COMMERCIAL COLLECTION AGENCY
LITIGATION FORWARDING

While a “Collection Agency Action” is certainly more economical, it is not always the best path to take. This is where GRS differs from most Collection Agencies. We won’t sit on your Claim hoping it will turn into something beautiful as it gets older! Sometimes the “writing is on the wall” as they say, and it is evident that suit will need to be brought in order to prompt a resolution and ultimately secure payment or mutual settlement.

PLAINLY STATED, THRE IS LITTLE POINT IN WRITING LETTERS OR MAKING PHONE CALLS WHEN IT IS CLEAR THAT THE DEBTOR IS SIMPLY PLAYING THE GAME AND BUYING TIME. IN SHORT…YOUR CUSTOMER’S WAITING TO BE SUED!!! WHY WAIT?

If you wish to file suit, our office will email or fax a “Suit Authorization Form” for you to sign, date, and return via fax or regular mail.
Once your authorization is received the following will take place:

GRS WILL FORWARD YOUR CLAIM TO AN OUTSIDE ATTORNEY FOR LEGAL ACTION. UPON RECEIPT ATTORNEY WILL MAKE DEMAND FOR PAYMENT ON THE DEBTOR. ATTORNEY WILL ALLOT DEBTOR 30 DAYS TO RESPOND TO SAID DEMAND. SHOULD DEBTOR FAIL TO RESPOND TO ATTORNEYS DEMAND FOR PAYMENT, ATTORNEY WILL FORWARD TO GRS HIS / HER SUIT REQUIREMENTS, COMPRISED OF COURT COSTS AND POSSIBLY A NON-CONTINGENT SUIT FEE.

THE CREDITOR MAY AT THIS TIME TO CHOOSE TO CLOSE THEIR FILE WITH GRS AND BE UNDER NO OBLIGATION TO GRS, OR COUNSEL, UNLESS PAYMENT, OR PAYMENT ARRANGEMENTS THEREOF HAVE BEEN MADE. CREDITOR SHALL NOTIFTY GRS OF THEIR INTENTION TO CLOSE THIS CLAIM WITHIN 30 DAYS FROM THE DATE SUIT REQUIREMENTS ARE REQUESTED AND SHALL DO SO VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED. IF NOTIFICATION TO CLOSE SAID CLAIM IS NOT RECEIVED WITHIN THE TIME FRAME REQUIRED, COUNSEL MAY, AT THEIR DISCRETION, CONTINUE TO DUNN DEBTOR WITHOUT FILING SUIT IN THEIR ATTEMPT TO COLLECT ON BEHALF OF THE CREDITOR, AND SHALL BE ENTITLED TO 40% OF ALL SUCCESSFUL COLLECTIONS THEREAFTER, (regardless of whether or not suit is filed).

SHOULD CREDITOR DESIRE TO PROCEED WITH SUIT, IT IS UNDERSTOOD THAT CREDITOR IS RESPONSIBLE FOR FORWARDING COURT COSTS, IN ADDITION TO A NON-CONTINGENT SUIT FEE IF SO REQUESTED BY ATTORNEY. IT IS EXPRESSLY UNDERSTOOD THAT SUIT WILL NOT BE FILED UNTIL SUIT REQUIREMENTS ARE MET BY CREDITOR. CREDITOR UNDERSTANDS THAT THE ATTORNEY ASSIGNED TO THEIR CLAIM WILL OPERATE ON A CONTINGENCY BASIS, (Contingent Upon Collection) AND THAT A COLLECTION FEE OF 40% WILL APPLY TO ALL SUCCESSFUL COLLECTIONS, (Regardless of whether or not suit is filed). CREDITOR IS ONLY OBLIGATED IF DEBTOR HAS MADE SOME FORM OF PAYMENT OR ARRANGEMENTS THEREOF. SAID FEE WILL NOT BE DERRIVED FROM COSTS RECOVERED. CREDITOR FURTHER AGREES TO REPORT TO GUIDANCE RECOVERY SERVICES LLC, ALL FORMS OF COMMUNICATIONS, CORRESPONDENCE, AND PAYMENTS FROM DEBTOR.

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LAWSUITS FAQ

WHY IS THE ATTORNEY REQUESTING A NON-CONTINGENT SUIT FEE?

A common practice among Collection Attorneys is to request a Non-Contingent Suit Fee from the Creditor who is desirous of filing suit in addition to any court costs. They request this for two (2) reasons, 1) Because they are working on the premise that the claim is indeed collectable, however should this prove not to be the case, this up front fee will at a minimum cover some of their expense (time) should the claim prove to be uncollectible, and 2) Payment up-front of this fee indicates that you (the client) are serious about pursuing this claim and that it is not frivolous in nature. Note: All prepaid Non-Contingent Suit Fees are applied (much like a deposit) to all successful collections.

EXPLANATION OF 10% SUIT FEE

Our office (GRS) charges 40% on all successful collections. This fee covers our office and that of the Law Firm handling your claim. The 10% Suit Fee mentioned by Counsel in the attached correspondence is charged to our office in addition to a pre-determined rate that is negotiated between our firm (GRS) and the Law Firm handling your claim.
You will NOT be charged an additional 10% on top of the 40% on any successful collections. You will NOT be charged one fee from GRS and another fee from the Law Firm handling your claim.

WHAT EXACTLY ARE COURT COSTS?

Court costs are fees charged by the court system for various filings, the most common of which are:
-Summons
-Citation to Discover Assets
-Rule to Show Cause

Counsel will generally request an amount over and above the fee required to file suit so that they will have funds on hand for any subsequent court filings for your claim. This way Counsel won’t have to keep coming back to you for additional funding which would delay proceedings with your claim. Court costs requested by counsel should not be construed as Attorneys fees as they are used to fund court filings. Also note that all successfully recovered court costs thru means of suit are refunded to you (the Client) in their entirety. In other words we do not take a percentage of the costs recovered.

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