Two Tales of Debt Collecting
A Sad Ending
Recently we were pleased to receive instructions to collect over £9,000 due by a small firm of builders. The debt had accumulated more or less steadily over the previous seven months.
Large debts call for immediate measures and I handled the account personally.
Alarm bells began to ring when the debtor’s telephone went unanswered in office hours. We sent a fax. Actually we sent a batch of faxes. One to anybody we could identify from their web site and from a search of Companies House. Twenty in all before we discovered the sad news – the real position.
A report on the creditor’s credit rating revealed that there were already three unsatisfied County Court Judgments against them – one for £19,000. That meant:
- a) at least three people had invested (and probably wasted) their money issuing their claim;
- b) the debtor company was shameless and in trouble; and
- c) we had to advise our client to consider the debt as a write-off (perhaps with the remote chance of dividend).
A happy ending
We have noticed that people without much money tend to move more often. Most people are, of course, honest, but a determined debtor can by moving regularly and with a bit of thought avoid his creditors practically for ever -or at least most of them!
One of our collectors recently called on just such a debtor. He owed £455. Previously the chap had lived in Stanmore. He had left behind a large (and growing) pile of bills on the mat and no forwarding address. Nevermind. In this case the collector struck lucky.
An obliging neighbour helpfully gave our man an address for the “birthday flowers” he claimed he wanted to deliver. The debtor was so surprised to be located he paid up without further fuss.
L M Wise FCA
Barrister-at-Law
Leslie Wise has regularly written articles for the Solicitors' Journal, Solicitors' Gazette and Accountancy. His wide practical experience informs Debt Collecting London’s total approach to your debts and helps ensure a quick result.