Navigating non-payment in renewable energy projects between USA and Spain can be a complex and challenging process. Companies involved in such projects may encounter difficulties in recovering funds from debtors, requiring a strategic approach to address the issue effectively. In this article, we explore a comprehensive Recovery System designed to assist companies in recovering their funds in three distinct phases.
Key Takeaways
- The Recovery System for Company Funds involves three phases: Phase One, Phase Two, and Phase Three, each with specific actions and recommendations for addressing non-payment issues.
- In Phase One, immediate actions include sending letters to debtors, skip-tracing investigations, and contact attempts to resolve the matter within 30 to 60 days.
- Phase Two involves forwarding the case to affiliated attorneys for legal actions, including demand letters and further contact attempts with debtors.
- Phase Three presents two options based on investigation results: closure of the case if recovery is unlikely or litigation with upfront legal costs and potential collection rates based on the age and amount of the debt.
- Rates for collection services vary based on the number of claims submitted and the age and amount of the accounts, with competitive rates offered for different scenarios.
Recovery System for Company Funds
Phase One
We hit the ground running with Phase One. Within the first 24 hours of account placement, our team springs into action. A series of four letters is dispatched via US Mail, aimed squarely at the debtor. But we don’t stop there; we dive deep with skip-tracing and thorough investigations to unearth the most current financial and contact details.
Our collectors are relentless, employing a barrage of phone calls, emails, text messages, and faxes to reach a resolution. Here’s what you can expect:
- Daily attempts to contact the debtor for the initial 30 to 60 days.
- A multi-channel approach to communication, ensuring no stone is left unturned.
If our efforts in Phase One don’t yield results, we don’t waste time. We swiftly transition to Phase Two, escalating the case to our network of affiliated attorneys within the debtor’s jurisdiction.
Remember, our goal is to secure your financial interests without delay. For more details on our services, visit Debt Collectors International (DCI).
Phase Two
Once we’ve escalated the case to a local attorney within our network, we’re on the front lines, fighting for your funds. The attorney’s law firm letterhead becomes our banner, demanding payment with the weight of legal authority. We don’t just send letters; we’re on the phones, relentlessly pursuing a resolution.
Our strategy is clear:
- Draft and dispatch a series of demand letters.
- Initiate persistent phone contact.
- Provide you with transparent updates and recommendations.
If our efforts during this phase do not yield results, we prepare for the decisive Phase Three. We’ll analyze the debtor’s situation and advise on the feasibility of recovery or the necessity of legal action. Your financial interests remain our priority, and we ensure you’re informed every step of the way.
Phase Three
At this juncture, we face a critical decision. If our assessment reveals that recovery is improbable, we advise closing the case, incurring no cost to you. Conversely, should litigation seem viable, a choice presents itself.
Opting out of legal action allows for claim withdrawal at no expense, or we can persist with standard collection efforts. Choosing litigation necessitates upfront legal fees, typically between $600 to $700, based on the debtor’s location. These fees empower our attorney to pursue all owed monies through legal channels.
Our rates are competitive and vary depending on the volume and age of claims. For instance, accounts under a year old are charged at 30% of the collected amount for up to nine claims, and 27% for ten or more. Older accounts or those under $1000 incur higher rates, while attorney-placed accounts consistently attract a 50% rate.
Here’s a quick reference for our fee structure:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney-Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, if litigation fails, you owe us nothing. We stand by our commitment to a no recovery, no fee policy.
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 contacting debtors for resolution. Phase Two includes forwarding the case to affiliated attorneys for legal action. Phase Three offers two options: closing the case if recovery is unlikely or proceeding with litigation at the client’s discretion.
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 the client owes nothing to the firm or affiliated attorney. Alternatively, the client can choose to proceed with litigation by covering upfront legal costs. If litigation fails, the client owes nothing.
What are the costs associated with legal action in Phase Three?
The upfront legal costs for litigation in Phase Three range from $600.00 to $700.00, depending on the debtor’s jurisdiction. These costs cover court fees, filing fees, and other expenses related to filing a lawsuit.
What are the collection rates for DCI in the Recovery System?
DCI offers competitive collection rates based on the number of claims submitted within the first week of placing the first account. Rates vary for accounts under 1 year in age, accounts over 1 year in age, accounts under $1000.00, and accounts placed with an attorney.
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 to gather debtor information, and contact attempts are made through phone calls, emails, and other means. If resolution is not achieved, the case progresses to Phase Two.
What happens in Phase Two of the Recovery System?
Phase Two involves forwarding the case to an affiliated attorney who sends letters demanding payment, makes phone calls to debtors, and explores options for resolving the account. If efforts in Phase Two do not succeed, the next steps are communicated to the client.
