# Any ideas on debt collection?



## Cmax (12 May 2009)

Hi just wondering has anyone any ideas on how to go about debt collection personally ( as need to keep costs down). Owed a good bit of money and the bank are starting to get on my back.  Have sent letters-some worked some didnt. One customer even gave out to me over a month ago for holding things up on her house as she wanted to move in.. it wasnt me she was waiting on so she did apologise... however i worked many nights on that job to get everything ready and now nearly two months on and i've no money from her and they wont answer any phone calls. I've left messages but they havent returned my calls. They promised me money within two weeks. She's only one of many!! 

Does anyone have any stern letters or know where i could get them on the internet. Dont want to take anyone to court will hold out on that for another while as last resort.

Tanx in advance


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## Yeager (12 May 2009)

Mr. Foley (aka The Viper) runs a well know debt collection agency in this country newspapers of late are plastered with reports about it. They buy the debt from you and they own following it up. You would lose some money on the original debt as they get a chunk of it but a letter from him would carry more punch that one from you. I am not suggesting in any way that he is not a legit business man (in compliance with posting Guideline 7) but regardless a history like his is tarnishing

I think my bowels would collapse if I got a letter or even worse a knoch on the door from him!


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## mcaul (12 May 2009)

Its a difficult one and many people think its their right to hold out as long as possible. Taking the legal route through the district courts is not too expensive and can be done by yourself. - Just go along to the court clerk and you will be given all the information.

A district court summons through the letterbox has amazing results!!


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## bond-007 (12 May 2009)

> A district court summons through the letterbox has amazing results!!


Caution, your results may vary.


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## Cmax (13 May 2009)

Tanx for the help! I just want to do my work and get paid! Dont have any complaints from the people who owe money or anything they just wont pay..Cant understand why they order products (which i have paid for) and then decide they cant pay! Hate talking the legal route never had to do this before but looks my only option!


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## elcato (13 May 2009)

I have stated before that the best thing to do in this situation is to leave it to the professionals (and not Mr Foley or his ilk). The cost is taken from collections and most operate on a no collection, no fee basis. The cost to you is between 10% and 15% of the debt. Chasing them yourself is still work so you need to decide whether its worth saving that amount and whether you would be as successful. I would possibly send out a standard courteous letter first to all stating your intentions to call in an outside source and see if that would be enough to get paid though. And no I am not a Credit controller nor work in the business.


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## bond-007 (13 May 2009)

One of the problems of bringing in outside sources is that the business relationship will be damaged for good.


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## mf1 (13 May 2009)

bond-007 said:


> One of the problems of bringing in outside sources is that the business relationship will be damaged for good.



I think that failing to pay your debts might be the first step in damaging the business  relationship!

mf


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## Lorz (13 May 2009)

I use wording similar to this...

   Despite repeated requests for the immediate settlement of your overdue account, the debt remains outstanding.  Details of the outstanding invoices are listed below.

    As per current legislation, interest is applied to all overdue accounts.

Reluctantly, we are forced to advise that if payment is not received within 7days from date of this letter, we will be forced to close your account and pass the account to our solicitors for collection.  All costs and legal expenses to be borne by you.  Furthermore, we will advise the matter to a debt agency which may affect your credit rating and ability to secure future credit from suppliers.  

Occassionally, we are forced to down the legal route - it costs us 10% which is unfortunate because our margin certainly isn't 10% but at least we get some money in to cover some of the costs.  Good luck.


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## bond-007 (13 May 2009)

> Furthermore, we will advise the matter to a debt agency which may affect your credit rating and ability to secure future credit from suppliers.


So you tell lies in your letters? Very professional, not!
Debt collection agencies have no legal powers. The cannot affect a credit rating.


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## Setanta12 (13 May 2009)

The use of the word 'may' prevents any lies.

I'd have no trouble stating this.


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## bond-007 (13 May 2009)

Why lie in the first place? There is no need to mention debt collectors until the case is over.


