Recovering payments for fashion goods exported to France involves a three-phase recovery system. This system includes an initial recovery process, legal action and attorney involvement, and decision making and rates. Each phase is designed to maximize the chances of recovering company funds and provides clear steps for handling each stage of the process.
Key Takeaways
- The recovery system consists of three phases: Initial Recovery Process, Legal Action and Attorney Involvement, and Decision Making and Rates.
- Phase One involves sending letters to debtors, skip-tracing, and attempting to resolve the matter through various communication methods.
- Phase Two includes forwarding the case to affiliated attorneys, drafting demand letters, and further attempts to contact the debtor.
- In Phase Three, the options include closing the case if recovery is unlikely, proceeding with litigation, or continuing standard collection activity.
- The collection rates are competitive and tailored based on the number of claims submitted, the age of the accounts, and whether an attorney is involved.
Recovery System Overview
Phase One: Initial Recovery Process
The clock starts ticking immediately. Within the first 24 hours of initiating Phase One, a multi-channel approach is deployed. Debtors receive the initial notice via US Mail, marking the commencement of the recovery process. The debtor’s financial and contact information undergoes a thorough skip-tracing and investigation to ensure all communication channels are open.
Efforts intensify as our collectors engage daily, utilizing phone calls, emails, text messages, and faxes, striving for a resolution. This relentless pursuit spans 30 to 60 days, aiming to secure payment without escalating to legal measures.
The goal is clear: resolve the matter swiftly and efficiently, avoiding the need for further action.
If these attempts falter, the case transitions seamlessly to Phase Two, involving legal expertise. Here’s a snapshot of the initial recovery efforts:
- First notice sent via US Mail
- Comprehensive skip-tracing and investigation
- Daily communication attempts by collectors
The initial phase sets the tone for the recovery process, balancing persistence with professionalism to achieve results.
Phase Two: Legal Action and Attorney Involvement
When recovery efforts escalate to Phase Two, the case is handed over to a local attorney within our network. This marks a shift from internal recovery attempts to formal legal proceedings. The attorney’s first step is to send a series of letters on law firm letterhead, demanding payment. Concurrently, the attorney’s team will attempt to contact the debtor through calls, aiming to settle the debt.
If these intensified efforts fail to yield results, a critical juncture is reached. We will then provide a detailed report outlining the issues and our recommended course of action.
The decision to proceed with litigation is not taken lightly. It involves weighing the potential for recovery against the costs incurred during legal proceedings. Here’s a snapshot of the potential upfront legal costs:
| Jurisdiction | Estimated Costs |
|---|---|
| Standard | $600 – $700 |
Note: These costs cover court fees, filing fees, and other related expenses. Should litigation commence, the attorney will pursue all owed monies, including the costs of filing the lawsuit. In the event that litigation does not result in recovery, clients are not held financially responsible to our firm or the affiliated attorney.
Phase Three: Decision Making and Rates
At the crossroads of the recovery process, a pivotal decision awaits. If the likelihood of recovery is low, our counsel is to close the case, incurring no fees. Conversely, choosing litigation triggers upfront legal costs, typically between $600 to $700. These are essential for filing a lawsuit and encompass court costs and filing fees.
The decision to litigate is significant; it commits you to the pursuit of justice, with our attorneys ready to advocate for your cause.
Our rates are competitive and vary based on the age and number of claims. Here’s a concise breakdown:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, if litigation does not result in recovery, you owe nothing further. This phase is about informed choices and clear understanding of potential costs and outcomes.
Frequently Asked Questions
What is the Recovery System Overview?
The Recovery System Overview includes three phases: Phase One involves the initial recovery process, Phase Two involves legal action and attorney involvement, and Phase Three involves decision making and rates.
What happens during Phase One of the Recovery System?
During Phase One, the debtor is sent four letters via US Mail, skip-traced and investigated to obtain financial and contact information, and contacted by a collector through various means. If all attempts to resolve the account fail, the case proceeds to Phase Two.
What occurs during Phase Two of the Recovery System?
Phase Two involves forwarding the case to an affiliated attorney within the debtor’s jurisdiction. The attorney drafts letters demanding payment, attempts to contact the debtor, and if no resolution is reached, provides recommendations for the next steps.
What are the recommendations in Phase Three of the Recovery System?
In Phase Three, the recommendations are based on the investigation of the case and the debtor’s assets. If recovery is unlikely, closure of the case is recommended with no owed fees. If litigation is recommended, the client has the choice to proceed with legal action or pursue standard collection activity.
What are the upfront legal costs for proceeding with legal action in Phase Three?
The upfront legal costs for legal action include court costs, filing fees, etc. These fees typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction.
What are the rates for the Recovery System?
The rates for the Recovery System depend on the number of claims submitted within the first week of placing the first account. Rates vary based on the age of the accounts, the amount collected, and whether the accounts are placed with an attorney.
