1. Why would you assign a debt collections firm for your international receivables?

2. What are the benefits of pre-legal debt collection?

3.†Where do most debt claims originate from?

4. What is the most common reason a debtor does not pay off its debt?

5. How can MDI-Group help in case debtor is untraceable?

6. How long does it take on average to arrange a settlement?

7. What is your success rate for solving a case pre-legally?

8. What is no win no fee?

9. How do I assign my collection file to you?

10. What are the benefits of pre-legal debt collection?

11. Where do most debt claims originate from?

12. What is the most common reason a debtor does not pay its debt?

13. Are you a member to any professional umbrella organization?

14. Which documents I need to provide?

15. Do you arrange for legal proceedings?

16. Are your legal proceedings contingency based?

17. What is your commission rate?

18. When do I pay the commission fee?

Why would you assign a debt collections firm for your international receivables?

- You do not want to waste too many valuable resources on sending notifications, reminders and regular collection calls.

- Debtor is engaged in the mother tongue of the debtor by someone understanding certain cultural sensitivities.

- You want to take distance from the frustrations and prevent emotional involvement too harm a client relationship.

What are the benefits of pre-legal debt collection?

- You lower financial risk by not paying high advance lawyer fees without the guarantee on a successful solution.

- In case a pre-legal solution is reached, you have saved substantial time on†lengthy legal proceedings .

- You do not necessarily jeopardize your customer relationship by having the possibility to exert just soft pressure instead of resorting to legal proceedings.

- You can reach us 24/7 for any of your questions, and do not pay hourly lawyer fees for consultation.

- Within the process, you will gain valuable information on the likelihood of recovery, preventing spending money on a costly but eventually aimless lawsuit.

Where do most debt claims originate from?

The most common debt claims are B2B and are received from international businesses which have been†concluding trade deals in Turkey, after which a debtor company fails to live up to its payment†obligations. Also, we are receiving claims from individuals who had for example made a real estate investment in Turkey and subsequently had to witness how their money had vanished. In addition, we receive lots of claims from public institutions as†hospitals, research institutes, or governmental organizations, which have been delivering goods or†services to companies or private persons in Turkey and for which payment is overlooked.

What is the most common reason a debtor does not pay its debt?

It is not always easy to typify a debtor. Especially in the beginning of a debt conflict it remains†guess-work to reveal the debtors real intentions. In most cases the debtor is simply not able†to pay its outstanding bills. This goes in particular for trading companies as to a certain degree they†buy their products on the basis of mere speculation. If they have sufficient funds to pay their bills, it most†often means they were able to sell their products. They subsequently would not risk not paying their†suppliers as this could endager their future profits.

There are also those companies which simply try to delay payment as much as possible, thereby trying to gain on†interest or hoping for a foreign creditor not to take further steps against them. In this group we often†see private individuals trying to duck from their payment obligations to e.g. hospitals or foreign†suppliers of luxury goods.

The most problematic group consists of those companies/individuals who had bad intentions at forehand and never intended to†pay for what they had purchased. In this group we often see companies which are on the verge of bankruptcy, and†knew they were not going to be able to pay for the goods or services delivered to then. But also we have†seen individuals with vague whereabouts and disputable backgrounds.

Nonetheless, there is also a group which never paid the outstanding invoice for the mere reason that they†have never seen an invoice. Addresses in Turkey can be confusing and invoices from abroad do not always†arrive at where the supplies wished they would arrive.

How can MDI-Group help in case a debtor is untraceable?

When we receive a debt collection case the client normally provides us with the contact details of the debtor. One of the most frequently seen reasons at the basis of an overdue account is a creditor company not managing to reach debtor anymore. In case debtor is a private person, there are many things that could have gone wrong in order for an invoice not to get paid. The invoice could be addressed to an incorrect, or sometimes non-existing address, or the debtor simply could have moved to another address without properly informing the creditor.

We have now some years experience with tracing the whereabouts of debtors in Turkey be it a company, or a private†person.†We succeed in tracing over 75% of untraceable debtors via for example our contacts within different governmental institutions or by making smart use of web 2.0. Our skiptracing service can trace any Turkish citizen with a Turkish passport merely on the basis of the surname plus date of birth, passport number, or personal identity number. Please click HERE for reading more or to order a skiptrace.

How long does it take on average to solve a debt file?

From the moment we receive a debt claim onwards, until the very moment the debtor signs a payment contract, we need on average an approximate 6-8 weeks. It happens nevertheless that debtors act immediately and effect the overdue payment immediately after the receiving of our first Demand. It normally starts with getting the debtor to acknowledge the claim, after which we need some collection calls, and/or site visits in order to convince the debtor of the urgency and the legal implications in case of continued defaulting.

After the debtor has shown its willingness to start paying off his debt, negotiations for a debt settlement start. This can be a lengthy process as at this stage most companies will not shy away from using delaying tactics. We are however aware of these \'natural\' reactions, and attempt to intensify contact at this stage. After agreement is found it is only a matter of days after which all parties will have signed the contract and payments can start.

