Tracking Probate Activity:

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1 An American InfoSource Affiliate

2 The high liquidity of probated estates, paired with potential brand exposure in the deceased collections space, has motivated many organizations to evaluate and implement specific strategies for identifying and servicing probate accounts. By segmenting deceased accounts into probate and non- probate asset classes, issuers will realize a significant lift in recovery versus those who do not. However, to optimize recoveries from this channel, specialized processing is required for each deceased segment. Many times, third- party providers who straddle both competencies have difficulty competing with a strategy that divides the population. Collection- based organizations are usually not well- versed in probate identification and filing claims against estates in the 3,300+ county courts, with disparate processes and regulations. Likewise, court- focused, database- driven groups like PRECISION Probate Strategies who specialize in the perfection and defense of probate claims are generally not competent in skip tracing and collections. Identifying these two populations and assigning them to experts in each vertical will maximize recovery. PRECISION specializes in data accumulation of probated estates, detecting probate as it occurs within a portfolio, and optimizing recovery for the probate segment through servicing. PRECISION specializes in data accumulation of probated estates, detecting probate as it occurs within a portfolio, and optimizing recovery for the probate segment through servicing. PRECISION can support your organization with the segmentation of the probate and deceased account populations. We are the only servicer who can do this since we proactively collect probate data at the court level. By the way, this is not dependent on having a deceased record captured in your data hygiene process. PRECISION can scrub your non- deceased population of accounts for open probates. When utilized correctly in your waterfall, PRECISION can provide the segmentation to split these two populations on a routine basis. For those organizations which deploy a family pay collection solution, PRECISION can deliver those accounts to that strategy. 1

3 Traditional Probate Challenges When evaluating service providers that focus on the probate segment, one must first understand the landscape. Isolating probate accounts within a portfolio and filing timely, compliant claims has been a problem for many issuers and service providers. Challenges include: Lack of Centralized Database For Tracking Probate Activity ü Spread over 3,000+ county probate courts nationwide ü Court access to records can be problematic Complexity of Probate Account Processing ü 3,000+ county probate courts means 3,000+ sets of rules ü Forms for filing claims vary from court to court ü Missing time- sensitive filing dates will conclude with unrecoverable balances Court Expenses ü Court- imposed fees for viewing public records ü Claim filing fees can be sizeable With these points in mind, there are still opportunities for organizations to establish strategic partnerships with proven providers like PRECISION, who are capable of overcoming the obstacles that are common in this market segment. Importance of Quality Probate Data To pristinely identify probate activity, probate service providers must have access to a robust data source, which requires a significant investment of time and money. Due to the accuracy, low cost to obtain information and reputable source (the US Government) most deceased data providers have built their databases using Death Master as the centerpiece for their 2

4 information. However, some states have discontinued providing data, or in some cases, full SSNs to this central repository. As a result, over time this will diminish the comprehensive nature of the database by as much as 40%. Meanwhile, other service providers - such as PRECISION - have taken a unique approach to assembling and managing probate data. PRECISION proactively sends information compilers with laptops straight to the source, visiting county courts regularly and creating a full record for each consumer/estate. Compilers key ALL new probates and upload the information directly to PRECISION s central database. Given the degradation of deceased data repositories discussed prior, it s highly likely that an organization that is not taking advantage of databases like PRECISION s for probate, is not capturing all probate activity. This will have a long- term, negative impact on recovery. Key Components of a Specialized Probate Solution Partnering with a trusted and experienced probate servicer, credit issuers and buyers can realize financial, operational and reputational benefit. By routinely scrubbing and placing probate accounts with PRECISION for processing, creditors capture all probate activity, including probates for consumers who have yet to be statused as deceased in creditor portfolios. PRECISION also reduces creditors overall vendor costs on the bulk of recovery by working the probate population at a lower rate than what is typically paid to agencies. How it works: PRECISION monitors and performs routine scrubs of client portfolio to identify all probate matches Client reviews matches, edits/provides account information required for filing, and submits final approval to file PRECISION systematically generates claim form and confirms county- specific filing requirements are met. PRECISION files claims prior to mandatory deadlines, tracks for disallowances and executor payments. Reputational concerns, especially in this venue, are of vital importance. This is a market segment that needs finesse and skill, not just a willingness to dive in. Additionally, with the financial services industry drawing increased scrutiny from regulators, compliance has quickly ascended to the top of the list of concerns for most companies. 3

5 You ll want to partner with firms, like PRECISION, that utilize a secure and compliant operation. You ll want someone with solid auditing and compliance accomplishments, and a proven ability to surpass the brand protection expectations you have. Some of the key points you ll want to be sure of: A partner that ensures all claims are filed within Statute of Limitations SOCII and PCI compliant operations Operational design linked to today s heightened regulatory environment Conclusion By segmenting deceased portfolios into probate and non- probate accounts and assigning specialized processing for each deceased segment, organizations maximize their recoveries, reduce costs and minimize risk. A business relationship with a company like PRECISION Probate Strategies that provides database tools for account servicing can be the key component to deploying a successful probate servicing solution for your organization. 4

6 About PRECISION: An American InfoSource Affiliate PRECISION Probate Strategies specializes in data accumulation of probated estates, detecting probate as it occurs within a portfolio, and optimizing recovery for the probate segment through servicing. PRECISION offers a court- focused, database- driven strategy designed to automate and enhance deceased debt recovery processes by matching client accounts to open probated estates and systematically filing accurate and timely claims on behalf of the client. Our proprietary data, state- of- the- art systems and supreme legal expertise enable us to provide the most compliant and profitable probate recovery solution in the industry. About insidearm.com insidearm.com provides the most credible platform for service providers to reach potential clients, and is also uniquely qualified to help ARM businesses with their own websites, social media programs, and overall marketing strategies. The mission of insidearm.com is to shift the public conversation about the ARM industry in order to help creditors and collection professionals reduce risk, lawsuits, and bad press; we d like to change consumer perception that speaking with collectors should be avoided. With more than 70,000 subscribers, our website and newsletters reach collection agencies and law firms, debt buyers, credit grantors, suppliers of technology and services to these groups, regulators, industry investors, and many other interested parties. 5