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Securing Overdue Accounts in Consumer Goods Exports to Russia

Securing overdue accounts in consumer goods exports to Russia can be a challenging task, especially when dealing with complex recovery systems. In this article, we will explore a three-phase Recovery System designed to help companies recover funds from overdue accounts in consumer goods exports to Russia.

Key Takeaways

  • The Recovery System for Company Funds consists of three phases: Phase One, Phase Two, and Phase Three.
  • Phase One involves sending letters to debtors, skip-tracing, and attempting to resolve the matter through various communication channels.
  • Phase Two includes forwarding the case to affiliated attorneys and demanding payment from the debtor.
  • Phase Three offers two recommendations: closure of the case if recovery is unlikely or proceeding with litigation with upfront legal costs.
  • Rates for collection services vary based on the number of claims submitted and the age of the accounts.

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 demand letter to the debtor, ensuring they are aware of the urgency of the situation. We don’t stop there; we employ skip-tracing and in-depth investigations to secure the most accurate financial and contact information available.

Our approach is relentless. We make daily attempts to engage with the debtor through various channels—phone calls, emails, text messages, faxes, and more. Our goal is clear: to achieve a resolution swiftly.

If our efforts during this intensive 30 to 60-day period do not yield results, we seamlessly transition to Phase Two. This involves forwarding the case to our affiliated attorneys within the debtor’s jurisdiction, who will take the reins and escalate the matter.

Here’s a snapshot of our initial contact strategy:

  • First demand letter sent via US Mail
  • Comprehensive skip-tracing and debtor investigation
  • Persistent communication attempts by our collector

Our commitment is to leave no stone unturned in the pursuit of what is owed to your company.

Phase Two

We’ve escalated the matter to our network of local attorneys, ensuring that your case receives the legal muscle it needs. Immediate action is taken, with a series of firm letters drafted and phone calls made to demand payment.

  • The attorney sends a series of letters on law firm letterhead.
  • Concurrent phone calls attempt to secure a resolution.

If these efforts don’t yield results, we prepare a detailed report. This outlines the challenges faced and our proposed strategy moving forward.

We stand by our commitment to recover your funds, adapting our approach to each unique case.

Phase Three

Upon reaching Phase Three, we face a critical juncture. Our exhaustive investigation into the debtor’s assets and the surrounding facts will lead us to one of two recommendations. Should the likelihood of recovery appear dim, we advise case closure, absolving you of any financial obligation to us or our affiliated attorneys.

Conversely, if litigation seems viable, the choice is yours. Opting out means you can withdraw the claim at no cost, or let us persist with standard collection efforts—calls, emails, faxes. Choosing litigation requires covering upfront legal costs, typically $600-$700, based on the debtor’s location. These fees empower our attorney to pursue all owed monies through legal channels.

Our fee structure is competitive and tailored, hinging on the age of the account, the amount, and the number of claims. The decision to litigate is significant, but rest assured, failure to collect via litigation will not incur additional costs from our firm or our affiliated attorney.

Here’s a succinct breakdown of our rates:

Claims 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 secure your overdue accounts with efficiency and precision. Your next step could pivot the outcome of your recovery efforts.

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, skip-tracing, and contact attempts. Phase Two includes forwarding the case to an affiliated attorney for legal action. Phase Three offers recommendations based on the investigation results and the possibility of recovery.

What happens if recovery is not likely in Phase Three?

If recovery is not likely in Phase Three, the case may be recommended for closure, and there will be no fees owed to the firm or affiliated attorney. Alternatively, litigation may be recommended, and the client will have the option to proceed with legal action or withdraw the claim.

What are the costs associated with legal action in Phase Three?

If legal action is pursued in Phase Three, the client will be required to pay upfront legal costs such as court fees, filing fees, etc. These fees typically range from $600.00 to $700.00. If the litigation fails, there will be no fees owed to the firm or affiliated attorney.

What are the collection rates for accounts in Phase Three?

The collection rates in Phase Three depend on the number of claims submitted and the age and amount of the accounts. Rates range from 27% to 50% of the amount collected, with variations for different account types.

What actions are taken in Phase One of the Recovery System?

Phase One of the Recovery System involves sending letters to debtors, skip-tracing, investigating financial information, and contacting debtors through various methods such as phone calls, emails, and faxes. If resolution is not achieved, the case moves to Phase Two.

What happens in Phase Two of the Recovery System?

In Phase Two, the case is forwarded to a local attorney within the network. The attorney drafts letters demanding payment, contacts the debtor, and continues efforts to resolve the account. If no resolution is reached, further recommendations are provided.


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