It does of course occur that a settlement can not be negotiated with a debtor, after which we will have to decide to take a case legal. We are aware of the fact that patience is important in order to persuade a debtor, but at the same time we are realistic and we would know when to ceasse negotiations and file for legal proceedings. After a case is brought to the Court, expectations should be considerably lowered as it could take up to 1-3 years before a lawsuit finds a final Ruling from the Court.

What is your success rate for solving a case pre-legally?

Our current succes rate is approximately 70%. We define succes as the achievement to make a debtor pay that amount of money which sufficiently satisfies the creditor, or the arranging of a debt settlement or a repayment schedule to which both debtor and creditor have agreed.

What is no win no fee?

There are people which are unfamiliar with the term \'no cure no fee\', or \'no win no fee\'. The meaning is relatively straightforward as it refers to the arrangement between a solicitor and its client that the latter does not pay any procedural or legal fees for as long as the debt conflict has not been resolved. MDI-Group freely investigates your claim, starts the pre-legal collection procedure, sends out demand letters, makes collection calls, and attempts to negotiate a settlement or repayment schedule.

The attractiveness for our clients to assign their debt files to us on the basis of no win no fee lays in the simple fact that it minimizes risk. If a lawyer had to be assigned, an advance payment of at least 5-10% of the total sum would be asked in order just to commence proceedings. In contrast MDI-Group is only asking a small one-off admin fee of between EUR 40-100. In this way collection procedures†become more accessible to companies with limited financial resources.

9. How do I assign my collection file to you?

You can assign us either by email, or via the \'claim submit\' form on our website. Make sure to fill out all details and attach some basic documents corroborating your claim. After submission of the form we will send you a confirmation of reception and a Service Agreement for you to sign and return to us.

10. Is the filling out of the claim submit form in any way binding?

No it is not. After we have received your claim we will send you a Service Agreement stipulating all rules and regulations, including the rate of commission. Only after we have received a signed copy of this Agreement, we will commence collection proceedings, and the commission fee becomes binding.

11. Do you ask any advance fees, or are there any \'hidden\' costs to be expected during the process?

For every regular collection file we ask a small one-off administration fee of EUR 48. In certain rare circumstances and incase of a complex debt file we may ask for an additional handling fee of maximum EUR 225, proportionate to the age and complexity of the debt. During the collection process there are absolutely no further fees.

12. In which countries can you collect?

We do currently collect in over 50 countries worldwide. Through our staff we can communicate in 12 different languages, and we have demand letters and notifications available in all these languages. We first attempt to achieve some result through our own notifications and collection calls. However if we fail to be successful, we instantly assign our partner office in the country of the debtor, which will take over.

13. Are you a member to any professional umbrella organization?

We are member of the ACA International, the main international organization for Credit & Collection Professionals. Through our membership we abide by their Ethical Guidelines, and the internationally recognized FDCPA. In the event of any wrongdoing from our side, any complaints against us can be filed at the ACA, where an ethical committee will analyze the legitimacy of the complaint with possible penalties or us losing our membership.

14. Which documents I need to provide?

We need the basic documents supporting your claim. In case of an unpaid invoice at least a copy of that invoice. In case of a debtor failing to live up its contractual obligations as e.g. not having provided the service, or failure to deliver any goods paid for, a proof of that payment and a copy of the Agreement/Contract. In addition, copies of any correspondence with debtor do always help a lot as we obtain a certain insight in the \'psyche\' of the debtor.

15. Do you arrange for legal proceedings?

We do not arrange for legal proceedings ourselves, but facilitate them together with our legal partner in the country of debtor. When we feel that we have exhausted all pre-legal options, we advise our clients likewise. We provide our clients with all the details on legal procedures in that particular country. Legal proceedings are not everywhere the same and per country can vary to a large extent in terms of administrative necessities and the required legal costs. In cooperation with our partner we always attempt to keep the legal fees as low as possible and keep the process simple and accessible.

16. Are your legal proceedings contingency based?

In some countries we can offer contingency-based (no win no fee) proceedings, but in others the creditor (often by law) has to cover for the legal expenses. However, the Agreement we enter in with our lawyers always strives to avoid payment of any advance fees. It is a hard guarantee that none of our lawyers works upon high hourly rates.

17. What is your commission rate?

Our commission rate depends on three important factors, namely the age of the debt, the height of the claim, and the location of the debtor. The older a debt, the harder its collection, the higher the commission. The higher the claim, the harder its collection, the higher the commission. The less developed an economy, the lower the reliability of the judicial system, the lower debtor discipline, the higher the commission.

18. When do I pay the commission fee?

You only pay us our commission fee once we been successful in recovering your debt. Commission is paid over any amount recovered form debtor related to the assigned claim.