Quantrax Corporation Inc. Updated June 4, 2006

This documentation refers to the manual skip-tracing service that Quantrax is offering the collection industry. This document is specifically for Intelec users. Please refer to our white paper on the same subject.

Accounts you place in collector queues within the User ID's QXS (basic search), QXS1 (priority basic search), QXS2 (Search with POE information) or QXS3 (asset search) will be moved into a separate library on your system at a specific time. This will probably be at the end of your nighty processing. Note that the POE and asset searches will be referred to as detailed searches in some of the reporting. We use the debtor's social security number, name, address, returned mail flag, home phone, work phone, POE, debtor DOB and spouse name from the account master. We will not download any key account information other than what was described (e.g. We will not download information such as client name, patient name, client account number, balances or medical information)

The phone number history (bad numbers stored in Tab +) are also used (8.0 feature). We use the data from the queue file for the accounts given to us. We also use the existing F4 information if it is available (the new format). This information is transferred from your system to a system located in Bethesda MD. It is worked remotely from Sri Lanka with no download of data to any other system. The skip-tracers in Sri Lanka look at the data on the their screens and enter information directly into the system through a program. The workers see no other data other than the information described above.

Accurint is the only service we presently use for our searches. We have access to all of the options that can be accessed through the Accurint system. Accurint is accessed through the Capital Management Services servers, with licenses provided through Capital Management Services. Capital Management does not see your data - Your data never resides on their systems. Data never leaves the United States and is only stored on machines that are under Quantrax's direct control. Note that we do not make any phone calls to verify information for debtors, relatives or associates.

Here are more details.

1. The accounts you supplied are manually skip-traced using Accurint.

2. All information was carefully reviewed to determine if a phone number could be obtained for the debtor at the address listed. If the address was bad (returned mail), we looked for a new address too.

3. There is a new F4 (Skip-tracing window). This is now changed on your system. The old data is not lost. It can be viewed by pressing F9 from the new screen. The +SKP flag on the account detail is displayed if the new OR old data exists.

The following is a sample screen for the new skip-tracing information. (F4 from account details)

4. If the address you gave us had returned mail and we found a new address, that will be placed in the address area of the account detail screen and the old address will be dropped into the notes. If we find a different address and the present address is good, we document that in the F4 screen in the area that allows name, type, address and number for additional parties to be entered. The type for debtor is “AD” (Additional debtor information). If we have a phone number for the debtor that is NOT at the good address on the account, that phone number will be added to the home phone number if there is no home phone number on the account. This will allow the new number to be dialed easily. Note that the phone may not be at the address on the account. If there is a phone number on the account, the number will be added to the notes. This is unlikely to happen because the accounts that are skip-traced will usually not have a phone number.

5. New debtor phone numbers will be moved into the account detail screen. If there is an existing number (unlikely) it is not replaced. The new number is added to the notes in this case. A new number is duplicated on all the linked accounts. If the skip tracing source indicates that a number may be a cell number, we will not put that number into the account detail screen. This could cause a problem on predictive campaigns. Such a number will be added to the skip-tracing screen will a "Type code" of "CE" for cell phone.

6. New debtor numbers found on Accurint are verified using the DA reverse lookup feature on Accurint.

7. We also provide 1st and 2nd degree relative information (name, address and phone) as defined by Accurint. These are written to the F4 screen with a type of 1D or 2D respectively. Associate information is coded with "AS" in the type field.

8. We add up to 2 Smart Codes per account. Phone found, address found, no phone found, no address found and no information found. That translates to 5 different Smart Codes you will need to set up on the system. It is better that you use the same codes for all locations, though it is not absolutely necessary. You will need to provide us with the codes. It is possible for us to apply a different Smart Code if phone AND address is found.

9. We apply the phone found Smart Code if we get a new number for the debtor. We may also find a new address in this case. We will then apply the address found Smart Code too.

10. If we find a new address for the debtor, we apply the smart code for "Address found".

11. If no phone number or address was found for the debtor but other useful information was found (relatives or associates), we will apply the smart code "No number found" or "no address found" (for the debtor). We would add a note that other useful information was obtained.

