Recovering costs from failed chemical delivery payments can be a challenging process for companies. It is crucial to have a well-defined recovery system in place to ensure the successful retrieval of company funds. This article explores a 3-phase Recovery System designed to recover funds from failed chemical delivery payments.
Key Takeaways
- The Recovery System for Company Funds involves three key phases: Phase One, Phase Two, and Phase Three.
- Phase One includes sending letters to debtors, skip-tracing, and contacting debtors for resolution within the first 24 hours of placing an account.
- Phase Two involves forwarding the case to affiliated attorneys for further legal action if initial attempts to resolve the account fail.
- Phase Three provides recommendations based on the investigation of the case and debtor’s assets, including options for closure or litigation.
- Rates for recovery services vary based on the number of claims submitted and the age and value of the accounts.
Recovery System for Company Funds
Phase One
Within the first 24 hours of initiating Phase One, a multi-pronged approach is set in motion to recover company funds. Immediate action is taken to ensure the debtor is aware of the outstanding payment. A series of four letters is dispatched via US Mail, marking the commencement of the recovery process.
Skip-tracing and thorough investigation are conducted to secure the most accurate financial and contact information. Our dedicated collectors engage in persistent outreach, utilizing phone calls, emails, text messages, and faxes. The goal is to achieve a resolution swiftly and efficiently.
Daily attempts to contact the debtor are standard during the initial 30 to 60 days. If these efforts do not yield a resolution, the case escalates to Phase Two, involving legal intervention.
The following table outlines the initial contact strategy:
| Day | Action |
|---|---|
| 1 | First letter sent; Skip-tracing begins. |
| 2-30 | Daily outreach via calls, emails, and texts. |
Should Phase One fail to recover the funds, the process seamlessly transitions to the next phase, ensuring no momentum is lost in the pursuit of debt recovery.
Phase Two
Upon escalation to Phase Two, the case is transferred to a local attorney within our network. Immediate action is taken to assert the seriousness of the situation to the debtor. The attorney drafts a series of demand letters and initiates contact through phone calls, reinforcing the urgency of payment.
The goal is clear: to secure payment through persistent and professional legal communication.
If these intensified efforts do not yield a resolution, a critical decision point is reached. We provide a detailed report outlining the challenges encountered and our suggested course of action. This may include proceeding to Phase Three or, if deemed unfeasible, recommending case closure.
The following table outlines the potential costs associated with moving forward to litigation:
| Jurisdiction | Estimated Legal Fees |
|---|---|
| Debtor’s Local | $600.00 – $700.00 |
These fees cover court costs, filing fees, and other legal expenses necessary to initiate a lawsuit. Our commitment is to transparency and efficiency in the recovery process, ensuring that your company’s resources are utilized effectively.
Phase Three
Upon reaching Phase Three, the path forward becomes clear. If the investigation suggests that recovery is unlikely, we advise case closure with no fees owed. Conversely, should litigation be deemed viable, a critical choice awaits.
Litigation entails upfront legal costs, typically between $600 to $700. These costs cover court fees and filing expenses, initiating a lawsuit to reclaim all due amounts. Should litigation not yield results, the case concludes without further financial obligation.
Our competitive rates are structured to align with the number of claims and their age. The percentage of the amount collected varies, reflecting the complexity and resources invested.
Here’s a quick overview 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%
Deciding not to pursue legal action allows for withdrawal or continuation of standard collection efforts. The choice is yours, with transparency and control at every step.
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, and contacting debtors for resolution. Phase Two includes forwarding the case to an affiliated attorney for further action. Phase Three involves recommendations for either closing the case or proceeding with litigation.
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 obligation to pay the firm or affiliated attorney. Alternatively, litigation may be recommended, and the client can choose to proceed with legal action by paying upfront legal costs.
What are the upfront legal costs for litigation in Phase Three?
The upfront legal costs for litigation in Phase Three typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. These costs cover court fees, filing fees, and other necessary expenses.
What are the collection rates for DCI based on the number of claims submitted?
DCI provides competitive collection rates based on the number of claims submitted. Rates vary for different categories such as accounts under 1 year in age, accounts over 1 year in age, accounts under $1000.00, and accounts placed with an attorney.
What actions are taken in Phase One of the Recovery System?
In Phase One, letters are sent to debtors, skip-tracing and investigations are conducted to gather debtor information, and contact is made with debtors through various means like phone calls, emails, and faxes. If attempts to resolve the account fail, the case proceeds to Phase Two.
What happens in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to an affiliated attorney who sends letters demanding payment from the debtor. The attorney also attempts to contact the debtor by phone. If no resolution is reached, the client is informed of the situation and advised on the next steps.
