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Debt Collection

Discussion in 'Legal Issues' started by AndrewTDP, 21st Jul, 2015.

  1. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    We have a couple of old debtors hanging around that have moved etc and have outstanding debts for services.

    The largest of these is $2,720. Couple around $800, and another of $500.

    I'm sick of seeing them in accounts receivable and don't feel like writing them off.

    Any recommendations for debt collectors for smaller amounts like this?

    ta muchly.
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Hi Andrew,

    Have you tried just a $100 solicitor's letter threatening legal action if the account is not settled within say 14 days? Sometimes that's all it takes.
     
  3. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    Yep. Second point of call. These are the last couple of ones out there that is hasn't worked on.

    Have past addresses etc but not current addresses - post gets returned to sender etc.

    Had a chat with one company, but they want an annual fee of $800 plus 20% commission which isn't worth it for the size of the bedts.
     
  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    In Melbourne a well known OMCG assist union members recover contractor payments that are in dispute / delayed. Managed by a lawyer. Appears to be yielding results for scaf and concrete contractors owed millions. I imagine there is a nice fee in there somewhere....
     
  5. Tonibell

    Tonibell Well-Known Member

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    We use Dunn & Bradstreet - very effective.

    They add their costs to the customers account (we do pay some annual costs).

    They also carry the threat of significant "reputational damage".

    People also know for sure it is going to be pursued to the end.
     
  6. Pistonbroke

    Pistonbroke Well-Known Member

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    Unless you have forwarding addresses write them off (how was your income last year? or is this year a better time?).
     
  7. Hodge

    Hodge Well-Known Member

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    Try gatto corp. You can have a stab at who owns the company. Gets results.
     
  8. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    Much better this year...

    I'll do some digging. Thanks for the suggestions.
     
  9. sanj

    sanj Well-Known Member

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    Can't help with specific examples but I would definitely recommend following it up, even if it means that after feed you don't end up with a whole lot for the current outstanding bills.

    If u go after every idiot who refuses to pay you after being given sufficient time and opportunity to do so it will create a culture within your business where every dollar is considered important and you won't let people get away with ****.
     
  10. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Hi Andrew

    We do a lot of debt collection in my commercial litigation team. It is not something we chase or advertise at all but do it for 2 reasons

    1. A service to my business clients; and
    2. Professional development for my junior litigation lawyers. They can run the small stuff with minimal supervision from my seniors and also can do mags court appearances by themselves.

    The address thing is not to bad, we have skip trace facilities, people are pretty easy to track these days.

    Given that your a town planner and an ex somersofter and a pcer flick me a message. I'll get a junior to run it on spec for you (as in no recovery no fees).
     
  11. Depreciator

    Depreciator Moderator Staff Member

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    We have had two problems with debts.
    They were both accountants who ordered Dep Schedules for clients and said they would pay for them. We don't normally do anything on accountant, but we relaxed the rules for them. They each owed about $1,000, so very little for us, but it annoyed me. They ignored letters and wouldn't take phone calls. So I went and paid them a visit - they were Sydney accountants, luckily.
    I went to the first office and took a newspaper and just sat in reception. I was very pleasant and told the receptionist I was there to pick up a cheque and I had all day to spare. I said I would help her out by greeting clients and telling them my story as they came in. She got the boss to come out and I had a cheque pretty quickly. The bloke shook my hand and said he would have some more business for us soon. I told him to call one of our competitors - I gave them their name and phone number.
    The receptionist at the second business wasn't at her station. I walked into the office of her boss and sat in the chair opposite him. He looked up and asked who I was. I told him and said, 'Gary, you know what they say about the squeaky wheel getting the most attention? Well, that squeaky wheel just rolled into your office.' He laughed and wrote a cheque.
    Both of them would string lots of people out and many of them would simply give up. It was a game to them.
     
    willair likes this.
  12. Kinnon Bell

    Kinnon Bell Finance Broker

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    I hope their cheques didn't bounce!
     
  13. pinkboy

    pinkboy Well-Known Member Premium Member

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    I've done a similar thing. Not left until I saw a transfer or got a cheque. (I was also a little hot headed in my younger days and was a downright ******** about it too. Once an office girl offered me a coffee which I accepted and as soon as she handed it to me I poured it out on the carpet just to be a spiteful c***).

    Some of my best work has been obscure debt collection. I once sprayed a ute tray and the company simply wouldn't pay me. So I called the salesman who drove the ute and said there had been a recall on the material I used and I was to inspect his ute complimentary for any defects. He brought the ute in and handed me the keys. I drove it straight into the booth, shut the rollerdoors and said he couldn't have his ute back until I was paid. I got one of my staff to pretend to start jackhammering off the urethane. He left his phone and laptop in the car and asked if he could use the phone which I refused as I didn't want to spend another cent on this debt. So in urgency he went next door and called work and then I got a call that a girl was on her way with a cheque. I tell ya, debt collection after you do the work is the pits.

    pinkboy
     
  14. Depreciator

    Depreciator Moderator Staff Member

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    I feel sorry for the staff of these people. The ones who have to field the phone calls and open the mail (and clean up the coffee poured on the floor). It would be so embarrassing and dispiriting to work for a boss like that.

    (That story about the ute is great.)
     
  15. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    Thanks mate.

    I'm only just back from council but will pm through all details to you tomorrow arvo when I'm back from site.

    It's really appreciated.
     
  16. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    D&B are a pro spam outfit.