Handling delinquent accounts in the USA-Russia pharmaceutical trade requires a strategic approach to recovering funds and resolving outstanding debts. This article explores a three-phase recovery system designed to assist companies in navigating the challenges of delinquent accounts.
Key Takeaways
- Utilize a three-phase recovery system for delinquent accounts to maximize chances of successful recovery.
- Consider thorough investigation of debtor’s assets and circumstances before deciding on recommended actions.
- Be aware of the options for closure of a case or proceeding with legal action, understanding the associated costs and consequences.
- Understand the rates and fees involved in the recovery process, including competitive collection rates based on the number and age of claims submitted.
- Maintain communication and follow-up with debtors through various channels to increase the likelihood of resolution.
Recovery System for Delinquent Accounts
Phase One
Within the first 24 hours of initiating Phase One, we spring into action. Our priority is to establish contact and seek resolution. We dispatch the initial letter and employ skip-tracing to gather the debtor’s financial and contact details. Our collectors are relentless, using every communication tool at their disposal to reach a settlement.
- Daily attempts are made to contact the debtor.
- The first 30 to 60 days are critical for resolution.
- If unsuccessful, we escalate to Phase Two.
We’re committed to a resolution in Phase One, but prepared to take further steps if necessary.
Phase Two
Once we escalate to Phase Two, our affiliated attorneys within the debtor’s jurisdiction take the reins. They draft demand letters and make persistent calls to ensure your voice is heard. Here’s what we do:
- Draft and send a series of firm demand letters on law firm letterhead.
- Initiate relentless telephone contact, aiming to resolve the matter.
Should these efforts not yield the desired results, we prepare a detailed report. This outlines the challenges faced and our professional advice on how to proceed.
If the debtor remains unresponsive, we’re poised to transition seamlessly into Phase Three. Our commitment is to provide clarity and options, ensuring you’re never left in the dark.
Phase Three
At the culmination of our efforts, we face a decisive moment. We must choose the most prudent course of action based on our comprehensive assessment of the debtor’s situation and assets. If the likelihood of recovery is dim, we’ll advise case closure, sparing you any further costs.
Alternatively, should litigation seem viable, you’re at a crossroads. Opting out means no further obligations, while proceeding necessitates upfront legal fees, typically between $600 to $700. These cover court costs and filing fees, with our affiliated attorney initiating the lawsuit on your behalf.
Our commitment is to transparency and efficiency in resolving delinquent accounts. We ensure that you are informed at every step, allowing you to make decisions that align with your best interests.
Our fee structure is straightforward and competitive, reflecting the volume and age of claims:
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For 1-9 claims:
- Under 1 year: 30%
- Over 1 year: 40%
- Under $1000: 50%
- With attorney: 50%
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For 10+ claims:
- Under 1 year: 27%
- Over 1 year: 35%
- Under $1000: 40%
- With attorney: 50%
In the event that litigation does not yield results, rest assured, you will not be further indebted to us. We stand by our promise of no recovery, no fee.
Frequently Asked Questions
What is the Recovery System for Delinquent Accounts?
The Recovery System consists of three phases: Phase One involves sending letters, skip-tracing, and contacting debtors. Phase Two includes forwarding the case to an attorney. Phase Three involves recommendations for closure or litigation.
What happens if recovery is not likely in Phase Three?
If recovery is deemed unlikely, the case may be recommended for closure, and no fees will be owed. Alternatively, litigation may be recommended, requiring upfront legal costs from the client.
What are the rates for the Recovery System?
Rates vary based on the number of claims and the age of the accounts. They range from 27% to 50% of the amount collected, with additional fees for accounts placed with an attorney.
How does Phase One of the Recovery System work?
Phase One involves sending letters, skip-tracing, and contacting debtors within 24 hours of placing the account. Daily attempts are made to resolve the account within the first 30 to 60 days.
What happens in Phase Two of the Recovery System?
Phase Two includes forwarding the case to a local attorney within the network. The attorney drafts letters and contacts the debtor to demand payment. If all attempts fail, the client is informed of the next steps.
What are the options if legal action is pursued in Phase Three?
If legal action is chosen, the client must pay upfront legal costs. If the litigation fails, no fees will be owed. Alternatively, the client can choose to continue standard collection activity.
