Our clients enjoy the benefits that go with either of these collection alternatives, without experiencing the negative aspects associated with each approach. Explore our website and learn why our clients are raving about us. We get our clients consistently higher net returns and provide a level of consistency and integrity that is rare in the collection field. Read what our clients are saying about us and learn why we have one of the highest client retention rates in the world.
You can contact us by telephone or by email through this website, and we will be happy to discuss your specific collection concerns.
In order to appreciate the benefits of using Blair, Smith and Associates for your commercial collection needs, we will address the concerns of the client with respect to using an attorney, a traditional collection agency, or Blair, Smith and Associates to help you see that our unique approach provides the best of both worlds.
Attorneys usually charge by the hour (usually $250-$450 per), which means that you can get thousands of dollars into a case without ever seeing a result. If this happens, you have lost your original debt AND the money you paid the attorney. Some attorneys take cases on contingency. The usual contingency fee for attorneys is 33% to 40%, plus costs. Figure on a total of about 50% if the case goes to trial. There is no cost advantage to using an attorney. However, there are other advantages, which includes speed and recovery rates. Attorneys will usually file the case in court right away, and will use the legal system to maximize the amount of the eventual judgement. You must have a court judgement to engage in enforcement by seizing assets of the debtor. It is a fact that most debtors will be willing to pay more to get rid of a court action than merely to extinguish a debt. Accordingly, litigation settlements are always higher than non-litigated settlements. Using an attorney, if the collection is successful, will result in a better return, usually sooner, but usually at a higher cost than using a collection agency. If the collection is unsuccessful, using an attorney can be a financial nightmare, since you are now out both the amount of the debt and the fees you paid to the attorney.
Other Collection Agencies -
Collection agencies generally take little or no money up front, and work the case on a contingency, usually 25% to 50%. While this provides a tremendous cost advantage over hiring an attorney, there are numerous minefields. Traditional collection agencies do not like to litigate. Therefore, they are willing to accept a paltry sum in settlement of the debt in order to avoid litigation. Most debtors know this, and that is why the national average, according to the industry trade journal, for return by collection agencies is about 17%. That's 17 cents on each of YOUR dollars. before their contingency fees. After low return, the second drawback with collection agencies is timing. They will usually work a case for several months before offering the client a litigation option (at a substantial extra fee), during which time the debtor often transfers or liquidates his assets before any legal action can be taken to secure them. When the litigation is finally started it is often too late to recover and the client has the same nightmare as using an attorney for an unsuccessful collection because they have paid the collection agencies attorney fees. Using a traditional collection service, if the collection is successful, results in a lower return, but with hardly any out-of-pocket expense. If the collection is unsuccessful, you are still worse off than before in that you have tied up the collection for several months while allowing assets to disappear. You have an unpaid debt which may now be less collectable.
Blair, Smith and Associates -
Blair, Smith and Associates combines the best aspects of using a collection service and an attorney. Collection cases are taken by Blair, Smith and Associates on a contingency fee basis. The case is filed in the appropriate court by an attorney, usually within ten days of the assignment to Blair, Smith and Associates. Therefore, you have all of the benefits of having an attorney on your case, but without the financial ruin if the collection is ultimately unsuccessful. Blair, Smith and Associates actually pays the attorneys fees as they come due, and recovers these attorneys fees from their contingency fees only if the collection is successful. If the collection is unsuccessful, Blair, Smith and Associates is out the attorneys fees, not our clients. Our clients pay a nominal amount to cover the court costs and litigation expenses. The attorneys fees are paid entirely by Blair, Smith and Associates. No attorneys fees are ever assessed against our clients' portion of the collection. In some cases, the attorneys fees are paid in full or in part by the debtor, after the court adds the fees to the judgment amounl but these fees are reimbursable only after we have collected 100 cents on the dollar of the debt! So the bottom line is this, if we collect less than the full amount of your debt, we eat the attorneys fees. If we collect the attorneys fees on top of the full amount of the debt, those fees are reimbursable to Blair, Smith and Associates. With this system, we cannot sell out our clients for 17 cents on the dollar, because we are going to be out the attorneys fees unless we collect more than the full amount of the original debt. There are some qualifications. Since we are paying the attorneys fees, each case must meet certain criteria. Further, Blair, Smith and Associates will always provide a copy of the payment instrument tendered to us by the debtor so that you can see that the collection is being reported and paid to our clients accurately. Using Blair, Smith and Associates, if the collection is successful, results in a higher return, with the speed of an attorney, at a lower overall cost to our dients. This provides a bigger net return than using an attorney or a traditional collection agency. In the rare instances that one of our collections is unsuccessful, you have limited your financial exposure to far less than what it would be had you paid the attorneys fees yourself. Try us out and see for yourself why we often get referrals from attorneys and why our clients are so happy with our success rate. We'll provide superior results with lower fees.
If you check the websites of other commercial collection services, the presentations are consistenfly vague about how they are going to get their results. We think our clients deserve to know up-front exactly what we are going to do, and how we are going to keep the return high and the costs low. Untike other commercial collection websites we believe the skeptics deserve to know who some of our satisfied clients are specifically, and not some alleged quote from "Ed J., the owner," before they can us. With their permission, we have listed real people at real businesses.
We believe that, since the majority of commercial debts are most effectively collected through litigation, our approach is the best one for the majority of business-to-business creditors. We will get as good a result as if you hired your own attorney but the risk of the attorneys fees will be ours, not yours. Call us today for a free consultation on your delinquent accounts.
Since no two collections are exactly the same, our contingency fees and costs vary slightly depending upon certain facts present in each case. Our standard contingency fees are 25% for debts less than one year old, and 30% for debts more than one year old, including attorneys fees. We are not aware of any other collection seivice which fully assumes the risk of the attorneys fees for their clients. The court and litigation costs will vary slightly depending on the amount of the debt and the location of the court where the lawsuit will be filed. We will be happy to provide you with a determination of this amount when you call to discuss the qualifications of your specific cases.
Unlike most collection seivices, we will provide you with cost information without requiring that you disclose the identity of the debtor. Simply contact us by telephone or email. You should be wary of any service that requires identification of the debtor before you have received a full disclosure of all fees and have made the decision to assign the debt for collection. Many of the cases that do not meet our freshness requirement (see Qualifications) are ones where an agency obtained the name of the debtor during the initial interview with the potential assignor and proceeded to try to collect the debt before the assignor made the decision to assign the debt to them. This spoils the element of surprise we use in our immediate litigation approach to quickly identify and target assets before the debtor can dispose of them, and therefore lowers the expectation of successful recovery.