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When
should a claim be submitted to Western Capital?
Accounts
are delinquent when they have not been paid in accordance with your
terms. Early contacts will give you the maximum chance of return.
The most productive efforts take place during the period between
30-90 days past due. Beyond 90 days, recovery percentages start
dropping dramatically. If an account is delinquent, you are probably
not the only creditor demanding payment. Usually the creditor that
acts promptly gets paid and those that wait, hoping to save the
agency fee, wind up filing a claim in the Bankruptcy Court.
Turn over an account to a professional agency once you feel
your own reasonable collection efforts are not productive.
What
are the costs to have Western Capital collect on my accounts?
Our
collection fee plans are quite simple. We charge a standard
33% on all accounts placed for collection under $100,000.00.
For balances larger than $100,000.00 we offer discounts. In
the event that it becomes necessary to involve an attorney to protect
your interests, we will then charge a standard fee of 50%.
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What
documents are required by Western Capital?
Initially,
it is only necessary to complete the AGREEMENT
and SUBMIT CLAIM FORM. Upon receipt of
these two documents, we will begin to collect on your accounts.
You can at a later time mail or fax us copies of all documentation
regarding a claim, including the sales contract, statements, invoices,
correspondence, orders, credit reports, credit application, personal
guaranty, returned checks, and other information that would help
to establish your claim or help us to collect.
If a judgment has been obtained against the debtor, provide
us with a copy. At a later time, if suit is required, we will need
a certified and/or exemplified copy.
Once
Western Capital starts the collection process, what are the chances
of success?
The
odds of collection are fairly good at an early stage, but drop dramatically
with the age of the account. The sooner an account is placed, the
greater the likelihood of collection.
Can
a creditor collect interest on the unpaid claim?
Generally,
yes. Any agreed upon rate should be added to the account at the
time of submission. If it is necessary to file suit, interest will
be part of the legal demand. The rate varies from state to state.
Can
the creditor recover costs of collection?
If
suit is filed, you can generally recover filing and service fees
and other court costs. Attorney fee recoveries will depend on your
agreement with your account and/or the laws of the state where the
suit is filed.
If
a case goes to trial, what does the creditor have to prove?
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That
a contract (express or implied) existed;
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The
terms of the contract;
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The
merchandise was properly delivered or the service properly provided;
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Demand
for payment has been made;
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Payment
has not been received.
Must
the creditor provide a witness if a suit is filed?
If
the debtor does not contest the suit, a default judgment can usually
be obtained without the necessity of a personal appearance by a
witness. Some courts require the submission of an affidavit to prove
the claim before a judgment will be issued. If the claim is contested,
it is usually necessary for the creditor to provide one or more
witnesses who have personal knowledge about the facts of the claim.
Most commercial collection cases are resolved before they ever go
to trial. In cases where a witness is required and it is not economically
feasible to send one, the attorney will try to settle the claim
so that there is some recovery.
What
is a counter suit?
A counter
suit is the filing of a suit by the debtor against your company.
The agreement of the attorney to handle the filing of your claim
does not include the handling of a defense to the counter suit.
It will be necessary to enter into an separate agreement with that
attorney for your defense or you can retain your own attorney.
Very few counter suits are filed by debtors. Unless you have been
previously alerted to claims being asserted by the debtor, your
claim against the debtor is valid, and the debtor remains in business,
you should seriously consider filing suit on your claim.
What's
the difference between a creditor collecting on its own behalf and
a third-party collector?
The
collection practices of third-party collectors are directly regulated
by the Fair Debt Collection Practices Act administered by the Federal
Trade Commission. Credit grantor's collection practices are covered
by law only under certain conditions. Also, third-party collection
services are specifically set up for collection with specially trained
staff and specialized equipment, including phone systems, computers
and collection software.
Why
are accounts referred for collection?
Most
accounts are referred for collection because they have gone unpaid
for a long time and the creditor has not received any communication
from the consumer. People who provide goods and services to consumers
on credit rely on their customers' promises to pay. While they value
their customers, they must also depend on payment to meet their
own expenses. The longer an account remains unpaid, the smaller
the likelihood that it will be paid. When the creditor can no longer
afford to carry past-due accounts and cannot collect them economically,
the accounts are either written off or referred to professional,
third-party collectors.
Is
there a typical debtor?
Collectors
know that there is really no such thing as a typical debtor and
that it's important to treat people according to their individual
cases. Consumers from all walks of life can overextend themselves.
Many have simply not planned their finances well. Still others have
lost their jobs or suffered unexpected set backs, such as accidents
or illness.
What
about those people who have fallen into debt because of catastrophic
events, such as accidents or illness?
Western
Capital's Code of Ethics requires our staff to "show
due consideration for the misfortunes of consumers in debt and to
deal with them according to the merits of their individual cases."
Collectors realize that they need to help such consumers find solutions
for their financial difficulties and assist them in making plans
to meet their financial obligations.
How
can collectors call people about their debts day in and day out?
Many
people like working with other people, and that's exactly what a
collector does, work with people. Collectors become experts in communication,
especially in listening. Their work requires an understanding of
human motivation and behavior. Because many credit grantors deal
with large volumes of accounts receivable, often the collector is
the first person to engage the consumer in a problem-solving dialogue
about his or her unpaid bill. Collectors also enjoy the challenges
and rewards of their job. A paid account represents success for
the collector, recovery for his client and peace of mind and self-respect
for the consumer
Is
the collection industry regulated?
Collection
practices are well-regulated by federal and state laws. The Fair
Debt Collection Practices Act, administered by the Federal Trade
Commission, prohibits abusive, misleading and unfair debt collection
practices
How
has the collection industry changed over the past 15 years?
The
biggest changes in the collection industry have resulted from increasing
automation. Fifteen years ago, most collection offices kept track
of accounts by using paper cards. Information was recorded manually
and collectors dialed their phones themselves. Now, most offices
are computerized and use collection-specific software. Sophisticated
telephone systems with automated dialers are becoming common. Also,
collectors are better trained. The American Collectors Association,
Inc. has an extensive education program for all aspects of the collection
business. The association also administers certification and degree
programs.
How
is the collection industry likely to change in the next 15 years?
Collection
businesses are likely to offer more varied client services, including
billing, accounts receivable management and storage of records using
new optical scanning and storage devices.
How
does bad debt affect the economy?
According
to the American Collectors Association, in the United States more
than $70 billion is turned over to third-parties for collection
annually. There is really no such thing as an unpaid bill. Those
of us who do pay our bills ultimately pay for those who don't. Because
bad debt represents an expense of doing business, it is partly offset
by higher prices. The American Collectors Association estimates
that each person in the United States pays $250 more for goods and
services per year because of bad debt. Other consequences of non-payment
include business failures and the loss of jobs.
How
do the efforts of third-party collectors affect the economy?
Third-party
collectors reduce the amount of past-due accounts that are ultimately
written off as bad debt. Collection, a part of accounts receivable
management, helps businesses maintain their cash flows and stay
profitable. Collectors benefit consumers by helping to keep down
the prices of goods and services. They also offer debtors an opportunity
to talk with a person who can help them resolve payment problems
without litigation. The collection industry itself employs about
125,000 people. Finally, the health of the U.S. economy depends
on the proper functioning of the credit system, which gives consumers
many choices. The collection industry is a necessary part of this
credit system.
How
do I submit a claim?
Go
to our Online Account Placement Page and start Collecting NOW!
Call
Today 1-800-373-8913
Fax 1-800-865-4197
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