When it comes to recovering costs from clinical trial sponsors, having a structured Recovery System in place is crucial. This system typically involves multiple phases to ensure the best possible outcome for recovering funds. In this article, we will discuss the Recovery System Overview, focusing on Phase One, Phase Two, and Phase Three, and highlight key takeaways from each phase.
Key Takeaways
- The Recovery System for clinical trial sponsor costs involves three phases: Phase One, Phase Two, and Phase Three.
- Phase One includes sending letters to debtors, skip-tracing, and attempting to resolve accounts through various communication methods.
- Phase Two involves forwarding cases to affiliated attorneys for legal action if initial attempts to resolve accounts fail.
- Phase Three offers two options: closing the case if recovery is unlikely or proceeding with litigation, with associated legal costs and potential recovery rates.
- Rates for recovery services vary based on the number of claims submitted and the age and value of the accounts.
Recovery System Overview
Phase One
Within the first 24 hours of initiating Phase One, a multi-pronged approach is launched to secure recovery. Debtors are immediately contacted through a series of four letters, complemented by exhaustive skip-tracing to pinpoint the most current financial and contact information. Our team engages in relentless pursuit, utilizing phone calls, emails, text messages, and faxes to negotiate a resolution.
Daily attempts are made to reach debtors, with the initial phase spanning 30 to 60 days. Should these efforts not yield the desired outcome, the process seamlessly transitions to Phase Two, involving our network of affiliated attorneys.
The effectiveness of Phase One is reflected in the structured follow-up system:
- Initial contact via US Mail
- Comprehensive skip-tracing
- Persistent communication efforts
- Evaluation after 30 to 60 days
In the event of non-resolution, the case is escalated without delay, ensuring that momentum in the recovery process is maintained.
Phase Two
Upon escalation to Phase Two, the case is transferred to a local attorney within our network. Immediate action is taken to assert the creditor’s position. A series of demand letters are dispatched, and persistent contact attempts are initiated. If these efforts do not yield a resolution, a detailed report is prepared, outlining the challenges and recommending next steps.
The focus is on persistent and professional pursuit, ensuring every avenue is explored before moving to the final phase.
The cost implications at this stage are minimal, as the primary tools are communication and legal notices. However, should the case advance to litigation, the following fee structure applies:
- Accounts under 1 year: 30% of the amount collected.
- Accounts over 1 year: 40% of the amount collected.
- Accounts under $1000.00: 50% of the amount collected.
- Accounts placed with an attorney: 50% of the amount collected.
For cases involving 10 or more claims, reduced rates are offered. The decision to proceed with legal action or to withdraw the claim rests with the creditor, with the assurance that no fees are owed if the case is closed without recovery.
Phase Three
Upon reaching Phase Three, the path forward hinges on the feasibility of recovery. If prospects are dim, we advise case closure, sparing you from any financial obligation to our firm or affiliated attorneys. Conversely, should litigation appear viable, a critical choice awaits.
Choosing not to litigate allows for claim withdrawal or continued pursuit through standard collection activities—without incurring additional costs. Opting for legal action necessitates covering upfront expenses, typically between $600 to $700. These fees empower our attorneys to seek full recompense on your behalf.
Our competitive rates are structured to align with your claim volume and age, ensuring fairness and transparency.
Here’s a snapshot of our rate structure:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Note: The percentages reflect the amount collected, with higher rates for older or smaller accounts, and those requiring legal intervention.
Frequently Asked Questions
What is the Recovery System Overview?
The Recovery System Overview consists of three phases: Phase One, Phase Two, and Phase Three, each with specific actions and procedures to recover company funds from clinical trial sponsors.
What happens in Phase One of the Recovery System?
In Phase One, accounts are placed, letters are sent to debtors, skip-tracing and investigations are conducted, and attempts are made to contact debtors for resolution within the first 30 to 60 days.
What is the process in Phase Two of the Recovery System?
Phase Two involves forwarding the case to an affiliated attorney for further actions, including sending demand letters on law firm letterhead, contacting debtors, and providing recommendations for the next steps if resolution is not achieved.
What occurs in Phase Three of the Recovery System?
In Phase Three, recommendations are made based on the investigation results and debtor’s assets. Options include closing the case if recovery is unlikely or proceeding with litigation, where upfront legal costs may be required from the claimant.
What are the rates for recovery services provided by DCI?
DCI offers competitive collection rates 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 happens if legal action fails in Phase Three?
If attempts to collect via litigation fail in Phase Three, the case will be closed, and the claimant will owe nothing to the recovery firm or affiliated attorney for these results.
