Overdue payments in steel exports to Taiwan can pose significant challenges for companies. In order to tackle this issue effectively, a recovery system for company funds and specific rates for debt collection are essential components. This article outlines a comprehensive approach to recovering overdue payments and provides insights into the rates for debt collection based on the number of claims submitted.
Key Takeaways
- Implementing a 3-phase recovery system can enhance the chances of recovering company funds efficiently.
- Rates for debt collection vary based on the number of claims submitted, with different percentages for accounts under 1 year in age, over 1 year in age, accounts under $1000.00, and accounts placed with an attorney.
- Consider the two recommendations in Phase Three: closure of the case if recovery is unlikely or proceeding with litigation by paying upfront legal costs.
- Phase One of the recovery system involves sending letters to debtors, skip-tracing, and contacting debtors for resolution within 24 hours of placing an account.
- Phase Two includes forwarding the case to an affiliated attorney for legal action if initial attempts to resolve the account fail.
Recovery System for Company Funds
Phase One
Within the first 24 hours of initiating Phase One, we hit the ground running. Immediate action is taken to ensure the debtor is aware of the overdue payment. Our team sends out the initial letter and employs skip-tracing techniques to gather the most up-to-date financial and contact information.
We’re relentless in our pursuit, with our collectors making daily attempts to reach a resolution through calls, emails, and texts. The goal is clear: settle the matter swiftly. If these efforts don’t yield results within 30 to 60 days, we’re ready to escalate to Phase Two.
Our commitment is to maintain persistent pressure on the debtor, maximizing the chances of recovery without delay.
Here’s a snapshot of our initial approach:
- First letter dispatched via US Mail
- Comprehensive skip-tracing and investigation
- Persistent collector engagement
Should our efforts in Phase One come up short, we don’t waste a moment. We seamlessly transition to the next phase, involving our network of affiliated attorneys to intensify the pressure.
Phase Two
Once we escalate to Phase Two, the intensity of our recovery efforts increases. We partner with a local attorney within our network, ensuring that the debtor receives a clear message: settlement is imperative. Here’s what happens:
- The attorney drafts and sends a series of firm letters, demanding payment.
- Concurrently, the attorney’s team begins persistent phone calls to the debtor.
If these actions don’t yield results, we’re prepared to advise on the next steps. Our commitment is to recover what’s owed to you, efficiently and ethically.
We stand firm in our pursuit, but we also value transparency. You’ll be informed of every significant development, ensuring you’re never in the dark about your case.
Phase Three
At the culmination of our efforts, we face a decisive moment. We assess the viability of recovery and present you with two clear options. If the likelihood of recouping funds is slim, we advise case closure, sparing you any further costs. Conversely, should litigation appear promising, the choice is yours.
Withdrawal is an option, freeing you from additional fees, or you may opt for continued pursuit through standard collection activities. Choosing litigation necessitates upfront legal costs, typically between $600 to $700, which covers court expenses and filing fees.
Upon initiating legal action, our affiliated attorney will advocate for the recovery of all monies owed, inclusive of the costs to file. In the event that litigation does not yield results, rest assured, you owe us nothing.
Our fee structure is straightforward and competitive, reflecting the number of claims and their respective ages. Here’s a quick breakdown:
-
For 1-9 claims:
- Under 1 year: 30%
- Over 1 year: 40%
- Under $1000: 50%
- With attorney: 50%
-
For 10+ claims:
- Under 1 year: 27%
- Over 1 year: 35%
- Under $1000: 40%
- With attorney: 50%
Rates for Debt Collection
Rates for 1 through 9 claims
When we tackle overdue payments, our rates are as straightforward as our approach. For the initial batch of 1 to 9 claims, we’ve set a clear fee structure based on the age and amount of each account. The younger the debt, the lower the fee – a principle that incentivizes swift action.
- Accounts under 1 year: 30% of the amount collected.
- Accounts over 1 year: 40% of the amount collected.
- Accounts under $1000.00: 50% of the amount collected.
Our competitive rates are designed to align our interests with yours – the quicker we resolve the claim, the more cost-effective it is for you.
For those particularly stubborn cases that require legal intervention, the rate stands at 50% of the amount collected, reflecting the additional resources and expertise deployed. Remember, our goal is to maximize your recovery while minimizing your expenses.
Rates for 10 or more claims
When we handle a volume of 10 or more claims, we’re able to offer more competitive rates. The scale of operations allows us to reduce costs, passing the savings onto you. For accounts less than a year old, the rate is a favorable 27% of the amount collected. Older accounts, over a year, are charged at 35%.
For smaller balances under $1000.00, we understand the importance of efficiency and have set the rate at 40%. And, should the claim require legal action, the rate remains consistent at 50% of the amount collected.
Our commitment is to provide you with transparent and fair pricing, ensuring that your financial recovery is maximized while maintaining a cost-effective approach.
Here’s a quick breakdown of our rates for 10 or more claims:
| Account Age | Rate |
|---|---|
| Under 1 year | 27% |
| Over 1 year | 35% |
| Under $1000.00 | 40% |
| With an attorney | 50% |
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, contacting debtors, and attempting to resolve the matter. Phase Two includes forwarding the case to affiliated attorneys for further action. Phase Three involves either recommending closure of the case or proceeding with litigation, with associated costs and options for the client.
What are the rates for debt collection for 1 through 9 claims?
For 1 through 9 claims, the rates vary based on the age of the accounts and the amount collected. Accounts under 1 year in age have a collection rate of 30%, while accounts over 1 year in age have a rate of 40%. Accounts under $1000.00 have a rate of 50%, and accounts placed with an attorney have a rate of 50%.
What are the rates for debt collection for 10 or more claims?
For 10 or more claims, the rates also depend on the age of the accounts and the amount collected. Accounts under 1 year in age have a collection rate of 27%, while accounts over 1 year in age have a rate of 35%. Accounts under $1000.00 have a rate of 40%, and accounts placed with an attorney have a rate of 50%.
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 such cases, the client owes nothing to the firm or affiliated attorney for the results.
What are the options if litigation is recommended in Phase Three?
If litigation is recommended in Phase Three, the client has the option to proceed with legal action by paying upfront legal costs. These costs typically range from $600.00 to $700.00. If litigation fails, the case will be closed, and the client owes nothing to the firm or affiliated attorney.
What are the standard collection rates tailored by DCI?
DCI provides competitive collection rates tailored to the number of claims submitted within the first week of placing the first account. Rates vary based on the age of accounts and the amount collected, with different rates for accounts under 1 year in age, accounts over 1 year in age, accounts under $1000.00, and accounts placed with an attorney.
