Collecting overdue payments from Malaysian importers of agricultural products can be a challenging task, especially when dealing with complex recovery systems. Understanding the phases involved in the recovery process is crucial for companies looking to recoup their funds. This article explores the Recovery System for Company Funds, focusing on the three key phases: Initial Recovery Process, Legal Action and Attorney Involvement, and Recommendations and Costs.
Key Takeaways
- The Recovery System for Company Funds involves three key phases: Initial Recovery Process, Legal Action and Attorney Involvement, and Recommendations and Costs.
- Phase One of the recovery process includes sending letters to debtors, skip-tracing, and attempting to contact debtors for resolution.
- Phase Two involves forwarding the case to affiliated attorneys for legal action, including drafting demand letters and contacting debtors.
- Phase Three presents two recommendations: closure of the case if recovery is unlikely, or proceeding with litigation, which involves upfront legal costs and competitive collection rates.
- Understanding the recovery system and associated costs is essential for companies seeking to collect overdue payments from importers of agricultural products.
Recovery System for Company Funds
Phase One: Initial Recovery Process
Within the first 24 hours of initiating Phase One, we spring into action. Our team dispatches the initial letter to the debtor, setting the tone for our firm yet fair approach. We don’t just stop there; we delve deep, skip-tracing and investigating 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. Here’s what you can expect:
- Daily attempts to contact the debtor for the first 30 to 60 days.
- A multi-channel approach to communication, ensuring no stone is left unturned.
- Persistent yet professional engagement with the debtor to secure payment.
If our efforts in this initial phase don’t yield results, we’re prepared to escalate. We seamlessly transition to Phase Two, involving our network of skilled attorneys within the debtor’s jurisdiction. Rest assured, we’re committed to recovering what’s rightfully yours, without delay.
Phase Two: Legal Action and Attorney Involvement
Once we escalate to legal action, our affiliated attorneys step in. They draft demand letters and make persistent calls to ensure your voice is heard. If the debtor remains unresponsive, we’re prepared to take the next step.
We’re committed to recovering what’s rightfully yours, and we won’t charge for unsuccessful litigation.
Here’s a quick rundown of potential costs:
- Court costs and filing fees: $600 – $700
- Legal action for debt recovery: Included in the upfront costs
Remember, these are upfront costs necessary to initiate legal proceedings. Our rates are competitive, and we only charge based on the amount collected. If we don’t succeed, you owe us nothing. It’s that simple.
For a detailed breakdown of our rates, please refer to the table below:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed Accounts |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Choosing to proceed with us means opting for a partner who values your financial interests and works tirelessly to enforce them.
Phase Three: Recommendations and Costs
We’ve reached a critical decision point. Our recommendations hinge on the debtor’s asset investigation and case facts. If recovery seems unlikely, we’ll advise case closure at no cost to you. Conversely, should litigation appear viable, a choice presents itself.
Litigation requires upfront legal fees, typically $600-$700, based on the debtor’s location. These cover court costs and filing fees. Upon payment, our attorney initiates legal action for the full debt amount, including filing costs. Failure to collect post-litigation means you owe us nothing.
Our fee structure is straightforward:
-
For 1-9 claims:
- Under 1 year old: 30%
- Over 1 year old: 40%
- Under $1000: 50%
- With attorney: 50%
-
For 10+ claims:
- Under 1 year old: 27%
- Over 1 year old: 35%
- Under $1000: 40%
- With attorney: 50%
We tailor our rates competitively, ensuring you receive the most cost-effective service for your collection needs. Remember, if we don’t collect, you don’t pay.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds is a 3-phase process designed to recover company funds from debtors. It includes Phase One: Initial Recovery Process, Phase Two: Legal Action and Attorney Involvement, and Phase Three: Recommendations and Costs.
What happens during Phase One of the Recovery System?
During Phase One, the first of four letters are sent to the debtor via US Mail, skip-tracing and investigation are conducted to obtain the best financial and contact information on the debtors, and attempts are made to contact the debtor to resolve the matter using various communication methods.
What are the actions taken during Phase Two of the Recovery System?
During Phase Two, the case is forwarded to an affiliated attorney within the debtor’s jurisdiction, who will draft letters demanding payment and attempt to contact the debtor via telephone. If all attempts to reach a conclusion fail, a letter will be sent explaining the issues surrounding the case and the recommended next steps.
What are the recommendations and costs in Phase Three?
In Phase Three, two recommendations are provided. If recovery is not likely, closure of the case is recommended with no owed fees. If litigation is recommended, upfront legal costs such as court costs and filing fees are required. The collection rates for different types of claims are also provided.
What are the upfront legal costs for proceeding with legal action in Phase Three?
The upfront legal costs for proceeding with legal action typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. Upon payment of these funds, a lawsuit will be filed on behalf of the owed monies. If attempts to collect via litigation fail, no fees are owed.
What are the collection rates for different types of claims in Phase Three?
The collection rates depend on the number of claims submitted and the age and amount of the accounts. Rates range from 27% to 50% of the amount collected, with different rates for accounts placed with an attorney.
