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Securing Overdue Accounts in Automotive Parts Exports to Thailand

Securing overdue accounts in automotive parts exports to Thailand can be a challenging task, especially when dealing with recovery of company funds. To address this issue, a comprehensive Recovery System has been established in three phases. Each phase plays a crucial role in the process of recovering funds from debtors in Thailand.

Key Takeaways

  • The Recovery System for Company Funds consists of three phases: Phase One, Phase Two, and Phase Three, each with specific actions and strategies for debt recovery.
  • Phase One involves sending letters to debtors, skip-tracing, and contacting debtors for resolution within the first 24 hours of placing an account.
  • Phase Two includes forwarding cases to affiliated attorneys for legal action if initial attempts to resolve the account fail.
  • Phase Three offers two recommendations: closure of the case if recovery is unlikely or proceeding with litigation with associated costs and rates for collection services.

Recovery System for Company Funds

Phase One

Within the first 24 hours of initiating Phase One, a multi-pronged approach is set in motion to secure overdue accounts. Immediate action is taken to ensure that the debtor is aware of the outstanding debt and the urgency of resolution. A series of four letters is dispatched, and comprehensive skip-tracing is conducted to gather the most current financial and contact information.

Efforts to contact the debtor are relentless, with daily attempts encompassing phone calls, emails, text messages, and faxes. The goal is to negotiate a settlement swiftly. If these persistent efforts do not yield a resolution within 30 to 60 days, the process escalates to Phase Two, involving our network of affiliated attorneys.

The initial phase is critical; it sets the tone for the recovery process and demonstrates the seriousness of the matter to the debtor.

The following list outlines the key actions taken during Phase One:

  • Dispatch of the first letter to the debtor via US Mail
  • Comprehensive skip-tracing to update debtor information
  • Persistent contact attempts by our collector

Should these measures fail to secure payment, the case is promptly advanced to the next phase, ensuring no momentum is lost in the recovery system.

Phase Two

Upon escalation to Phase Two, the case is transferred to a local attorney within our network. The attorney’s immediate action includes drafting a series of demand letters to the debtor, leveraging the weight of legal letterhead to prompt payment. Concurrently, the attorney’s team initiates direct contact attempts through phone calls, aiming to negotiate a resolution.

If these intensified efforts do not yield a settlement, a detailed report is prepared for the client. This report outlines the debtor’s response, or lack thereof, and provides a clear recommendation for the subsequent phase. The decision to proceed is then in the hands of the client, with the following options:

  • Withdraw the claim with no further obligations.
  • Continue standard collection activities.
  • Advance to litigation, subject to upfront legal costs.

The choice is strategic, balancing the potential for recovery against the costs and risks involved.

The fee structure for our services is straightforward and contingent on successful collection, ensuring alignment with our clients’ interests. Here’s a quick breakdown of our rates:

Claims Quantity Accounts < 1 Year Accounts > 1 Year Accounts < $1000 Attorney Placed
1-9 30% 40% 50% 50%
10+ 27% 35% 40% 50%

Our competitive rates are designed to adapt to the volume and age of claims, providing a tailored approach to each unique case.

Phase Three

Upon reaching Phase Three, the path forward becomes clear. Two options emerge: closure or litigation. Closure is recommended when recovery seems unlikely, and no fees are incurred. Litigation, on the other hand, requires a decision on your part. Should you choose to litigate, upfront costs will apply, typically ranging from $600 to $700. These cover court costs, filing fees, and other legal expenses.

The decision to litigate is pivotal, demanding careful consideration of the potential for recovery versus the costs involved.

If litigation proceeds, our affiliated attorney will aggressively pursue all monies owed. The table below outlines our competitive collection rates, which vary based on the age of the account and the number of claims:

Claims Submitted Accounts < 1 Year Accounts > 1 Year Accounts < $1000 Attorney Placed
1-9 30% 40% 50% 50%
10+ 27% 35% 40% 50%

Remember, if the attempts to collect via litigation fail, the case will be closed with no additional fees owed to our firm or the affiliated attorney. This ensures that your engagement with our services is risk-managed and transparent.

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 contacting debtors. Phase Two entails forwarding the case to affiliated attorneys for legal action. Phase Three includes recommendations for closure or litigation, with associated costs and rates for collection services.

What happens if recovery of funds is not likely in Phase Three?

If recovery of funds 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, with upfront legal costs required if pursued.

What are the costs associated with legal action in Phase Three?

The costs associated with legal action in Phase Three include upfront legal costs such as court fees, filing fees, etc. These fees typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction.

What are the collection rates for Phase Three?

The collection rates for Phase Three vary based 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 different rates for accounts under 1 year in age, accounts over 1 year, accounts under $1000.00, and accounts placed with an attorney.

What actions are taken in Phase One of the Recovery System?

In Phase One, actions include sending letters to debtors, skip-tracing, investigating to obtain financial and contact information, contacting debtors via phone calls, emails, text messages, faxes, and more. Daily attempts are made to contact debtors for the first 30 to 60 days.

What happens in Phase Two of the Recovery System?

In Phase Two, the case is forwarded to an affiliated attorney who drafts letters on law firm letterhead demanding payment from the debtor. The attorney contacts the debtor by phone and sends letters. If attempts to resolve the account fail, recommendations for further steps are provided.


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