Debt Collection Case With Good Outcome for Debtor

Many businesses struggling with managing their debt are afraid to pick up the phone for fear it would be the debt collectors. With numerous stories of harassment, it is no wonder that there is general mistrust towards debt collectors. Because of this, you’ve probably never heard a debtor compliment a debt collection agency for a good outcome.

This case study will be different as we discuss how a debt collection case not only resulted in a good outcome for a Slater Byrne Recoveries Client but also for the debtor as well.

The Issue 

The Client lodged a 7-month debt with Slater Byrne Recoveries in the amount of more than $6,000. As part of our debt collection process, we sent an email informing the debtor of our appointment as debt collection agent for the Client. We also sent the same message via SMS to the debtor and its personal guarantors.  

Our initial letter indicated the amount of the debt and the date fixed for the filing of a statement of claim. We also informed the debtor that we intend to proceed with a default judgment, which can be enforced through the court, should they fail to file a defence following the issuance of a claim.

Days after sending out the initial letter, the debtor informed us that they have engaged a solicitor, who initially advised us that they were working on a proposal to put out to our Client. Communication with the debtor, however, stalled as days went by without hearing anything from them. As a result, we advised the Client that if the debtor does not get back to us, we will issue a notice of impending legal action.  

The Solution 

We were able to issue a notice of pending legal action to the debtor. However, after we discussed the costs with the Client, they decided that they are prepared to let the case go finding it not commercial to pursue a legal action

We advised that we try the debtor’s solicitors one more time. The Client, on the other hand, said they will list the debtor on creditor watch. After several unsuccessful attempts to get through the debtor’s solicitors, the Client decided to have the case closed and the debt written off. 

A few days, notwithstanding, the debtor called and offered to pay 50% of the debt over three repayments. 

The Outcome 

We negotiated for a payment plan of 70% over four payments as 50% was unacceptable to the Client. The Client though allowed one extra fortnight in the payment schedule. The debtor accepted the Client’s proposal, and, within one month, the debtor made all payments.

The debtor ended up paying $4,744 over four fortnightly payments, which was a good deal for them as well as our Client.

Thank you for being a pleasure to work with during this very difficult time.”

– Debtor

Our professional debt recovery work at Slater Byrne Recoveries is acknowledged not only by our clients but also by the debtors we chase as well. 

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