Jefferson Capital Systems’ Commitment to Responsible Business Practices in the Accounts Receivable Industry

In an era where corporate responsibility goes beyond mere profit margins, Jefferson Capital Systems proudly leads the way in championing responsible business practices within the accounts receivable industry. Our commitment to responsible business practices is not just a pledge, but an integral part of our corporate identity, shaping every aspect of our operations. By documenting and remaining transparent on its responsible practices, Jefferson Capital recognizes that its stakeholders, including its employees, investors, and shareholders, are better able to manage risk. Doing so also enhances the generation of sustainable, long-term returns for the company and ultimately results in a positive influence on the consumer financial services industry in general.

At Jefferson Capital Systems, responsible business practices are never an afterthought—they are core principles that guide our decision-making processes. We recognize that our actions have a far-reaching impact on the environment, society, and governance structures. By placing responsible business practices at the forefront of our corporate strategy, we aim to create a positive ripple effect that extends beyond financial transactions, contributing to a more sustainable and equitable future. Driven largely by a culture that promotes listening and working with consumers seeking manageable solutions to resolve their financial obligations, as well as its emphasis on protecting the reputations of its clients who rely upon it to be the “safe pair of hands” for their charged off and insolvency accounts, many of the pillars and factors discussed in this article have been with the company since its beginnings.

A Foundation of Compliance with Responsible Business Practices

Jefferson Capital operates in a highly regulated industry, and the regulatory and compliance expectations of its clients and stakeholders are significant. As a result, the company has continuously made on-going investments in compliance practices, personnel, and the development of proprietary compliance technology to meet and exceed compliance expectations. When coupled with its commitment to form productive and transparent relationships with federal, state, and local regulators, the company’s compliance investments and program form a solid foundation for its commitment to responsible business practices.

The Pillars of Jefferson Capital’s Responsible Business Practices Commitment

Outlined below are some of Jefferson Capital’s significant efforts in each of the three pillars of its responsible business practices commitment.

Environmental

Jefferson Capital Systems is committed to minimizing its environmental footprint. We recognize the importance of responsible resource management and energy efficiency in mitigating the impact of our operations on the planet. From adopting eco-friendly office practices to investing in sustainable technologies, our environmental stewardship initiatives are aimed at fostering a greener, more sustainable future. Jefferson Capital Systems’ environmental pillar focuses on how the company uses energy and manages its environmental impact. Among other things, the company has undertaken the following environmental initiatives:

The company seeks to reduce its waste going to landfills

• It provides in-office recycling facilities for office waste at each of its operating locations, including separation of recyclable materials such as aluminum or glass containers
• It implemented a program to ensure all obsolete information technology hardware, including computer monitors and desktop or laptop computers, are safely recycled. In doing so, it first ensures all hardware and hard drives are wiped clean so that all data privacy and information security requirements are met

The company seeks to reduce its energy consumption within its office environments

• It implemented heating, ventilation, and air conditioning controls that closely manage energy consumption
• It encourages the strict management of HVAC needs on evenings and weekends
• It reviews its energy efficiency and natural resource usage for each of its facilities
• It utilizes energy efficient off-site servers where practicable

The company seeks to implement environmental initiatives that reduce climate impact

