The recovery of company funds in the USA-UAE oil and gas trade requires a strategic approach to navigate the complexities of cross-border transactions and legal systems. With a three-phase recovery system in place, companies can take proactive steps to recover payments and resolve outstanding debts. This article explores the key strategies and recommendations for successfully recovering payments in this trade environment.
Key Takeaways
- Phase One involves initial recovery steps such as sending letters to debtors, skip-tracing, and contacting debtors for resolution.
- Phase Two includes legal action and attorney involvement, with the drafting of demand letters and direct contact with debtors.
- Phase Three offers two recommendations: closure of the case if recovery is unlikely, or proceeding with litigation with associated costs and rates.
Recovery System for Company Funds
Phase One: Initial Recovery Steps
Within the first 24 hours of initiating Phase One, we spring into action. Our team dispatches the initial demand letter to the debtor via US Mail, setting the tone for our firm stance on recovery. We don’t stop there; we employ skip-tracing and thorough investigations to secure the most accurate financial and contact information available.
Our collectors are relentless, employing a barrage of communication tactics including phone calls, emails, text messages, and faxes. We’re committed to daily attempts to reach a resolution within the first 30 to 60 days. Here’s a snapshot of our initial contact strategy:
- First demand letter sent
- Comprehensive debtor information gathering
- Persistent collector communication
Should these efforts not yield the desired results, we’re prepared to escalate. Phase Two is our next line of attack, where we leverage our network of affiliated attorneys within the debtor’s jurisdiction to intensify pressure.
Phase Two: Legal Action and Attorney Involvement
Once we escalate to legal action, we’re in for the long haul. Our affiliated attorneys, well-versed in the nuances of the USA-UAE oil and gas trade, will draft and dispatch demand letters on their letterhead. Persistence is key; they’ll follow up with calls, aiming to settle without court intervention.
If the debtor remains unresponsive, we’re prepared to initiate litigation. This step involves upfront legal costs, including court and filing fees, typically ranging from $600 to $700. Here’s a breakdown of potential costs:
- Court costs: $200-$300
- Filing fees: $400-$500
We stand by our commitment: if litigation doesn’t yield results, you owe us nothing.
Our fee structure is straightforward. For accounts placed with an attorney, we charge 50% of the amount collected, regardless of the number of claims. This ensures our interests are aligned with your recovery success. For a detailed rate list, refer to Phase Three.
Phase Three: Recommendations and Costs
We’ve reached a critical juncture: to litigate or not. If the odds are against us, we’ll advise to close the case, sparing you further costs. Conversely, choosing litigation means fronting legal fees—typically $600 to $700. These cover court costs and filing fees, essential for our attorney to advocate for your dues.
Our fee structure is straightforward. For fewer than ten claims, expect a 30% fee on amounts collected for accounts less than a year old, and 40% for older accounts. Smaller debts under $1000 incur a 50% fee. Engaging an attorney? That’s a flat 50% of the collection.
For larger volumes of claims, the rates are more favorable. Ten or more claims drop the fees to 27% and 35% for newer and older accounts, respectively, and 40% for those under $1000.
Costs should never deter you from seeking what’s owed. We’re here to guide you through these decisions, ensuring transparency and efficiency in recovering your funds.
Frequently Asked Questions
What are the initial recovery steps in Phase One?
The initial recovery steps in Phase One include sending letters to the debtor, skip-tracing and investigation, and attempting to contact the debtor via phone calls, emails, text messages, and faxes.
What happens if all attempts to resolve the account fail in Phase One?
If all attempts to resolve the account fail in Phase One, the case is forwarded to one of the affiliated attorneys within the debtor’s jurisdiction in Phase Two.
What can I expect when the case is forwarded to an attorney in Phase Two?
When the case is forwarded to an attorney in Phase Two, the attorney will draft letters to the debtor demanding payment and will attempt to contact the debtor via telephone.
What are the recommendations and costs in Phase Three?
In Phase Three, the recommendations will be either to close the case if recovery is not likely, or to proceed with legal action. If legal action is chosen, upfront legal costs such as court costs and filing fees will be required.
What are the collection rates for accounts placed with an attorney?
For accounts placed with an attorney, the collection rate is 50% of the amount collected for accounts under 1 year in age and 50% for accounts over 1 year in age.
What are the collection rates for accounts under $1000.00?
For accounts under $1000.00, the collection rate is 50% of the amount collected for accounts under 1 year in age and 40% for accounts over 1 year in age.
