New area of practice: Pre-Legal collection of debt.
Outsourcing domestic debt collection and international debt collection
1. How to collect offshore debt.
We have become affiliated with GCS, Global Credit Solution Group. An Australian based international credit receivables management group, founded in 1976 by Neil Alan Wood. GCS has their headquarters in Melbourne, Australia and is partnered with law firms and management consultant companies in 130 countries worldwide.
Although it is difficult recovering debt from default by a foreign debtor and via international trade, through the network of GCS recovering debt has become efficient and effective.
Our law office joined the network of GCS in 2009 to dedicate ourselves to collect debt in Japan for foreign creditor.
It has become easier to track overseas debt through the GCS network and faster for Japan based companies to claim uncollected debts overseas.
In order to help resuscitate Japanese companies, we have established a NO WIN, NO FEE system.
2. Prior facts and outsourcing of debt collections
From the 1970s, outsourcing of debt collection has grown rapidly on a global scale, and has continued to do so by actively collecting debt.
Even through legal measures if a debt is not sought to be collected within 3 months the chances of recovery diminish. Especially, where time is limited in contacting a local law firm before the debtor can default.
To overcome this situation, the "early recovery efforts of previous legal action" must be started and (Pre-Legal Debt Settlement) used as much as possible, but to do so, you should outsource receivables to a collection group.
Numerous outsourcing organizations developed, which engulfed Europe and the United States worldwide, as well as Australia, India and Asia, including also the entire Middle East, Southeast Asia, Singapore, Hong Kong, China, with companies in each country, this made it more efficient to recover the debt.
However, Japan is behind in this global trend. Due to only lawyers can collect debt as it is prohibited for other agencies to collect debt. However, there is an exception to the rule, but the activity is limited.
In Japan, the company itself tries to recover the debt, and by the time the company turns to a law firm it is too late, due to the debtor is in a state of collapse. Without assets to seize, the effort is fruitless. Resulting in economic loss for both organizations.
When it comes to collecting debt Japan is similar to Galapagos.
3. Outsourcing debt collection in our office.
The Attorney Act prohibits the emergence of a debt collection company; however, the only way to overcome Galapagos type scenario in Japan, a debt collection law firm should aim to ensure the Pre-Legal collection of debt.
Therefore, we decided to develop a debt collection department in our law firm, to collect debt by means of Pre-Legal. In the future, we intend to make every effort at the request for debt collection from companies located in and out of Japan.
In this case, we have adopted the “No Win No Fee” compensation plan, which has been successful internationally.
In addition to recovery services, for a fee we can Skip Trace to study whereabouts, assets and other vital credit information, which is similar to due diligence.
4. Benefits Using a Law Office
A letter of demand will be drafted in the first stage of debt collection, and will be content-certified mail originating from an attorney. Therefore, as a means of a Pre-Legal Debt Recovery should be very effective, merely in the initial stage.
Also, quick legal provisional seizure, lawsuits, and enforcement, will allow you to recover assets before default.
Furthermore, debts have accumulated due to discrepancies in delivery and grievances about a product or a service. A law firm with expertise in negotiating these day to day business disputes can accelerate better results.
Unlike a debt collection agency, we have the capacity and knowledge to facilitate collection from debtors by our Pre-Legal Debt Collection System and our vast authority in Business Law.