In the process of recovering payments for electronics exports to Singapore, we have established a comprehensive 3-phase Recovery System. Each phase is designed to address specific aspects of the recovery process, ensuring that our clients have the best chance of retrieving their funds. Let’s explore the key takeaways from this Recovery System:
Key Takeaways
- The Recovery System consists of three distinct phases, each with specific actions and strategies to recover funds effectively.
- Phase One involves initial contact with the debtor, skip-tracing, and attempts to resolve the matter through various communication channels.
- Phase Two escalates the recovery process by involving affiliated attorneys and legal actions if initial attempts fail.
- Phase Three offers recommendations based on the investigation of the debtor’s assets, including closure of the case or proceeding with legal action.
- The Recovery System offers competitive collection rates based on the number of claims submitted and the age of the accounts.
Recovery System for Electronics Exports to Singapore
Phase One
Initiating the recovery process is critical. Within 24 hours of account placement, a multi-channel approach is launched. Debtors receive the first of four letters, while our team conducts thorough skip-tracing to gather essential financial and contact information.
Efforts to resolve the debt commence immediately, with daily attempts encompassing phone calls, emails, text messages, and faxes. This aggressive contact strategy persists for 30 to 60 days, aiming for a swift resolution.
Persistence is key. Our collectors are relentless in their pursuit, ensuring every avenue is explored in the initial phase.
If these efforts do not yield results, the case escalates to Phase Two, involving legal intervention. The table below outlines the structured approach taken in Phase One:
| Day Range | Actions Taken |
|---|---|
| 1-30 | Daily contact attempts; first letter sent |
| 31-60 | Continued contact; additional letters and skip-tracing |
The goal is clear: resolve swiftly, prepare for escalation if necessary.
Phase Two
Upon escalation to Phase Two, the case is transferred to a local attorney within our network. The attorney’s immediate action includes drafting a demand letter on their law firm’s letterhead. This is followed by persistent attempts to contact the debtor through calls, reinforcing the urgency of payment.
- The attorney sends the first demand letter.
- Persistent contact attempts are made via telephone.
If these efforts do not yield results, a detailed letter is sent to you, the creditor, outlining the challenges encountered and the recommended course of action. This phase is critical as it sets the stage for potential litigation, should the need arise.
The involvement of legal counsel signifies a heightened level of seriousness in the recovery process, often prompting a swift response from the debtor.
The effectiveness of this phase is contingent on the tenacity of the legal approach and the debtor’s responsiveness to legal pressure.
Phase Three
Upon reaching Phase Three, the path forward is clear-cut. A thorough investigation of the case and the debtor’s assets will lead to one of two recommendations. If recovery is deemed unlikely, case closure is advised, incurring no fees. Alternatively, litigation may be suggested.
Choosing litigation requires upfront legal costs, typically between $600 to $700. These cover court costs, filing fees, and other related expenses. Should you opt for legal action, a detailed lawsuit will be filed to recover all monies owed, including litigation costs. Failure to collect through litigation results in case closure with no additional fees owed.
The decision to litigate is pivotal. It demands careful consideration of potential outcomes and costs involved.
Our fee structure is straightforward and competitive, with rates varying based on claim age, amount, and volume. Here’s a quick overview:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Decisiveness and prompt action are key in Phase Three, ensuring the best possible outcome for your electronics exports to Singapore.
Frequently Asked Questions
What is the recovery system for electronics exports to Singapore?
The recovery system for electronics exports to Singapore consists of three phases: Phase One, Phase Two, and Phase Three. Each phase involves specific actions and procedures to recover company funds for unpaid exports.
What happens in Phase One of the recovery system?
In Phase One, within 24 hours of placing an account, the first of four letters is sent to the debtor via US Mail. The cases are skip-traced and investigated to obtain the best financial and contact information available on the debtors. Our collector will then attempt to contact the debtor and produce a resolution to the matter using various communication methods.
What occurs during Phase Two of the recovery system?
In Phase Two, the case is immediately forwarded to one of the affiliated attorneys within the debtor’s jurisdiction. The receiving attorney will draft letters to the debtor, demanding payment of the debt owed. If all attempts to reach a conclusion fail, a letter explaining the issues surrounding the case will be sent to the client.
What is the recommendation in Phase Three of the recovery system?
In Phase Three, the recommendation will be either to close the case if recovery is not likely or to proceed with litigation. If the decision is to proceed with legal action, the client will be required to pay upfront legal costs such as court costs and filing fees.
What are the rates for the recovery system?
The rates for the recovery system depend on the number of claims submitted within the first week of placing the first account. Different rates apply based on the age and amount of the accounts, as well as whether the accounts are placed with an attorney.
What are the options if attempts to collect via litigation fail?
If attempts to collect via litigation fail, the case will be closed, and the client will owe nothing to the firm or the affiliated attorney. The client also has the option to allow continued pursuit of the debtors with standard collection activity.
