In the recovery system for company funds, the process of recovering payments for delivered drug orders consists of three key phases. Each phase involves specific actions and recommendations to ensure the successful recovery of funds. This article will provide an overview of the recovery system and outline the key takeaways from each phase.
Key Takeaways
- Thorough investigation and assessment of debtor’s assets is crucial for determining the likelihood of recovery.
- The option to proceed with legal action involves upfront legal costs and potential litigation fees.
- Rates for collection activities vary based on the age and amount of the accounts, as well as whether they are placed with an attorney.
- Phase One involves initial contact and attempts to resolve the account, while Phase Two includes legal involvement and demand for payment.
- The recommendation in Phase Three may lead to case closure or a decision to proceed with litigation, with associated costs and fees.
Recovery System for Company Funds
Phase One: Initial Recovery Process
Within the first 24 hours of initiating Phase One, a multi-faceted approach is deployed to secure payment. Debtors receive the first of four letters via US Mail, signaling the start of the recovery process. Concurrently, cases undergo skip-tracing and investigation to unearth optimal financial and contact information.
Our collectors engage with debtors through a variety of channels, including phone calls, emails, text messages, and faxes. The goal is to achieve a resolution swiftly, with daily contact attempts spanning the initial 30 to 60 days. Should these efforts not yield results, the case escalates to Phase Two, involving legal counsel within the debtor’s jurisdiction.
The initial phase is critical—persistent yet professional contact is key to successful recovery.
Here’s a snapshot of the initial recovery efforts:
- First contact letter sent
- Skip-tracing and investigation
- Daily communication attempts
- 30 to 60-day intensive follow-up
Failure to secure payment after exhaustive attempts leads to the next phase, where the stakes are higher and the approach, more stringent.
Phase Two: Legal Action and Attorney Involvement
When internal recovery efforts falter, the baton is passed to legal professionals. Attorneys within our network take the helm, drafting demand letters and making calls with the weight of legal authority. If these efforts remain unfruitful, a decision point is reached.
Litigation may be the next course of action. This step involves upfront costs, typically ranging from $600 to $700, which cover court and filing fees. A lawsuit is then filed to recover all monies owed, including legal costs.
Should litigation prove unsuccessful, the case is closed with no further financial obligation to our firm or affiliated attorney.
Our fee structure is clear and competitive, with rates varying based on claim age, amount, and volume. Here’s a snapshot:
- For 1-9 claims, rates range from 30% to 50% of the amount collected.
- For 10 or more claims, rates decrease, with a minimum of 27% of the amount collected.
These rates ensure that our interests are aligned with your recovery success.
Phase Three: Recommendations and Costs
Upon concluding the initial recovery and legal proceedings, our firm provides clear guidance for the next steps. If the likelihood of recovery is low, we advise case closure at no cost to you. Conversely, should litigation be deemed viable, a decision point arises.
Opting out of legal action allows for claim withdrawal or continued standard collection efforts—calls, emails, faxes—free of charge. Choosing litigation incurs upfront legal costs, typically $600-$700, which covers court fees and filing expenses. Our affiliated attorney will then pursue all owed monies, including litigation costs. Failure to recover funds post-litigation results in case closure, with no financial obligation to our firm or attorney.
Our fee structure is competitive and tailored to claim volume and age. The rates are contingent on the amount recovered, ensuring alignment with your success.
Here’s a breakdown of our rates based on the number of claims and other factors:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney-Placed Claims |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, our goal is to maximize your recovery while minimizing costs. Weighing the potential for recovery against the expenses and risks involved is crucial. Our team is here to provide expert advice and support throughout the entire process.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases: Initial Recovery Process, Legal Action and Attorney Involvement, and Recommendations and Costs.
What happens if the possibility of recovery is not likely after thorough investigation?
If recovery is not likely, we will recommend closure of the case, and you will owe nothing to our firm or our affiliated attorney for these results.
What are the options if litigation is recommended?
If litigation is recommended, you can decide whether to proceed with legal action or withdraw the claim. If you proceed with legal action, you will be required to pay upfront legal costs such as court costs and filing fees.
What are the rates for DCI’s collection services?
DCI provides competitive collection rates tailored to the number of claims submitted within the first week of placing the first account. Rates depend on the age and amount of the accounts, as well as whether they are placed with an attorney.
What happens in Phase One of the Recovery System?
In Phase One, letters are sent to the debtor, skip-tracing and investigation are conducted, and attempts are made to contact the debtor to resolve the matter. If all attempts fail, the case moves to Phase Two.
What happens in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to an affiliated attorney who will draft letters and attempt to contact the debtor. If all attempts to reach a conclusion fail, a letter will be sent to explain the issues and recommend the next steps.
