Resolving payment disputes in import/export business between Italy and the USA can be a complex process. One effective approach is implementing a Recovery System for Company Funds, consisting of three distinct phases. Each phase involves specific actions and strategies to facilitate the resolution of payment disputes and ensure the recovery of funds.
Key Takeaways
- Implementing a structured Recovery System can enhance the efficiency of resolving payment disputes in import/export business.
- Phase One of the Recovery System includes sending initial letters to debtors, conducting investigations, and attempting to contact debtors for resolution.
- Phase Two involves forwarding cases to affiliated attorneys for legal action if initial attempts to resolve the dispute are unsuccessful.
- Phase Three presents two options: closing the case if recovery is unlikely or proceeding with litigation, with associated legal costs and fee structures.
- Rates for the Recovery System vary based on the number of claims submitted and the age and value of the accounts.
Recovery System for Company Funds
Phase One
Within the first 24 hours of initiating Phase One, a multi-faceted approach is deployed to engage the debtor. Immediate action is critical; hence, a series of four letters is dispatched via US Mail. Concurrently, skip-tracing and investigative measures are undertaken to unearth the most current financial and contact details of the debtor.
Our team’s persistence is key, with daily attempts to reach a resolution through phone calls, emails, text messages, and faxes. This intensive contact strategy spans the initial 30 to 60 days. Should these efforts not yield a settlement, the process seamlessly transitions to Phase Two, involving our network of affiliated attorneys.
The goal is clear: to secure a prompt and fair resolution, navigating through the challenges and strategies in recovering unpaid bills from US clients in Italian export trade.
The following table outlines the initial actions taken in Phase One:
| Action | Description |
|---|---|
| Letter Dispatch | Four letters sent to the debtor |
| Investigation | Skip-tracing to find debtor’s information |
| Contact Attempts | Daily outreach via multiple communication channels |
Phase Two
Upon escalation to Phase Two, the case is transferred to a local attorney within our network. This shift signifies a more assertive approach to debt recovery. The attorney will draft and send a series of firm letters on their letterhead, demanding payment. Concurrently, the attorney’s office will attempt to reach the debtor through phone calls, aiming to secure a resolution.
If these intensified efforts do not yield a settlement, a critical decision point is reached. At this juncture, the next steps are carefully considered based on the debtor’s response and the likelihood of successful recovery. The options are clear-cut:
- Continue with standard collection activities, such as calls and emails.
- Proceed with legal action, which involves upfront legal costs.
The choice is yours, but it’s vital to weigh the potential outcomes and costs involved. DCI offers legal involvement, recovery recommendations, competitive pricing, and a strong recommendation for B2B companies in USA-Italy trade. Contact DCI for accounts receivable protection.
Phase Three
At the crossroads of decision, Phase Three presents two paths. If the debtor’s assets and case facts suggest low recovery chances, we advise case closure with no fees due. Conversely, choosing litigation means facing upfront legal costs, typically $600-$700. Should litigation not yield results, no further fees apply.
Our fee structure is clear and competitive:
- For 1-9 claims, rates vary from 30% to 50% of the amount collected, based on the age and size of the account.
- For 10+ claims, the rates are slightly reduced, acknowledging the volume of business.
The decision to litigate is significant, impacting both potential recovery and expenses. Weighing the odds and costs carefully is crucial for a prudent course of action.
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 legal action. Phase Three involves recommendations for closure or litigation.
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 there will be no fees owed to the firm or affiliated attorney. Alternatively, litigation may be recommended, requiring upfront legal costs paid by the client.
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 variations based on specific criteria.
What actions are taken in Phase One of the Recovery System?
In Phase One, letters are sent to debtors, skip-tracing is conducted, and attempts are made to contact debtors for resolution. Daily contact attempts are made for the first 30 to 60 days.
What happens in Phase Two of the Recovery System?
Phase Two involves forwarding the case to affiliated attorneys who draft letters demanding payment from debtors. Attorneys also attempt to contact debtors by phone. If resolution is not reached, recommendations for the next steps are provided.
What are the options if legal action is recommended in Phase Three?
If legal action is recommended in Phase Three, clients have the choice to proceed with litigation by paying upfront legal costs. If litigation fails, there are no fees owed to the firm or affiliated attorney.
