Navigating non-payment in tech product exports between the USA and Canada can be a challenging process. Understanding the recovery system overview is crucial for companies looking to recover funds from debtors in a timely and efficient manner. This system involves three phases that include initial contact and investigation, legal action consideration, and collection rates and fees. Here are the key takeaways from each phase:
Key Takeaways
- The recovery system includes three phases: Initial Contact and Investigation, Legal Action Consideration, and Collection Rates and Fees.
- Phase One involves sending letters to debtors, skip-tracing, and daily attempts to contact debtors for the first 30 to 60 days.
- Phase Two includes forwarding cases to affiliated attorneys, drafting demand letters, and attempting to reach a resolution with debtors.
- Phase Three offers the options of case closure or proceeding with litigation, with upfront legal costs ranging from $600.00 to $700.00.
- Collection rates vary based on the number of claims submitted and the age and amount of the accounts, with rates ranging from 27% to 50% of the amount collected.
Recovery System Overview
Initial Contact and Investigation
We hit the ground running within 24 hours of a case landing on our desks. Our first step is to dispatch a series of letters to the debtor, ensuring they’re aware of the situation. We don’t stop there; we dive deep with skip-tracing to unearth the most current financial and contact details. Our collectors are relentless, employing a mix of phone calls, emails, text messages, and faxes to reach a resolution.
Expect daily attempts to connect with the debtor during the critical first 30 to 60 days. It’s a period of intense activity aimed at settling the matter swiftly.
If our efforts don’t bear fruit, we’re ready to escalate. But we’re transparent about it—communication is key. You’ll be informed every step of the way, especially if we’re considering moving to Phase Two with legal muscle behind us.
Here’s a snapshot of our initial contact efforts:
- Dispatch of four letters via US Mail
- Comprehensive skip-tracing and investigation
- Persistent collector engagement
Remember, this is just the beginning. We’re committed to navigating the complexities of non-payment, with your best interests at the forefront.
Legal Action Consideration
When we’ve exhausted all initial recovery efforts, we face a critical juncture: to litigate or not. If the debtor’s assets and the case facts suggest slim recovery chances, we advise case closure—at no cost to you. Conversely, if litigation seems viable, you’re at a decision point.
Should you opt against legal action, you can withdraw the claim free of charge, or let us continue standard collection efforts. Choosing litigation requires covering upfront legal costs, typically $600-$700, based on the debtor’s location. These funds enable our affiliated attorney to pursue all owed monies.
If litigation doesn’t yield results, the case concludes, and you owe us nothing further.
Our fee structure is straightforward and competitive, hinging on the age and size of the account, and the number of claims. Here’s a snapshot:
| Claims Count | Account Age | Collection Rate |
|---|---|---|
| 1-9 | < 1 year | 30% |
| 1-9 | > 1 year | 40% |
| 1-9 | < $1000 | 50% |
| 10+ | < 1 year | 27% |
| 10+ | > 1 year | 35% |
| 10+ | < $1000 | 40% |
Note: Accounts placed with an attorney always incur a 50% collection rate, regardless of the number of claims.
Collection Rates and Fees
We’ve established a competitive edge with our tailored collection rates. The more claims you submit, the lower the percentage we take. It’s a simple, transparent structure designed to align our interests with yours.
Here’s a quick breakdown of our rates:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, these rates apply to the amount collected, not the amount owed. Our goal is to maximize your recovery while minimizing your expenses.
We’re committed to transparency at every step. If litigation is recommended and you decide to proceed, expect upfront legal costs ranging from $600 to $700, depending on the debtor’s jurisdiction. These fees are necessary for filing a lawsuit on your behalf. If we don’t succeed in litigation, you owe us nothing further.
In the end, our success hinges on recovering what’s due to you. We’re in this together, and our fee structure reflects that partnership.
Frequently Asked Questions
What is the Recovery System Overview for non-payment in USA-Canada tech product exports?
The Recovery System consists of three phases: Initial Contact and Investigation, Legal Action Consideration, and Collection Rates and Fees.
What happens during Phase One of the Recovery System?
During Phase One, letters are sent to the debtor, skip-tracing and investigation are conducted, 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 sends letters demanding payment and attempts to contact the debtor. If unresolved, recommendations for next steps are provided.
What are the recommendations in Phase Three of the Recovery System?
In Phase Three, the recommendations include closure of the case if recovery is unlikely or proceeding with litigation. Legal costs may apply for litigation.
What are the rates for collection services in the Recovery System?
The rates vary based on the number of claims submitted and the age of the accounts. Rates range from 27% to 50% of the amount collected depending on the circumstances.
What are the options if legal action is pursued in the Recovery System?
If legal action is pursued, upfront legal costs may apply. If litigation fails, the case will be closed with no additional fees owed.
