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Bad cheques and overdrafts
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Commercial loans
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Commercial judgements
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Retail and department store accounts
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Credit card accounts
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Overpayment refunds
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Unpaid invoices
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Private loans made to individuals
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Rented property debts
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Overdue account - waiting for
payment for 30 days
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Long overdue account - normally 60 days
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Bad debt accounts - overdue for 90 days or longer
Generally, if an account is 90 days and
over. At this point, most creditors have already broken the terms and
conditions of the credit granted and the relationship has soured. By
now, the debtor has received all statements and letters and the
creditors have also expressed its concerned lack of response for payment.
The writing is on the wall - the debtor
has a cash flow problem. Be that as it may, a collection problem exists and
the account should now be placed with a collection agency.
The following are indications of
serious cash flow problems and are good reasons to hand over earlier
than the prescribed 90 days:
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"CHEQUE IS IN THE POST!"
Most of us know this one. Payment is promised but the delivery
thereof is a hoax.
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TELEPHONE NUMBER DISCONNECTED. The
quicker you investigate and follow up the better your chances of
recovery.
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"REPEADTEDLY REQUESTS
DOCUMENTATION" This is a common practice and is mostly used
when debtors want to play for more time.
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'I WILL TAKE CARE OF THE
ACCOUNT" but refuses to provide a specific date and time of
payment.
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BROKEN TWO OR MORE PROMISES -
Indication that debtor could not manage to raise the funds and the
quicker you get in line the better your chances.
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I KNOW I RECEIVED THE GOODS/SERVICES
BUT WHOEVER IS RESPONSIBLE - In many cases like in divorces this
phenomenon occurs. The one party incurs the debt and refers it to
the other party to pay. These disputes are not easily delt with and
tact should be used when confronting the debtor.
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"CAN'T PAY - DO WHATEVER YOU
WANT". In most cases this is only a treat with the expectation
for you to forget about it.
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RETURN TO SENDER MAIL - clear
indication the debtor has absconded
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REFER TO DRAWER CHEQUE - Debtor in
financial difficulty.
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DISPUTE ARISES WHICH WAS NOT RAISED
PREVIOUSLY.
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DEBTOR CLAIMS TO BE UNEMPLOYED - if
in doubt a very good reason to hand over.
It is proven, the minute a collection
agency gets involved the debtor knows that collection of payment has now
become a reality and priority and the sooner he pays the lesser the
pressure.
Why now, research shows that THE LONGER
OUTSTANDING THE ACCOUNT - THE HIGHER THE RISK AND CHANCES OF
NON-RECOVERY.
We want proof that the debt is valid by
means of the following:
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Detailed copies of invoices,
statements, C.O.D invoices, delivery notes
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Copies of any agreements, bank
statements or any other written acceptance of the agreement between
yourselves
We require any information regarding
the debtor whether old or new.
We want to see the following:
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Capital amount - as per the
agreement
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Interest - what is the agreeement
and detailed calculation
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Fees added - as per your agreement
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Service date
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All payment amounts and dates
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All credits be applied
Debt collection is time consuming and
has become a specialized field. Our success is in the continuous follow
up procedure that causes immense pressure and responsibility upon the
debtor to acknowledge liability and ultimately to settle the debt. Here
persistence is our trademark.
There are two basic collection phases
used namely our standard collections and legal collections.
All accounts follow the standard
collections phase and should get paid by the completion of this phase.
However, should the debt still be unpaid the debt will follow into the
legal collections phase.
After registering the debt on our
database we start with an intensive strategy containing the following:
letters, telephone calls, faxes, personal visits, enquires, interviews
and any other way of personal contact. During this phase the whereabouts
of the debtor will be traced, confirmed and updated.
A payment plan will be negotiated and
the financial position of the debtor established. Ultimately, settlement
of the account.
Should this not be the case the next
phase of legal collections will follow. |
