RETURNED CHECK PROGRAM

In order to answer many requests by customers, Diversified Credit Service, Inc. has expanded our program to better assist customers in the handling of returned checks. The program is based upon a consistent follow up with the debtor customer at a low flat fee initially, culminating in a contingency fee program. The following would be a sample procedure:  

--It is recommended that wherever possible, checks should be sent to Diversified Credit on a batched basis of no more than one batch per week. This minimizes the number of reports the customer must monitor and improves the overall effectiveness of the program.  

--Customer will forward on a batch basis, copies of the original checks to Diversified Credit Service, POB 181, Canal Winchester, OH 43110.  

--Upon receipt, Diversified Credit will initiate a series of letters, consisting of up to two individually prepared demand letters for each account. This will cover a period of approximately 30 to 45 days. After each letter, a report will be sent to our customer listing in alphabetical order those accounts and the balances owed which will be used by our customer as a control document. For the letter writing program, a flat rate of $8.00 per account will be charged at the time the letter series is initiated.  

--After the initial 45-day period, checks that have not been collected as a result of the letter writing program, will be handled by Diversified Credit through a contingency collection program based upon phone contact. This will be similar to our standard invoice collection program and the following contingency rates will apply:  

40% on checks of less than $100

30% on checks of between $100 to $500 25% on any checks over $500  

DIVERSIFIED CREDIT SERVICE, INC.