The Stevens-Lloyd Group, Inc.

Air Philippines Debt Collection

he Stevens-Lloyd Group was retained by GM Air, a commercial aviation company which specializes in supplying the military, located in Miami, Florida. They were owed $146,588.32 from Air Philippines, located in Manilla. GM Air provided aviation parts for this company however they were not paid for their product.

OverviewThe Stevens-Lloyd Group was retained by GM Air, a commercial aviation company which specializes in supplying the military, located in Miami, Florida. They were owed $146,588.32 from Air Philippines, located in Manilla. GM Air provided aviation parts for this company however they were not paid for their product.
BackgroundThe situation and complication faced by GM Air was that despite many attempts to recover the money, Air Philippines continued to break promises and ignore our client’s demands for payment. Hence, GM Air asked The Stevens-Lloyd Group to assist them in recovering the debt in the amount of $146,588.32.
SolutionThe Stevens-Lloyd Group went to work immediately and started an asset and liability investigation on AIR PHILIPPINES. We deployed consistent collection pressure against the debtor company however they continued to stall and avoid the issue. It was time we utilized our network of expert debt collection attorneys. GM Air granted permission to The Stevens-Lloyd Group to work with our law firm of Rosenfeld, Stein & Batta in Miami. Through extensive investigation, we determined that Air Philippines owned an aircraft outright on the ground in Los Angeles, CA. The Stevens-Lloyd Group and our Miami law firm retained the firm of Martin Goldman, based out of southern California. Mr. Goldman grabbed the plane by placing a lien against Air Philippines’ aircraft, effectively rendering the plane immobilized on the ground at LAX. Thus, Air Philippines had no choice but to pay our attorneys $146,588.32 to free the aircraft. The windup is that The Stevens-Lloyd Group, through deploying advanced debt collection practices as well as our experience in the aviation industry, recovered the entire amount owed to Gm Air of $146,588.32. Our team’s successful outcome was accomplished within four months of intense collection activity.
The key to our success was perseverance and know-how from our collectors and attorneys in Florida and California. As a result, the Stevens-Lloyd Group was able to effect payment in full for GM Air on an account which would’ve been written off by our client or a less effective commercial debt recovery firm.
RecommendationHire the Stevens-Lloyd Group in connection to international debt recovery for files over 90 days past due. This will help ensure that outstanding amounts are paid before it is too late. As debts age, they become considerably less collectible. Therefore, it is our recommendation that because time is the enemy of the debt recovery process, our clients place past due debts with The Stevens-Lloyd Group as soon as debtor companies ignore demands for payment and/or break their promises.

Inversiones Zahena SA/Moon Palace Debt Collection

The Stevens-Lloyd Group was retained by BANOMOBIL SA DE CV, a highly successful company of more than 40 years in the field of plastic reinforced with fiber, located in Mexico City. They were owed $550,000.00 from a company by the name of INVERSIONES ZAHENA SA/Moon Palace, located in the Dominican Republic. Bañomobil designed and manufactured a line of portable toilets for INVERSIONES ZAHENA SA however they were not paid for their product.

OverviewThe Stevens-Lloyd Group was retained by BANOMOBIL SA DE CV, a highly successful company of more than 40 years in the field of plastic reinforced with fiber, located in Mexico City. They were owed $550,000.00 from a company by the name of INVERSIONES ZAHENA SA/Moon Palace, located in the Dominican Republic. Bañomobil designed and manufactured a line of portable toilets for INVERSIONES ZAHENA SA however they were not paid for their product.
BackgroundThe situation and complication faced by Banomobil that despite many attempts to obtain the funds owed to them, INVERSIONES ZAHENA SA continued to break promises and ignore our client’s demands for payment. Hence, through a referral from another satisfied customer of The Stevens-Lloyd Group in Mexico, Banomobil asked our firm to assist them in recovering the debt in the aforementioned amount.
SolutionThe Stevens-Lloyd Group went to work immediately and contacted INVERSIONES ZAHENA SA as well as hiring a private investigator to conduct an asset and liability investigation. Through a combination of persistent continuous daily telephone calls, emails, demand letters from The Stevens-Lloyd Group and its attorneys in Mexico as well as negotiation and mediation, we were able to obtain settlement for $396,452.07 within four months of work.
The key to our success was perseverance as well as consistent pressure from our collectors. Moreover, by utilizing strong legal demand letters from our attorneys and assistance by our contacts at the American Embassy in the Dominican Republic, the Stevens-Lloyd Group was able to effect payment for BANOMOBIL SA DE CV.
RecommendationINVERSIONES ZAHENA SA was placed with The Stevens-Lloyd Group by BANOMOBIL SA DE CVon April 7, 2010 and we effectuated payment on July 12, 2010, assuring that the debt was paid to our client before it was too late. As debts age, they become considerably less collectible over time. Therefore, it is our recommendation that since time is the enemy of the debt recovery process, our clients place past due debts with The Stevens-Lloyd Group as soon as debtor companies ignore our client’s demands for payment and/or break their promises.

