Controlling and Collecting Debts
Controlling and Collecting Debts Checklist
7. All else having failed, consider visiting the debtor
Visiting is the least cost-effective method of collection; it is difficult for those who wish to avoid confrontation, and you may feel that you have lost face if you leave without a cheque in hand. If you decide to visit the debtor, arrive unexpectedly, be firm, courteous and unwavering and, if you are not able to collect a cheque, move quickly to the next stage.
8. Appoint a debt collection agency If you decide to use a debt collection agency, use only those licensed by the Financial Conduct Authority (FCA). Don't pay the agency ‘up front' or agree to a flat fee. Agree only to pay a percentage of what the agency recovers. Obtain a banker's reference and talk to other users of the agency. Be sure that you know the agency's terms and conditions and that these are acceptable to you.
9. Think carefully before you instruct solicitors or become involved in litigation Remember that solicitors are expensive and require payment whether or not they achieve results - seek advice and a price before making any commitments. Litigation is even more expensive. Before starting proceedings, make sure that: the debtor has money with which to pay, you have reasonable evidence of the existence of the debt; and that the debt is less than six years old. Be sure that you have the full name and address and legal status of the debtor.
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