Collecting overdue payments from Saudi importers of agricultural products can be a challenging process, especially when traditional collection methods have proven ineffective. In order to recover company funds, a comprehensive Recovery System has been developed to address the various phases of the recovery process. This system involves a strategic approach to initial recovery, legal action, and recommendations for further steps. Understanding the key takeaways from each phase is crucial for companies dealing with overdue payments from Saudi importers.
Key Takeaways
- The Recovery System involves a strategic approach to initial recovery, legal action, and recommendations for further steps.
- Phase One includes sending letters to debtors, skip-tracing, and attempting to resolve the matter through various communication methods.
- Phase Two involves forwarding the case to affiliated attorneys, drafting demand letters, and further attempts to contact the debtor.
- Phase Three offers recommendations for closure of the case or proceeding with litigation, with associated costs and collection rates.
- Rates for collection vary based on the age and amount of the account, with different percentages for claims submitted within the first week and for accounts placed with an attorney.
Recovery System for Company Funds
Phase One: Initial Recovery Process
As soon as we take on a case, we hit the ground running. Within 24 hours, our team dispatches the first of four letters to the Saudi importer, signaling the start of the recovery process. We don’t just rely on snail mail; we employ a full arsenal including emails, texts, and calls to establish a line of communication.
Our approach is methodical and persistent. We understand the importance of skip-tracing and thorough investigation to gather the best financial and contact information. This ensures we’re not just knocking on doors, but knocking on the right ones.
Daily attempts to reach a resolution are our standard for the first 30 to 60 days. If these efforts don’t yield results, we’re prepared to escalate to Phase Two.
Here’s a snapshot of our initial contact strategy:
- First contact letter sent via US Mail
- Comprehensive skip-tracing and investigation
- Persistent communication attempts across multiple channels
Should our efforts in this phase prove unsuccessful, we seamlessly transition to the next phase, involving legal action and attorney involvement.
Phase Two: Legal Action and Attorney Involvement
Once we escalate the matter to our network of local attorneys, the pressure intensifies. Our affiliated attorneys waste no time in drafting demand letters on their official letterhead. These letters serve as a stern warning to the debtor that legal action is imminent.
Simultaneously, the attorney’s team begins persistent attempts to contact the debtor. Phone calls complement the written demands, ensuring the debtor understands the seriousness of their situation. If these efforts do not yield results, we prepare to advise you on the next steps.
We stand by you, ready to navigate the complexities of legal proceedings, should they become necessary.
The decision to proceed with litigation is not taken lightly. It involves weighing the potential for recovery against the costs incurred. Here’s a snapshot of the potential costs you might face:
- Court costs and filing fees: $600 – $700 (depending on jurisdiction)
- Legal action costs: Variable, including the cost to file
Litigation is a path we recommend only when the chances of recovery justify the expenses. Should you choose to litigate, we ensure that all actions taken are in the pursuit of recovering the full amount owed, including legal costs.
Phase Three: Recommendations and Costs
We’ve reached the critical juncture where we must weigh our options and decide on the most prudent course of action. If the likelihood of recovery is slim, we’ll advise closing the case, sparing you any further expense. On the flip side, should litigation seem promising, you’re at a crossroads.
Choosing not to litigate means you can withdraw the claim at no cost, or let us persist with standard collection efforts. Opting for legal action necessitates covering upfront costs, typically between $600 to $700. These cover court and filing fees, and should litigation not succeed, you owe us nothing further.
Our fee structure is straightforward and competitive, hinging on the age and size of the claim, as well as the number of claims you’ve lodged. Here’s a quick breakdown:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
It’s essential to remember that our goal is to maximize your recovery while minimizing costs. We’re here to guide you through these tough decisions with transparency and expertise.
In conclusion, consider the feasibility of recovery and the associated costs carefully. We stand ready to support you, whether that means closing the case or moving forward with litigation.
Frequently Asked Questions
What is the recovery system for company funds?
The recovery system for company funds consists of three phases: Phase One involves initial recovery processes such as sending letters to debtors, skip-tracing, and attempting to contact debtors. Phase Two involves legal action and attorney involvement, where the case is forwarded to an affiliated attorney for further action. Phase Three involves recommendations and costs for the next steps in the recovery process.
What happens if the possibility of recovery is not likely after thorough investigation?
If the possibility of recovery is not likely after a thorough investigation, the case will be recommended for closure. In this scenario, there will be no obligation to pay the firm or the affiliated attorney for these results.
What are the options if the recommendation is litigation?
If the recommendation is litigation, the client has the option to proceed with legal action or to withdraw the claim. If the client decides not to proceed with legal action, there will be no obligation to pay the firm or the affiliated attorney. Alternatively, the client may choose to allow the firm to continue pursuing the debtors with standard collection activity.
What are the upfront legal costs if the client decides to proceed with legal action?
If the client decides to proceed with legal action, they will be required to pay upfront legal costs such as court costs and filing fees. These fees typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. Upon payment of these funds, the affiliated attorney will file a lawsuit on the client’s behalf for all monies owed.
What are the collection rates for different types of accounts?
The collection rates depend on the number of claims submitted within the first week of placing the first account. For accounts under 1 year in age, the rates range from 27% to 30% of the amount collected. For accounts over 1 year in age, the rates range from 35% to 40% of the amount collected. Additionally, accounts under $1000.00 have a rate of 40% to 50% of the amount collected, and accounts placed with an attorney have a rate of 50% of the amount collected.
What happens if the attempts to collect via litigation fail?
If the attempts to collect via litigation fail, the case will be closed, and the client will owe nothing to the firm or the affiliated attorney.
