In the industrial machinery trade between the USA and UAE, managing non-payment is a critical aspect that companies need to address effectively. This article focuses on a Recovery System for Company Funds and provides recommendations for handling non-payment cases. Let’s delve into the key takeaways from each section:
Key Takeaways
- Implement a 3-phase Recovery System for efficient fund recovery in non-payment cases.
- Consider closure of the case if recovery is unlikely after thorough investigation of debtor’s assets.
- Evaluate the option of litigation carefully, considering the upfront legal costs involved.
- Understand the rates for collection services based on the age and amount of the accounts submitted.
- Engage with affiliated attorneys for legal actions and follow the recommended steps for debt recovery.
Recovery System for Company Funds
Phase One
Within the first 24 hours of initiating Phase One, we spring into action. Our team dispatches the initial letter to the debtor and undertakes comprehensive skip-tracing to secure the most accurate financial and contact information. Daily attempts to reach a resolution commence, utilizing every tool at our disposal: phone calls, emails, text messages, and faxes.
We’re relentless in our pursuit, with our collector making daily contact attempts for the first 30 to 60 days. If these efforts don’t yield results, we don’t hesitate to escalate to Phase Two, involving our network of affiliated attorneys.
Our approach is systematic and persistent:
- First letter sent via US Mail
- Skip-tracing and investigation
- Persistent contact attempts
Persistence is key in Phase One. We leave no stone unturned, ensuring that every possible avenue to resolve the matter is explored before moving forward.
Phase Two
As we escalate our efforts in Phase Two, the case transitions to a local attorney within our network. Here’s what unfolds:
- The attorney drafts a series of firm letters, demanding payment on your behalf.
- Concurrently, the attorney’s team begins persistent attempts to contact the debtor through calls.
Despite these intensified actions, some debt puzzles remain unsolved. If the debtor remains unresponsive, we prepare a detailed report outlining the situation and our suggested course of action. This report is pivotal, as it guides us to the critical junction: to either proceed with litigation or consider the closure of the case.
Our commitment is to provide clear, actionable advice, ensuring you’re equipped to make informed decisions about your next steps.
Our fee structure is straightforward and contingent on recovery, aligning our interests with yours. Below is a summary of our rates:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, our goal is to navigate through the complexities of non-payment cases, ensuring your financial interests are protected and pursued with the utmost diligence.
Phase Three
Upon reaching Phase Three, we face a critical juncture. Our team conducts a meticulous review of the debtor’s assets and the surrounding facts of the case. This assessment leads to one of two paths:
- Closure of the case, if recovery seems unlikely. In this scenario, you owe us nothing, a testament to our commitment to risk-free service.
- Advancement to litigation, should the potential for recovery justify legal action. Here, you’re at a crossroads:
- Withdraw the claim at no cost, or
- Proceed with litigation, bearing the initial legal costs.
Should you choose litigation, upfront costs are necessary. These typically range from $600 to $700, depending on jurisdiction. We ensure transparency in all proceedings, with no hidden fees.
Our fee structure is straightforward:
- For 1-9 claims, rates vary from 30% to 50% of the amount collected, based on the age and size of the account.
- For 10 or more claims, the rates are slightly reduced.
We strive to provide competitive rates, ensuring that your decision to litigate is based on clear financial understanding. Our ultimate goal is to secure your funds with minimal risk to your company.
Recommendations for Non-Payment Cases
Closure of the Case
When we face the stark reality that recovery is unlikely, we take the decisive step to recommend closure of the case. This is not a decision we take lightly, but it is sometimes a necessary conclusion to protect your interests. At this juncture, you owe us nothing—our commitment to a no-recovery, no-fee policy stands firm.
We must weigh the pros and cons, considering the feasibility of recovery against the costs and efforts involved. Closure is a strategic retreat, allowing us to conserve resources for more winnable battles.
Here’s a quick rundown of our fee structure, which reflects our commitment to aligning our success with your recovery efforts:
- For 1-9 claims, rates vary based on the age and amount of the account.
- For 10 or more claims, we offer reduced rates to acknowledge the volume of your business.
Our transparent fee schedule ensures that you are only charged for the amount collected, incentivizing us to prioritize the most promising cases.
Litigation Decision
When we face non-payment, the decision to litigate is pivotal. We must weigh the potential for recovery against the costs and risks of legal action. If we opt out, we can still engage in standard collection activities, such as calls and emails, at no extra cost.
Should we choose to litigate, upfront legal costs are inevitable. These typically range from $600 to $700, depending on the debtor’s jurisdiction. Here’s a breakdown of the costs we might expect:
| Legal Action | Cost Range |
|---|---|
| Court Costs | $300 – $400 |
| Filing Fees | $300 – $350 |
Once we commit to litigation, our affiliated attorney will pursue all monies owed, including filing costs. If unsuccessful, the case closes, and we owe nothing further.
Our decision must be informed by a clear understanding of the debtor’s assets and the likelihood of recovery. It’s a strategic choice, with significant financial implications. We must proceed with caution and a solid grasp of the facts.
Legal Action Costs
When we decide to take legal action, costs are a critical factor. We must be prudent in assessing whether the potential recovery justifies the expenses. Upfront legal costs, including court and filing fees, typically range from $600 to $700, depending on the debtor’s jurisdiction.
After initiating legal proceedings, if we fail to collect, the case is closed, and you owe nothing further to our firm or our affiliated attorney.
Our fee structure is straightforward and competitive, reflecting the complexity and age of the claims:
- For 1-9 claims, rates vary from 30% to 50% of the amount collected.
- For 10 or more claims, rates decrease, ranging from 27% to 50%.
Here’s a quick reference:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Weighing the costs against the likelihood of recovery is essential. We’re here to guide you through this decision, ensuring that your actions are both strategic and cost-effective.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases: Phase One involves sending letters to debtors, skip-tracing, and contacting them for resolution. Phase Two includes forwarding the case to an affiliated attorney for legal action. Phase Three offers recommendations for closure of the case or proceeding with litigation.
What happens if the possibility of recovery is not likely in Phase Three?
If the possibility of recovery is not likely in Phase Three, the case may be recommended for closure. In this scenario, there will be no fees owed to the firm or affiliated attorney. Alternatively, litigation may be recommended, and upfront legal costs will be required if the decision is made to proceed with legal action.
What are the upfront legal costs for litigation in Phase Three?
The upfront legal costs for litigation in Phase Three typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. These costs include court fees, filing fees, and other necessary expenses for filing a lawsuit on behalf of the creditor.
What are the collection rates for DCI based on the number of claims submitted?
DCI offers competitive collection rates based on the number of claims submitted within the first week of placing the first account. Rates vary for accounts under 1 year in age, accounts over 1 year in age, accounts under $1000.00, and accounts placed with an attorney.
What actions are taken in Phase One of the Recovery System for Company Funds?
Phase One of the Recovery System involves sending letters to debtors, skip-tracing, investigating to obtain financial and contact information, and contacting debtors for resolution. Daily attempts are made to contact debtors for the first 30 to 60 days.
What happens if all attempts to resolve the account fail in Phase Two of the Recovery System?
If all attempts to resolve the account fail in Phase Two, the case is forwarded to an affiliated attorney for legal action. The attorney will draft letters demanding payment and attempt to contact the debtor, with the option for the creditor to proceed with the next steps based on the attorney’s recommendation.
