The Ultimate Guide to Debt Recovery and What You Must Know
Debt in Australia is now at an all-time high. Unfortunately, this problem doesn’t only put stress on debtors, but it also puts businesses at risk for failure. Now if you’re one of those businesses with a huge problem in collecting debt from clients, you might want to consider getting into debt recovery with the help of professionals. See these vital details you need to be aware of:
You will start with a letter of demand. As a business, your first step to collecting debt is to issue a letter of demand to your debtor. Here, you will formally demand for the payment that was owed to you, and you should be clear about the amount owed and the deadline for payment. It’s also very important to tell the debtor that you will proceed with a legal debt recovery process if no payment is received after the said deadline.
You will hire a debt recovery agency. If you didn’t come to an agreement or you haven’t received any payment from your debtor after the time given, it’s time to hire a debt recovery agency that will help you with the process. These professionals have the expertise and experience in these kinds of situations, so you can guarantee that each case will be handled appropriately.
You need to learn about your rights and obligations. Although you’re working with a debt recovery agency, it’s still very important to learn about your legal rights and obligations as a creditor in Australia. You also need to learn about the rights of debtors to make sure that you don’t encounter any issues in the process of debt recovery. One of the most important regulations that you need to learn is the ACCC/ASIC Debt Collection Guidelines. You also need to learn about the Privacy Act to ensure that you’re not violating any rules during debt collection and the National Consumer Credit Protection Act (NCCP) that governs the different debt collection processes. Of course, you have to remember that rules may differ in each state or territory in the country.
You need to maintain good communication with debtors and agents. If you want the debt collection process to be smooth and hassle-free, you have to maintain good communication with both your debtors and debt recovery agents. Debt recovery doesn’t have to be an aggressive process, so communicating with them in a professional manner will really help make everything go a lot less stressful.
Finally, if you’re on the other side of the coin being the debtor, you have to be responsible enough to find ways to get yourself out of debt. Remember that your creditor didn’t just give you money, but they also gave you their trust. If you want to keep that or just give yourself some peace of mind, it’s very important to find ways to settle your debt.
Now if you’re a business looking to go into the debt recovery process, get in touch with our team so we can assist you!
