In the USA-Malaysia consumer goods market, resolving unpaid bills is a crucial aspect of maintaining financial stability and ensuring fair transactions between companies and consumers. To address this issue, a comprehensive Recovery System has been established to facilitate the process of recovering unpaid bills. This system consists of three phases: Initial Recovery Steps, Legal Action Recommendations, and Final Recommendations. Each phase plays a vital role in the successful resolution of unpaid bills.
Key Takeaways
- The Recovery System for unpaid bills in the USA-Malaysia consumer goods market is structured into three phases: Initial Recovery Steps, Legal Action Recommendations, and Final Recommendations.
- Phase One involves sending letters to debtors, skip-tracing, and contacting debtors to resolve the matter within the first 30 to 60 days.
- Phase Two includes forwarding the case to affiliated attorneys for further legal action if initial attempts to resolve the account fail.
- Phase Three offers two recommendations: closure of the case if recovery is unlikely or proceeding with litigation by paying upfront legal costs.
- Rates for collection services vary based on the number of claims submitted and the age of the accounts, with different percentages for different scenarios.
Recovery System for Unpaid Bills
Phase One: Initial Recovery Steps
As we initiate Phase One of our Recovery System, immediate action is paramount. Within the first 24 hours, we dispatch a series of communications to the debtor, starting with a formal letter. Our team diligently skip-traces and investigates to secure the most accurate financial and contact details.
We’re relentless in our pursuit, employing phone calls, emails, text messages, and faxes to establish a resolution. Daily attempts are made for the initial 30 to 60 days, ensuring no stone is left unturned.
If these efforts don’t yield results, we escalate to Phase Two, involving our network of attorneys. Here’s a quick rundown of our initial contact strategy:
- First contact: Letter via US Mail
- Skip-tracing: Locating debtor’s information
- Persistent communication: Daily attempts across multiple channels
Our goal is to resolve the matter swiftly and efficiently, but we’re prepared to take legal action if necessary. Remember, the early stages are crucial for a successful recovery.
Phase Two: Legal Action Recommendations
When we escalate to legal action, we’re committed to a transparent process. We’ll guide you through the decision-making, ensuring you understand the potential costs and outcomes. If litigation is the path forward, be prepared for upfront legal costs, which typically range from $600 to $700. These cover court costs, filing fees, and other related expenses.
Our affiliated attorney will then initiate a lawsuit to recover all monies owed. It’s crucial to note that if litigation does not result in recovery, you owe us nothing further. Here’s a breakdown of our competitive collection rates:
- Accounts under 1 year: 30% (1-9 claims) or 27% (10+ claims) of the amount collected.
- Accounts over 1 year: 40% (1-9 claims) or 35% (10+ claims) of the amount collected.
- Accounts under $1000.00: 50% of the amount collected, regardless of age or number of claims.
- Accounts placed with an attorney: 50% of the amount collected.
Remember, our goal is to achieve a resolution that’s in your best interest, whether that means proceeding with litigation or continuing with standard collection activities such as calls and emails. The choice is yours, and we’re here to support it.
Phase Three: Final Recommendations
In our final phase, we face a decisive moment. We must choose the most prudent course of action based on the debtor’s asset investigation and the likelihood of recovery. If prospects are dim, we recommend closure of the case, incurring no further costs. Conversely, should litigation appear viable, a choice presents itself.
- If litigation is not pursued, we can withdraw the claim at no cost, or persist with standard collection efforts.
- Opting for litigation necessitates upfront legal fees, typically between $600 to $700.
Should litigation proceed and fail, rest assured, no additional fees will be owed to us or our affiliated attorney.
Our fee structure is clear and competitive, ensuring you pay only for successful collections. 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% |
Remember, our goal is to navigate these waters together, securing your interests while mitigating unnecessary expenditures.
Frequently Asked Questions
What are the initial steps taken in Phase One of the Recovery System for unpaid bills?
In Phase One, the first step is to send letters to the debtor via US Mail, followed by skip-tracing and investigation to obtain financial and contact information. Our collector will then try to contact the debtor and resolve the matter through various communication methods.
What happens if all attempts to resolve the account fail in Phase One?
If all attempts to resolve the account fail in Phase One, the case will be forwarded to one of our affiliated attorneys within the debtor’s jurisdiction in Phase Two.
What actions are taken by the attorney in Phase Two of the Recovery System?
In Phase Two, the attorney will draft letters to the debtor demanding payment, make phone calls, and continue attempts to resolve the account. If all efforts fail, recommendations for the next steps will be provided.
What are the two recommendations in Phase Three of the Recovery System?
In Phase Three, the recommendations are either closure of the case if recovery is unlikely or proceeding with litigation. If litigation is chosen, upfront legal costs must be paid, and the attorney will file a lawsuit on behalf of the creditor.
What are the rates for collection services provided in the Recovery System?
The rates for collection services 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 specific circumstances of the debt.
What happens if attempts to collect via litigation fail in Phase Three?
If attempts to collect via litigation fail in Phase Three, the case will be closed, and the creditor will owe nothing to the firm or the affiliated attorney for those results.
