When dealing with overdue payments from Mexican electronics importers, it is essential to have a robust recovery system in place. This article outlines a three-phase Recovery System designed to recover company funds efficiently and effectively. Each phase is strategically designed to address the unique challenges of collecting overdue payments from importers in Mexico. By following this system, companies can navigate the complexities of debt recovery and maximize their chances of successful collection.
Key Takeaways
- The Recovery System consists of three distinct phases, each with specific actions and strategies to recover overdue payments effectively.
- Phase One involves initial contact with debtors, skip-tracing, and attempts to resolve the matter through various communication channels.
- Phase Two escalates the recovery process by involving affiliated attorneys and legal actions if initial attempts fail.
- Phase Three offers recommendations for closure or litigation, providing clear options for companies to pursue recovery based on the investigation and circumstances.
- The Recovery System outlines competitive collection rates tailored to the age and value of the accounts, providing transparency and flexibility for companies in the recovery process.
Recovery System for Overdue Payments
Phase One
In the initial assault on overdue payments, we hit the ground running. Within 24 hours of an account being placed, our team springs into action. We dispatch the first of four letters, ensuring the debtor is aware of their obligation. Our efforts don’t stop at snail mail; we dive deep with skip-tracing to unearth the most current financial and contact details.
Our collectors are relentless, employing a barrage of phone calls, emails, text messages, and faxes. We’re on the debtor’s radar, making daily attempts to secure a resolution. This intense period of pursuit lasts anywhere from 30 to 60 days. If this fails to shake loose the payments, we’re not deterred. We escalate to Phase Two, engaging our network of attorneys to bring additional pressure.
Our goal is clear: resolve the matter swiftly and efficiently, without the need for further escalation. But rest assured, we’re prepared to take the necessary steps if required.
Here’s a snapshot of our initial contact strategy:
- First letter sent via US Mail
- Comprehensive skip-tracing and investigation
- Persistent collector engagement
Should our efforts in Phase One not yield the desired results, we’re ready to transition seamlessly to the next phase, armed with the insights and groundwork laid during this critical first stage.
Phase Two
As we escalate our efforts, Phase Two marks a critical turning point. We’ve engaged a local attorney within our network, ensuring legal gravity backs our demands. Here’s what unfolds:
- A series of demand letters drafted on law firm letterhead are dispatched to the debtor.
- Parallel to the letters, the attorney’s team initiates persistent phone contact.
Despite these intensified efforts, some cases resist resolution. If this phase doesn’t yield results, we prepare a detailed report. It outlines the challenges and our recommended course of action—be it closure or escalation to litigation.
Our commitment remains steadfast: no recovery, no fee. We shoulder the risk, so your financial exposure is minimized.
Phase Three
At the crossroads of Phase Three, we face a critical decision. If our investigation suggests recovery is unlikely, we advise closing the case, at no cost to you. Conversely, should litigation seem viable, the choice is yours. Opt out, and you owe us nothing; opt in, and upfront legal fees apply, typically $600 to $700.
Should you choose to litigate, we stand ready to initiate legal proceedings, seeking full recompense for your losses, including filing costs.
Our fee structure is straightforward. For fewer than ten claims, expect a rate of 30% for recent accounts, escalating to 50% for older or attorney-handled cases. Above ten claims, rates decrease slightly. Here’s a quick breakdown:
| Claims Submitted | < 1 Year | > 1 Year | < $1000 | Attorney-Involved |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, our goal is to maximize your recovery while minimizing your expenses. We navigate these waters together, with transparency and efficiency at the helm.
Frequently Asked Questions
What is the Recovery System for Overdue Payments?
The Recovery System for Overdue Payments is a 3-phase system designed to recover company funds from debtors. It involves sending letters, skip-tracing, investigation, and attorney involvement to resolve overdue accounts.
What happens in Phase One of the Recovery System?
Phase One involves sending the first of four letters to the debtor via US Mail, skip-tracing and investigation to obtain debtor information, and daily attempts to contact the debtor through various communication methods. If Phase One fails, the case moves to Phase Two.
What is the process in Phase Two of the Recovery System?
Phase Two involves forwarding the case to an affiliated attorney within the debtor’s jurisdiction. The attorney will draft letters demanding payment and attempt to contact the debtor. If Phase Two fails, the case moves to Phase Three.
What are the options in Phase Three of the Recovery System?
In Phase Three, the options are to recommend closure of the case if recovery is unlikely or to proceed with legal action. Legal action may involve upfront costs, and the decision to proceed or withdraw the claim is up to the company.
What are the rates for the Recovery System?
The rates for the Recovery System depend on the number of claims submitted and the age and amount of the accounts. Rates range from 27% to 50% of the amount collected, with higher rates for accounts placed with an attorney.
What happens if the litigation fails in Phase Three?
If the attempts to collect via litigation fail, the case will be closed, and the company will owe nothing to the firm or affiliated attorney.
