Customer not pay up

windly · #1 (**Link to this post**) 15-02-10

Hi all, i am new to business and now got a bad debt which unable to collect back. Wonder what should i do?

Okie, in the beginning of december this customer bought some tyres from us, and he paid by cheque. His personal cheque with ABN and got his details. He look legit (aparently not), so we accept the cheque. So the cheque bounced and we tried to contact him, it was fairly easy to contact him and he keep saying will come and settle the bill next week and it been dragged for more then 2 months now. We call him nearly every 2nd days.

And for the last 2 weeks he seem un-contactable, the phone ring but NO pick up and i am getting pissed. So what should i do now?

DebtCollector · #2 (**Link to this post**) 17-02-10

Do you have the address of the debtor?

If not, you have his ABN no which is a start. You can do a search on that ABN no at: www.abr.business.gov.au for a small fee you can find his registerd business address.

Once you have this go to his place of business with reciept in hand and ask for payment.

If you need some free advise give me a ring.

Emroy · #3 (**Link to this post**) 17-02-10

Debt collector,

I must admit I'm no expert so I may be mistaken, however when I was researching starting up my business I did research into debt collection.

It was my understanding that turning up and publicly announcing at a debtors place of work, their outstanding amount is highly illegal.

Simmo · #4 (**Link to this post**) 18-02-10

Quote:

Originally Posted by Emroy

Debt collector,

I must admit I'm no expert so I may be mistaken, however when I was researching starting up my business I did research into debt collection.

It was my understanding that turning up and publicly announcing at a debtors place of work, their outstanding amount is highly illegal.

I don't think you would need to announce it publicly. Just turning up (or get a big friend) to polity hand over a bill would get it done. Currently he is off the mindset that if he cant get in contact with then he does not have to pay.

FletcherTax · #5 (**Link to this post**) 18-02-10

Quote:

Originally Posted by Simmo

Just turning up (or get a big friend) to polity hand over a bill would get it done. Currently he is off the mindset that if he cant get in contact with then he does not have to pay.

Like a scene in a movie. I'm lucky I have 3 clients who are giant teddy bears who I'm sure will fill that post for me if required. heh heh

DebtCollector · #6 (**Link to this post**) 18-02-10

Hello Emroy,

All debt collectors in Autralia are governed by the ACCC/ASIC both these organisation set firm guidelines as to contact wth the debtor. Under privacy laws, collectors have a obigation to protect the privacy of the debtor. The limits of disclosing information to a third party apply to the debtor's spouse, partner/family or work collegues.

That said, if all other forms of communication ie: phone/ letters/ etc fail we are allowed to attended the debtors place of work or home. When we attend a debtors work place we alway ask for him/her. If asked what this visit is about we tell the person it's private matter.

Providing we don't disclose to a third party we are debt collectors chasing this said person for money we have every right to attend his place of work.

Our company only uses face to face contact as a last resort when all other methods of collection fail.

Emroy · #7 (**Link to this post**) 18-02-10

Great, just wanted to clear that one up in case there is some misunderstood evidence floating around the forum.

I know of someone who got fined for incorrectly chasing a debt.

=)

King · #8 (**Link to this post**) 19-02-10

Clarification might be in order.

The debt collector is under rules I can see that, but windly is not bound? So could he/she walk into the debtors business and say "Hi I'm here to collect your outstanding payment." ?

I have used DC's in the past - who work on a fee of % of monies collected - a quite reasonable amount from memory.

Emroy · #9 (**Link to this post**) 19-02-10

Quote:

Originally Posted by King

The debt collector is under rules I can see that, but windly is not bound? So could he/she walk into the debtors business and say "Hi I'm here to collect your outstanding payment." ?

Everyone is under those rules, regardless of whether you are an official debt collector or not.

King · #10 (**Link to this post**) 19-02-10

Quote:

Originally Posted by Emroy

Everyone is under those rules, regardless of whether you are an official debt collector or not.

Seems wrong - any person who is owed money should have the right to go the the debtor and ask for their money.

Not so different to "Hey Bob, where's that $20 you owe me!"

Marketplace

Login

Customer not pay up