Get Smart. A State-of-the-Art Credit Application Will Reduce Debt Liquidation Losses

Kohner, Mann & Kailas, S.C. (KMK) regularly sets forth in its printed materials to its clients the advisability and value of any credit provider ensuring that it utilizes a state-of-the-art credit application or credit contract executed by the credit customer prior to granting open-account credit.
 
Do not think for a moment that type of document is not productive. We can tell you in utter candor that KMK regularly, and as a matter of course, collects hundreds of thousands of dollars over and above the principal amount placed for collection when our clients make use of a state-of-the-art credit application. Often KMK extracts a net recovery of more than the full principal placed for collection. In other words, in such a situation, the client pays absolutely nothing for the successful collection, as there is no collection expense to the client. In fact KMK remits to the client an amount in excess of the full principal placed for collection net of KMK fees. A client cannot make money easier than that.
 
A recent KMK billing cycle produced the following net recoveries in excess of the full principal placed for collection: $3,342.26 more than the full net principal placed for collection; $1,122.81 more than the full net principal placed for collection; $370.34 more than the full net principal placed for collection; $359.23 more than the full net principal placed for collection; $352.13 more than the full net principal placed for collection; and $87.27 more than the full net principal placed for collection.
 
The contractual provisions of the credit applications involved provided for the excess or surplus recoveries as reported above: interest and attorneys’ fees of $8,503.26; interest, service charges, returned check charges and attorneys’ fees of $4,258.77; interest and attorneys’ fees of $2,066.55; interest and attorneys’ fees of $499.00; interest and attorneys’ fees of $810.25; service charges and attorneys’ fees of $695.52; returned check charges and attorneys’ fees of $194.54; and interest and attorneys’ fees of $203.58.
 
The clients represented in this one billing cycle paid absolutely nothing for the full collection recoveries made, and in fact “pocketed” the amounts listed as “surplus” recoveries over and above the full principal placed for collection.
 
The cost of this type of credit application or contract is nominal, and it will often be returned back to you in the first recovery made upon the credit application or contract. It is “found money” that no credit grantor can intelligently dismiss or ignore.
 
The language of the credit applications drafted by KMK provides the legal contractual language to bind the purchasing customer to the payment of interest, collection costs and all other damages as the result of defaulted payment. KMK can historically document clients that have delinquent accounts receivable that nevertheless maintain a strong and positive recovery rate. Call Attorney Steve Kailas at 414-962-5110 to discuss and confirm this phenomenon.