Our Services

Early Action Preferable

As you will see the main object of our programme is prompt action, and this is best achieved by using our services as soon as an account is running beyond your normal terms of trade. Failure to take prompt action may result in irrecoverable debts. Our initial contact with your debtor is courteous and subtle, but if this approach is unsuccessful we then apply more demanding methods.

Free up your Cash

Prompt action is the best way to free your cash resources that are currently locked in your debtors ledger.

Extremely Cost Effective

Our service costs have been structured so you are encouraged to use us sooner rather than later in the collection process.

How do we do it?

Our system is designed to gain prompt payment from your debtor without having to take legal action. We take your debtor through up to three quick stages which get progressively harder over a period of 28 days. Our priority is to obtain payment or a satisfactory arrangement for payment within that period. If the debtor fails to pay, our next goal is to determine and advise on appropriate enforcement action.

Our service fee covers these steps over a 28 day period:

1. Day One:

Upon receipt of your Action Authority, letter one goes out. This letter is firm but not offensive. This identifies us as a professional third party acting on your behalf; this alone normally attributes to a 50% success rate. We clearly tell your debtors how much is owed and that they pay it directly to you.

2. Day Seven:

A Final Notice goes out. This states that failure to pay is totally unacceptable and points out the consequences of legal proceedings for the debtor - the expense of legal costs which they will incur, both theirs and yours, and the effect on their credit status. It is stressed again that payment is made directly to you.

3. Negotiation:

Our negotiator will telephone your debtor on or about Day Ten by which time they will have received the Final Notice. This personal contact has a big impact. We aim to clarify that your debtor (a) acknowledges the debt, or (b) if there is a dispute or some other reason for non payment. We also request a firm commitment and time for payment. If necessary we will consult you for your instructions and then confirm them in writing with the debtor.

4. Day Fourteen:

If your debtor fails to honour the arrangement made a Notice of Intention to Commence Court Action will be issued. This notice clearly describes legal enforcement measures available if judgement is successfully obtained. This often gains a quick reaction as we point out what action we can take once we have judgement against them. Your debtor knows you are serious about collecting this debt.

5. Day Twenty-eight:

In most cases a written report is sent to you clearly stating the result with each debtor. This report will state:

• If payment has been arranged in full or by regular repayments.
• If enforcement action through the courts is appropriate and what it will cost. Your written authority will be required before any action is undertaken.
• If legal action is not warranted your instructions for issuing a default notice to the debtor and credit reference agencies will be requested. There is a small charge for this service.
• If further action by us, such as a personal visit to the debtor is warranted. The cost of this service is dependent on time taken and distance travelled

What is the cost?

Fees.

Unlike many debt recovery firms, we do not take a commission or a percentage of the amount recovered, but ask the debtor to pay directly to you the full amount owed. At all times we can give you an up-to-date assessment of how the recovery is proceeding and what is the best alternative for further action. Furthermore, we do not charge a membership or joining fee!

The most cost-effective solution in debt recovery is having a book of 10 Action Authorities on hand. As soon as you have a problem debtor, forward an Authority to us and we commence the step one to four action as specified on the previous page. The important aspect of debt recovery is not to wait too long before you authorise action. The earlier we receive your instructions, the more the likelihood of recovery for you.

Schedule of Services and Fees

Court Action Fees

Undisputed Debts

Fee of $478.13 (GST Inc.) of which $300.00 is recoverable through the Court. This fee includes the cost of preparation of documents, filing of documents in Court, Court filing fees, service of documents on the debtor (up to a pre-set level), filing for judgement, and making recommendation for further enforcement procedures if necessary.

If a defence is lodged by the debtor we will inform you, and lawyer representation - if needed - will be at your cost. Further enforcement measures available include the issue of a Distress Warrant, or applying for an Order of Examination of the debtor which examines his income, expenditure, assets and liabilities.

Defaulters

If you do not wish to take Court action, another very effective measure is for us to file your debtor on NZ wide databases of defaulting debtors. This can cause him considerable difficulty when he applies for credit to purchase goods, arrange a bank loan or a mortgage.

Disputed Debts

The Disputes Tribunal has jurisdiction up to $7,500 (and up to $12,000 with the agreement of both parties.)

We will prepare and file an application to the Tribunal, ensuring a hearing date is set, at a cost to you of:

(Debts over $7500 require written agreement of both parties. All fees GST Inc.)

Other Services Available

• Advice on debtor control

• Further enforcement procedures if necessary

• Court action

• Credit control advisory service

• Statutory demands

• Preparation of court documents

Contact us for more information