New York Debt Collection Case Study: Action… Reaction… Payment.
When making demand for payment on New York debt collection cases we sometimes face a stand off. We want our client to be paid but the debtor has other ideas. In order to end the stalemate we need to ‘pull the trigger.’ That is: file an action or demand for mediation or arbitration.
Most often the act of ‘pulling the trigger,’ the mere filing, causes the non-paying customer to offer payment/settlement of the case.
New York Debt Collection Case Study:
Our client, Kureha, was owed about 150K from a customer in Ohio. The debtor claimed an inability to pay. Client understood that if they were going to collect the monies owed them; they would need to apply pressure. Client’s best chance to get paid was now, before debtor’s financial situation worsened.
Client’s contract required arbitration with the International Chamber of Commerce (ICC) here in New York. Moving forward with Arbitration with the ICC required client pay several thousands of dollars for a filing fee. Rather than hesitate, client asked that we file the request to arbitrate immediately.
Within hours of client’s request, we filed the request to arbitrate. The ICC’s office is located a few blocks north of our office. We filed the request in person and had a copy stamped indicating filing. Upon returning to the office, an email was sent to the defendant’s attorney advising of the filing, with proof.
Needless to say, the defendant’s attorney was surprised our client was moving forward so swiftly with pursuing New York debt collection. Both he and his client were banking on our client dragging their feet, perhaps spending countless days/weeks in conversation that would not lead to payment in full.
In the end, within thirty (30) days, the defendant wire transferred the full amount owed to our escrow account; the parties exchanged releases, without the need for the entire arbitration fee being paid. This result is due to our client proceeding and filing for arbitration here in New York.
It is important to use a collection attorney that can handle the New York debt collection case regardless of what the contract calls for. Whether your contract calls for litigation, arbitration or mediation, your attorney should know when to move forward and when it is time to bring the case to a close.
On a similar note, your collection attorney should be familiar with what buttons to push, to get a response from the defendant. It may be due to a variety of situations including: the particular contract terms, the potential expense of the case for the client, and the time the client will have to expend (costing them money).
In this instance, it was necessary to move fast. Having both the capability of moving fast and the experience of distinguishing whether to move forward at all, we were able to bring the defendant to the table.
Please click here to read a testimonial from our client. For more information about arbitration and/or New York debt collection please call (212) 686-0100 or email Jocelyn directly at JNager@ffgnesqs.com.