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## Lorz (13 May 2009)

bond-007 said:


> Debt collection agencies have no legal powers. The cannot affect a credit rating.



I never said they did.  A lot of companies seek credit reports from agencies prior to granting credit to new suppliers. If the debt collection agency give a poor credit rating it could affect their ability to obtain credit.

Do you think the Debtor hasn't told any lies in getting to this position?  Do you think they haven't lied saying "the cheque is in the post" , "I'll pay you next week"....


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## bond-007 (13 May 2009)

> If the debt collection agency give a poor credit rating it could affect their ability to obtain credit.


How can it do so? Is it a court of some type? Is it a statutory body?


> Do you think the Debtor hasn't told any lies in getting to this position? Do you think they haven't lied saying "the cheque is in the post" , "I'll pay you next week"....


So that makes it ok to lie back? 2 wrongs don't make a right.


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## Cmax (13 May 2009)

I'd lie if it got me my money!!!... Sorry Bond.. But have been lied at many a time now maybe its time to try them at their own game!

Played by the book for so long now and look where its got me!


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## mcaul (14 May 2009)

I'd still use the district court route with one final letter prior to using it. - But you absolutely MUST follow through with the issuance of the summons if you do proceed this route.

It has worked for me aginst 2 people who owed me for goods supplied last summer. - Both paid up within days of summons being issued. 

Dear X

Unfortunately I have had no response from you regarding the outstanding debt of €xxx.

I will now proceed with issuing district court proceedings aginst you on Monday next May 25th. As soon as summons is issued additional costs are applied along with interest on the outstanding debt from the date of invoice.

http://www.courts.ie/offices.nsf/lookuppagelink/A92C1F176946C63680256E770049F4A8

As you may be aware, a district court judgement will be marked against you for a period of 6 years and during this time you could have difficulty in obtaining credit for items such as mobile phones through to bank loans.

If payment is received before 2pm on Monday 25th May, no further action will be taken. However after this time, I will be unable to reverse issuance of the summons.

Your ssincerely

xxx



Send via registered post.

If they do not enter a valid defence within 21 days, the court automatically make the award.

Its not the nicest way of doing things, but there a few stubborn Ba%^&rds who simply try your patience and play games.

http://www.courts.ie/offices.nsf/lookuppagelink/A92C1F176946C63680256E770049F4A8


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## bond-007 (14 May 2009)

Indeed.

Your approach is the correct way to do things. If they want to dick around they take the risk of a judgement. Debt collectors are a complete waste of time as they have no powers and the gougers know this. They can't hide from the courts.


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## ml10 (13 Jul 2009)

I used to work in credit control, and what I'd do is after the bill was outstanding, bombard them with phone calls, if it went to 60 days sent them a letter advising that it was 60 days outstanding and what was due and how it was due and after that, I 'd send them a letter advising it was been passed on to a collection agency.  You could always contact the city sheriff, he collects debts on peoples behalves and get advise from him.  Nice man Tom Gray, good approach and in my dealing always found him successful.


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## bond-007 (14 Jul 2009)

You cannot use the sheriff unless you have secured a judgement in a court of competent jurisdiction.



> bombard them with phone calls,


That is called harassment. If you are told to go away you must. 

There are many chancer debt collectors (mostly ex UK) out there that think they can do what they like. They can't, they must obey the laws of the state.


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## jack2009 (14 Jul 2009)

bond-007 said:


> One of the problems of bringing in outside sources is that the business relationship will be damaged for good.


 
Before getting debt collectors or writing stern letters are you sure you have done what you can to get paid?

Have you spoken to the actual clients to find out when you can expect payment, are they happy with the work, can they pay by instalment etc etc. if the client is struggling then yet another stern letter will not help you to get up the order of the few people who might be getting paid! At least get part payment as a sign of goodwill!

However, apealing to the better nature of people usually goes a lot further and also it will not put your business relationship at risk as your client will appreciate that you are due payment!

If this fails, becareful about writing stern letters saying you are getting solicitors involved etc etc. if you have no real plan to issue solicitors letters.


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