When it comes to collecting unpaid fees in the tech service export industry, having a strategic approach is crucial. This article delves into the Recovery System for Unpaid Fees, which consists of three phases aimed at recovering company funds effectively and efficiently.
Key Takeaways
- Implement a thorough investigation of the debtor’s assets before deciding on the recovery strategy.
- Consider the option of closure if the possibility of recovery is deemed unlikely after investigation.
- Evaluate the choice between litigation and standard collection activity based on the circumstances of the case.
- Be aware of the upfront legal costs involved in proceeding with legal action for fee recovery.
- Understand the competitive collection rates offered based on the number of claims submitted and the age of the accounts.
Recovery System for Unpaid Fees
Phase One
In the initial assault on unpaid fees, we hit the ground running. Within 24 hours of account placement, a multi-pronged approach is unleashed. Debtors find their mailboxes graced with the first of four letters, while our team dives deep, skip-tracing and investigating to unearth the most potent financial and contact information.
Our collectors are relentless, employing a barrage of phone calls, emails, text messages, and faxes. We’re on the debtor’s digital doorstep, making daily attempts to secure a resolution. The first 30 to 60 days are critical, a period of intense pursuit aimed at voluntary compliance.
Should our efforts in this phase not yield the desired results, we don’t falter. We escalate to Phase Two, seamlessly transitioning the case to our affiliated attorneys within the debtor’s jurisdiction.
Persistence is our mantra in Phase One. We understand that a strong start can often lead to an expedient resolution, saving time and resources for all parties involved.
Phase Two
Once we escalate to Phase Two, our affiliated attorneys swing into action. Their first move is to draft a series of demanding letters, tailored to the debtor’s situation, and sent on law firm letterhead to underscore the seriousness of the situation. Concurrently, they initiate a barrage of phone calls, aiming to establish a dialogue and secure payment.
We understand the frustration of unpaid fees. Our approach is designed to apply pressure and demonstrate resolve, without burning bridges.
If these efforts don’t yield results, we’re faced with a decision. Collection rates vary, and not all debts are recoverable. We analyze the debtor’s assets and the facts of the case. If the outlook is grim, we recommend closure, sparing you further expense. Should litigation seem viable, we prepare for Phase Three. Remember, failed litigation leads to case closure, freeing you from any payment obligation to us or our attorneys.
Phase Three
At this juncture, we face a critical decision point. If our assessment reveals that recovery is improbable, we advise case closure, sparing you further costs. Conversely, should litigation appear viable, you’re at a crossroads.
Opting out of legal action means no additional fees from us, with the option to continue standard collection efforts. Choosing to litigate necessitates covering upfront legal expenses, typically between $600 to $700. Our affiliated attorney will then champion your cause in court.
Should litigation not yield results, rest assured, you owe us nothing.
Our fee structure is straightforward and competitive, scaling with the number of claims and age of accounts. Here’s a quick breakdown:
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For 1-9 claims:
- Accounts under 1 year: 30%
- Accounts over 1 year: 40%
- Accounts under $1000: 50%
- Accounts with an attorney: 50%
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For 10+ claims:
- Accounts under 1 year: 27%
- Accounts over 1 year: 35%
- Accounts under $1000: 40%
- Accounts with an attorney: 50%
In summary, we tailor our approach to maximize your chances of fee recovery, ensuring that our interests are aligned with your success.
Struggling with unpaid fees can hinder your business’s cash flow and growth. At Debt Collectors International, we specialize in recovering the money owed to you efficiently and ethically. Our experienced team uses proven strategies to handle debt collections, skip tracing, and judgment enforcement, ensuring you get the results you need. Don’t let outstanding debts drag your business down. Visit our website today to learn more about our services and take the first step towards reclaiming your finances.
Frequently Asked Questions
What is the Recovery System for Unpaid Fees?
The Recovery System for Unpaid Fees consists of three phases: Phase One involves sending letters to debtors, skip-tracing, and attempting to contact debtors; Phase Two includes forwarding the case to affiliated attorneys for legal action; and Phase Three provides recommendations for closure or litigation.
What happens in Phase One of the Recovery System?
In Phase One, letters are sent to debtors, skip-tracing is conducted, and attempts are made to contact debtors through various means such as phone calls, emails, and faxes. If all attempts fail, the case moves to Phase Two.
What occurs during Phase Two of the Recovery System?
Phase Two involves forwarding the case to affiliated attorneys who will draft letters demanding payment from debtors and attempt to contact them. If no resolution is reached, recommendations for the next steps are provided.
What are the options in Phase Three of the Recovery System?
In Phase Three, two options are presented: closure of the case if recovery is unlikely or proceeding with litigation. If litigation is chosen, upfront legal costs must be paid, and if collection attempts fail, the case will be closed.
What are the rates for collection services provided?
The collection rates vary based 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 higher rates for accounts placed with an attorney.
What happens if legal action is taken and fails to recover the debt?
If legal action is pursued and fails to recover the debt, the case will be closed, and the client will owe nothing to the firm or affiliated attorney for the unsuccessful results.
