Slater Byrne Recoveries, debt collectors in Australia, recouped 100% of the $42,364.36, debt for a U.S.-based company that supplied electrical cables to an Australian debtor.
An electrical products supplier based in Oklahoma City contacted Slater Byrne in June last year to collect from an Australian debtor. The total amount of debt owed by the Australian debtor is $42,364.36.
How do debt collectors find you in Australia?
If you are a client based outside of Australia, you might find it difficult to ascertain the legitimacy of the Australian company you are dealing with. Our first step at Slater Byrne is to check the debtor’s Australian Business Number (ABN) or Australian Company Number (ACN). Before transacting with any Australian company, overseas companies need to research your client’s ABN for due diligence.
As a matter of Slater Byrne protocol, we filed a Credit Default against the Australian debtor. It was strange because, despite the filing of the Credit Default, we have not heard from any representative of the Debtor even though our quick company check revealed that the Debtor was still registered.
Can debt collectors take you to court in Australia?
By November last year, Slater Byrne has already exhausted all attempts to recover the debt and there has been a very lack of effort from the Debtor. We suggested to the Client that the next way forward is for them to look at filing legal proceedings to chase the full debt.
To start the legal debt collection process, Slater Byrne suggested we issue a Statement of Claim (“SoC”). Once served, the Debtor has 28 days to either:
- pay the amount of the Claim, together with the costs and interest; or
- file a defense if they do not accept the debt is owing.
Should the Debtor fail to comply with the 28-day deadline, our Client will be entitled to apply for Default Judgement. Once the Client is successful in obtaining the Default Judgment, the Client has the option to enforce it through a liquidation proceeding against the Debtor. As we always remind our clients, there are no guarantees in litigation.
Can a client reject a repayment plan offered by the debtor?
It was not until December last year that Slater Byrne received an offer for a payment arrangement from the Debtor. The offer proposed by the Debtor, however, was over long repayment arrangement, which was not acceptable to the Client. The Client wanted the debt paid back over four weeks.
So Slater Byrne went back to the Debtor and presented our Client’s payment timeframe. We also recommended to the Client that if the Debtor didn’t accept the Client’s timeframe, we would be issuing them with a Statutory Demand. If a company cannot satisfy its debts within 21 days of a demand being made, they are technically insolvent and should not be trading.
In January this year, with the Client’s consent, our solicitors proceeded to file a Statutory Demand. The due date for compliance was 22 February 2021.
Despite weeks of no communication, the Debtor acknowledged receipt of the Statutory Demand. The Debtor claimed they were solvent and intended to pay the full amount.
On the 22 February due date, the Debtor sent Slater Byrne a receipt for the full amount of $42,364.36.
The Client’s Review
Read our Client’s review at Slater Byrne’s Trustpilot for this debt collection case:
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.