Transcript Change Ahead - Center for Consumer Recovery

Oklahoma families are suffering from the debt
overhang left over from the Great Recession
 472,600 are being pursued by debt collectors
 89,400 are unemployed
 731,500 live in poverty – including 278,000 children
 192,500 were subject to monetary civil suits in 2013
 45,900 will lose unemployment benefits by year end
 10,600 filed bankruptcy in 2013
 34% are unbanked
 Oklahoma’s divorce rate consistently one of highest
 Oklahoma ranks #1 for prescription drug abuse – in top 10 for overdose
deaths per capita
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The Center for Consumer Recovery is
a self-sustaining/self-funded 501(c)3
designed specifically to boost the economy
of Oklahoma and improve the lives of its
citizens.
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 Accepts donation of delinquent loans from Oklahoma banks in
exchange for a tax deduction (tax credit) of equal fair market value.
 Offers delinquent loan customers a range of free services to get the
customer bank on his/her feet. The free services are:
 Debt negotiation with other creditors
 Job search and placement services
 Identification of public and private social services
 Financial literacy and financial skills training
 After customer has received the free services and back on their feet,
CCR will collect the donated delinquent debt.
 Revenue from collections of donated loans will go to CCR to fund the
cost of operations.
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Donates delinquent Consumer Loan
X$ (FMV)
Bank
With
Delinquent Loans
CCR
501(c)3
Bank receives Tax
Deduction (Credit)
X$
CCR
Contacts
Consumer
CCR
Provides
service request
CCR
collects delinquent
debt, after consumer
is back on their feet.
Offers to defer collections of
delinquent loan until
consumer is back on feet.
Offers a range of FREE
services
•Debt Negotiations
•Employment Assistance
•Social Services

Reduce bankruptcy – save hundreds of millions in losses to
banking/retail institutions

Reduce unemployment

Pump $315 million into Oklahoma economy

Reduce SNAP payments

Reduce state expense to enforce/collect child support

Increase tax base (taxable wages, increased home ownership

Reduce debt collector lawsuits – unclog court system

Reduce foreclosures

Reduce substance abuse, financial based crimes

Raise FICO scores – increase access to cheaper credit – boost to
retail sales

Create 4,000 direct jobs and tens of thousands of indirect jobs
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 Reduce the divorce rate
 Reduce spousal/child abuse
 Reduce substance abuse
 Reduce high school drop-out rate
 Reduce teen pregnancies
 Reduce financial based crimes, theft, burglary, shop lifting
 Reduce displaced (foreclosed) families – homelessness
 Reduce dependency on predatory lending
 Increase financial literacy and budgeting skills
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CFS2 has spent two years and over $2 million creating
and implementing a unique business model that delivers
profound positive results on families and their children.
This model has proven the positive social value when
debt collectors focus first on helping the family get back
on their feet by helping the family resolve their other
debts, find employment and receive social services.
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Total number of services provided.
Career Services Job Submissions
Career Services Interviews
Social Services
Negotiation Services
Total Services
-
7,142
970
5,193
984
14,289
Total number of customers who received a service (just number of people – not services).
Career Services
408
Social Services
1,605
Negotiation Services
465
Total Services
2,478
Number of states within which customers receiving services resided.
Career Services
42
Social Services
52 (includes PR, VI)
Negotiation Services
48
Total number of agencies, groups, and companies we have in our database that provides the actual
services for our customers.
Career Services
3,647
Social Services
7,047
Negotiation Services
3,282
Total Agencies
13,976
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Bill Bartmann
Bill is the founder of CCR. His motivation was to create a self-sustaining philanthropy that would
provide a holistic rather than piece-meal solution to the war on poverty. Banks would
donate delinquent consumer debt. CCR would work with the consumer debtors to achieve
financial recovery. CCR would then ask each consumer to make affordable payments on
their debt.
Revenue in excess of costs would be used to fund the other philanthropic activities of CCR:
Conducting and publishing research to expose the predatory practices of the debt collection
industry.
Bill has been a successful businessman. He was twice named National Entrepreneur of the Year by
Ernst & Young and the Kauffmann Foundation. Harvard Business School conducted a case
study on his business model and he was awarded the American Academy of Achievement’s
Golden Plate Award, an award previously received by five U.S. Presidents and three Nobel
Prize winners.
Bill is an expert in the consumer debt purchasing/collection business. He pioneered radical
business focused on consumer outreach rather than threats and intimidation and a “nolitigation” philosophy. His first company, CFS, with 3,900 Oklahoma employee was
acknowledged as “the largest, best trained and most profitable debt collection company in
the world”. At the same time, his company gained a wide reputation as an “employer of
choice”, offering employees a rich combination of benefits and opportunities.
Bill has proposed legislation on both the national and state level that protects consumers from
abusive debt collectors.
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