Attorneys As Collectors
Unresponsive problem accounts
It is not uncommon, particularly among smaller business owners, to place unresponsive problem accounts directly with an attorney.
In most cases this is not the fastest or most cost effective way to collect your money. The attorney may have assisted the owner with setting up the business or in putting together contracts. This does not mean that they have the necessary background to help you resolve a collection problem.
There is considerably more that can be done between the issuance of the invoice and the placement of the debt with an attorney which can bring the desired result.
Consider the following:
Attorneys are highly educated, highly trained professionals who charge hundreds of dollars hourly, for their time. This is why attorneys often receive a minimum of 33% for their collection work.
Given the need to use their time profitably, most attorneys will normally send one letter and then immediately file suit. This requires the business owner to pay up front FILING FEES, whether or not a suit is necessary or successful. If no attempt has been made to contact the debtor and negotiate payment, this becomes simply a waste of time & money. Attorneys often work on non-contingent fees that must be paid whether or not they are successful in collecting
Most attorneys are not COLLECTION ATTORNEYS. Hiring an attorney that does not specialize in collections to pursue your customer can result in the worst of all possible scenarios. You win your case and still don’t get paid! Unless the attorney has all the knowledge and resources to enforce a judgment (turn it into $ by locating and then seizing ASSETS), you have won a hollow victory
There are less expensive means to apply to these delinquent accounts that achieve the same or better results. The better alternative is Colex. The approach involves immediate and continual contact, using multiple media if necessary, to establish the priority to pay at once.
Colex's staff are trained and experienced in skip tracing and negotiation to bring about optimum results without the expense and duration of litigation.
Once communication is established, it is often a matter of the assertion that the invoice(s) is immediately due, or litigation will be recommended, that will result in payment. This is quicker than litigation and less expensive than immediately engaging an attorney.
If Colex is successful, significant court costs and the higher contingency fees of litigation are saved. There is no cost to you unless, and until payment is received from the debtor
If communication is not established, or effective, Colex may recommend litigation as a final solution. Colex works with a global network of Collection Attorneys who will litigate as a last resort and are prepared to enforce your judgment as part of the job.