• Monitors and manages its paper use in an effort to reduce the corresponding impact upon natural resources and deliveries
  • Implemented technology to allow its employees to cancel print jobs in order to reduce wasted paper
  • Identified benefits to carbon emissions, air and water quality, deforestation, and waste management by doing so
• Among other things, adopted e-signature software for its associates, clients, vendors, and other third parties
  • Largely eliminated the need to print out hard copies of documents, sign them, and return them to counterparties, resulting in substantial energy and paper savings
  • Encourages its vendors and clients to accept and utilize electronic signatures for executed documents
• Moved to a largely electronic and digital platform wherever possible in each of its offices
  • Discourages the retention or filing of paper documents whenever possible
  • Decreased its use of office space for storing hard copies of documents
  • All employee lifecycle documents, including recruitment process, selection process, background checks, onboarding documents, paystubs, benefit and pension enrollment, and related forms have been migrated to electronic format to decrease the use and retention of paper documents and any related storage in office space
• Monitors and reports upon the use of photocopiers, including excess use
  • Uses a photocopy system that tracks the use of photocopiers for printing
  • Discourages the printing of hard copies of documents
  • Where hard copies of documents are required, by default the company uses two-sided copying and printing, and discourages the use of color copies
• Retrofitted its new headquarters in Sartell, MN with LED overhead lighting
  • This investment in LED lighting results in reduced energy consumption and longer bulb lifespan. It will also deliver significant environmental benefits by lowering greenhouse gas emissions and minimizing waste from frequent bulb replacements
• Implemented cloud-based digital communication strategies that allow it to interact with customers in a far more environmentally effective way by delivering communications via email and SMS, allowing for the customer to self-serve, and significantly reducing the production of ‘physical’ paper communications
• Jefferson Capital Systems considers each vendor’s environmental policy & procedures as part of its onboarding process and ongoing oversight process, ensuring that they remain aligned with the company’s own expectations

Social

The accounts receivable industry often intersects with individuals facing financial challenges. Jefferson Capital embraces the responsibility that comes with this role. Our social initiatives prioritize consumer well-being, emphasizing transparent and empathetic communication. We go beyond legal obligations to ensure that our debt collection practices fully consider the unique circumstances of each consumer, fostering a culture of fairness, understanding, and support. Jefferson Capital’s social pillar focuses on how it treats its people and culture, with a focus on the well-being of its associates, how it interfaces with account holders and other consumers, the social issues related to its corporate development and business development efforts, and its effects as a company upon the broader community. Among others, the company has undertaken the following social initiatives:

• Encouraging all associates, as well as all third parties with whom it places accounts, to always Do the Right Thing in all consumer interactions
  • This includes a focus on listening to consumers to develop a better understanding of their unique circumstances and respond appropriately
  • Requiring full compliance with both the spirit and the letter of the laws, rules, and regulations that govern consumer collections processes and servicing
  • Engaging a third-party vendor to listen to and monitor telephone communications with consumers to ensure that they are always treated with respect and dignity. This includes communications by internal and external account representatives
  • Employing an experienced and dedicated staff to monitor any and all claims or complaints of consumers concerning the handling of their accounts. The staff is empowered to take immediate action if required on any account where a question or concern may be raised
  • Utilizing a dedicated Consumer Advocacy Committee, made up of members of the legal, compliance, and customer service teams, to meet monthly and review and analyze all consumer claims and complaints

• Invests in companies that share its values
  • For corporate development opportunities, it conducts a thorough pre-acquisition review of both the target and its industry to ensure that the values match those of the company
    • Jefferson Capital has historically engaged in M&A activities with companies that share its core values and attributes
  • For new purchasing and servicing and other business development opportunities, it conducts an exhaustive review using industry-approved onboarding surveys to ensure the financial products and services comply with its values
    • This includes a marketplace review of the potential client’s BBB, CFPB, and other consumer complaint histories and responsiveness
    • The company generally avoids investments with clients that may have products or services that are not aligned with the company’s values
• Seeks to make a positive impact in the communities where it operates through charitable donations, entering into partnerships with underserved communities including the developmentally disabled, engaging in community outreach efforts, and encouraging employee volunteerism
• Works to protect consumers and others by voluntarily adopting industry best practices related to consumer privacy and data security
  • This includes seeking and maintaining ISO 27001 certification and PCI DSS Attestation of Compliance
  • Voluntarily adopted data privacy protections for consumers across its systems to provide the same protections to consumers, regardless of where they reside
• Jefferson Capital Systems’ commitment to social responsibility extends to our internal stakeholders—our employees. Jefferson Capital Systems fosters a workplace culture that values diversity, equality, and inclusion. We believe that a diverse workforce is not only a source of strength, but also a reflection of our commitment to creating an environment where every individual can thrive. Employee well-being is a top priority, and we invest in initiatives that promote a healthy work-life balance, personal growth, and an enjoyable workplace. The company seeks to promote the mental and physical health of its associates by promoting fitness and wellbeing
• Invested in the creation of a fitness center at its principal place of business and leased office space with these amenities at other locations for use by its associates
  • Physical fitness equipment is provided free of charge to associates for use before, during, and after their workdays
  • Recreational offerings and lounge areas are also provided, including television areas, to allow associates to manage their mental fitness
• Conducted employee satisfaction surveys and implemented various workplace enhancements
• Provides significant health insurance benefits and Paid Time Off for its associates
• Seeks to encourage a respectful and collegial culture through good employment practices
  • Operates a zero-tolerance regime to prevent discrimination and supports equal opportunity
  • Employs experienced on-site human resource personnel to allow for the immediate resolution of any questions or concerns by associates