12. If NO information for debtor, 1st or 2nd degree relatives or associates is found, we code the account with the smart code "No information found".

We also offer an option where we will give you POE information from Accurint. We can provide POE name, address and phone number if they are available. Note that the accounts must be placed in User ID QXS2 if this information is needed. This must be discussed with us, so that it can be set up correctly.

• POE name is placed in the POE field on the account details.
  
  
• Phone number will go into work phone. In all cases, the information is duplicated across linked accounts. If a work phone already exists, the phone number obtained will be added to the notes. The POE address will be saved on the skip tracing screen (F4) in the area titled "Delinquent accounts" with an indication that it is POE information.
  
  
• If a second possible POE is found, this information will be placed on the skip tracing screen with a type code of "PE".
  
  
• We can apply a different Smart Code when any POE information is obtained. In this case we will only apply one Smart Code relating to the other debtor information. If, as an example, a phone and address was found, along with POE information, we will only apply the Smart Codes for phone found and POE information found.
  
  
• We will be separating the POE searches from the home / debtor information. The Smart Code for "No information found" only relates to the debtor's home information. It is therefore possible for you to receive a Smart Code "No information found" along with the Smart Code for "POE information found".
  
  
• On the statistical analysis, POE information obtained will be treated as a "positive" result. However, they will not affect the numbers for phone or address found since those relate to the debtor's home information.

13. If you are on Version 8.0 or have the 8.0 Tab + phone management logic, we will not return numbers that were previously removed from an account. On prior versions of Intelec, we will be obtain the same functionality by reading the notes and identifying bad phone numbers.

14. We will provide you with the debtor DOB and age, if they are found.

15. To explain special circumstances, the skip-tracers can also add up to 3 notes on an account that they work. These will be displayed on the account detail screen.

16. The information is updated on your system and Smart Codes applied (We would have obtained the applicable codes from you during the set-up phase). You are responsible to the Smart Code Logic. At a minimum, you need to return the accounts worked to the owner, so they are removed from our queues. You should also reset contacts through a Smart Code so that you can accurately monitor contacts made after the account was skip-traced. You can reset the contacts when the account is assigned to the skip-tracing queues or when Smart Codes are applied after the accounts are worked. We also suggest that you add a description code when the account has been worked by the skip tracers. You should check for this description code to stop accounts from repeatedly being sent for skip-tracing. To make sure that all accounts move to the correct workers, you should make sure the smart codes used duplicate across linked accounts.

For asset searches, we will work with you to upload the information to a user-defined window of your choosing.

17. We will usually add a management option M5 (can be entered from any menu if you have management menu access) to display skip-tracing statistics. These simple but powerful reporting tools will allow you to monitor the work done by the skip-tracing service and evaluate the true value of the results and your collectors' efforts.

The menu displayed has several options. You must be in the correct company.

The "Skip-tracing analysis inquiry" allows you to select a date range. You can also select a client code range or group codes.  Following is a sample screen for the selection.

Based on what is entered, you will see the following information.

Note that a new debtor phone number or address is a positive find. Bad finds are updated when your collectors apply specific Smart Codes (see later on) to indicate that the find information supplied was not accurate.

Success rate is positive finds less bad finds as a percentage of the total positive finds. We do not differentiate between phone and address finds, but look at the positive finds as a group.

There are other options. One is “Skip-tracing analysis with payments”.

This is similar in concept to the option described above, but additionally shows you the payments generated on the accounts worked, after they were worked.

The selection options are similar, but we show the number of paying accounts, accounts contacted (will only be accurate if you reset the contacts when the account was placed with the service) and amount collected. The data for these reports are automatically updated though payment processing and other Intelec features.

Another option is similar but allows you to analyze the results by client or group!

Note that there is a function key F10 which will allow you to print the accounts that make up a specific line of the display. You will be prompted for User ID (QXS) or client codes.

Following is a sample output for the client inquiry option.

