Why use RSD to handle legal collections?RSD has a unique ability to service legal collections, because of their expertise in this field, the volume of legal matters they handle, and the resources they have available.
A member of the RSD obtains legal services through the use of a law list. These lists provide a network of law firms who are educated and experienced in handling collection matters and provide their services on a contingency fee basis. These law firms work with the agencies within a strict set of rules (Operative Guides set forth by the Commercial Law League of America) and abide by the usual and customary practices particular to the collection industry, thus assuring a high level of service.
Furthermore, the law firms are carefully screened by the list who provide bonding coverage up to $3,500,000 per law firm to the agencies on all matters forwarded through this medium. Thus, the creditors are protected against the possibility of any loss due to fraudulent or dishonest acts. This bonding coverage is available only to collection agencies and law firms, not direct to creditors. Because of this bonding insurance coverage, the law lists continuously monitor and evaluate the performance of their listed law firms.
These law firms receive a large volume of business from RSD, as they represent many creditors. The potential to bestow large volumes of business gives the agency leverage with a law firm that a creditor cannot obtain on its own. Particularly in a remote area, you may have a case or two to place, whereas RSD may have many such matters to place on behalf of all of its legal collections clients.
In turn, the volume of business flowing to the law firm over law lists because of its use by hundreds of collection agencies gives even more leverage to the list. Millions of cases flow from agencies through bonded law lists to their network of law firms. The leverage of such a list becomes available to RSD on behalf of you, the creditor.
Such leverage has many advantages. Discounted rates are offered to RSD. This reduced rate means that a member of RSD can handle a creditor’s file for the same rate that you, the creditor, would be charged by the firm if you had sent the work direct. By outsourcing to a member of the RSD, you benefit from the services they perform on your behalf at essentially no cost. Thus, you save personnel costs, rent, technological equipment costs, and variable costs such as postage and stationery.
Access to top-notch legal services is another advantage. The volume of claims handled by these firms gives them intense experience as collection specialists. They know debtors and their tricks, they may have even already had experience with the particular debtor with whom you have a claim. An experienced collection law firm can often settle a case, or even bring it to trial without the necessity for you to provide a witness.
The volume provided by RSD makes collections profitable for these law firms, and thus they commit resources to their collection practices, including superior technology, personnel, a dedicated legal collections staff, and prioritized partner time. When a law firm processes a volume of collections files over an extended period of time, they are committed to this practice, and they establish a reputation with local debtors. This reputation can eliminate a lot of “stall tactics” and increase the probability of settling your cases without protracted litigation.
Firms that process a large volume of collection matters may develop specializations within the field, so that they have particular expertise in handling claims involving the Miller Act, the insurance industry, subrogation, transportation, or health care.
RSD has personnel that deal only with legal collections. Their legal department handles thousands of files each year. They develop professional relationships with the attorneys they use, and sometimes personal relationships as well. They are active in associations that provide them with continuing education on the ever-changing laws that deal with collections and bankruptcy. Many of these organizations also afford them the opportunity to network with receiving attorneys.
Why not make use of the advantages afforded by the use of RSD and its network of law firms to collect your legal accounts receivables? The law firms are fully bonded, screened and monitored on a continuous basis by both the agency and the law list. RSD and their correspondent law firms are specialists in collections. They are educated and experienced in the latest changes in the law, and have the latest credit and collection services and technology at their disposal.
It only makes sense that you will increase your chances of collection, at a lower cost, thus having a positive impact on your bottom line, as a result of your decision to outsource your legal receivables to the RSD.
This article was prepared by Thomas W. Hamilton, Executive Vice President and General Manager of the American Law