In the realm of Public Relations projects, chasing down payments is a crucial aspect to ensure the financial health of a company. Implementing a robust Recovery System for Company Funds is essential to recover outstanding debts efficiently. This system typically involves multiple phases aimed at recovering funds from debtors. Let’s delve into the key takeaways from this process:
Key Takeaways
- Implementing a Recovery System for Company Funds is vital for chasing down payments effectively in Public Relations projects.
- The Recovery System often consists of multiple phases, each with specific actions and strategies to recover company funds.
- Phase One involves initial actions such as sending letters to debtors, skip-tracing, and contacting debtors for resolution.
- Phase Two escalates the recovery process by involving affiliated attorneys to demand payment and attempt to resolve the debt.
- Phase Three presents options for further action, including recommendations for closure or litigation, with associated costs and fee structures.
Recovery System for Company Funds
Phase One
In the initial stage of the recovery system, the process is set in motion within 24 hours of account placement. The debtor is immediately contacted through a series of four letters sent via US Mail. To ensure the highest chance of recovery, the debtor’s financial and contact information is meticulously skip-traced and investigated.
The collection team employs a multi-channel approach, reaching out to the debtor through phone calls, emails, text messages, and faxes. The goal is to secure a resolution swiftly and efficiently. Daily attempts are made to engage with the debtor during the critical first 30 to 60 days. If these efforts do not yield a resolution, the case escalates to Phase Two, involving a more direct legal approach.
The persistence of contact during this phase is crucial, as it sets the tone for the debtor’s responsiveness and the overall success of the recovery process.
Here is a brief overview of the initial contact strategy:
- First contact letter sent via US Mail
- Comprehensive skip-tracing and investigation
- Persistent multi-channel communication attempts
Should Phase One fail to produce the desired outcome, the case is promptly forwarded to an affiliated attorney within the debtor’s jurisdiction, marking the transition to the next phase of the recovery system.
Phase Two
Upon escalation to Phase Two, the focus shifts to leveraging legal expertise to recover funds. The assigned attorney will initiate contact with the debtor through a series of formal letters, emphasizing the seriousness of the situation. Simultaneously, persistent attempts to communicate via telephone are made, aiming to secure a resolution without further legal action.
If these efforts remain unsuccessful, a detailed analysis of the debtor’s financial status and the complexity of the case is conducted. This is crucial in determining the feasibility of moving to Phase Three. The decision to proceed is then communicated to you with a clear explanation of the potential outcomes and associated costs.
It is at this juncture that the path forward is carefully considered, weighing the likelihood of recovery against the expenses incurred in litigation.
The table below outlines the rates applicable should the case advance to litigation, reflecting the commitment to a tailored approach based on the age and value of the account:
| Number of Claims | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed Accounts |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
These rates are designed to align the interests of the firm with the successful recovery of your funds, ensuring that the pursuit of debtors is both strategic and cost-effective.
Phase Three
Upon reaching Phase Three, the path forward becomes contingent on the outcome of a comprehensive evaluation. If the likelihood of fund recovery is deemed low, our firm advises case closure, absolving clients of any financial obligation to us or our affiliated attorneys. Conversely, should litigation be recommended, clients face a pivotal decision.
Litigation entails upfront legal costs, which vary by jurisdiction but generally fall between $600.00 to $700.00. These costs cover court fees, filing charges, and other related expenses. Once these fees are settled, our attorneys initiate legal proceedings to recover the full amount owed, including the cost of filing the lawsuit. In the event that litigation does not result in collection, clients are not held responsible for any further payments to our firm or attorneys.
Our fee structure is designed to be competitive and is based on the volume and age of claims:
| Number of Claims | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
In the event of non-litigious resolution, clients may opt to discontinue the claim or permit standard collection efforts to persist. This includes communication strategies such as calls, emails, and faxes, aimed at securing the debt without court intervention.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases aimed at recovering company funds from debtors.
What happens in Phase One of the Recovery System?
Phase One involves sending letters to debtors, skip-tracing, contacting debtors via various methods, and attempting to resolve the matter within the first 30 to 60 days.
What occurs in Phase Two of the Recovery System?
Phase Two includes forwarding the case to an affiliated attorney, drafting demand letters, and further attempts to contact the debtor to resolve the account.
What are the options in Phase Three of the Recovery System?
In Phase Three, the options include closing the case if recovery is unlikely or proceeding with litigation, with associated legal costs and potential outcomes.
What are the rates for the Recovery System services?
The rates for the Recovery System services vary based on the number of claims submitted, the age of the accounts, and whether they are placed with an attorney.
What happens if attempts to collect via litigation fail?
If attempts to collect via litigation fail, the case will be closed, and there will be no obligation to pay the firm or affiliated attorney.
