Debt Collection Protocols

The following protocols apply to commercial accounts. They are presented here as a guide for clients to more fully explain how August Investments, Inc. performs collections on outstanding accounts receivable or NSF checks. If you have any questions concerning these or any other issues regarding your account with us, please don't hesitate to call. One of our friendly, experienced collection agents will be happy to discuss your concerns.

Initial Contact with Debtor

Typically, within twenty-four to forty-eight hours of receiving your account, the collection agent assigned to the case will attempt to verify the contact data you have provided on the debtor. In situations where the debtor's current whereabouts are unknown, we rely on proprietary data-mining and analysis software to comb public and private records for any information related to the individual and/or company. Combined with data provided by an extensive network of public and private sources, we're usually able to locate our target within seventy-two hours.

Once the debtor's contact information is verified our legal department issues a Notice of Collection to the debtor via fax, mail or email. This letter explains our intent to collect the debt on your behalf, and offers them a chance to dispute the debt or make arrangements to meet their financial obligation. The letter also provides the debtor with contact information and instructions on acceptable payment methods. Usually within 24 hours of receiving this notice, the debtor is contacted by phone by one of our collection agents. The collection agent answers any questions the debtor may have and firmly, yet politely, reminds them of their legal obligation to pay the debt.

At this point, most debtors are willing to make some sort of payment arrangement in order to settle the issue, rather than risk facing civil and possibly criminal penalties. Only the most recalcitrant debtors refuse to cooperate. The client is then contacted and informed of the debtor's acceptance or refusal to pay.

Legal Options Are Considered

If the debtor refuses to cooperate or tries to contest the debt, we then notify our client. If the debtor has contested the debt, we verify our client's claim then explain what options are available. Typically, we will make a final attempt to negotiate a settlement with the debtor. If the debtor still refuses to cooperate, the only option left is litigation. With the client's approval, we then forward the claim to one of our affiliate lawyers in the same jurisdiction as the debtor. The lawyer notifies the debtor of the impending lawsuit and offers them a final opportunity to avoid litigation. At the same time private investigators in the field perform an extensive asset and liability investigation. If the debtor remains uncooperative the attorney files a lawsuit in the client's name demanding payment of the debt and any legal costs associated with recovering the monies owed. The complaint is then served to the debtor.

A Judgment is Obtained

If the debtor does not respond to the suit, the attorney will file for a default judgment. Otherwise, the discovery process begins and a trial date is set. If a judgment is awarded in our client's favor, the attorney immediately files a Writ of Attachment, based on the earlier asset and liability investigation's findings. Bank levies, garnishment orders and liens are then initiated to satisfy the judgment.

Whenever possible we try to recover our fees from the debtor so our client receives their full principle balance. Otherwise, our fees are deducted from the collected amount before being disbursed to the client.

Once the debt is successfully resolved, either by the regular collections process or through successful litigation, the recovered monies are forwarded to the client, in most cases within forty-five to sixty days after receipt.

It should be pointed out that the protocols defined in this document are a guideline only. Every collection is unique and demands its own strategy to be successful.