Controlling and Collecting Debts
Controlling and Collecting Debts Checklist
10. Don’t return a post-dated cheque without thought
A post-dated cheque is better than no cheque. It may be paid if presented. It provides proof of debt if the bank does not pay the cheque. Consider carefully, however, whether you want to continue trading on the basis of post-dated cheques.
11. Beware of taking any unreasonable or illegal actions
Be aware of the dangers of being charged with harassment, for example by threatening violence, damaging property or breaking and entering. Know that you must not make such strong or frequent demands of your debtors as to cause them or their families concern, distress or humiliation. Also, remember that you must not represent yourself as having some official capacity with authority to enforce payment. Make sure that you are aware of the provisions of any relevant legislation, the Administration of Justice Act 1970, in the UK for example.
Potential Pitfalls Managers should avoid:
failing to take action to address the issue of outstanding debts starting by offering compromise forgetting that it's your money you are chasing - not theirs
Future Practice Owner.
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