dads Services (DADS) www.aboutdads.org
The National Association of Non-Custodial Moms (NANCM) www.nancm.org
The American Coalition for Fathers and Children (ACFC) http://acfc.com
Friends Outside www.friendsoutside.org
Divorced Fathers Network www.divorcedfathers.com - 7 chapters in Santa Cruz, Santa Clara,
Monterey, San Francisco, and Alameda Counties
Alliance for Non-Custodial Parents Rights http://ancpr.com/
Separated Parenting Access & Resource Center (SPARC) http://deltabravo.net/

                                    OTHER RESOURCES

http://www.ssa.gov/ - Social Security Administration




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