Non-payment in agricultural product trade with France can be a significant challenge for companies. In order to tackle this issue effectively, a comprehensive Recovery System for Company Funds has been developed. This system consists of three phases aimed at recovering funds owed by debtors.
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 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 account fail.
- Phase Three offers recommendations of either closing the case if recovery is unlikely or proceeding with litigation with associated costs and rates.
- DCI provides competitive collection rates based on the number of claims submitted and the age and amount 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. Immediate action is taken to ensure the debtor is aware of the outstanding debt. A series of four letters is dispatched via US Mail, marking the commencement of the recovery process.
Skip-tracing and thorough investigations are conducted to secure the most accurate financial and contact information. Our collectors engage in persistent efforts, utilizing phone calls, emails, text messages, and faxes to reach a resolution.
Daily attempts are made to contact the debtor during the critical first 30 to 60 days. In the event of non-resolution, the case escalates seamlessly to Phase Two, involving our network of affiliated attorneys.
The table below outlines the initial actions taken:
| Action Item | Description |
|---|---|
| Dispatch of Letters | Four letters sent to the debtor to notify of the debt. |
| Information Gathering | Skip-tracing to find debtor’s financial/contact details. |
| Collector Engagement | Daily contact attempts for 30-60 days. |
Phase Two
Upon escalation to Phase Two, the case is transferred to a local attorney within our network. Immediate action is taken to assert pressure on the debtor. A series of demand letters are dispatched, and persistent phone calls commence. The attorney’s involvement signifies a serious step towards resolution.
The attorney’s letterhead adds legal weight, signaling intensified efforts to recover your funds.
If these measures do not yield results, a detailed report is prepared. This outlines the debtor’s response and our recommended course of action. The decision to proceed to Phase Three hinges on this critical analysis.
Here’s a snapshot of the process:
- Attorney drafts and sends demand letters
- Persistent attempts to contact the debtor via phone
- Preparation of a detailed report on debtor’s response
- Evaluation of the case for potential escalation to Phase Three
Phase Three
Upon reaching Phase Three, the path forward becomes clear. If the debtor’s assets and the case facts suggest a low recovery likelihood, we advise case closure, sparing you further costs. Conversely, should litigation seem viable, a critical choice awaits.
Choosing not to litigate allows for claim withdrawal, incurring no fees. Alternatively, standard collection efforts can persist. Opting for legal action necessitates upfront costs, typically between $600 and $700, covering court and filing fees. These enable our attorneys to pursue all owed monies.
Should litigation efforts not yield results, rest assured, no additional fees will be charged.
Our fee structure is straightforward and competitive, with rates varying based on claim age, amount, and volume. Here’s a snapshot:
-
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%
In summary, Phase Three is about making informed decisions with a clear understanding of potential outcomes and costs. Your financial prudence is paramount, and our system is designed to respect that.
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 affiliated attorneys for legal action. Phase Three offers recommendations for recovery or 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. In the case of litigation, the client has the option to proceed with legal action, covering upfront legal costs, or withdraw the claim without owing fees.
What are the rates for DCI’s collection services?
DCI offers competitive collection rates based on the number of claims submitted. Rates vary depending on the age of the accounts and whether they are placed with an attorney, ranging from 27% to 50% of the amount collected.
What actions are taken in Phase One of the Recovery System?
Phase One involves sending letters to debtors, skip-tracing, investigating debtors’ financial information, and attempting to contact debtors for resolution through various means such as phone calls, emails, and faxes.
What occurs in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to affiliated attorneys who draft letters demanding payment from debtors. Attorneys also attempt to contact debtors by phone and provide recommendations for further steps if resolution is not reached.
What are the options for clients in Phase Three of the Recovery System?
In Phase Three, clients have the option to close the case if recovery is unlikely or proceed with litigation by covering upfront legal costs. Clients can choose to withdraw the claim without owing fees or allow continued collection activity.
