Having used a large traditional law firm to manage their legal action requirements for debt recovery for many years our client had become disillusioned with the entire process. It was deemed very slow, very expensive, ill-informed and there appeared to be only one winner – the solicitor!
As a result of this view, utilising legal action as an aide to Credit Control had diminished resulting in more accounts being written off unnecessarily and creating a belief by their customers that any threat of further action was unlikely to be delivered.
In order to challenge this, we set up a workshop to process map the existing collection strategies adopted by our clients and created a checklist as to what “good looks like” when considering legal action in the future. We then helped to rewrite some of our client’s collection letters in advance of any further action being issued ensuring that all Court protocols had been adhered to.
Following the activity above Credit Style created a solution consisting of a solicitor’s letter before action, outbound telephone collection from our legal collections team, pre-legal account review process and a low cost fixed fee legal service operating on a risk and reward basis.
Having created this solution our client's credit reputation amongst their customer base is now much stronger which in itself supports prompt payment and most importantly the net return we have been able to deliver for our clients has been increased tenfold compared to the previous arrangements.
As such, there is still only one clear winner – which is now our client.