Professional’s debt recovery strategy is this…
Once we have received your file we will apply an agreed commission to all monies recovered (or compromise, contra arrangement, return of goods or in the event your debt is defended and then paid) against the original debt (including contract interest where applicable). We will also share 50/50 in any Court awarded interest.
We will then issue our Letter of Demand for payment within 7 days or letter of arrangement if a suitable instalment arrangement has been made with your debtor.
If your instructions were to issue a legal proceedings, your instructions will be carried out accordingly. If your debtor has failed to pay or make any suitable arrangement we will either conduct a field call to demand payment face to face or initiate legal proceedings in the Local or District Court. After service is affected by one of our agents or by the Court we will demand payment of the debt or again attempt to have the debtor make an installment arrangement with us in writing.
In the absence of any response within the statutory 14 days after service on your debtor, we will then file for default judgment, including any accrued interest allowed at the applicable Court rate, and issue the appropriate Enforcement action.
Costs payable by you during the course of recovery are limited to those disbursements as set out in the schedule of fees. However, the majority of these may be added to the debtor’s debt and because Professional Collections prepare, draft and file all our documents within 24-48 hours you can rest assured our agents will use this time frame to maximise recovery of your debt prior to litigation.
Where the debtor makes a payment direct to you after the account is provided for collection, you should immediately advise us in order for us to maintain accurate records and not to jeopardise your relationship with your customer.
Should your matter be formally defended Professional Collections will then seek your instructions regarding any further costs. Once a verdict or default judgment is filed we will continue with collection of your debt.
Statements are forwarded to you at the first day of each calendar month for the activity of the preceding month; any payments received after this statement date will be carried forward to the following months statement. which will include an account of all monies collected after deducting all charges for commission and incidental expenses. Any debit statement rendered is payable on receipt.
Professional Collections will disburse all recovered amounts in the following order:
- Firstly – Original amount of debt
- Secondly – Interest paid on the debt
- Thirdly – Disbursements paid by you and recoverable from your debtor
Debt Recovery Strategies
Choosing a debt recovery strategy gives you the power to control your debt recovery process. We have benchmarked the following (2) strategies in order to maximise recovery of your debt. Please indicate what strategy you would like to commence with when providing your instructions on the debt collection instruction form.
If your debt is over 90 days we recommend you commence with Rapid Debt Recovery.
RAPID DEBT RECOVERY:
Stage 1: Final Demand Letter – Day 1
Stage 2: Legal Letter of Demand – Day 8
Stage 3: Court Action filed or Legal Action under Security of Payment Act – Day 10
STANDARD DEBT RECOVERY:
Stage 1: First Letter of Demand – Day 1
Stage 2: Second Letter of Demand – Day 8
Stage 3: Legal Demand – Day 15
Stage 4: File Statement of Claim – Day 21