THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, January 31, 1996 TAG: 9601300130
SECTION: VIRGINIA BEACH BEACON PAGE: 04 EDITION: FINAL
COLUMN: Earning a living in Virginia Beach
SOURCE: BY LORI A. DENNEY, STAFF WRITER
LENGTH: Medium: 89 lines
If there's one phrase that Darryl DeLorenzo hates to hear it's ``the check's in the mail.''
As the owner of a collection company, DeLorenzo hears the words almost daily.
And, ``in most cases the check's not in the mail,'' said DeLorenzo, 29.
He opened TNT Recovery Services almost two years ago. As the sole employee of his one-man operation, he collects bad debts, or bad checks, written to other businesses.
He has some 38 clients, from hair salons to pet supply stores, who send their bad checks to him for collection.
Recently he was able to cajole a man into paying off a $10,000 debt to a dance studio.
DeLorenzo earns money two ways; when a debtor pays, he gets a percentage of the payment as well as a $25 return-check charge.
The older the bad check the more money DeLorenzo makes. He takes 15 percent of the total amount for a check that's up to three months old, 20 percent up to six months and 25 percent up to 12 months.
``If we collect, we get the customer money. If we don't they're still out just the amount of the (bad) check,'' said DeLorenzo, who works out of his Kempsville home.
When he collected checks for a finance company, he collected $259,000 worth of bad checks in one year, he said.
He attributes his money collecting success to what he calls his non-pushy and understanding phone manner.
``When I make a phone call I ask them what can I do to help resolve this matter?'' said DeLorenzo. ``I like to hear them out first. How can you demand money when you don't know their situation? Some people do make legitimate mistakes in their checkbooks.''
Still, DeLorenzo's heard it all when it comes to situations - unemployment, divorce, hospital stays, closed accounts, etc.
He gives a debtor three chances to right his or her wrongs, sometimes over a year's time, through a series of letters.
If a payment agreement can't be reached or the debtor is uncooperative, DeLorenzo begins legal proceedings, which can include an attachment of unfulfilled debt to a credit report, wage garnishment or a civil warrant.
He works closely with a nearby lawyer who handles his legal proceedings and collects payments.
DeLorenzo also has a post office box where payments can be mailed. And, believe it or not, he does accept checks.
``Over the past year and a half I've not had one bad check for debt repayment,'' said DeLorenzo, who follows the Fair Debt Collection Practices Act. That means no calling before 8 a.m. or after 9 p.m., and he doesn't call people at work if they ask him not to.
At any given time, he is working on getting a payment for 100 or more bad checks.
Having been in the collections business for 10 years, DeLorenzo said he's ready to branch out by be ginning collections on overdue child support.
It's a topic that hits close to home for DeLorenzo. His father deserted his family of five when he was a small child, leaving his mother to support the household.
``That's why I'm determined to do this,'' said DeLorenzo, who is still deciding on his fee for child support collections. ``The gratification in this is going to be great. To be able to turn around and hand over a much-needed check.''
DeLorenzo began collections when he was working at a rental store in upstate New York.
He liked the work and began collecting bad debts for a finance company. After that, he became the regional manager for collections for a major jewelry company and transferred to Hampton Roads four years ago.
DeLorenzo said he got tired of his hourly wage and decided to start his own collections company.
``It's rewarding to help people take care of their bills,'' he said. ``Although, it's amazing how people think of collectors as bad people.'' MEMO: TNT Recovery Services can be reached at 467-2146.
ILLUSTRATION: Staff photos by STEVE EARLEY
Darryl DeLorenzo opened TNT Recovery Services almost two years ago.
In his one-man collection operation, he collects bad debts, or bad
checks, written to other businesses. Delorenzo gives this sign out
to his business customers.
by CNB