Debtors will often pay a collection agency even though they never cooperated with the original creditor, mainly because collection agencies typically increase the psychological anxiety associated with a debt. Second, the debtor will understand that the creditor is serious about collecting their money. On the other hand, the successful debt collection will considerably increase the amount of the debt and could as well impede the business activity of the debtor in case of imposing security measures. The faulty debtors are also included in lists, which have unofficial nature with respect to different commercial, financial and bank institutions.
The principle we base our work on with respect to debt collection is “NO WIN, NO PAY”. There are several key factors which determine the amount of our remuneration: the age of the debt is the most important one. Others are the amount of the debt, existence of supporting documents that certify the debt to be paid, indisputability of the debt, financial status of the debtor, etc.
We do a complete examination of the case within the first 24 hours from the receiving of the documents that support the debt, after which we mail the first collection notice to the debtor. After making sure that it has been received by the debtor, we begin subsequent phone calls and write additional letters. Some debts are collected in the first 4-5 days while others may take years. There are debtors, which could not be located, debtors who dispute the debt and debtors who are simply uncooperative. On average, though, we collect most of our payments within the first 90 days.
If the client wishes, we send him/her a monthly debtor activity report which includes the actions we have taken against the debtor, information about the payments due in case of installment payment agreement, etc. According to the needs of the client we send him/her additional information.
If the debtor disputes the debt, we will provide him/her with verification of the debt, which typically consists of the documentation initially provided by the client. We also try to convince him/her in the factual and legal indisputability of the debt. On occasion and depending on the dispute, we may have to request additional documentation from you, the client, in order to properly verify the debt. If the debtor simply refuses to pay, depending on the specific case and after a careful evaluation of the possibilities for success, we offer to begin a litigation process, upon client approval. Relevant factors to consider prior to commencing litigation include: good documentation, cost of litigation and financial status of the debtor. If a file is not considered “suitworthy”, you may still request that we start a litigation process, so that the debt does not become void by prescription.
When the five year period of legal prescription lapses, all the debts are considered paid, if the law does not stipulates something else. With a three year legal prescription, the following debts are considered paid off: 1) claims for salaries or other job remunerations, with respect to which no other period of legal prescription has been stipulated; 2) claims for compensations and penalties from unfulfilled contracts; 3) claims for rent, interests, or other periodical payments.
The period of legal prescription could be suspended, after which a new such period starts to lapse. The legal prescription is suspended: 1) when the debtor acknowledges his/her debt; 2) when a claim is filed, an objection or a request for conciliation is entered, but if those are not taken into consideration by the court, the prescription is not considered suspended; 3) when actions for forcible execution process are taken.
We will do anything possible to recover your debt in-house. In case that could not be done for some reason, and upon your authorization, we will transfer your files to our attorneys who have a rich experience in that area. We work with associated attorneys throughout the country. We will also keep you updated as to the progress made by the attorneys who are working on your behalf. Our clients appreciate the fact that we take care of everything throughout the collection process, especially the legal process since many people are not familiar with the complexities involved in a lawsuit.
The age of a debt is one of the biggest factors in determining whether or not a debt gets paid and what our remuneration for collection would be. The older the debt, the harder it is to collect. Research on the collectability of debts clearly shows that the most advantageous time to enlist the services of a collection agency is within 60-90 days of the invoice due date. Incorporating this strategy will help ensure maximum recoveries with the least cost to your company.
We always try to keep the good manners. Many of our clients give us specific instructions as to how to proceed against their customers, which instructions we always take into account. We realize that today’s slow-paying customer can often be converted into tomorrow’s good-paying customer with the right amount of collection follow-up, which is why we endeavor to collect while attempting to salvage the business relationship between our client and their customer.
We have included in our team experts in negotiations, persons with psychological, legal and financial education. All the members of the staff go through an internal training as well as through sessions for improving their skills according to the world standards set for that activity.
We offer to our clients consultations and elaboration of a strategy for reducing the claims that could not be collected, depending on the activity of the specific client. We also organize training sessions for the employees of different companies, with the purpose to introduce them to the possibilities to reduce the unpaid obligations; we teach them how to behave during negotiations, we let them know about the ways to secure a certain payment, etc.
You could contact us through our on line request form, sending us an e-mail or just call us on the phone. In case you wish to work with us we will sign an agreement with you through which you assign us the collection of your debt.
After obtaining your name or your company’s name, address, fax, phone and E-mail address, we would require the debtor’s contact information; name, address, phone numbers, total amount owing and its due date. We would also need all the documents that support the respective debt. The more information we possess concerning the obligation, the easier it is to dissolve objections and effect payment.
Each claim is registered in our data base right after it is forwarded to us and we start working on it as soon as possible. We send an official collection notice to the debtor, as well as subsequent reminding letters; we make phone calls and, if it is necessary, we meet with the debtor. We elaborate and organize the signing of documents which support the debt or we prepare agreements for its installment plan of payment, upon authorization of the client. After getting the debtor’s consent as for the payment of the debt, we continue our work to its ffective payment to the client. All amounts are directly transferred to the bank account of the client.