Non-payment in agricultural exports to Germany can be a significant challenge for companies. To address this issue, a Recovery System for Company Funds has been developed with three key phases. Each phase plays a crucial role in the process of recovering funds from debtors. Let’s explore the key takeaways from this system:
Key Takeaways
- The Recovery System for Company Funds consists of three phases: Phase One, Phase Two, and Phase Three, each with specific actions and strategies to recover funds effectively.
- 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 the case to an affiliated attorney for legal action if initial attempts to resolve the account fail.
- Phase Three provides recommendations based on the investigation results, offering options for closure of the case or proceeding with litigation.
- Legal action in Phase Three may require upfront legal costs, but if unsuccessful, there will be no additional fees for the company.
Recovery System for Company Funds
Phase One
In the first 24 hours after we take on your case, we hit the ground running. Our initial contact is swift and multi-channeled. We dispatch the first of four letters and employ skip-tracing to gather the most up-to-date financial and contact information on your debtors. Our collectors are relentless, using phone calls, emails, text messages, and faxes to reach a resolution.
Daily attempts are made to engage with the debtors, with the aim to settle the matter within the first 30 to 60 days. Persistence is key in this phase.
If our efforts in Phase One don’t yield results, we don’t waste time. We escalate to Phase Two, where our affiliated attorneys step in, equipped with local jurisdictional knowledge to intensify the pressure.
Here’s a snapshot of our initial action plan:
- Send the first debtor letter via US Mail
- Conduct thorough skip-tracing
- Initiate contact through various communication channels
Our proactive approach is designed to demonstrate to the debtors that we mean business, setting the stage for a more favorable outcome for your company.
Phase Two
Once we escalate the case to our affiliated attorney, the pressure intensifies. The attorney’s letterhead adds a layer of seriousness that often prompts a response. The attorney’s team employs persistent contact methods, ensuring the debtor understands the gravity of the situation.
- The attorney drafts and sends a demand letter.
- Follow-up calls are made to reinforce the message.
- If these efforts don’t yield results, we prepare for the final phase.
We stand firm in our resolve to recover what is rightfully yours. Our approach is designed to maximize pressure while minimizing your involvement and stress.
Phase Three
Upon reaching Phase Three, we face a critical juncture. Our comprehensive analysis will lead us to one of two paths. If the likelihood of fund recovery is slim, we’ll advise case closure, sparing you any further costs. Conversely, should litigation appear viable, the choice is yours.
Litigation requires an upfront investment for legal expenses, typically between $600 to $700. These costs cover court fees and filing charges, initiating a lawsuit to reclaim the full amount due, including legal expenses. Here’s a snapshot of potential costs:
| Legal Action | Estimated Costs |
|---|---|
| Court Costs | $600 – $700 |
Should you opt against legal proceedings, you may withdraw the claim at no cost, or allow us to continue standard collection efforts.
In the event of unsuccessful litigation, rest assured, you will not incur additional charges from our firm or affiliated attorneys.
Our fee structure is competitive and scales with the volume of claims. For instance, for 1-9 claims, accounts under a year old are charged at 30% of the amount collected, while those over a year are at 40%. Smaller accounts under $1000 incur a 50% fee, as do accounts requiring attorney involvement. For 10 or more claims, these percentages are slightly reduced, reflecting our commitment to providing value as your claims increase.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases aimed at recovering outstanding debts from debtors.
What happens in Phase One of the Recovery System?
In Phase One, letters are sent to the debtor, investigations are conducted to gather financial information, and attempts are made to contact the debtor for resolution.
What is the process in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to an affiliated attorney who will send letters demanding payment and attempt to contact the debtor to resolve the debt.
What are the options in Phase Three of the Recovery System?
In Phase Three, the options include closing the case if recovery is unlikely, proceeding with litigation with upfront legal costs, or continuing standard collection activities.
What are the rates for the Recovery System services?
The rates vary based on the number of claims submitted and the age and amount of the accounts, with percentages ranging from 27% to 50% of the amount collected.
What are the consequences of not proceeding with legal action in Phase Three?
If you choose not to proceed with legal action in Phase Three, you have the option to withdraw the claim and owe nothing to the firm or affiliated attorney.
