Retail and Commercial Collections from Rubenstein, Cogan & Quick

Retail and Commercial Collections


Legal Action Overview: Timeline, Client Cost & Reporting
	Upon receipt of a new account, Rubenstein, Cogan & Quick, P.C. ("RCQ") will forward a case acknowledgement report to the client within 15 days. At that time, all necessary affidavits will be forwarded to the client for execution if signed affidavits were not forwarded at the time of placements for legal action. A demand letter will be forwarded to the debtor on the same date that our file is opened. Should the debtor fail to respond within the 30-day period provided for under the Federal Fair Debt Collection Practices Act, the firm will immediately prepare to file suit unless otherwise instructed by the client.

I: Timeline

District Court Cases:

For cases filed in Maryland and Virginia, RCQ will file suit within 10 days of receiving the executed affidavits from the client, or upon the running of the 30-day Fair Debt Collection Practices Act (FDCPA) period, whichever is the later. As the District of Columbia requires that all new lawsuits be hand-filed, complaints will only be filed on RCQ's standard Return Day. This Return Day occurs at least once each month.
District Court Cases

In the District of Columbia, an initial Return Day is scheduled within 30 days from the date action is filed. If the defendant fails to appear on this date, a judgment will be entered based upon the affidavits. If the matter is contested, the court will reset the case for hearing. A contested case will be set for mediation approximately 30 days after the first Return Day. If the case cannot be resolved through mediation, a trial date will be set approximately 30 days after the mediation date.

In Maryland, there are no Return Days. The Courts do, however, provide for the entry of an affidavit judgment on the original trial date if the defendant fails to answer the complaint within 15 days of service. If the defendant files a Notice of Intention to Defend, the Court will set the matter for trial. Depending on the county in which suit is filed, this trial date can be anywhere from 45 to 120 days after the lawsuit is filed.

In Virginia, an initial Return Day is scheduled within 45 days from the date the action is filed. The majority of the courts prefer to have the defendant served by the Sheriff. If the defendant does not appear, a judgment will be entered based upon the Affidavit. As a general rule, all original documents and/or contracts must be submitted to the Court at that time to support the request for judgment. If the defendant appears and contests the case, the matter is generally scheduled for a trial within 45 days to three months; this is dependent upon the particular jurisdiction and the caseload of the respective court. In general, mediation is not available, except when provided by the Court (Fairfax County, the City of Alexandria and Loudoun County) and mutually agreed upon by the parties.
District Court Cases

Appeals: In Maryland and the District of Columbia, the defendant's appeal period runs within 30 days from the entry of judgment. After that point, the defendant can only attack the judgment under extraordinary circumstances. As such, a creditor can most effectively proceed with post-judgment collection activity once the initial appeal period has run. In Virginia, an appeal from the General District Court must be noted within ten (10) calendar days and must be perfected (with the posting of a bond when required by the Judge) within thirty (30) calendar days from judgment.

Circuit Court Cases in Maryland and Virginia
Civil Action Cases in the Superior Court of the District of Columbia

In the District of Columbia, a Complaint is filed and the Court assigns the case to a "calendar". The nature and particular rules of the respective "calendar" will govern the nature of the procedure throughout the case. These rules are ascertained when the parties appear at the Initial Status Conference ordered by the Court. As the proceedings of the litigation and the governing rules will vary based upon the "calendar" to which the case is assigned, our office will advise you of the litigation timeline and rules upon completion of the Initial Status

Conference.

In Maryland, a Complaint is filed and the Court issues a Summons within approximately 30 days. Service is affected upon the defendant via private process. Once served, the defendant must file a written Answer within 30 days. If the defendant fails to answer the Complaint timely, a Motion for Entry of a Default Judgment will be filed with the Court. A default judgment will then be entered. In the event an Answer is filed, the Court will set the matter for an initial Scheduling Conference within approximately 60 to 90 days. While the litigation timeline for each Circuit Court varies by county, the Court will issue a Scheduling Order at the initial Scheduling Conference that will govern the course of litigation through trial. Our office will promptly advise you of the litigation schedule upon entry of the Scheduling Order.

In Virginia, a Motion for Judgment is filed with the Court and the defendant is served once the Court prepares the requisite notices. Although the Courts prefer that a Sheriff be used for service, private process is permitted upon request. Once served, the defendant must file a written Answer within 21 days. If the defendant fails to answer, a Motion for Entry of a Default Judgment must be filed with the Court. An attorney from our office will then personally appear before the Court, as required, to have the Final Order entered. Each Circuit Court within Virginia, however, has very different local procedures with respect to litigating the case through trial if the matter is contested. For example, Fairfax County schedules a Status Conference within 60 days of filing the Motion for Judgment and a rigid schedule of discovery deadlines is established. In Arlington County, however, it is the responsibility of counsel to schedule a trial date at an available "Term Day"; no deadlines are established unless counsel drafts a case specific order for the Judge to enter. Due to the disparate procedures, our office will advise you of the governing timeline and court procedures on a case-by-case basis.

