McKinstry & Division - Collections Programs
Overv iew
Our firm specializes in collecting delinquent accounts and representing creditors in bankruptcy proceedings. We handle collection actions in several states in the Northwest, including Washington , Oregon and Idaho. By working with affiliated counsel, we also cover all of the U.S.
Our firm has several different programs, depending on your needs. Our programs range from contingency-fee programs to flat-fee programs to retainer-based programs. Depending on the volume of accounts, their aging status, and dollar amounts, we have a program that suits your needs.
Our firm represents many national lenders and many local and regional businesses. All of our clients receive personal service and every case receives our best effort. Because we are a law firm, we have all legal avenues of collection at our disposal.
We have several collection programs:
1. "Soft" Collections for Business Accounts
Our "soft collection" program is designed for "friendly reminders" on aging business accounts. Our client provides a list of accounts that are delinquent, but simply need a phone call to the accounts payable department to put our client's invoices at the top of the stack. We then make friendly phone calls to the customer, reminding them that no payment has been received and asking them when the payments will be made. We then follow up to make sure payments are made.
This program is "transparent," meaning that when we call, we indicate we are "with" our client's company and always give our client's phone number for call back. The customer never knows that you have outsourced this activity, and simply thinks they have received a call from your accounting department. Some of our clients have a specified voice mail extension number for the return calls.
Many of our clients have found that outsourcing this activity frees up time for staff to work on more pressing issues. In addition, by outsourcing it, the company saves the hidden overhead of unemployment insurance, benefits and payroll taxes. Finally, some in-house employees just don't like making these calls, so they procrastinate doing it, allowing the delinquencies to continue. Allowing our firm to make the calls allows your employees to do what they do best, and ours to do what we do best.
2. Lien Filings on Construction Accounts
We regularly prepare and file lien notices on delinquent construction accounts. Lien notices have mixed-effectiveness since they have an expiration period, and a foreclosure suit must be brought within that time. For smaller accounts, a foreclosure suit is not cost effective.
3. "Legal" Collections on Construction Accounts
Once customers reach 90 days delinquency, the likelihood of recovery on the account declines dramatically. The older an account is, the less likely any recovery will be made.
Our "hard" collections program is a legal-based program. When the account is placed with us, we send an initial letter to the customer demanding payment and advising them that if the account is not paid, a lawsuit will be filed against them and thier bonding company. Often times, this will be enough to cause the customer to pay.
For those customers who do not pay after our demand letter, we research their licensing status, identify who their bonding company is and determine if their bond is still available. We then prepare and file a lawsuit naming the company and bonding agent as defendants. For companies that are struggling, this is often the time they realize that their construction bond has been canceled, and they can no longer legally operate their business. Many will make payment arrangements, and we have a variety of ways to make sure they pay, while still allowing them to operate their business. The bonding companies also assist in making sure payments are received.
This program operates on a contingency fee basis, and the client is responsible for court filing and service fees, which are usually recovered from the customer.
4. "Legal" Collections on Other Accounts
When we receive other account referrals, we send the debtors a demand letter and begin making outbound collection calls. Depending on the results of our contact with the debtor, we will file a lawsuit, serve the defendant and obtain a judgment on the account. Because we are a law firm, and not a collection agency, debtors know you are serious about collecitng on the debt.
After judgment is obtained, a determination is made as to what additional collection remedies are taken. Depending on assets and collectability, we pursue garnishments, attachments and lien filings.
5. FREE Collecions of NSF Checks
We collect bad checks for free. In fact, we PAY our clients $5 for each bad check that we collect. We recover an NSF Fee from the check writer. With our electronic systems, we can verify funds in accounts and then have them electronically debited from the check writer's accounts before other funds come out. And if we are unable to collect on the check, we process it through collections and referral to the prosecutor, if necessary.