• Encourages employee development and investment in human capital
  • Provides incentives and bonuses tailored to certain activities and offers continuing learning for specific areas and disciplines
  • Seeks to promote from within when possible, in order to allow associates to develop their careers

Jefferson Capital Systems on Governance

Governance is the backbone of ethical business practices, and Jefferson Capital stands firm in its commitment to governance excellence. We operate with the highest levels of transparency, accountability, and integrity. Our governance structures ensure that our decision-making processes align with ethical standards, legal requirements, and the best interests of our stakeholders. Jefferson Capital’s governance pillar focuses on its internal system of controls, practices, and procedures, how it avoids regulatory or other violations, and how it enforces transparency and industry best practices in its communications with regulators. Through its Board of Directors, executive leadership, audit practices, and similar policies, the company has undertaken the following governance initiatives:

• Adopted a Board Compliance Committee dedicated solely to the company’s compliance practices, led by an independent director. It includes a direct line of report to the company’s Chief Compliance Officer, and meets quarterly to provide on-going reports to the full Board of Directors of all compliance and regulatory matters
• Adopted both a Code of Ethics Policy and a Collector Code of Ethics which applies to all associates
  • It requires compliance with all applicable laws, rules, and regulations
  • It requires that all company financial records be prepared and provided in compliance with Generally Accepted Accounting Principles
  • It requires all job duties to be conducted in accordance with sound moral and ethical standards
  • It places a duty of loyalty of all associates to the company and prohibits associates from taking any personal advantage of an opportunity or property that belongs to the company
  • It restricts the acceptance of gifts and incentives
  • It prohibits any conflicts of interest
  • It prohibits improper influence on the conduct of audits or completion of due diligence
  • It restricts the use of company funds or assets for political activities
  • It requires full compliance with all safety and environmental laws, rules, and regulations
  • It requires compliance with any and all antitrust laws
  • It requires reporting of non-compliance and allows for anonymous reporting
• Established a culture, corporate environment, and a Board of Directors environment that promotes high ethical standards and compliance with all applicable laws and industry and community standards
• Enacted policies related to anti-corruption, anti-competition, anti-bribery, and anti-money laundering practices
• Conducts an annual risk assessment to ensure all financial and operational risks are routinely considered and appropriate resources are dedicated to areas with greater risk to mitigate any adverse findings
• Adopted policies, procedures, and practices to protect the control of and access to confidential information, including the control of and disclosure of confidential information to persons within the company who have no need to know, as well as to anyone outside of the company

Jefferson Capital Systems stands at the forefront of a transformative movement within the accounts receivable industry—a movement that places responsible business practices at its core. Our commitment is not just a statement; it’s a call to action, inspiring positive change and contributing to a future where businesses thrive, communities prosper, and the environment flourishes. As pioneers of responsible business practices within our industry, we invite others to join us on this journey towards a more sustainable, socially responsible, and ethically grounded future.