II: Legal Costs

Overview:

The costs of filing an action in the District of Columbia, Maryland and Virginia are all quite different. Please contact our office to receive a schedule of fees for all courts discussed herein.

In addition to the foregoing court costs, there will be costs for service of process with respect to most all pleadings filed in the District of Columbia, Maryland and Virginia. Once again, you may contact our office to ascertain the price of service within each of the jurisdictions and respective counties/cites therein. Due to the high volume of case placements generated by RCQ, we are often able to obtain volume discount prices, and pass these savings on to our clients. With respect to Virginia cases, the Courts generally prefer that the Sheriff effectuate service on the Defendant; the cost of the Sheriff's service is a flat fee of $12.00 per Legal Costs

defendant. As previously referenced, however, it is permissible to have the defendant served by private process.

All costs are advanced by RCQ and then billed to the client on a monthly basis. Once costs are recovered from the defendant, these sums are remitted to the client without deduction for fee. Finally, you should be aware that RCQ does not charge the client for Xerox copies, facsimile charges, postage or long-distance fees; these costs are absorbed by the firm, as a value added service to our clients.

III: Reporting

Standardized Client Case Reporting:

Employing "state-of-the-art" technology, Rubenstein, Cogan & Quick, P.C. is able to provide its clients with such services as 24 hour electronic case monitoring; uploading and downloading of "virtual" client files directly from the client's database (thus eliminating the time and expense of hard file preparation and transfer); and detailed monthly status reports on CD-ROM and/or in print form. The firm utilizes the "Collect-Max"™ software program from JS Technologies, Inc. We are thus able to provide you with a monthly status report that is tailored to your specific needs; you need only inform us of what kind of report(s) you desire.

Samples of the types of reports you may receive each month are available upon request. Please simply Contact Us to arrange for your receipt of a detailed reporting availability package.

Recovery Analysis Report:

Through a strategic partnership with JS Technologies, Inc., Rubenstein, Cogan & Quick, P.C. ("RCQ") has developed a proprietary Recovery Analysis Report (the "RAR") which is intended to allow volume clients with different portfolio types and/or placements in multiple jurisdictions to compare and contrast recovery rates. To review a sample RAR, please Contact Us and request that a pertinent sample be forwarded to your attention.

Specifically, the RAR allows clients of RCQ and/or the National Network of Creditor's Counsel ("NNCC") to quickly reference the recovery rate of a given portfolio from the date that the portfolio was placed with RCQ and/or NNCC through the present. The recovery rate is shown in six-month increments and demonstrates the total sum recovered upon an entire portfolio, as well as each account within each portfolio. These amounts are then compared with the entire placement balance and expressed as a percentage. The RAR can also be used to compare the relative recovery rates of different jurisdictions in the same format as referenced above.

The RAR allows clients to analyze those portfolios that yield maximum returns and those jurisdictions that allow for the most cost effective and time efficient litigation of collection claims. Moreover, the RAR is also intended to minimize the administrative time a client must otherwise expend in order to gather recovery statistics and make informed outsourcing decisions.

IV: Conclusion

Overview:

As can easily be ascertained from the foregoing, the District of Columbia, Maryland and Virginia have disparate laws and procedures. Furthermore, the specific procedures utilized in many counties within the jurisdictions are extremely varied. Based on the extensive experience, in all three jurisdictions, of counsel at RCQ, we are confident that our clients will experience a rapid and successful resolution of their claims in spite of the varied procedural frameworks employed by the court systems. It is our sincere hope that counsel at RCQ, each of whom are licensed to practice in several jurisdictions and are experienced throughout the region, may have the opportunity to represent your interests in the Washington metropolitan area.

The foregoing overview explains the general timeline for legal action in the District of Columbia, Maryland and Virginia, the associated costs and the nature of the monthly reporting provided to each client of RCQ. Please be aware, however, that when dealing with the court system, all time schedules are approximate. While we have attempted to provide you with a fairly comprehensive overview of the legal proceedings in our practice jurisdictions, we understand that additional questions may arise. As such, please feel free to Contact Us if you should require any additional information. We look forward to the opportunity of serving your legal needs.