The Case
Magenta were dealing with unpaid invoices from several clients, including one law firm who owed placement fees but had stopped responding to reminders.
They'd exhausted internal chasing efforts, sending emails and letters, and attempting phone calls that went unanswered. Despite this, Magenta were clear when they referred the case that maintaining the client relationship was a high priority for them.
Taking time to understand the case and relationship, we reviewed both the contract and payment terms along with all previous correspondence before making contact with the debtor. With a strong understanding of where communication broke down and the tactics our client had already used to attempt to recover the fees, we made initial contact with the debtor, opting for a firm but non-confrontational communication style.
Once debtor contact was reestablished, we facilitated mediation between both parties which led to our client receiving payment for the full balance within just a few days, including additional charges and interest to compensate for the delay.
Referring a debt doesn’t have to mean letting go of the client relationship. A collection agency who takes the time to understand the circumstances around the debt and the business priorities can make informed decisions that lead to positive results. Magenta continued working with the law firm, experiencing no issues with payment going forward.
