Recovering years’ old debts is a tricky situation in the debt collection industry. This case is a great example of how quickly the Slater Byrne Recoveries team can help clients recover funds that are several years old. In this particular instance, not only was the debt long overdue, but the customer who owed the monies had also stopped responding to payment requests. Often times, when the debt is already several years old, it might be commercial to write them off. In this case, our client was not ready to write off the debt because of its substantial amount.
The Problem
Our client in this case is a supplier and retailer of kids and baby clothes in Sydney. They approached our team at Slater Byrne Recoveries to assist with the recovery of a debt in the sum of approximately $40,000. This debt was for a supply of clothing to a retail store.
Finally, the client decided it was time to turn the matter over to the professionals.
The Solution
On our engagement, we immediately began researching the customer. This is to attempt to find the correct person responsible to pay the debt. Our client had stopped receiving any responses to their requests for payment. This was our cue that of the possibility that the messages were not getting to the right contact person. If the bad debt is several years old, chances are, staff in the company has changed.
We began contacting five separate departments in the company. Additionally, we informed them that we would take legal action if the debt remained unpaid. We also advised them that we will immediately be lodging credit defaults on the company, which will impact their ability to obtain finance or credit.
The Outcome
Shortly after we began communication, we started receiving responses from company. We had requested them to provide all invoices relating to the outstanding amount as over the years they were able to send small partial payments to our client. The invoices were promptly sent to us and we were told that the company had scheduled for the full amount to be paid.
In less than two weeks of being engaged, Slater Byrne Recoveries was able to reach the right contact person, advise them on the consequences of non-payment, and successfully collect the full payment for our client. Of course, recovering years’ old debts is not as easy as 1-2-3. There should be equal responsibility on the creditor to follow-up and ensure all the documentation on the transaction are not lost.
Contact Us Today!
If your business is facing a similar problem with a difficult customer and a long overdue debt, give us a call at 1300 794 290. We would be glad to help!
Liam White joined the Slater Byrne Recoveries team in early 2013. He has worked across the credit & dispute resolution industry for a number of years. He is currently working in a Marketing/Head of Sales capacity at Slater Byrne Recoveries.