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Daily Digest – April 13. Ed. Dept. Cancels Student Loan Protections; Detroit Conducts Collection Letter Experiment

The Daily Digest is sponsored by T-Max Dialer & Communications, the leader in hosted inbound and outbound dialer technology.

EDUCATION DEPT. CANCELS OBAMA ADMINISTRATION STUDENT LOAN PROTECTIONS

  • Betsy DeVos, the Secretary of Education, announced yesterday that the department is undoing a pair of initiatives that were started last year by the Obama administration, and as a result, collectors of student loans will no longer have to work harder with student loan borrowers to manage or discharge their debts. Without providing any specifics, DeVos said in her memo that that previous plan was “inconsistent and full of shortcomings.” If this is a sign of what’s to come under the Trump administration, there are likely to be a lot of happy collection agency executives.

DETROIT CONDUCTS EXPERIMENT IN LETTER-WRITING EFFECTIVENESS

  • Many collection agencies are always looking for the language in a collection letter that will work best. If only they had the same power as governments do. The city of Detroit was dealing with a massive tax problem — nearly half of the residents were not paying local income tax. So the city started a letter campaign. There were three types of letters. One appealed to residents’ civic pride, one made it clear that the city had detailed information (how much the residents made), and one threatened a fine and jail time. Guess which one worked? More than 10% of residents responded to the threatening letter, a rate that was three times higher than the control letters.

FLORIDA TO GET $1.5B TO OFFSET UNCOMPENSATED CARE COSTS

  • The federal government is going to give the state of Florida $1.5 billion to support healthcare providers that offer uncompensated care services to residents. The $1.5 billion is about $1 billion more than what was originally earmarked for the state under the Obama administration.

WORTH NOTING: Has Burger King crossed the line? It is rolling out a TV commercial that is intended to trigger Google Home assistants or android devices. Google quickly shut the trick down … JPMorgan posted strong earnings results for the first quarter, bringing in nearly $26 billion in revenue … April 15 is a Saturday this year, so income taxes should be due on Monday, April 17. Here is why they are not due to Tuesday … The city of St. Louis is suing the NFL for moving the Rams to Los Angeles … A tiny building in Wilmington, Del. is home to more than 300,000 businesses … The top-paying company in America … Why public apologies are hard.

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The Daily Digest is sponsored by T-Max Dialer & Communications, the leader in hosted inbound and outbound dialer technology.

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