THE COLLECTOR EXPERIENCE

Collectors will see a new screen for skip-tracing information (F4). In addition, you should set up 2 new Smart Codes for their use. Let us expand on that. If we work 3000 accounts and have 1500 positive efforts, we will initially assume they are all good! The accuracy percentage is 100% as soon as we finish working the accounts. As your collectors work these accounts, you have a method of saying "It was not a positive find". You do that by applying one of the 2 Smart Codes - one for phone and the other for address. We need to be aware of the Smart Codes you have set up.

What is the expected percentage of bad finds? This is almost impossible to predict. It is our experience that you will get less "false positives" with manual skip-tracing compared to a batch process with a skip tracing service provider. Traditionally, companies have come to expect skip tracing services to return a very low percentage of good information (sometimes as much as 70% of the information provided is later determined to be bad). You can expect better results that this with accounts that are manually skip traced.

Here is a summary of the codes a collector may see on the skip tracing screen.

AD - additional debtor address information
PH - Additional debtor phone (and possibly address too)
CE - possible cell phone number
1D - first degree relative
2D - second degree relative
RE - relative (in case we can not determine the degree)
AS - associate
PE - other possible POE


INTERFACE DETAILS

It will be important for you to understand what information we work with from your system, and what information we give back to you, along with your options for working with that information. We can work with either Version 7.4 of Intelec or Version 8. Version 8 will produce better results since we are able to track phone numbers that were previously removed from an account and stop those from being returned through the skip-tracing efforts.

We will be using data from the following Intelec files for the accounts that need to be skip traced. To get accounts to the skip tracers, you would have to change the worker code to one that is associated with User ID QXS, QXS1, QXS2 or QXS3. Those User ID's are used as follows.

• QXS   - Basic traces
• QXS1 - Basic traces, but to be treated as priority. These will be worked before the QXS User ID.
• QXS2 - Search that includes POE name, address and phone number.
• QXS3 - Asset searches that include personal property information (from assessment and deeds), vehicle information, bankruptcy and business-related information.

Here are the other details of the "download" process (Data moving from your system to ours).

• The account master file (SCACCT) is required. We need the fields debtor name, address, spouse name, returned mail flag, social security number, date of birth, home phone and work phone. There are many other sensitive fields in the account file that we do not require (e.g. Client account number, account balances, last transaction date and patient name). There are several Intelec-related fields in the account master (E.g. letter codes sent, contact series code) which are not specifically debtor-related, but are stored on the account file. These would not cause a security concern if they were transmitted to our system. When we create the "Account data" to be transmitted to Quantrax, we erase from that version of the account file the placement date, amount placed, last transaction date, date of last payment to client, all of the balance fields including interest, client account number, patient name, close code, close date, payments to-date, last payment date, last payment amount, bank name, X-reference field, and for Version 8, the original creditor information and cell phone number. This will help in your evaluation of the security risks involved in Quantrax moving some of your data to another system.
  
  
• In addition to the account file, we download data from the account processing queues (SCCQUE) for the accounts that need to be traced.
  
  
• We also copy the corresponding records from SCPHMAS, the file that stores the Tab+ phone information (This will be more relevant when you are Version 8.0 of Intelec). On prior versions of Intelec, we will read the notes file to obtain a list of the bad phone numbers. The notes are not used for any other purpose and are never downloaded by us or made available to the skip tracers.
  
  
• We use the existing data from the new skip tracing file (SCSKIP1) which is unlikely to contain information unless you are sending the account back to us after it was previously worked and updated.
  
  
• We will also get the data from the detailed skip-tracing screen (Standard screen in Intelec that can be accessed from the skip-tracing screen). This Intelec file (SCSKIPD) is unlikely to contain data, and will be used for detailed searches.
  
  
• No other data is retrieved.

Once we have retrieved the data and used it to work the accounts, we will send back one file to your system (Data "upload"). This file is based on the data on the skip-tracing window file SCSKIP1, but contains some additional data that we use to update your system.

We will do the following by reading that file. Some of the processing described below will take place during Nightly Processing (updating of statistics).

