The funding agreement is signed and delivered. After all that back-and-forth, your plaintiff is ready for payment. Then you get the inevitable call:
“Hi, I just faxed my funding agreement, but my money isn’t in my account yet! What’s going on?”
Sound familiar? If you’ve been in legal funding long enough, you know how critical smooth plaintiff payments are. With the right strategies in place, you can turn this common pain point into a seamless experience.
Here are the Top 10 ways to improve your plaintiff payments and keep the process efficient:
1. Define Clear Roles and Responsibilities
Ensure everyone on your team knows who does what. Who verifies the agreement? Who sends out the payment? Who informs the plaintiff once the payment has been processed? Having these tasks clearly defined minimizes confusion and helps things run smoothly.
2. Double Check for Incomplete or Altered Contracts
Before processing any payments, do a quick review of the contract. Make sure all the required signatures are present, no pages are missing, and there’s no unauthorized alteration of terms. This small step can save you big headaches down the line.
3. Use Clear Payment Instructions
Make it easy for plaintiffs to tell you how they want to receive their funds. Whether it’s through wire transfer, mail, or prepaid card, provide simple and clear instructions. For instance, if the plaintiff chooses wire transfer, double-check to make sure the plaintiff gave you the bank’s ABA number, in addition to their account number. This ensures a smoother transaction and avoids delays.
4. (Almost) Never Send Plaintiff Payments to Attorney Escrow Accounts
Direct payments to the plaintiff wherever possible to avoid any fraud risks. If it’s necessary to go through the attorney, make sure both the plaintiff and attorney are on board and in the loop throughout the process.
5. Set Realistic Expectations
When estimating the time it’ll take for the plaintiff to receive their funds, under-promise and over-deliver. Tell them when you plan to process the payment but leave some buffer room to avoid disappointments and build trust.
6. Communicate Effectively – Just Text!
Text messaging is a quick and efficient way to keep plaintiffs updated. You can send a short message when the contract is received and another once the funds have been sent. This direct line of communication keeps everyone informed and satisfied.
7. Batch Payments for Efficiency
Instead of processing payments as they come, set specific times during the day to handle them. This minimizes distractions, ensures accuracy, and helps set clearer expectations with plaintiffs.
8. Track All Physical Checks
If a plaintiff requests a physical check, use a service that provides tracking. Not only does this provide peace of mind, but it also reduces the number of calls asking, “Where’s my check?”
9. Consider Alternative Payment Options
Offering a variety of payment methods can improve the plaintiff’s experience. Prepaid cards, for example, allow you to electronically fund a card that functions like a debit card. You can partner with companies like Praxell, InComm Payments, or Green Dot to issue prepaid debit cards that work similarly to traditional bank cards.
Electronic checks are another convenient option. Companies like Deluxe eChecks provide a way to email checks, which plaintiffs can print and deposit.
If wires and checks aren’t an option, consider money transfer services like Western Union for plaintiffs familiar with these services.
10. Keep Thorough Payment Records
Whether you’re sending a check or wiring funds, keeping detailed records is key. Track check numbers, wire information, and payment confirmations so that if an issue arises, you can troubleshoot quickly and effectively.
Conclusion
By implementing these best practices, you’ll streamline your payment processes and make sure that the final step in the plaintiff’s funding experience is as smooth as possible. Efficient payments aren’t just a logistical necessity—they can significantly enhance client satisfaction and trust.
