2.3 Acknowledgment of Claims

• Library: Debt Collection for Virginia Lawyers: A Systematic Approach (Virginia CLE) (2022 Ed.)

2.3 ACKNOWLEDGMENT OF CLAIMS

2.301 In General.

Once a claim has been reviewed and a file opened, the client or forwarder should immediately be sent an acknowledgment to indicate that the firm has accepted the case. For regular clients, this acknowledgment confirms that the claim has been delivered to the attorney's office. For regular clients with whom a fee basis has been established, the acknowledgment can usually be a simple form letter stating that the accounts have been received. The easiest situation is receipt of a fully documented claim in which the rate and terms are acceptable. A file is opened, demand is placed, and the claim is acknowledged. ¹³⁰

2.302 Types of Acknowledgments.

For new clients' claims or individual claims from agencies or other attorneys, the acknowledgment letter serves as the basis for the attorney's contract or as a request for additional information. There are forms to cover various situations, such as when (i) the claim is accepted as forwarded; (ii) the rate or terms are unacceptable; or (iii) the rate is acceptable, but information is insufficient to evaluate the claim.

The forwarder often sets out in a letter a variety of terms and conditions. When acknowledging, the attorney should be sure that he or she understands the intent of the forwarder. For example, commercial claims are often sent on rates that are based on claims that are to be collected without suit. It is expected that if suit is necessary, a suit fee of up to 10 percent may be charged in addition to the stated contingent commissions. It is also assumed that the claim is commercial rather than retail. The attorney should make sure it is not retail. Special handling and reporting are expected by the forwarder, and by accepting a commercial claim the attorney is agreeing to handle it in the "expected" manner. ¹³¹

Many attorneys and agencies forward retail accounts for national clients such as oil companies, catalog sales companies, and similar businesses. The accounts are retail and should be accepted only at the established retail rate charged by the attorney's office. The acknowledgment might state that the attorney will make only one demand and then submit suit requirements, or the acknowledgment should otherwise advise the forwarder how the attorney's office treats retail claims of this nature. ¹³² If the attorney's firm does not handle retail claims, the matter should be returned promptly, advising the forwarder of this fact. The attorney might also...