• Up to 2 Smart Codes are applied to indicate what was done on the account. The possible results are :
  
  
  • Debtor phone number was found (a phone number was obtained for the debtor). Note that if the number could be a cell phone, it will be added to the skip tracing screen with a code of "CE".
  • Debtor address was found (a new address was obtained for the debtor)
  • We can apply a single Smart Code if a new phone and new address were found (both the above took place). In this case the individual Smart Codes are not applied.
  • No phone was found (No phone number was found, but 1st or 2nd degree relatives or associate information may have been found)
  • No address was found (No new phone information was obtained, and a newer address could not be obtained on a returned mail account. 1st or 2nd degree relatives or associate information may have been found.)
  • No information was found (No information was found about about the debtor, relatives or associates)
  • POE information was obtained (This is a special option. See item 12 in the details at the beginning of this document).
  • Information was obtained from the asset search.

  
  You will be required to provide us with the Smart Codes for the above (7 codes but 5 if you do not use a single Smart Code for phone and address found). If you request the POE information, an additional Smart Code will be required. You should try to use the same Smart Codes for all companies.

  How do you set up the Smart Codes? This is entirely up to you, but we have the following recommendations.
  
  a) At a minimum, you need to return the accounts worked to the owner, so they are removed from our queues.
  
  b) You should also reset contacts through a Smart Code so that you can accurately monitor contacts made after the account was skip-traced. You can reset the contacts when the account is assigned to the skip-tracing queues or when Smart Codes are applied after the accounts are worked.
  
  c) We suggest that you add a description code when the account has been worked by the skip tracers. You should check for this description code to stop accounts from repeatedly being sent for skip-tracing. This logic will need to be added to the Smart Codes used to send accounts to the skip-tracing User ID's.
  
  d) To make sure that all accounts move to the correct workers, you should make sure the Smart Codes used duplicate across linked accounts.

• Accuracy rates
  
  We will assume that the information we provided was good, until you contradict it. Some of the on-screen reporting will show a success or accuracy rate. After we process your information, our accuracy rate will show as 100%. E.g. You give us 10,000 accounts. We find 4,000 addresses and/or phones. We now start out with an accuracy rate of 100%. Why? Because we found 4,000 new phone numbers or addresses and we assume they are all good. But we know that some of those numbers or addresses will be bad. The home number we got may be a wrong party or disconnected number. This affects the accuracy rate. The option we have designed for you to tell us that a number or address we supplied was wrong is through the use of Smart Codes, one for number was bad and another for address was bad. The accuracy rate will change when you tell the system that the information supplied was not accurate. Within Intelec, you will set up two Smart Codes called "Phone information was bad" and "Address supplied was bad". You would train collectors to apply those Smart Codes when applicable. The address-related Smart Code could also be applied by your returned mail logic. These Smart Codes would automatically update your statistics and reflect in the success or accuracy rates related to the service.
  
  You will need to supply us with the 2 Smart Codes you will use with regard to reporting the "bad finds".

• If we found a new number it would be added to the account. Existing numbers are not replaced, but added to the notes. New phone numbers are duplicated on all the linked accounts.
  
  
• New addresses are replaced on accounts where there is a returned mail flag. The address is duplicated on linked accounts and notes are added for the old information.
  
  
• We add any notes that were entered by the tracer.
  
  
• We update the new skip tracing screen (F4 from account detail screen). We may provide a date of birth, age, 1st and 2nd degree relatives or associates (name, address and phone numbers).

THE TECHNICAL CHALLENGES

The major challenge we face is timing the movement of data between the different platforms based on what you have to do on your system (get accounts into the skip-tracing queues) and the time differences between the United States and the offshore operations. Based on our experience, the best time to perform these operations would be at the end of the offshore operation's working day. That is presently between 6 AM and 8 AM EST. Your nightly processing would have completed and we would have a procedure similar to the following -

• Operators would initiate jobs from the Quantrax system to transfer the work done on the Quantrax iSeries directly to your iSeries or to another hardware platform (E.g. a personal computer). That equipment would need to be on the internet since we would probably use FTP to move data between systems. Quantrax has installed firewalls and adequate security to provide a safe and reliable environment and we will work closely with our clients to maintain their security standards. Only two files need to be transferred to your system - the basic skip-tracing data and the detailed file, which is not being populated at this time.
  
