Debt Collection
Our effective, no-nonsense approach
​​The debt recovery process requires more skill than simply calling a debtor repeatedly and hoping the harassment will motivate them to pay. These days, many debtors do not feel the obligation to pay their debts, and they know that there are few real consequences for avoiding payment until a summons is served on them.
​Some imagine debt collection as simply telephone calls and sending letters of demand to a debtor, but these initial correspondences serve a more important purpose: they “place the debtor in mora”, an essential first step to commencing litigation proceedings.
Debtors know they don’t have to respond until they receive a summons.
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Sometimes, a stern letter from an attorney is enough to persuade a debtor to pay, but many debtors know that there are few real consequences for avoiding payment until a summons is served on them, and do not feel the obligation to pay their debts until they are forced to do so by a court order.
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That's why our Recoveries Department takes a no-nonsense approach to debt recoveries. We make it clear to the debtor that summons will follow immediately after the legislated Letter of Demand if payment is not received.
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A proper contract aids debt recovery.
Did you ensure your debtor signed a contract making them liable for collection costs and attorneys’ fees? Did the contract provide for a nominated domicilium citandi et executandi address?
These clauses and more are important tools in finding the debtor and securing a favourable judgment. A properly-drafted contract makes debt collection easier and cheaper!
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Contact us to find out if your contracts are up to standard.
The strategy of a debt recovery starts with ensuring that there is sufficient evidence to ensure the case has a good chance of success. Bear in mind that, just because someone owes you money, it doesn’t mean your case will succeed in court.
Furthermore, debtors know there are a number of technical defences they can raise to avoid paying a debt, and your case must be capable of success not only on the merits of the case, but must also be able to answer these technical grounds.
An experienced attorney will assess your case and save you money.
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The benefit of having an experienced litigation firm handling your debt collection is that we will be warn you at the outset if your prospects of success are low, thereby saving you time and money. Our experience in contracts, litigation and debt collection allow us to analyse the contractual evidence, provide comprehensive advice on the strength of your case, and guide you through the litigation process.
The best way to show a debtor you mean business is to bring an aggressive and efficient lawsuit without delay. Debtors know they don’t have to respond until they receive a summons, which means one must institute summons to minimise delay tactics. The law prescribes that a debtor must first be sent a letter of demand, by registered post, in which they are advised of their rights and given 20 days to make payment. This already causes further delays which cannot be avoided.
So, while a letter of demand is a necessary first step, the goal is usually to institute summons as soon as possible.
What does it cost?
We offer an affordable solution to get the summons into your debtor’s hands. It covers:
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Consultation with you to advise you on your case
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Telephone calls to the debtor
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Drafting and delivery of an NCA-compliant Letter of demand by registered post
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Institution of summons proceedings and service by Sheriff
Some debt collectors claim to work on risk, but bear in mind that they do not include litigation work, which is almost always necessary to force a debtor to pay. Debt collectors are not qualified to institute summons proceedings, and must inevitably either abandon a collection or hand the case over to attorneys.
Our Recoveries Department does not delay with endless, ineffective phone calls and emails, but rather takes a no-nonsense approach by proceeding to the summons stage without delay.
Note that, if you don’t have a domicilium address at which to serve summons, you might need to incur additional tracing costs (usually about R350) which are not covered by the above.
We provide a clear fee structure for our litigation work, so you have peace of mind knowing there are no hidden fees. Contact us to discuss our once-off fee for instituting summons.
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Ready to get started? Contact us to arrange a consultation to determine the strength of your case.