There are two broad types of debt recovery.
The first type of debt recovery is where the debtor acknowledges the debt but does not have the capacity to pay – or at least says that this is the case. With these cases, it might be worth considering engaging our associated debt recovery business eCollect. eCollect will attempt recovery of the debt on a no-recovery no-charge basis so if there is no recovery, you are not out of pocket at all assuming that a repayment agreement can be reached with the debtor without the need for litigation. The eCollect staff members have experience in managing situations where debtors do not dispute the debt or where the areas of dispute are small. There are all sorts of options available to set up repayment arrangements which removes the stress of managing ongoing repayments.
We find that this type of task is not well suited to lawyers and would recommend the use of eCollect for this first type of debt recovery situation. eCollect staff members have the ability to request E C Legal to provide letters of demand without any cost to our clients.
The second type of debt recovery situation is where the debtor does have the capacity to pay the debt but is not doing so. Sometimes, they just don’t want to part with their money. In other situations, they have a grievance about the goods or services provided.
In these type of situations, our clients are probably going to end up engaging E C Legal to start litigation. Clients may wish to engage eCollect to attempt recovery on a no recovery no charge basis before the matter comes to E C Legal. This process is often helpful as it may uncover the reasons why the debtor is not paying and help formulate a strategy to overcome this resistance. The eCollect staff members have experience in gathering the necessary documents and information to make E C Legal’s task much easier and less expensive to our clients.
However, some clients wish to engage E C Legal to get underway with litigation without involving eCollect.
This is also an acceptable course for us. It’s ultimately up to you how you wish to proceed.