  
• These two files (SCSKIP1S and SCSKIPDS) will be uploaded directly or through some intermediate system to a library call QXSBASEUP on your iSeries.
  
  
• A job would then run and update your queues based on the accounts worked (so they would not get downloaded again), upload the new skip-tracing data back to the new F4 screen and change addresses and phone numbers if required. Smart Codes would be applied and notes added if applicable.
  
  
• At the end of this process, we would look at the queues for accounts that were still in the skip-trace areas (new and older unworked accounts) and create the required files in a library called QXSBASE.
  
  
• Those files would then be FTP'ed to our system at Quantrax for work the next day. We expect these processes to be complete by 8 AM EST.
  
  
• During the next nightly process that is run, the Smart Codes applied would be used to update the "Skip-tracing statistics" we have described in this document. That nightly process would take into account the changes made to the worker codes based on the Smart Codes applied. Collectors would be working accounts the next day!
  
  

IMPLEMENTATION PLAN

Once you have talked to Quantrax about having your accounts worked, they will notify you when the programs have been set up on your system. When the programs are activated you will have access to the new skip-tracing screen (F4 from account details). This is a standard part of Version 8.1. You also have a little work to do to get the process started.


Here are the required steps.

• Make a decision about how you want to move accounts to the skip tracing queues. You can have complete control of the process and simply ask Quantrax to work all of the accounts in User ID QXS (for basic traces). As a second option, you can place accounts in the User ID QXS (through the use of Smart Codes and a change of worker code) and also ask Quantrax to automatically add new business to their work based on certain parameters (during the nightly processing).
  
  
• If you want Quantrax to processing all of the new business, Quantrax will use programs that will read the all the new accounts for the day. You will need to tell us what company codes should be considered. You can specify a minimum linked balance to be considered and a description code that will omit the account (if that code exists on any of the links). The description code could be applied to accounts that you may not want worked (e.g. low recovery clients) and to accounts that have been skip traced (You would add this description code when the account is returned to you after it has been worked). The mechanism for moving the accounts to the skip tracers is always to change the User ID of the worker to "QXS". You will therefore have to provide a Smart Code to apply to the new business that qualifies to be skip traced. You also need to give us the worker code that is associated with User ID "QXS". Note that if there are multiple linked accounts for the same debtor, we will only work the debtor and count the account once.
  
  Summary - To have Quantrax select accounts from within your new business, you will need to give us
  
  
  • the company codes to be considered,
  • a minimum linked balance to look for,
  • a description code to omit accounts,
  • a Smart Code to apply to move the account to the worker code associated with the User ID QXS and
  • the code in Intelec for the worker that is associated with the User ID QXS.
    
    
• You will need a Smart Code that anyone can use to have existing accounts skip traced (e.g. a collector). If you set up a Smart Code for new business, you can use the same Smart Code for this too. You will need to train your collectors on when they should use this Smart Code. You could duplicate that Smart Code on linked accounts and keep all of the linked accounts with the skip tracing User ID.
  
  
• You will need to set up Smart Code to be applied to the accounts worked by the skip tracers. You will need to set up codes for
  
  
  • New home phone number was found
  • New address was found
  • New phone and address were found (Optional)
  • No phone number was found
  • No address was found
  • No information was found
    
    
  • Home phone number supplied was bad (applied by collectors)
  • Address supplied was bad (applied by collectors)
    
    

  The above items are described in earlier sections. These sections have suggestions for how you set up these Smart Codes. If any of the advanced skip tracing services are utilized, additional Smart Codes can be used for POE information found, property information obtained and property information not obtained. Please contact your contact at Quantrax with the Smart Codes described above.

• Quantrax can start working your accounts as soon as you have decided how you want to get accounts into the "Skip tracing queues". An "upload" can not be done until you have set up the Smart Codes for the returned information.

• Depending on your volumes, Quantrax will download accounts from your queues, have them worked, and return them to you, usually 2 - 4 times a week.
  

For more information, please e-mail ranjan@quantrax.com