ARC Revenue Recovery Services

1. ARC Revenue Recovery Services Suzanne Kraus Sr. Manager Receivables Management, ARC Darrel Hewson Vice President Business Development, RMS Don Wickersham Sr. Vice President, Sales, RMS

2. What is Revenue Recovery Service? • End-to-end resolution management of: • All Debit Memos • All Credit Card Chargebacks • Unreported Sales • Other receivables • Scalable, menu-driven suite of products • ARC Memo Manager • ARC Ticket Resolution Service • ARC Memo Resolution Service • Third Party Collections and Legal Collections

6. TRS vs. MRS • TRS • Unreported Sales • Targets 5 types of credit card chargebacks • Expired Credit Card • Invalid Card # • Invalid / No Authorization Approval Code • Unauthorized Charge • Fraudulent Charge • Flown & Refunded Tickets • Outbound calls made in the name of ARC. • Next step if unresolved at day 40: Escalation to ARC Compliance team.

8. Memo Resolution Service vs. Ticket Resolution Service (con’t) • MRS • Debit memos not included in TRS, for example: • Commissions • Fees • Taxes • Chargeback types not covered by TRS • Outbound calls made in the name of Carrier. • Carrier and ARC must construct/maintain an “MRS Playbook” • Next step if unresolved at day 90: Escalation to Third Party Collections Process.

10. Third Party Collections • Items still unresolved at 90 days in Memo Resolution Service • Other carrier receivables • Cargo • Direct Sales • Unpaid Employee Advance • Business to Business • Business to Consumer • Calls made under the name of RMS • Next step if all standard efforts to resolve have been exhausted: We will make recommendation to close as uncollectible or to escalate to Legal Collections using our attorney network.

11. By the Numbers…

12. RRS at a Glance

13. RRS Year-Over-Year • AMM upgrade, MM3 released • TRS participation is close to 70 Carrier participants. Program is stable, producing consistent results. • Memo Resolution Service launched and being well received by 5 participating carriers. Additional Carriers in discussions with us. • Doubled the number of Carriers participating in Third Party Collection Service, several others now in discussion with BDA or reviewing contracts. • Added highly skilled Data Analyst, Administrator and Collectors to the ARC team. Sr. Management has >25 years receivables management experience. • Improvements to our billing and reporting are underway.

14. Stability • The largest and longest running commercial ARM firm in the United States • Top 10 Worldwide • $500 million revenues • 13,000 employees; 38 Centers • U.S., Canada, UK, Philippines, India, Mexico, and China • In 2001 a senior management team purchased the business from D&B • In 2010 the senior management team merged with iQor to extend the depth and breadth of our capabilities

15. Scope of Services Accounts Receivable Business Process Outsourcing Management of clients accounts in their name “ARC” for TRS, Carrier name for MRS Cash Application Clearing On Account Cash and Suspension items Chargeback Services Recovering and avoiding chargebacks in favor of our clients Bankruptcy Recovery Managing the recovery process and defense against preference payments Third Party Collections Collection services provided under the RMS name

16. Flexibility RMS has a long track record of working with a diversified mix of global/local industry leaders Working with multiple billing and ERP platforms Customizing collection processes to meet: Client Requirements Regulatory Requirements Effective Results Brand name customers that are leaders in their industries 200+ major accounts receivable BPO customers, 20,000+ collections customers – highest in the industry Long-term relationships Majority of our large clients have been with RMS for 10+ years

17. Some Industry Leaders Financial Services Technology & Communication Travel & Transportation

18. Licensing and Security PCI Compliant Licensing • RMS is licensed and/or bonded to do business in every city, state, province and international location as required by law • We are a member in good standing of the Commercial Collection Agency Association (CCAA) of the Commercial Law League of America (CLLA) RMS makes every effort to conduct business in a manner that will minimize any negative relations between our client and their customers • PCI Compliant (Payment Card Industry) • Visa • MasterCard • SAS 70-Process • SAS 70-Technology (through AIGT) • ISO/IEC 27001:2005 (through AIGT) Security

19. Profile of MRS Team Roger Cressman - VP Operations RMS management team for over 13 years. Prior experience with D&B in management and training Tanya Haydt - Team Leader Active with RMS for over 10 years, assuming role as Team Lead for last 3 years ARC Associates - average RMS tenure is over 6 years

20. Third Party CollectionsExperience and Continuity Marisa Thomas heads up the Customer Care function for ARC’s portfolio 25 yrs with RMS with 15 yrs of customer management experience Average tenure of Customer Care staff is 8+ yrs Beth Coppola, Collection Manager 25 yrs of industry experience with 15 yrs managing RMS collections Collectors average more than 15 yrs in the collection industry

21. Time is of the Essence The chance you will be able to collect on a debt decreases dramatically over time. The sales required to offset these write-offs can be staggering! Length of delinquency in months since due date.Source: Commercial Agency Section,Commercial Law League of America

22. Collection Treatment Strategy For Claims < $500 Contact Treatment Day 1 Letter Demand Day 11 Dialer Campaign Day 13 Dialer Attempt Multiple attempts to make contact Negotiation Treatment For Claims > $500 Contact Treatment Day 1 Telephone Demand Day 2-5 Multiple contacts at different times of the day until contact is made Day 6-30 Calls/letter demands continue until contact is made. Negotiation Treatment Identify reason for non-payment Overcome objections Instruct agents on how to make payments via IAR Establish Payment Plans Ask for Postdates Communicate Consequences Escalation Treatment Final Collector Demand Determine if Carrier is interested in pursuing Attorney Collections

23. Attorney Collections • Attorney Collections in conjunction with: • Slater, Tenaglia, Fritz & Hunt Attorney Firm • Sole focus is collections • In business for 30+ yrs • Commercial and consumer expertise • Advanced technology capabilities with online access to RMS provides real-time on-line Web access for account status • Service Offerings: • Non-Litigation Collections, collect without utilizing threat of litigation potential using attorney written demands and phone contact primarily for claims between $300 and $1,500 • Pre-Litigation, collect without court action through: • letter and telephone demands • with potential to utilize litigation, if necessary, primarily for claims over $1,500

24. Forward Looking Goals • Working collaboratively on opportunities to automate data management • Develop additional and improved reporting mechanisms to provide you more feedback and detail • We will be moving to consolidated billing that will include all RRS services in one invoice per carrier • Further develop our Legal Collections processes

25. Detailed Activity Reporting

26. Informative Reporting

27. Performance Reporting

28. YTD Collections Summary