Here at Safe Collections, we have decades of experience in helping our customers recover unpaid invoices and bad debts both in the UK and across the globe.
One of our key markets is the USA. We have been working closely with our US debt recovery affiliate since 1986.
Robert is the Vice President of International & Corporate Quality at our affiliate office in New York. We asked him to explain the USA debt collection procedures they follow in the recovery of overdue accounts from USA debtors.
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Table of Contents
Phase 1. Amicable In-House Collection
With every Safe Collections USA Debt Collection case, we always attempt to recover the debt using our own in-house team of collection agents.
Our agents will contact the debtor by post, email, and telephone with the aim of ensuring that any outstanding balance is paid as soon as possible.
If a query exists, our collectors can often resolve legitimate issues and refute spurious claims so you get paid as quickly as possible.
As is the norm for debt collection in the USA, our in-house process is normally concluded in 30-45 days (or less, depending on the file specifications).
If we are unable to resolve the account in phase one, this is often due to the debtor being unwilling to clear the debt, or unwilling to clear the outstanding overdue balance.
Phase 2. Amicable Attorney Collection
If phase 1 is unsuccessful, we increase the pressure by placing the account with one of our experienced and fully qualified debt collection attorneys in the USA.
This demonstrates to the debtor that the creditor is serious about recovery and has the power and connections to begin legal proceedings in the debtor’s state of residence.
We often find that when an attorney local to the debtor is instructed, payment shortly follows.
If our independent legal counsel is unable to persuade the debtor to pay the outstanding commercial balance, we would seek authorisation from the client to commence with phase three, which is a formal legal process.
Phase 3. Legal Recovery in the USA
If the attorney can’t collect the unpaid invoice on an amicable basis, we would work with counsel to submit their legal requirements and recommendations to the end client.
The creditor must then decide whether to proceed with the suit.
Before committing to legal action, we recommend they read our questions to ask before suing a debtor in the USA. We can also discuss these points with you to understand how they might apply to your situation.
You also need to consider the cost and practicality of providing witnesses for court in the USA.
If you decide to proceed, you pay the necessary advance court costs and occasionally a modest retainer.
Most collection cases are successfully resolved before this point, and no obligation exists for the client to pursue legal recovery.
We Can Collect Bad Debts from USA Clients
Recent reports suggest that up to 50% of invoices in the Americas become bad debt. If you engage Safe Collections as quickly as possible, you can avoid becoming part of those statistics.
For help and advice with debt recovery in America, contact us for free expert advice.
