When it comes to securing payments from Brazilian business partners, having a solid recovery system in place is crucial. Understanding the rates for collection services can also make a significant impact on the success of your payment recovery efforts. In this article, we will delve into a 3-phase Recovery System for Company Funds and explore the Rates for Collection Services offered by DCI. Let’s uncover the key takeaways from these essential aspects of securing payments from Brazilian business partners:
Key Takeaways
- Implementing a structured recovery system with multiple phases can increase the chances of successful payment recovery from Brazilian business partners.
- Understanding the rates for collection services based on the number of claims submitted and the age of the accounts is essential for cost-effective payment recovery strategies.
- Collaborating with affiliated attorneys can expedite the payment recovery process and provide legal support when necessary.
- Deciding on legal action for payment recovery involves upfront legal costs but can be a strategic option for cases with higher chances of successful recovery.
- DCI offers competitive collection rates tailored to the specific needs of clients, providing a transparent fee structure for payment recovery services.
Recovery System for Company Funds
Phase One
Initiating the recovery process is critical and time-sensitive. Within 24 hours of account placement, our team takes decisive action:
- A series of four letters is dispatched to the debtor, starting with the first via US Mail.
- Comprehensive skip-tracing and investigations are conducted to secure the most accurate financial and contact information.
- Our collectors engage with the debtor through multiple channels, including phone, email, text, and fax, to negotiate a resolution.
The goal is to make daily contact attempts during the initial 30 to 60 days, pushing for a swift and favorable outcome. If these efforts do not yield results, we transition seamlessly to Phase Two, involving legal escalation within the debtor’s jurisdiction.
Phase Two
Upon escalating to Phase Two, the case is transferred to a local attorney within our network. This marks a critical shift in the recovery process, as the attorney’s involvement adds a layer of urgency to the debtor’s situation. The attorney will:
- Draft and send a series of authoritative letters on law firm letterhead.
- Initiate direct contact attempts via phone calls.
If these intensified efforts do not yield a resolution, a detailed report will be provided, outlining the challenges encountered and suggesting potential next steps.
This phase is designed to leverage legal pressure to secure payment, ensuring that every avenue is explored before moving to the decisive Phase Three.
Phase Three
Upon reaching Phase Three, a critical decision point is encountered. The outcome of the previous phases dictates the next steps:
- If the debtor’s assets and case facts suggest low recovery chances, our firm advises case closure, incurring no fees for you.
- Conversely, if litigation appears viable, you face a choice. Opting out means no charges; proceeding requires covering legal costs, typically $600-$700.
The decision to litigate is significant, as it involves upfront costs but also the potential to recover the full debt amount, including legal fees.
Should you choose litigation, our affiliated attorney will initiate legal proceedings. Failure to collect post-litigation results in case closure, absolving you of further financial obligations to our firm or attorney.
Rates for Collection Services
Rates for 1 through 9 Claims
When securing payments from Brazilian business partners, understanding the collection rates for smaller claim volumes is crucial. For 1 through 9 claims, the rates are tailored to the age and amount of the account.
- Accounts under 1 year in age: 30% of the amount collected.
- Accounts over 1 year in age: 40% of the amount collected.
- Accounts under $1000.00: 50% of the amount collected.
- Accounts placed with an attorney: 50% of the amount collected.
These rates are competitive and designed to ensure that your efforts in recovering funds are cost-effective. It’s important to note that the percentage is taken from the amount successfully recovered, aligning the service provider’s interests with your own.
The key to a successful recovery strategy is not just persistence, but also a nuanced understanding of the claim’s specifics. Tailored rates reflect the complexity and effort required to secure payments effectively.
Rates for 10 or More Claims
When dealing with a higher volume of claims, the rates for collection services become more favorable. Bulk submissions lead to cost savings, a crucial factor for businesses looking to secure payments efficiently. For 10 or more claims, the rates are structured to encourage companies to manage their debt collection in a consolidated manner.
Volume discounts are applied to claims under and over one year in age, as well as for smaller accounts under $1000.00. Here’s a quick breakdown of the adjusted rates:
- Accounts under 1 year in age: 27% of the amount collected
- Accounts over 1 year in age: 35% of the amount collected
- Accounts under $1000.00: 40% of the amount collected
- Accounts placed with an attorney: 50% of the amount collected
It’s important to note that these rates are competitive and tailored to the specifics of each case, including the age and complexity of the claim.
Remember, securing payments from Brazilian business partners requires a strategic approach. Leveraging these reduced rates for 10 or more claims can significantly impact your company’s bottom line.
Looking for efficient and reliable collection services? Debt Collectors International offers a comprehensive suite of solutions tailored to your industry’s needs. From dispute resolution to accounts receivable management, our expert collectors are ready to serve you. With over 30 years of experience and a ‘No Recovery, No Fee’ policy, you can trust us to maximize your recoveries. Visit our Rates page to learn more about our competitive rates and get started on reclaiming what’s rightfully yours.
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 attempting to contact debtors for resolution. Phase Two includes forwarding the case to affiliated attorneys for further action. Phase Three offers recommendations based on investigation results and the option for litigation.
What happens if attempts to resolve the account fail in Phase One?
If all attempts to resolve the account fail in Phase One, the case will proceed to Phase Two, where it will be forwarded to affiliated attorneys for legal action within the debtor’s jurisdiction.
What are the options in Phase Three of the Recovery System?
In Phase Three, the options include closing the case with no fees if recovery is unlikely, or proceeding with litigation by paying upfront legal costs. If litigation fails, there are no fees owed to the firm or affiliated attorney.
What are the rates for collection services based on the number of claims?
The rates for collection services vary based on the number of claims submitted. For 1 through 9 claims, rates range from 30% to 50% of the amount collected, while for 10 or more claims, rates range from 27% to 50% depending on the age and amount of the accounts.
What are the rates for accounts under $1000.00?
Accounts under $1000.00 are subject to specific rates based on their age and whether they are placed with an attorney, ranging from 40% to 50% of the amount collected.
What happens if litigation fails in Phase Three?
If attempts to collect via litigation fail in Phase Three, the case will be closed with no fees owed to the firm or affiliated attorney, regardless of the outcome.
