Don’t procrastinate in getting your debts into EC Credit Control. Whilst we cannot guarantee any collection, in our experience the earlier we get the overdue debt, the better the chance of success. With Christmas approaching it is even more important to get your debts in for collection so as not to be delayed further by businesses and individuals going on extended breaks, making contact and resolution more difficult. To this end ask your Area Manager to show you our new AIMS product, a system that will help you to efficiently monitor and submit overdue debts for collection in a timely manner, allowing your aged debtors report to look much healthier.


Prove the Debt at the Outset: 

When you send us the debt, at the very least send us the itemised invoices and the signed contract (if held). Further important documents to send might be statements/correspondence and personal guarantees (if held). Sending these to us at the outset negates delays in us seeking them later as invariably the first response from the debtor is “what is this for” and/or “please provide the proof of debt documentation”. We scan these documents to the file so when debtors ask for them we can provide them swiftly whilst the call continues, thus negating unnecessary delays that debtors often use to their advantage in responding at a later date.


Disclosure/Acceptance of Terms: 

A common ongoing issue for creditors is the correct use of their terms when disclosing and obtaining acceptance prior to providing goods and services to their debtors. Remember signature is king. If you get a signed contract prior to the debt being incurred we are better equipped in attempting recovery of your debt. For many of you EC Credit Control has provided you with a terms of trade. It is important to read and understand the User Guide provided with the terms of trade, as if not correctly utilised you can negate the enforcement of clauses around credit reporting and the recovery of costs for instance. You can purchase bags of concrete, but if you don’t learn how to prepare it properly before you pour it, the results may be less that satisfying afterwards!!


Small Debts Less Impact: 

It is important to note that if the amount of the original debt is less than $150 in Australia and $100 in NZ (soon to be $150), that the credit reporting agencies (Equifax/Illion/Centrix) will not accept these accounts for default listing. Therefore in terms of having a negative impact on the debtor concerned, the only avenue to affect them is legal action which is not cost effective as a tool for recovering such debts.


Disputed Debts: 

When you submit a debt for collection you are telling us that no bona fide dispute exists in respect of that debt. Submitting a debt that is in dispute already severely waters down our ability to enforce collection of the debt. The credit reporting agencies (Equifax/Illion/Centrix) have rules around disputed debts. Essentially a debtor cannot be default listed for a disputed debt unless you hold a court judgement overruling the dispute. The only consequence we can follow through on apart from contact and demand documents is legal action which has further upfront costs for you to consider. Whilst some disputed debts will be resolved via the collection process, some will not and you may delay your opportunity to seek court redress.




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