In the USA-Taiwan machinery trade, the collection of overdue payments is a critical aspect of maintaining financial stability and business relationships. With a 3-phase Recovery System in place, companies can effectively pursue the funds owed to them. This article will outline the Recovery System’s overview, including the initial contact and investigation, legal action and attorney involvement, and recovery recommendations and rates.
Key Takeaways
- Timely and persistent contact with debtors is crucial for successful recovery.
- Legal action may be necessary for cases where standard collection activities fail.
- Recovery recommendations are based on a thorough investigation of the debtor’s assets and the case facts.
- Litigation costs and recovery rates are dependent on the age and amount of the overdue accounts.
- Competitive collection rates are offered based on the number of claims submitted within the first week of placing the first account.
Recovery System Overview
Phase One: Initial Contact and Investigation
Upon embarking on Phase One, we spring into action within 24 hours. Our initial steps are critical in setting the tone for the recovery process. We dispatch the first of four letters to the debtor, ensuring they understand the seriousness of the situation. Simultaneously, we conduct a thorough skip-trace to gather the most up-to-date financial and contact information.
Our collectors are tenacious, employing a variety of communication methods—phone calls, emails, text messages, faxes—to reach a resolution. Daily attempts are made to engage with the debtor, persisting for 30 to 60 days. If these efforts don’t yield results, we’re prepared to escalate to Phase Two, involving legal action.
Our commitment is unwavering; we leave no stone unturned in our pursuit of your overdue payments.
Here’s a snapshot of our initial contact strategy:
- Dispatch of the first letter via US Mail
- Comprehensive skip-tracing for accurate debtor information
- Persistent communication attempts across multiple channels
Should our efforts in Phase One come to a standstill, we seamlessly transition to the next phase, ensuring continuous pressure and presence.
Phase Two: Legal Action and Attorney Involvement
Once we escalate to legal action, our affiliated attorneys step in with full force. Immediate drafting of demand letters on law firm letterhead signals the seriousness of our intent. We don’t just stop at letters; phone calls become part of the arsenal, ensuring the debtor understands the gravity of their situation.
Our attorneys are relentless, but if the debtor remains unresponsive, we’re prepared to advise you on the next steps. Here’s what you can expect:
- Drafting and sending of demand letters
- Persistent phone calls to the debtor
- A detailed report on the debtor’s response
We’ll provide a clear explanation of the issues at hand and our recommendations for moving forward. Should litigation be the advised route, you’ll be informed of all necessary upfront legal costs.
Our fee structure is transparent and competitive, reflecting the complexity and age of the account. Here’s a quick breakdown:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed Accounts |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, if litigation doesn’t result in recovery, you owe us nothing. We’re committed to your success in the USA-Taiwan machinery trade.
Phase Three: Recovery Recommendations and Rates
At this juncture, we face a critical decision point. Our counsel hinges on the viability of recovery. If prospects seem dim, we advise case closure, sparing you further expense. Conversely, should litigation appear promising, we’ll need your go-ahead. Opting out means no fees owed; opting in requires covering upfront legal costs, typically $600-$700.
Litigation is a serious step. Upon your commitment, our affiliated attorney initiates legal proceedings to reclaim the full debt, inclusive of filing costs. Failure to recover funds results in case termination, with no financial obligation to you.
Our fee structure is straightforward and competitive:
We align our rates with the volume and age of claims, ensuring fairness and transparency.
Here’s a snapshot of our rates:
-
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%
Remember, our goal is to secure your dues with minimal fuss and maximum efficiency.
Frequently Asked Questions
What is the Recovery System Overview?
The Recovery System Overview consists of three phases: Phase One involves initial contact and investigation, Phase Two involves legal action and attorney involvement, and Phase Three involves recovery recommendations and rates.
What happens in Phase One of the Recovery System?
In Phase One, within 24 hours of placing an account, the debtor is sent the first of four letters via US Mail, cases are skip-traced and investigated, and our collector attempts to contact the debtor using various methods. If all attempts to resolve the account fail, the case moves to Phase Two.
What occurs in Phase Two of the Recovery System?
Phase Two involves forwarding the case to one of the affiliated attorneys within the debtor’s jurisdiction. The attorney drafts letters to the debtor and attempts to contact them. If no resolution is reached, the client is informed of the issues and the recommended next steps.
What are the recommendations in Phase Three of the Recovery System?
In Phase Three, the recommendation may be to close the case if recovery is deemed unlikely after a thorough investigation of the debtor’s assets. Alternatively, if litigation is recommended, the client has the option to proceed with legal action or to continue standard collection activity.
What are the upfront legal costs if the client decides to proceed with legal action?
If the client decides to proceed with legal action, they will be required to pay upfront legal costs such as court costs and filing fees, typically ranging from $600.00 to $700.00, depending on the debtor’s jurisdiction.
What are the collection rates provided by DCI?
DCI provides competitive collection rates tailored to the number of claims submitted within the first week of placing the first account. The rates vary based on the age and amount of the accounts, as well as whether they are placed with an attorney.
