Collection Policies and Procedures: Telephone Calls to Debtors and Third Parties

A. General

Calls to a person other than the Debtor are generally prohibited unless to obtain location information or to leave a message for the Debtor to return the call. In those cases in which a collection associate is put on notice that the Debtor's spouse or some other individual identified by the Debtor is authorized to speak with LGW about the account, no discussions or other communication is to take place with said individual until written authorization to engage in such contact is received from the Debtor. Written authorization is not required with respect to an individual identified or reasonably believed to be the Debtor's attorney. In all instances in which a call back request is made or a call back message is left, LGW's toll free 800 number shall be provided if the return call will result in long distance charges to the debtor.

B. Identification of Caller

An LGW collection associate, when making a call to a person other than the Debtor, including those referred to in Paragraph C.3 below, should identify him/herself by personal name rather than by mentioning LGW. If the third party requests further identification from the caller, the caller shall indicate that they are calling from "LGW," but there should be no indication that the call is being made from a collection department, or that the call relates to a debt.

C. Place of Employment

1. Calls to Debtor at Place of Employment

When calling a Debtor at his/her place of employment, the collection associate must ask to speak to the Debtor only and, if the Debtor is not present, a message for a call back may be left. In all instances involving the initial call to or received from the debtor at the debtor's place of employment, the debtor shall immediately be mailed the appropriate notice advising of his/her right to request that calls not be made to him/her at the place of employment. Additional copies of such notice shall be provided to the debtor during the course of LGW's handling of the account as required by the regulations of the Massachusetts Attorney General.

2. Third Party Contact at Debtor's Place of Employment

Under no circumstances may a collection associate call or discuss any information concerning either the existence of a debt or the indebtedness of a Debtor with an employee or any other person at the debtor's place of employment, including a supervisor or co-worker of the debtor.

3. Location Information

A collection associate may request location information from a third party at the place of employment if unable to obtain the information from other sources. Place of employment inquiry should be a last resort for location information. Such calls must be limited to a request for location information only, and should be made only once unless there is reason to believe that the employer or other third party has obtained new information or the information provided as incomplete or incorrect.

4. Debtor Request to Call Place of Employment

A Debtor may ask to be called at his or her place of employment, in which case the collection associate may continue to call the debtor there until requested or instructed not to do so.

5. Request Not to Call Place of Employment

If the Debtor or person in authority at the place of employment (i.e. a Supervisor, Personnel Representative, Manager) requests that LGW no longer call the Debtor at the place of employment or otherwise indicates that personal calls are not permitted by the employer, no further calls may be made to the Debtor at the place of employment. In instances where there are no other means of contacting the Debtor (i.e. no home telephone and mail is being returned, etc.), the Managing Attorney shall be advised of the situation and shall determine the next action to be undertaken.

Calls to the place of employment are the exception to normal procedure, and should be made only under limited circumstances. Calls to the place of employment should be made only after reasonable attempts to contact the Debtor at his/her residence have failed. At least two attempts to contact the Debtor at his/her residence should be made before calling his/her place of employment. If the Debtor indicates he/she does not wish to be contacted at the place of employment, all such calls must cease.

D. Place of Residence

1. Permissible Subjects

Under no circumstances may a collection associate discuss any information concerning the indebtedness of a Debtor with any other person answering the telephone at the place of residence of the Debtor except with the Debtor's express permission given directly by the Debtor to the collection associate. Otherwise, it is only permissible to obtain location information or to leave a message for a return call with such third parties.

2. Spouse, Parents and Other Household Members

The indebtedness of a Debtor should never be discussed with any relative or other household member of the Debtor, including a spouse, or parent of a Debtor without prior written consent from the Debtor. No attempt shall be made to request or compel payment from the spouse, parents, other relatives, or household members of a Debtor under any circumstances.

3. Answering Devices and Voicemail

In the event a message is left on an answering device (including a business Voicemail system) requesting a call-back from the Debtor, only the collection associate's name, the firm's name and the firm's telephone number is to be left on the tape recording. There should be no indication that the call is in reference to a debt or delinquent account although the message should indicate that the call is regarding a personal business matter.

4. Communications with Hospitalized or Ill Debtors

A collection associate should never knowingly call a Debtor when the Debtor is hospitalized or confined in any other health institution. Similarly, no call may be made to a Debtor after a determination has been made that the Debtor is seriously ill unless calls have been specifically requested by the Debtor. Reasonable inquiry may be made regarding the establishment of a guardianship or conservator while the Debtor is confined.

E. Other Third Party Contacts

1. Authorized Agents

Whenever possible, LGW prefers to deal only with the Debtor or, if the Debtor is represented by counsel, with the Debtor's attorney. However, when a Debtor states that another person is authorized to act as an agent for the Debtor, and upon receipt of written authorization received from the Debtor, it is permissible to discuss the Debtor's account, including the establishment of payment arrangements with the person so designated. Such authorization shall be immediately noted in the firm's computer collection records for the account(s) in question and a copy of the written authorization scanned for later retrieval as necessary.

2. Debtor's Attorney

Once LGW has been informed that a Debtor is represented by an attorney, such representation should be verified, all further communication must be with the attorney and there shall be no further direct contact with the Debtor. All attorney calls received by LGW should be directed to LGW's attorneys for handling. Calls made to a Debtor's attorneys should be made only by LGW's attorneys. If Debtor's attorney does not respond to mailings or telephone calls from LGW within ten (10) business days, with the permission of the Managing Attorney, a special letter specifically informing the Debtor that his/her attorney does not respond to calls and requesting the Debtor request his/her attorney to contact LGW, may be sent. A copy of any such letter shall also be sent to the Debtor's attorney.

3. Other Creditors

Other creditors of the Debtor may be contacted to verify location information only. However, any information obtained from such creditors relating thereto must not be repeated to or shared with any other person and, during the course of such contact, the existence of a debt may not be disclosed.

4. Landlords, Neighbors, Friend, Relative Contact

Under no circumstances may a collection associate disclose the existence of an account or discuss any information concerning the indebtedness of a Debtor with landlords, neighbors, friends, relatives or fellow tenants. The purpose of such calls shall be limited to the verification of location information only.

5. Payoff Requests

Calls received from Closing Attorneys (attorneys who represent a new lender but do not represent the debtor), Mortgage Brokers, Real Estate Agents and others seeking information about, including but not limited to, the balance due on an account, or who seek to discuss a possible compromise of the balance due on the account, shall be referred to one of LGW's attorney. Such an account may not be discussed nor shall information be released until the debtor provides LGW with his/her written authorization to release such information.

6. Call Back Messages

Call back messages may be left with persons at the Debtor's place of residence or at the place of employment in accordance with section II.C and II.D above. Call back messages are not to be left with any non-relative third party, such as listed in II.E.4 above. Only discussions relating to the location of the Debtor may be conducted with such individuals. Reasonable time should be permitted for the Debtor to return the call before another call attempt is made. In no event shall more than two (2) call back messages be left for a Debtor in any seven (7) day period.