Resolving unpaid bills in the pharmaceutical trade with Canada can be a complex process that requires a strategic approach. In this article, we will delve into the Recovery System for Unpaid Bills, focusing on Initial Recovery Steps, Legal Action Consideration, and Collection Rates and Fees. By understanding these key aspects, pharmaceutical companies can effectively navigate the challenges of recovering unpaid bills in their trade relationships with Canada.
Key Takeaways
- Implement a thorough investigation of the facts and debtor’s assets before deciding on recovery actions.
- Consider the possibility of litigation as a recovery option and weigh the associated costs and benefits.
- Understand the collection rates and fees structure based on the age and amount of the accounts submitted.
- Be prepared to pay upfront legal costs if proceeding with legal action, with fees typically ranging from $600.00 to $700.00.
- Utilize the 3-phase Recovery System for a systematic approach to recovering unpaid bills in the pharmaceutical trade.
Recovery System for Unpaid Bills
Initial Recovery Steps
Once we’ve taken on your case, we hit the ground running. Within 24 hours, we dispatch the first of four letters to the debtor and initiate a comprehensive skip-trace to secure the most accurate financial and contact information available. Our team is relentless, employing phone calls, emails, text messages, and faxes to reach a resolution.
We’re committed to daily attempts to contact the debtors for the first 30 to 60 days. If these efforts don’t yield results, we escalate to Phase Two, involving our network of affiliated attorneys.
Our approach is systematic and persistent. Here’s a snapshot of our initial contact strategy:
- Dispatch of the first letter via US Mail
- Comprehensive skip-tracing
- Persistent contact attempts using multiple channels
If the debtor remains unresponsive, we don’t hesitate to recommend the next course of action. Whether it’s closure of the case due to low recovery likelihood or moving forward with litigation, we ensure you’re informed every step of the way. Transparency is key in our process.
Legal Action Consideration
Once we’ve considered legal action, we must be pragmatic about the costs involved. Deciding to litigate is not just about the potential to recover debts; it’s also about understanding the financial implications. If we choose to proceed, we’re looking at upfront legal costs, including court and filing fees, typically ranging from $600 to $700. These are necessary expenditures to initiate a lawsuit and pursue what is owed to us.
We must weigh the costs against the likelihood of recovery and the impact on our resources.
Our rates are competitive and structured to align with the complexity and age of the claims. Here’s a quick breakdown:
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For 1-9 claims:
- Accounts under 1 year: 30% of the amount collected.
- Accounts over 1 year: 40% of the amount collected.
- Accounts under $1000: 50% of the amount collected.
- Accounts placed with an attorney: 50% of the amount collected.
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For 10 or more claims:
- Accounts under 1 year: 27% of the amount collected.
- Accounts over 1 year: 35% of the amount collected.
- Accounts under $1000: 40% of the amount collected.
- Accounts placed with an attorney: 50% of the amount collected.
It’s essential to consider these rates when deciding on the best course of action. The feasibility of recovery is a critical factor, and if the odds are not in our favor, we may recommend closing the case, incurring no additional costs to our firm or affiliated attorney.
Collection Rates and Fees
After delving into the intricacies of recovery and legal actions, we arrive at the pivotal aspect of collection rates and fees. Our rates are competitive, tailored to the volume and age of claims. We operate on a contingency basis, meaning our fees are a percentage of the amount collected, ensuring our interests align with your recovery success.
Here’s a quick breakdown of our fee structure:
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For 1-9 claims:
- Accounts under 1 year: 30%
- Accounts over 1 year: 40%
- Accounts under $1000: 50%
- Accounts placed with an attorney: 50%
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For 10 or more claims:
- Accounts under 1 year: 27%
- Accounts over 1 year: 35%
- Accounts under $1000: 40%
- Accounts placed with an attorney: 50%
We stand by a transparent fee policy with no hidden charges. If recovery is unlikely, we recommend case closure, and you owe us nothing. Should litigation be advised and you choose to proceed, upfront legal costs will apply. These are typically between $600 to $700, depending on jurisdiction.
We believe in a partnership approach, where we shoulder the burden of recovery together. Your financial health is our priority, and our fee structure reflects this commitment.
Frequently Asked Questions
What are the initial recovery steps in the Recovery System for Unpaid Bills?
The initial recovery steps include sending letters to the debtor, skip-tracing, investigation for financial and contact information, and attempts to contact the debtor through various means like phone calls, emails, and faxes.
What factors are considered when deciding on legal action in the Recovery System for Unpaid Bills?
Factors such as the likelihood of recovery, debtor’s assets, and the recommendation from the recovery team are considered when deciding on legal action.
What are the collection rates and fees in the Recovery System for Unpaid Bills?
The collection rates and fees vary based on the number of claims submitted, the age of the accounts, and whether the accounts are placed with an attorney. Rates range from 27% to 50% of the amount collected.
What happens if the recommendation is litigation in the Recovery System for Unpaid Bills?
If the recommendation is litigation, the client has the option to proceed with legal action by paying upfront legal costs. If litigation fails, the case will be closed, and the client will owe nothing to the firm or the affiliated attorney.
What is the Recovery System for Unpaid Bills’ approach if recovery is deemed unlikely?
If recovery is deemed unlikely, the case will be recommended for closure, and the client will not owe anything to the firm or the affiliated attorney for those results.
How does the Recovery System for Unpaid Bills handle accounts with debts over $1000.00?
Accounts with debts over $1000.00 may have different collection rates based on their age and whether they are placed with an attorney. The rates range from 40% to 50% of the amount collected.
