Delta Recovery Systems Newsletter
Delta Recovery Systems, a Worldwide Collections Agency October 2005
In This Issue


 
CEO Moment

American Speech Syndrome (A.S.S.)

Since all afflictions now have initials, I will use the acronym, A.S.S., for my newly discovered malady. I recently had the pleasure of attending a Global Credit Solutions conference in Lisbon, Portugal. Lisbon is a wonderful city. There is centuries of history all around you, even under the streets. At the same time it is a modern, fast moving metropolis. This GCS meeting was attended by representatives of approximately 40 countries. There were many things that impressed me in this meeting. No one was killed, no one was injured, and no one even argued! Why can’t they do that at the United Nations? I was humbled by the fact that the majority of the Nations that attended have native languages other than English. However, the meeting was held completely in English and every representative had a working knowledge of the English language. I realize that English is informally “The language of business”, but I must admit I felt a bit of awe looking at all these people from as far away as China and Africa speaking English. The extent of my linguistic skill involves cursing in 4 or 5 different languages.

I can only speak for myself and my A.S.S. One thing that strikes me whenever I go to Europe is that there are so many foreigners there. Why don’t these people understand me? I even go out of my way to speak louder and still they look at me like I’m speaking a foreign language. That is so annoying. Same thing happens when I speak slower, go figure. Don’t they know that Americans expect them to understand and speak our English? Certainly it makes no difference if we speak with an accent from Maine, Alabama, Minnesota, or New Orleans. If we understand it, so should they.

The previous paragraph, in case you were wondering, was an example of A.S.S. It was also completely tongue-in cheek. Remember when I warned you about my sense of humor? We Americans (?) usually speak only one language and get frustrated when we can’t communicate with someone from a different land. I followed the word Americans with a question mark because it is a vague term. Technically, everyone from the Hudson Bay down to the Strait of Magellan is American, South American, North American, but still American. Calling someone from the Americas, the two continents sliced only by a thin canal at Panama, "American" is technically correct. But the term is sanctioned to refer only to those from the United States. Perhaps that in itself is a symptom of A.S.S. or just simply arrogant. How did this term gain recognition? How does any slang word gain recognition... simply through its use. Curiously, the term "American," did not begin in the United States, it was used by the British, or to be exact, citizens of England in the early 1800s. At that time, England was thought of as arrogant by other nations and cultures. During the late 1700s and early 1800s, Great Britain was after all the world's super power. After a few wars, the British saw only one other true player on the map, America.

But I digress, we are talking about A.S.S. The way I see it, the purpose of traveling abroad is to explore new cultures and see new things. Perhaps to gain a perspective outside of your own, broaden your horizons and open your mind. Doesn't that seem a bit at odds with spending your first week in a foreign country suffering from A.S.S?

I don't mean to sound self-righteous, and I recognize that I am certainly no better than anyone else, but I am finding it easier and easier to understand why people in other countries are sometimes disdainful of Americans.

It is not uncommon, especially in the New York metropolitan area, to get annoyed with people who do not speak English. Maybe, just maybe, if we treated these people as guests, instead of pests, the world might start to change its view of the people of the United States. It’s worth a try.

David Ward, CEO



Greetings

Welcome back to the Delta Recovery Systems monthly newsletter. This month we'll take a detailed look at exactly what happens when a collection enters the legal phase. AND, we'll learn about a new acronym. As always, we welcome any comments, suggestions and/or questions you may have concerning our newsletter and industry issues in general.

Comments, Suggestions and Feedback



Only after we have exhausted all collection efforts, Delta Recovery Systems will prepare a file for referral to an attorney in your debtor’s local area. This step is an integral part of our standard operating procedures and will automatically occur. However, suit will not be filed without your authorization. Written notice will be forwarded to you advising of this step.

1. Acknowledgment, review and demand. This is correspondence from the collection attorney’s office advising that they acknowledge receipt of the referral and will make every effort to collect the balance without litigation. All communication must continue to be conducted through Delta Recovery Systems. This service is still contingency-based with no costs up front.

2. Collect, Litigate or Close

  • If the attorney collects the balance in full or negotiates payment in a reduced amount as settlement in full, he will clear the monies through his trust account and remit to Delta Recovery Systems. Delta will then forward the net proceeds to you.
  • If collection is for any reason economically undesirable or impossible counsel will send a closing letter.
  • If litigation is an option counsel will forward a request for suit requirements. Counsel’s offer to litigate is not necessarily his final recommendation, but an option for client’s consideration. Costs are to be forwarded by the creditor not the collection agency. Receipt of these advance costs is interpreted as your authorization to proceed with litigation and commitment to the case. **Due to the enormous amount of variables, client should consult with the collection agency before taking this next step.**

3. What are Court Costs and Suit Fees?

  • Court Costs – The amount that counsel will request to cover fixed expenses such as filing fees, service of summons and complaint, entry of judgment, writ of execution. These costs vary by state and are not limited to the aforementioned list. These costs may be recoverable if supporting documentation allows or if judgment awarded and collected. It is suggested that you consider this as an expense.
  • Suit Fees – A retainer (usually a percentage based on the size of the balance of the debt) to compensate counsel for preparing briefs, hearing appearances and trial appearances.

4. What sort of paperwork is necessary to prepare suit?

  • Documentation is power in a courtroom. A comprehensive copy of the file including but not limited to invoices, statements, contracts, applications, notes, letters, email communication, disputes, purchase orders and proof of delivery or services. Delta Recovery should already be in possession of all pertinent documentation. These papers will be forwarded to counsel when Delta Recovery prepares the file for referral. Counsel will likely require a full copy of the file to determine the appropriate action to take.
  • Substitution of Attorney in matters where another attorney has already been involved in an attempt to collect your money.
  • Assignment of claim (We will supply the form if necessary)
  • Affidavit or certification of debt (We will supply the form if necessary)
  • A copy of a Summary Judgment, if one exists.

5. Generally – what happens once suit is filed? The Creditor becomes the Plaintiff and the Debtor becomes the Defendant.

  • Suit is filed.
  • Summons and Complaint issued, served or returned.
  • Default judgment is awarded if your debtor fails to appear. - Writ of Execution
  • Defendant files an answer. - Trial requested. Plaintiff will have to provide a witness to testify.

6. What should be kept in mind throughout this process?

  • Economic viability. (Return on investment)
  • Arbitration (settlement) may be required by contract or by state.
  • Just because a balance is valid does not mean it is a good candidate for suit. (Return on investment)
  • Business decision vs. personal vendetta.
  • The big picture – does Delta (thus counsel) have all the facts?
  • The 50/50 program – In some cases when a client is reluctant to go “out of pocket” to pursue a case and we feel it is a collectable file, Delta will offer to pay the court costs and suit fee in exchange for a 50% commission - pending approval.
  • Time: legal action slows the collection process.
  • The General Bar Law List.
Next month we'll address how to best handle direct payment collections on accounts that have been referred to Delta Recovery Systems. We'll also turn the clock back a hundred years and see how things have changed since 1905. Enjoy the rest of your October!