When dealing with overdue payments from German automotive importers, it’s crucial to have a clear understanding of the recovery process. This involves a 3-phase recovery system that includes initial actions, legal action or continued pursuit, and recommendations and costs. Let’s delve into the key takeaways from this recovery process.
Key Takeaways
- The recovery process involves 3 phases: initial actions, legal action or continued pursuit, and recommendations and costs.
- Phase One includes sending letters to debtors, skip-tracing, and attempting to contact debtors for resolution.
- Phase Two involves forwarding the case to an affiliated attorney, drafting demand letters, and further attempts to contact the debtor.
- Phase Three offers recommendations for closure of the case or litigation, with associated costs and collection rates.
- Rates for collection depend on the number of claims submitted and the age and amount of the accounts.
Understanding the Recovery Process
Overview of the 3-phase Recovery System
We’ve honed a robust 3-phase Recovery System to reclaim funds efficiently. Phase One kicks off with immediate action: letters, skip-tracing, and persistent contact attempts. If these efforts don’t yield results, we escalate to Phase Two, involving our network of attorneys who intensify the pressure with legal correspondence and calls.
In the event of continued non-payment, we transition to Phase Three. Here, we make a critical evaluation: to litigate or not. This decision hinges on the debtor’s asset investigation and the likelihood of recovery.
Our fee structure is straightforward and contingent on success. Here’s a quick breakdown:
- For 1-9 claims, rates range from 30% to 50% of the amount collected, depending on the age and size of the account.
- For 10 or more claims, the rates are slightly reduced, reflecting our commitment to volume recovery.
We’re transparent about potential costs, with litigation requiring an upfront investment for court-related expenses. However, if litigation doesn’t pan out, you owe us nothing further. It’s a no-recovery, no-fee promise.
Phase One: Initial Actions
In Phase One, we hit the ground running. Within 24 hours of an account being placed, our team springs into action. We dispatch the first of four letters and employ skip-tracing to gather the best financial and contact information available. Our collectors are relentless, using every tool at their disposal—phone calls, emails, text messages, faxes—to reach a resolution.
Daily attempts are made to contact the debtor for the first 30 to 60 days, ensuring no stone is left unturned in the pursuit of what’s owed.
If these efforts don’t yield results, we don’t hesitate. We escalate to Phase Two, forwarding the case to our affiliated attorneys in the debtor’s jurisdiction. Here’s a quick breakdown of our initial contact strategy:
- Send the first of four letters via US Mail
- Conduct skip-tracing and investigations
- Engage in daily communication attempts
Our commitment is clear: we pursue every avenue to collect, saving legal action as a last resort.
Phase Two: Legal Action or Continued Pursuit
When we escalate to Phase Two, the stakes are higher. We’ve exhausted initial recovery efforts and now, it’s time to get serious. Our affiliated attorneys step in, wielding the clout of legal letterhead to demand payment. They’re persistent, making calls and sending letters, all to bring the debtor to the table.
We’re in it together, and our goal is clear: recover what’s owed to you, efficiently and effectively.
If this phase doesn’t yield results, we’re faced with a decision. Do we proceed with litigation, or do we continue the pursuit without legal action? Here’s the breakdown:
- Litigation: Requires upfront legal costs, typically $600-$700. If successful, we recover the full amount owed, including filing costs.
- Continued Pursuit: No additional costs. We keep up the pressure with calls, emails, and faxes.
Our rates are competitive, and they vary depending on the age and amount of the claim, as well as the number of claims. Here’s a quick overview:
| 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 doesn’t pan out, you owe us nothing. We’re committed to transparency and your success.
Phase Three: Recommendations and Costs
At this juncture, we’ve reached a critical decision point. Our recommendations hinge on the debtor’s asset investigation and case facts. If recovery seems unlikely, we advise case closure, incurring no fees. Conversely, should litigation appear viable, you’re at a crossroads.
Litigation requires upfront costs, typically $600-$700, covering court and filing fees. Opting for legal action means our affiliated attorney will aggressively pursue your claim in court. If unsuccessful, rest assured, you owe us nothing further.
We’re committed to transparency in our fee structure, ensuring you make informed decisions based on clear cost-benefit analyses.
Our fee schedule is straightforward, with rates varying by claim quantity and age:
-
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%
These rates are competitive, designed to align with your success—our gain is directly tied to your recovery.
Frequently Asked Questions
What is the Recovery System for collecting overdue payments from German automotive importers?
The Recovery System consists of three phases: Phase One involves sending letters to the debtor, skip-tracing, and attempting to contact the debtor for resolution. Phase Two includes forwarding the case to an affiliated attorney for legal action. Phase Three offers recommendations for closure of the case or proceeding with legal action, along with associated costs.
What happens if the possibility of recovery is not likely after thorough investigation of the case and debtor’s assets?
In this case, closure of the case will be recommended, and there will be no obligation to pay the firm or affiliated attorney for these results.
What are the options if the recommendation is litigation?
The options are to proceed with legal action by paying upfront legal costs or to withdraw the claim with no obligation to pay the firm or affiliated attorney.
What are the upfront legal costs for proceeding with legal action?
The upfront legal costs include court costs, filing fees, etc., typically ranging from $600.00 to $700.00, depending on the debtor’s jurisdiction.
What are the collection rates for accounts placed with an attorney?
For accounts placed with an attorney, the collection rate is 50% of the amount collected for accounts under 1 year in age and 50% for accounts over 1 year in age.
What are the collection rates for accounts under 1 year in age and over 1 year in age?
For accounts under 1 year in age, the collection rate is 30% of the amount collected, and for accounts over 1 year in age, the collection rate is 40% of the amount collected.
