Chasing payments in multi-unit housing developments can be a complex and challenging task. It requires a strategic approach to recover company funds efficiently. In this article, we will explore a 3-phase Recovery System designed to help companies navigate the process of recovering funds in multi-unit housing developments.
Key Takeaways
- Utilize a 3-phase Recovery System to recover company funds effectively in multi-unit housing developments.
- Phase One involves sending letters to debtors, skip-tracing, and attempting to contact debtors for resolution within the first 30 to 60 days.
- Phase Two includes forwarding cases to affiliated attorneys for legal action if initial attempts fail.
- Consider two options in Phase Three: closure of the case if recovery is unlikely or proceeding with litigation with upfront legal costs.
- Understand the rates for collection services based on the number and age of claims, as well as accounts placed with attorneys.
Recovery System for Company Funds
Phase One
The initiation of the recovery process is critical for the efficient collection of funds. Within 24 hours of account placement, a multi-pronged approach is launched:
- A series of four letters is dispatched to the debtor via US Mail.
- Comprehensive skip-tracing and investigation are conducted to secure optimal financial and contact data.
- Persistent contact attempts are made through phone calls, emails, text messages, and faxes.
Daily engagement is our standard, ensuring every avenue is explored in the first 30 to 60 days. Should these efforts not yield results, the transition to Phase Two is immediate, involving our network of affiliated attorneys.
The Government contracting payment follow-through system is exemplified in this phase, with structured recovery phases ensuring a methodical approach to fund recovery. This phase underscores the importance of communication, escalation, and strategic decision-making.
Phase Two
Upon escalation to Phase Two, the case is handed over to a local attorney within our network. The attorney’s first action is to send a series of demand letters to the debtor, leveraging the weight of legal letterhead. Concurrently, the attorney’s team begins persistent attempts to contact the debtor through phone calls, aiming to secure payment.
If these intensified efforts do not yield results, we prepare for the final phase. Our approach is data-driven, with collection rates for 10+ claims ranging from 27% to 50%. This phase is critical, as it sets the stage for potential litigation and the associated costs.
The decision to proceed with legal action is pivotal. It involves weighing the likelihood of recovery against the upfront legal costs required to file a lawsuit.
Our transparent fee structure ensures you are informed every step of the way. Here’s a quick overview of our rates for 10 or more claims:
| Age of Account | Collection Rate |
|---|---|
| Under 1 year | 27% |
| Over 1 year | 35% |
| Under $1000 | 40% |
| With Attorney | 50% |
The next steps are determined by the outcome of Phase Two and your decision on how to proceed.
Phase Three
Upon reaching Phase Three, the path forward becomes a matter of choice and calculated risk. Clients are presented with two distinct options based on our comprehensive assessment of the debtor’s financial landscape and the likelihood of fund recovery.
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Option One: Closure of the case is recommended when prospects of recovery are dim. This decision incurs no additional cost to the client, ensuring a risk-free conclusion.
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Option Two: Should litigation appear viable, clients face a pivotal decision. Advancing to legal action necessitates covering upfront legal costs, which typically range between $600 and $700. This investment enables our affiliated attorney to initiate a lawsuit aimed at recouping the owed sum, as well as associated legal expenses.
Clients in Phase Three of the Recovery System can choose to close the case or proceed with litigation by paying legal costs. Recovery options are determined by the client.
Our fee structure is transparent and competitive, designed to align with the client’s recovery success:
| Claims Quantity | Account Age | Recovery 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% |
The decision to pursue litigation is a significant one, with potential for both recovery and expenditure. It is essential that clients weigh their options with prudence and a clear understanding of the possible outcomes.
Ensuring the recovery of company funds is crucial for maintaining financial stability and growth. At DCI, we specialize in expert debt collection services tailored to the Electrical Materials industry. Our dedicated team is committed to providing you with a personalized recovery strategy that aligns with your company’s unique needs. Don’t let outstanding debts hinder your business’s success. Visit our website and [Request A Quote] today for a competitive, customized solution that will help you reclaim your funds efficiently and securely.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases: Phase One involves sending letters to debtors, skip-tracing, and attempting to contact debtors; Phase Two involves forwarding the case to an affiliated attorney for further action; Phase Three includes recommendations for closure or litigation.
What happens if recovery is not likely in Phase Three?
If recovery is not likely in Phase Three, the case may be recommended for closure, and you will owe nothing to the firm or affiliated attorney. Alternatively, litigation may be recommended, and you can choose to proceed with legal action or withdraw the claim.
What are the upfront legal costs if proceeding with legal action in Phase Three?
If you decide to proceed with legal action in Phase Three, you will be required to pay upfront legal costs such as court costs and filing fees, typically ranging from $600.00 to $700.00, depending on the debtor’s jurisdiction.
What are the collection rates for accounts submitted in Phase Three?
The collection rates in Phase Three vary based on the number of claims submitted and the age and amount of the accounts. Rates range from 27% to 50% of the amount collected, depending on the specific conditions of the accounts.
What actions are taken in Phase One of the Recovery System?
In Phase One, letters are sent to debtors, skip-tracing and investigation are conducted, and attempts are made to contact debtors through various means such as phone calls, emails, and faxes. If unsuccessful, the case progresses to Phase Two.
What happens in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to an affiliated attorney who drafts letters demanding payment from the debtor. The attorney also attempts to contact the debtor by phone. If efforts to resolve the account fail, recommendations for further steps are provided.
