OPERATIONS POLICY AND PROCEDURE Company: Northwest Financial Services Section: Collections Effective Date: 1-1-09 Approved: Tracy Klamert Number: Subject: 0040 Process (legal request) Date Revised: 6-18-13 POLICY: It is the policy of Northwest Financial Services to attempt all methods of collections before requesting legal authorization from clients. Northwest will review accounts for verifiable collectability; through litigation. PROCEDURE: 1. The collector will review the accounts for payments, and the cooperation of the consumer to pay the account either with a payment arrangement or contact of other means for a resolution of the debt (s). 2. If all attempts made the collector (calls, letters), according to the process, the collector will review the account for legal. a. If no contact has been made there will be one last telephone call to attempt resolution b. If the last payment made has been within the last 30 days the collector will send letter 321 (auditing account) to the consumer 3. The collector will update the account with asset information. (windows 19, 220) a. Place of employment (verified within the last 30 days) b. Property (real estate) verification (verified within the last 30 days) c. Verify address with consumer, or mail within the last 30 days 4. If a consumer has been at their place of employment for at least 18 months, the account is eligible for a legal request. 5. If the balance of the debt is greater than $1500 Northwest will sue 2 parties if applicable. 6. If the balance of the debt is greater than $3000 Northwest will sue all parties that are responsible for the debts. 7. If a consumer owns property and the debt is greater than $1000 Northwest will transcribe the judgment in the county in which the property is owned. Northwest will not enforce the lien without prior approval of client. 8. The collector will update all applicable windows. 2, 4, 19, 21, 23,220, 395, 570 9. Management and/or the legal collectors will review each request before sending to the client for authorization. 10. When an account is placed in disposition 4000 (legal authorization request for client) letter 325 is sent to the consumer if no letter has been sent within the last 30 days, to contact Northwest Financial and is signed by management. 11. Upon completion of updated windows and attempts a request will be sent to the client for authorization and an itemized copy of the account, if not already on file.