Credit Management Services: 5 Additional Tips for Guaranteeing Recovery of Your Accounts Receivables

In our first installment of our Credit Management Services series, we discussed the importance of deploying successful debt collection techniques in order to help the creditor immediately settle their outstanding accounts receivables. In that article, we introduced you to Joy Paul, an in-house Collection Manger for TM Building Damage Restoration, the issues…

In our first installment of our Credit Management Services series, we discussed the importance of deploying successful debt collection techniques in order to help the creditor immediately settle their outstanding accounts receivables. In that article, we introduced you to Joy Paul, an in-house Collection Manager for TM Building Damage Restoration, the issues she faced when attempting to collect, and 7 of her Tips for Success to Guarantee Recovery 100% of Your Outstanding Receivables.

If you have not had a chance to read that previous article you can do so by CLICK HERE.

In Today’s post we are continuing on with Joy’s Tips for collection of Your Accounts Receivables.
Tip #8 – Make Copies Of All Checks Received

Joy posts all checks she receives utilizing QuickBooks. This goes along with what we’ve discussed earlier
– documenting everything!

Tip #9 – Attend A Collection Law Seminar.

Joy attended a collection law seminar. The course taught her, among other things, the need for a punch list (discrepancies) such as having to amend the roof, warranties, etc.

The course also studied and examined the Federal Fair Debt Practice Act (FFDPA). The FFDPA applies to all persons attempting to collect a debt. For example, there are things you can’t say and times you can’t call, for instance before 8 a.m. or after 9 p.m. You must disclose the nature of your call. The FFDCPA regulates all activities. For a complete synopsis of the FFDCPA, see
https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text

It is important to ascertain whether your claim is commercial or individual. Mostly, FDCPA laws don’t apply when collecting against businesses that owe money. For example, it is okay to email and send faxes if the claim is for a commercial debt.

Even though the FDCPA is designed for the consumer, you do want to comply with the FDCPA within reason. Common sense facets to consider are not to make false threats of lawsuits, don’t harass the debtor, and keep conversation clean and professional. The latter is much more effective than yelling and screaming, which are completely ineffective!

Use finesse and tact. For instance, state that “I know that your company wants to do the right thing” or “We are not set up as a bank or lending institution.”

Tip #10 – Demand Letters

(Click on the image for a larger view)

Accounts Receivables | Debt Collection Demand LetterFor problem accounts, Joy deploys six invoices or demand letters asking for immediate payment. Your goals are to get the debtor’s attention, avoid being ignored, avoid any misunderstandings, and to get paid-in-full promptly. Make it clear when the bill is to be paid, how much, any discounts or penalties applicable, and in some cases, the consequences for not paying. Below is format Joy utilizes in her “Final Demand Letter”.

Joy utilizes a 10-day Demand Letter. This would be the 6th letter or invoice. Allow debtor 10 business days to pay. An account over 90 days is considered past-due.

See example to the right:

Tip #11 – Work Authorizations/Written Agreements

(Click on the image for a larger view)

Accounts Receivables | Work Authorization FormThrough the use of a work authorization form or proposal, Joy is able to recover collection fees, attorney’s fees and interest should legal action be deemed necessary. The work authorization form serves as a contract and detailed verbiage is stated at the bottom of the form.

In your business, if there are predictable reasons why debtors think they don’t need to pay, acknowledge those reasons. If you don͛t persist and you won’t be paid. For example, Joy in her work authorization form states that if the insurance company doesn’t pay it’s the responsibility of the customer to pay.

See example to the right:

As you can see, all of the terms and conditions are spelled out on the contract, including the fact that if the insurance doesn’t pay, the company will be responsible to pay TM Building. The proposal is in case of an out of pocket cost or upgrade.

Tip #12 – Personal Guarantees

It is a good idea to obtain personal guarantees and credit applications. If a company is sold or goes out of business, the personal guarantor can be contacted at home and a demand can be made against him personally.

On corporate debts, if the guarantor signs the PG as John Smith, President; this voids the effect of the PG. In this case, he would be signing it only as an agent of the corporation. The same principle applies for signers of NSF checks.

If a company is sold, the new owners will be responsible if the product was purchased after the sale date. Prior to the sale date, the old owners are liable.

If a company changes names, procure a new credit application and personal guarantee. If this hasn’t been done, it is possible that a claim can be made against the successor company. The sale can be considered as a constructive merger if a pattern of continuity can be established. Examples would be same management, same employees and the same shareholders.

Disputes

Joy discovered that in many cases, the debtor manufactures a dispute because they don’t want to pay. Through experience, she is skillfully able to get the debtor to admit how much they owe net of credit, the amount not in dispute. Never let the debtor off the hook without that information.

An example would be a $3,500 claim, debtor disputes $500 and $3,000 is admitted. An appropriate question: “When can I count on your check of $3,000, Mr. Jones?” Force-feed the debtor. Close the deal and confirm in writing