LEGAL PROFESSIONALS
eCollect has considerable experience in collecting debts owed to legal practitioners.
One of our directors had 20 years experience in general legal practice before joining eCollect. We have a good understanding on the difficulties in getting paid, the excuses used by clients and the regulatory requirements in proving a debt owed to a legal practitioner. Most importantly, we have the time available to chase the debtors regularly. This is what is usually missing when lawyers chase their own debts.
Legal Practitioner Action
Our Legal Practitioner client needs to:
- read and acknowledge the eCollect engagement authority;
- provide a copy of each account for collection + the client retainer (if any) + any information about the debtor to eCollect preferably in electronic format (scanned file or fax). The debtor’s current address, phone and email contact is a minimum. The more information that is provided to eCollect, the higher become the chances of collection;
- follow the progress of the recovery on the eCollect website;
- be prepared to allow eCollect to engage its in-house legal firm, E C Legal to institute legal action on the “no-recovery no-fee” basis as summarised below
eCollect Initial Action
eCollect will:
- make contact with the debtor and make demand for payment. E C Legal, the eCollect in-house legal firm may be engaged for this purpose (the E C Legal cost is paid by eCollect). Letters of demand will may come from either eCollect or E C Legal;
- obtain payment or make a payment arrangement;
- undertake basic location searches if the debtor does not respond;
- 1.record all action on the eCollect website.
All of the eCollect action can be viewed by the legal office online at www.eCollect.com.au. Our Legal Practitioner client will be provided with a login and password.
eCollect Fees
eCollect’s usual fee (excluding GST) is:
debts under $1,000 25% of each amount recovered
debts $1,001 - $10,000 15% of each amount recovered
debts over $10,000 10% of each amount recovered
eCollect will not accept legal office debt recovery assignments unless our Legal Practitioner client can provide a current address and phone number or are prepared to pay for a location search.
Location Searches
If we have returned mail or disconnected phone numbers and our basic location searches do not reveal a current address, then eCollect can undertake a comprehensive location search on the legal office’s behalf. This is done at a cost of $200 + GST which is paid by the legal office only if a positive location for the debtor is found. The comprehensive location search cost is not recoverable from the debtor and is only done with the authority of the legal office after a report from the eCollect account manager.
Legal Action by E C Legal – our associated legal firm
E C Legal is independently owned and operated but shares office space, communications systems and support personnel with eCollect.
If the eCollect initial action fails to bring a result, then E C Legal may need to be engaged to issue proceedings.
E C Legal will work for our Legal Practitioner clients on a No Recovery - No Fee basis. The details of this arrangement are contained in the eCollect Engagement Authority.
A summary of the No Recovery No Fee arrangement is that E C Legal will charge professional costs according to the applicable court scale on party / party basis only. No professional costs are payable unless there is a recovery from the debtor. The legal office’s maximum liability is for the out of pocket expenses e.g. court filing fee, service fee, company search.
i.e. your worst case risk is the cost of the disbursements only.
E C Legal will advance these amounts which will be refunded to E C Legal. You may be asked to reimburse these amounts to E C Legal. If there is no recovery, we will not be paid our professional costs.
More Information Required?
JOE HANCOCK
eCollect Account Manager – 03 8611 2693 – joe.hancock@eCollect.com.au
Joe has 4 years experience in commercial debt collections including professional services business such as lawyers, accountants and doctors
JAMES WOODS B.A. LL.B.
eCollect Director – 03 8611 2610 – james.woods@ecollect.com.au
James ran a 35 person general legal practice for about 20 years.
He has practical experience in the administration of legal practice but now is responsible solely for keeping eCollect clients satisfied.
BRETT SUTTERBY B.A. (Hons) LL.B.
E C Legal Solicitor – 03 8611 2667 –
brett.sutterby@eclegal.com.au
Brett has worked in several of Melbourne’s better known legal firms and now takes on any debt recovery litigation needed for our legal clients.
