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Collecting Unpaid Bills for Coating Services

Collecting unpaid bills for coating services can be a challenging task that requires a strategic approach. In this article, we will explore a comprehensive recovery system for company funds and discuss the rates for collection services.

Key Takeaways

  • Understand the 3-phase Recovery System for Company Funds
  • Learn about the rates for 1 through 9 claims and 10 or more claims
  • Be aware of the options in Phase Three for case closure or litigation
  • Know the upfront legal costs for proceeding with legal action
  • Familiarize yourself with the competitive collection rates offered by DCI

Recovery System for Company Funds

Phase One

Initiating the recovery process is critical for the timely collection of unpaid bills. Within 24 hours of account placement, our team springs into action. The debtor receives the first of four letters, and our investigators employ skip-tracing to uncover the most current financial and contact information.

Our collectors engage with the debtor through various channels, including phone calls, emails, text messages, and faxes. Persistent daily attempts are made for the first 30 to 60 days to secure a resolution.

If these efforts do not yield results, the case escalates to Phase Two, involving our network of affiliated attorneys. The goal is clear: to recover your funds with efficiency and determination.

Phase Two

Upon escalation to Phase Two, the case is transferred to a local attorney within our network. This marks a significant shift in the recovery process, as the attorney’s involvement adds legal weight to the demand for payment. The steps taken include:

  • Drafting and sending a series of demand letters on law firm letterhead.
  • Initiating direct contact attempts via phone calls.

If these intensified efforts do not yield results, a detailed report will be provided, outlining the challenges encountered and suggesting actionable next steps.

Should Phase Two prove unsuccessful, the path forward becomes a choice between litigation and continued standard collection activities. The decision rests with you, the client, to determine the most suitable course of action for your unique situation.

Phase Three

Upon reaching Phase Three, the path forward becomes clear. If our investigation suggests that recovery is unlikely, we advise case closure, sparing you any further costs. Conversely, should litigation appear viable, a critical choice awaits you.

Litigation entails upfront legal expenses, typically between $600 to $700, which cover court costs and filing fees. These are necessary to initiate legal proceedings to reclaim the full amount due, including the cost of filing the action itself. Should litigation not yield the desired results, rest assured, you owe nothing further to our firm or our affiliated attorney.

The decision to litigate is significant, and we ensure you are well-informed of the potential costs and outcomes before proceeding.

Here’s a quick overview of potential upfront costs:

Jurisdiction Estimated Legal Fees
Local $600 – $700

Remember, the choice to pursue legal action or to continue with standard collection activities remains entirely in your hands.

Rates for Collection Services

Rates for 1 through 9 claims

When submitting between one to nine claims, the rates are structured to align with the age and value of the accounts. The younger the debt, the lower the fee—a principle that incentivizes swift collection action.

For accounts less than a year old, the fee is 30% of the amount collected. As debts age, the complexity of recovery can increase, hence for accounts over a year, the rate rises to 40%. Smaller debts, those under $1000, command a higher rate of 50%, reflecting the proportionate effort required to collect.

The goal is clear: recover your funds while keeping costs predictable and fair.

Here’s a quick breakdown:

  • Accounts under 1 year: 30% of the amount collected
  • Accounts over 1 year: 40% of the amount collected
  • Accounts under $1000: 50% of the amount collected

Should legal action be necessary, with accounts placed with an attorney, the rate is set at 50% of the amount collected, regardless of the debt’s age or size. This flat rate ensures clarity in the event of escalated collection processes.

Rates for 10 or more claims

When handling a volume of 10 or more claims, our rates are designed to be more cost-effective, reflecting the bulk nature of the service. The larger the batch, the lower the percentage we take from the amount collected, ensuring that your company retains a greater share of the recovered funds.

For accounts less than a year old, the rate is a competitive 27%. For those over a year, it’s slightly higher at 35%. Smaller accounts under $1000 are charged at 40%, while any accounts necessitating legal action remain at a 50% rate.

Our structured rates are designed to incentivize early action and bulk submissions, maximizing your recovery potential while minimizing costs.

Here’s a quick breakdown:

  • Accounts under 1 year: 27%
  • Accounts over 1 year: 35%
  • Accounts under $1000: 40%
  • Accounts with legal action: 50%

Remember, these rates apply only when you submit 10 or more claims within the first week of placing the first account. This tiered approach encourages a proactive stance on debt recovery, ensuring that your business’s cash flow is less impacted by delinquent accounts. Take advantage of these tailored rates to enhance your company’s financial health.


In conclusion, the process of collecting unpaid bills for coating services involves a detailed and structured approach. From the initial phase of sending letters and contacting debtors to the final phase of making recommendations for recovery or litigation, each step is crucial in the pursuit of recovering company funds. The three-phase recovery system ensures that every effort is made to resolve accounts and pursue legal action if necessary. With competitive collection rates and clear guidelines on the course of action, clients can make informed decisions on how to proceed with unpaid bills. Overall, the goal is to provide a comprehensive and effective solution for handling unpaid bills in a professional manner.

Frequently Asked Questions

What is the Recovery System for Company Funds?

The Recovery System for Company Funds consists of three phases: Phase One involves sending letters to debtors, skip-tracing, and initial attempts to contact debtors. Phase Two includes forwarding the case to an affiliated attorney for further action. Phase Three involves either recommending case closure or proceeding with legal action.

What are the rates for 1 through 9 claims?

For 1 through 9 claims, the rates are as follows: Accounts under 1 year in age – 30% of the amount collected, accounts over 1 year in age – 40% of the amount collected, accounts under $1000.00 – 50% of the amount collected, and accounts placed with an attorney – 50% of the amount collected.

What are the rates for 10 or more claims?

For 10 or more claims, the rates are as follows: Accounts under 1 year in age – 27% of the amount collected, accounts over 1 year in age – 35% of the amount collected, accounts under $1000.00 – 40% of the amount collected, and accounts placed with an attorney – 50% of the amount collected.

What happens if the Recovery System recommends litigation in Phase Three?

If litigation is recommended in Phase Three, the client has the option to proceed with legal action by paying upfront legal costs. If the litigation fails, the client owes nothing to the firm or affiliated attorney.

What are the upfront legal costs for litigation in Phase Three?

The upfront legal costs for litigation in Phase Three typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction.

What are the actions taken in Phase Two of the Recovery System?

In Phase Two, the case is forwarded to a local attorney within the network who drafts letters demanding payment from the debtor and attempts to contact the debtor via phone calls. If all attempts fail, the client is informed of the next steps.


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