Enforcing Payments in Construction Materials Export to Mexico involves a comprehensive Recovery System for Company Funds and understanding the Rates for DCI Collection Services. This article delves into the phases of the recovery system and the rates associated with collection services in the context of construction materials export to Mexico.
Key Takeaways
- The Recovery System for Company Funds consists of three phases: Phase One, Phase Two, and Phase Three with specific actions and recommendations at each stage.
- Phase Three involves two possible recommendations: closure of the case if recovery is unlikely or proceeding with litigation requiring upfront legal costs.
- DCI Collection Services offer competitive rates based on the number of claims submitted, with different percentages for accounts based on age, amount, and attorney involvement.
Recovery System for Company Funds
Phase One
Initiating the recovery process is critical for reclaiming funds. Within the first 24 hours of account placement, immediate action is taken. A series of four letters is dispatched to the debtor, marking the beginning of a rigorous pursuit.
Skip-tracing and in-depth investigations are conducted to secure the most accurate financial and contact information. Our collectors engage in relentless efforts, utilizing phone calls, emails, text messages, and faxes to reach a resolution.
Daily attempts are made to contact the debtor during the initial 30 to 60 days. Failure to resolve the account triggers a transition to Phase Two, involving our affiliated attorneys within the debtor’s jurisdiction.
The table below outlines the initial contact strategy:
| Day | Action |
|---|---|
| 1 | First letter sent |
| 2-30 | Daily contact attempts |
| 31+ | Evaluate for Phase Two |
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 seriousness of the debt recovery process. The attorney drafts a series of demand letters on their official letterhead, signaling a step-up in the enforcement measures. Concurrently, the attorney’s team initiates persistent telephone contact with the debtor, aiming to secure payment.
If these intensified efforts do not yield a resolution, a strategic assessment is conducted. The outcome determines whether to advance to Phase Three or to recommend alternative actions. This decision is critical, as it shapes the subsequent recovery approach.
The goal is clear: to recover your funds with the utmost efficiency and minimal disruption to your business operations.
The following table outlines the actions taken during Phase Two:
| Action | Description |
|---|---|
| Letter Drafting | Attorney sends demand letters to the debtor. |
| Telephone Contact | Attorney’s team attempts to reach a settlement via calls. |
| Case Assessment | Evaluation of the case to decide on proceeding to Phase Three. |
Phase Three
Upon reaching Phase Three, the path forward becomes clear. If the investigation suggests a low likelihood of fund recovery, we advise case closure, incurring no cost to you. Conversely, should litigation be the recommended route, a decision rests on your shoulders.
Choosing not to litigate allows for claim withdrawal or continued pursuit through standard collection activities—both at no charge. Opting for legal action necessitates upfront costs, typically between $600 and $700, covering court and filing fees. These fees empower our affiliated attorney to seek full recompense on your behalf.
Should litigation prove unsuccessful, rest assured, you owe nothing further. Our commitment to a no-recovery, no-fee policy stands firm.
The decision matrix post-investigation is as follows:
- No recovery potential: Case Closure
- Litigation advised: Decision Point
- No litigation: Withdraw or continue standard collection
- Litigate: Pay upfront legal costs
Transparency in costs and outcomes is pivotal to our service promise, ensuring you are informed and in control at every stage.
Rates for DCI Collection Services
Rates for 1 through 9 Claims
When dealing with a smaller volume of claims, DCI offers a structured rate system to ensure your company’s efforts in recovering funds are both efficient and cost-effective. For claims that are less than a year old, the rate is set at 30% of the amount collected. This incentivizes swift action and resolution.
For claims that have aged beyond a year, the rate increases to 40%, reflecting the additional effort required to secure payment. In cases where the account value is below $1000, or when claims necessitate legal action, the rate is 50% of the collected amount.
| Age of Account | Rate |
|---|---|
| Under 1 year | 30% |
| Over 1 year | 40% |
| Under $1000 | 50% |
| Legal action | 50% |
It is essential to consider the age and size of the claim when evaluating the cost of recovery services. A strategic approach can significantly influence the final outcome and the associated expenses.
Rates for 10 or More Claims
When handling a higher volume of claims, DCI offers a scaled rate structure to ensure cost-effectiveness for our clients. Bulk submissions can significantly reduce your collection costs, making it a strategic choice for companies with numerous accounts receivable.
For companies submitting 10 or more claims, the rates are adjusted as follows:
- 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.
The efficiency of our collection process is designed to maximize recovery while minimizing your expenses. Our tiered pricing reflects our commitment to providing value to our clients with larger claim volumes.
It’s essential to consider these rates when planning your strategy for recovering funds tied up in construction materials export to Mexico. The more claims you have, the more you save.
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, contacting debtors for resolution, and escalating to affiliated attorneys if necessary. Phase Two includes drafting demand letters, contacting debtors, and recommending next steps. Phase Three involves either closing the case if recovery is unlikely or proceeding with litigation with upfront legal costs.
What are the rates for DCI Collection Services for 1 through 9 claims?
For 1 through 9 claims, the rates vary based on the age and amount of the accounts. Accounts under 1 year in age are charged 30% of the amount collected, accounts over 1 year in age are charged 40%, accounts under $1000.00 are charged 50%, and accounts placed with an attorney are charged 50%.
What are the rates for DCI Collection Services for 10 or more claims?
For 10 or more claims, the rates vary based on the age and amount of the accounts. Accounts under 1 year in age are charged 27% of the amount collected, accounts over 1 year in age are charged 35%, accounts under $1000.00 are charged 40%, and accounts placed with an attorney are charged 50%.
What happens if I decide not to proceed with legal action in Phase Three of the Recovery System?
If you decide not to proceed with legal action in Phase Three, you have the option to withdraw the claim and owe nothing to the firm or affiliated attorney. Alternatively, you can allow standard collection activity to continue. However, if you proceed with legal action, you will be required to pay upfront legal costs.
What are the upfront legal costs for litigation in Phase Three of the Recovery System?
The upfront legal costs for litigation in Phase Three typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. Upon payment of these funds, the affiliated attorney will file a lawsuit on your behalf for all monies owed.
How are the collection rates tailored for DCI Collection Services?
DCI provides competitive collection rates tailored to the number of claims submitted within the first week of placing the first account. Rates vary based on the age and amount of the accounts, with different percentages for different scenarios.
