Dallas Debt Collection
THE CHECK'S NOT IN THE MAIL
We all know that we want to obtain our client’s money. The quicker we can do that the better. We have developed several systems to accomplish this goal.
First, we have a local courier pick up the debtor's checks. We have worked out an agreement with a local courier service to have them pick up the debtor's check's for a flat fee. We can have the checks in our office as soon as a few hours after the initial contact with the debtor.
Second, we are now using FEDEX to pick up debtor's checks throughout the State of Texas. We can have the checks in our office the next day.
Third, we are now using telephone checks. The process is simple. The debtor provides us with a fax copy of his check (or we can take the information over the phone) and we print a check in our office. In this way we can deposit the check the very next day.
These 3 new techniques have increased our collections greatly. Of course this is all done at our expense and does not affect our client's net recovery!
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WRITTEN SETTLEMENT AUTHORIZATION
The one thing Steve requires of all of the collectors and attorneys in our firm: if we are settling a case for less than the full amount, the settlement authorization must be in writing. This is to protect the client. We do not want to enter into a settlement that has not been authorized.
We realize it can be a drag but it alleviates any problems with employees trying to get a settlement that may not be authorized. Steve has told his employees for years that if they accept a settlement without written authorization, the money is coming out of their pocket, and no one has had to pay him yet!
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LEVYING ON LAWSUITS
We have a judgment against the debtor. We take his deposition and the only asset he has is a lawsuit wherein he is suing someone else. Close the file? No!
The lawsuit is an asset and we can levy, much like we levy on an automobile. We have developed a form motion that usually gets the job done. We ask the court to seize the asset, in this case the asset is the lawsuit itself; and sell the asset at public sale.
Can you picture it? We have a $5,000.00 judgment and our judgment debtor is Plaintiff in a case where he is suing the third party for $100,000.00. Obviously, if his lawsuit is sold and we buy it - probably for a minimum amount - we would settle with the 3rd party for our judgment amount. The judgment debtor is not going to let this happen. So he pays us and the case is over.
The threat to the judgment debtor is so great that we have yet to see one of these levys go to sale. Our post judgment department checks for lawsuits as part of our normal post-judgment collections.
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ATTORNEYS FEES AND INTEREST
Florida does not allow for the recovery of attorney's fees (with a few exceptions) unless you have an agreement signed by the debtor that specifically authorizes attorneys fees. Even with that agreement, in most cases only the judge can determine the amount of the fee.
Further, Texas limits pre-judgment interest at the legal rate - presently 6%, unless you have a signed agreement calling for a higher rate.
We recommend that all credit applications and contacts, etc. include language including but not limited to:
Delinquent accounts shall accrue interest at the highest rate allowed by law. Customer shall pay all costs of collection including attorney's fees.
If you have language similar to this you can obtain 18% interest on your debts, from the date of the debt.
Of course the exact language should be prepared by your own attorneys, as the above language is for illustrated purposes only, and may only be applicable in Texas.
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ORGANIZATION
Why have we succeeded when others haven't? It's not marketing. We don't market. We believe it's organization!
We have three departments: 1) Collections; 2) Legal; 3) Office. The three departments are each organized by their manager.
Organization must be preached to the employees. We are dealing with so much paper that it can become overwhelming. Therefore, we have instituted the following:
1. CollectionMaster Software. We looked for years and decided to use the best (and the most expensive). Everything on each file is at our fingertips. Reports can be run on most everything.
2. Imagemaster Scanning Software. Every document that enters our office is scanned into our computer and kept on its own server. Every document is available to each user at the touch of a mouse. When you call with reference to a letter, we don't have to ask the file clerk for it, it's there!
3. Manual. We have a 200 page manual that is a on screen with a hard copy notebook at every desk. Every employee can look up pages from "acknowledgement letters" to "closing letters", from "file suit" to "post-judgment discovery" and follow the instructions to get the job done. We have worked on this manual for years and we are very proud of it.
4. Employee Training. Every employee, from lawyers to file clerks, must read an article on commercial collections from the Commercial Law League of America the day they begin work in our firm. From that day on, we continue their education, be it on the Fair Debt Collection Actor litigation strategy.
5. Backup. Backup. Backup. Every day we think and rethink our computers. We spare no expense and want nothing less than the total protection. Therefore, we have the best Compaq file server, duplexed, backed up every night. The backups are kept offsite. In addition we keep the data files to two other hard drives on separate machines. Our scanserver is backed up the same way.
Our Collection Costs