Recovery Plus

Non-litigation attorney referral with InstiCollect creates urgency with calls and letters from an attorney on IC System’s behalf. We find that a letter or call from an attorney’s office is often an effective deterrent from further delinquency.

If, after an initial collection period, we have not secured payment, IC System will refer eligible accounts to attorneys. We provide referrals to our nationwide network of attorney partners, who assist in the collection process.

No, Non-litigation Attorney Referral is not litigation. It does not mean the consumer is being “sued” or brought to court. Instead, it is a process of introducing a law firm into the collections process as an additional input. This new input often motivates consumers to resolve their outstanding payments that otherwise may have been ignored.

No, the attorney will not “sue” the consumer or debtor. NLAR is a Non-litigation process that does not involve litigation in a courtroom setting.

Actual Lawsuits and associated legal expenses in bringing a private lawsuit can become very expensive. Non-litigation Attorney Referral is an increased intensity collections activity but the only cost to you is a contingency rate of 50%. No additional fees or expenses will apply.

No, you will not need to appear in court, and these additional collections activities will happen without any additional effort on your part.

You are always within your rights to hire an attorney on your own, however that would be an entirely separate action. If that action is desired, you should recall your debt and remove it from IC System and/or the NLAR (Non-litigation Attorney Referral) process.

Collection agency contingency fees often range from approximately 20% to 50% of the amount recovered, although pricing varies with account age, previous collection efforts, and the services included. The contingency fee is calculated on recovered dollars rather than the total balance submitted. For example, a 30% contingency fee on a $1,000 recovery would leave $700 for the business before any other applicable charges.

Before choosing a program, confirm any setup fees, additional service charges, and circumstances that change the rate. Comparing the money returned after all fees provides a clearer picture of value than comparing contingency percentages alone.

A letter-only collection program uses a series of written collection notices rather than outbound collection calls. These programs commonly charge an upfront flat fee, allowing the business to retain the payments recovered without a contingency percentage being deducted. The upfront program fee still applies.

IC System’s Recovery Plus offers a correspondence-only first phase that may include letters, emails, and texts, depending on the program. This gives businesses an initial written-outreach option before deciding which eligible unpaid accounts should receive more intensive collection efforts.

A two-phase collection program begins with one level of outreach and provides additional collection services for eligible accounts that remain unpaid. With IC System’s Recovery Plus, Phase One uses written correspondence for a flat fee. The business keeps the payments recovered during that phase without a contingency deduction.

In Phase Two, selected eligible accounts receive more comprehensive collection efforts, including calls and other available services, for an agreed contingency fee. This structure lets businesses begin with correspondence-only outreach and use additional recovery services where needed.