In the luxury goods trade between the USA and Switzerland, non-payment can be a significant issue affecting companies. To address this challenge, a comprehensive Recovery System for Company Funds has been established. This system consists of three phases aimed at recovering funds from debtors and resolving non-payment issues effectively. Let’s explore the key takeaways from this Recovery System:
Key Takeaways
- The Recovery System for Company Funds includes three phases: Phase One, Phase Two, and Phase Three, each with specific actions and strategies to recover company funds efficiently.
- Phase One involves sending letters to debtors, skip-tracing, and attempting to contact debtors for resolution within the first 30 to 60 days.
- Phase Two includes forwarding cases to affiliated attorneys for legal action if initial attempts to resolve the debt fail.
- Phase Three provides recommendations based on the investigation results, offering options for closure of the case or proceeding with litigation to recover funds.
- Legal action in Phase Three may require upfront legal costs, and the rates for collection services vary based on the number and age of claims submitted.
Recovery System for Company Funds
Phase One
In the luxury goods trade between the USA and Switzerland, our recovery system kicks off with decisive action. Within 24 hours of account placement, the first of four letters is dispatched to the debtor. This is just the beginning.
- Our team conducts thorough skip-tracing to unearth the best financial and contact information.
- We engage directly with debtors through persistent phone calls, emails, text messages, and faxes.
Daily attempts are made to reach a resolution within the first 30 to 60 days. Should these efforts not yield results, we seamlessly transition to Phase Two, involving our network of affiliated attorneys.
The goal is clear: recover company funds efficiently and move swiftly to escalate if necessary.
Phase Two
Once we escalate to Phase Two, the intensity of our recovery efforts increases. We partner with a local attorney within our network, ensuring that the debtor is approached with the necessary legal weight. The attorney will draft a series of demand letters and make persistent attempts to contact the debtor through various channels.
- The first action is the drafting of a demand letter on law firm letterhead.
- Subsequent steps include persistent phone calls by the attorney or staff.
If these efforts do not yield results, we prepare a detailed report. This outlines the challenges faced and our recommended course of action moving forward. It’s a critical junction: we either prepare for litigation or consider alternative strategies.
Our commitment remains steadfast: to recover what is rightfully yours, with transparency and diligence at every step.
Phase Three
At the culmination of our recovery efforts, we face a decisive moment. We must choose the most prudent course of action based on our comprehensive assessment of the debtor’s assets and the surrounding facts. If the likelihood of recovery is dim, we advise closure of the case, incurring no fees for our clients. Conversely, should litigation appear viable, clients are presented with a choice.
Should you opt against legal proceedings, withdrawing the claim absolves you of any financial obligation to us. Alternatively, standard collection activities can persist. However, choosing litigation necessitates upfront legal costs, typically between $600 to $700. These costs cover court expenses and filing fees, initiating a lawsuit to reclaim the full debt amount, including the cost of filing.
Our rates are competitive and vary based on the number of claims and their age. Here’s a quick breakdown:
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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 of unsuccessful litigation, the case is closed without further charges. Our commitment to efficiency and transparency ensures that clients are well-informed at every stage, aligning with the industry’s emphasis on effective debt recovery processes.
Ensuring the recovery of company funds is crucial for maintaining financial stability and growth. At Debt Collectors International, we specialize in providing tailored debt collection solutions that are simple, effective, and risk-free with our ‘No Recovery, No Fee’ policy. Our experienced team is ready to assist you across various industries, utilizing state-of-the-art skip tracing, dispute resolution, and judgment enforcement tactics. Don’t let unpaid debts affect your bottom line. Visit our website today to get a free rate quote and learn how we can help you recover what’s rightfully yours.
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 attempting to contact debtors for resolution. Phase Two includes forwarding the case to an affiliated attorney for further action. Phase Three involves either closing the case if recovery is unlikely or proceeding with litigation if recommended.
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 the client owes nothing to 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. If litigation fails, the client owes nothing.
What are the rates for collection services?
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, depending on the specific details of the accounts.
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 attempts are made to contact debtors via various methods such as phone calls, emails, and faxes.
What happens in Phase Two of the Recovery System?
Phase Two involves forwarding the case to a local attorney within the network, who will draft letters demanding payment from the debtor and attempt to contact the debtor. If no resolution is reached, the client will receive a recommendation for the next step.
What are the options if legal action is recommended in Phase Three?
If legal action is recommended in Phase Three, the client can choose to proceed by paying upfront legal costs for filing a lawsuit. If litigation fails, the client owes nothing to the firm or affiliated attorney.
