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Thread: Debt collection

  1. #1
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    Debt collection

    My wife and I have a small business (services) and recently delivered to a third party. Since I am in the UK at present I sent someone to deliver in my stead. We agreed on 2/3 payment up front and the balance plus costs payable upon completion. We have been trying to get the final payment out of our "client" for the last 60 days.

    I am at wits end. Our last correspondence included the following sentence "I really do not have time for this, I have sent proof of that payment to you long back and i do not take kindly to this. "

    I received proof of payment of the first instalment, but nothing since.

    I guess my next step is to get a lawyer to follow up on this. Anyone on here who could advise what steps I should follow, or even take it from here?

    The amount involved is circa R8,5k (but it is all profit) so it is a fine balance we need to strike between incurring vs recovery.

    Any thoughts most welcome, thanks

  2. #2
    Bronze Member dfsa's Avatar
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    Contact a Lawyer. They don't charge you directly. They take the person to court, then add their fee in the case against the entity that owe you money.They also claim the interest for you. The only problem is it can take 6 Months to a Year for your case to be resolved. Don't wait too long to get a lawyer involved. Make sure you keep all records even the records where you send statements. Never stop sending statements untill the case is resolved.

    First thing I would suggest is to let the entity know that if they do not make payment at the end of the month, then you will be forced to take legal action. Make sure you do the correspond with official documents. Also make it clear that they do damage to your business and that you might hold them liable for any damages that may arise due to cashflow problems

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    Platinum Member sterne.law@gmail.com's Avatar
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    There are often lawyers who are prepared to work for the costs at the end of a matter, but I suspect most would want some deposit. (Of course the second part of this equation is recovering any cost order - i.e does the defendant have assets?)

    Time should not be 6 months to one year. Debt collection actions are in the motion court and move quite quickly.
    If the amount owed is straight invoice then the process is even quicker.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Thanks for the comments.

    I take it email will suffice as "official documents" or not?

    Straight invoice, terms and price agreed before services were delivered via emai/text message (as we were on holiday at the time of negotiation)

    What about small claims court?

  5. #5
    Bronze Member dfsa's Avatar
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    You are in Pretoria. Contact these guys: Danie Potgieter Attorneys. They are in Centurion. Tel: 012 663 5626

    They are very reputable. As far as I know they would not ask you for an initial consultancy fee. If they take your case I don't think you will pay any fees as they will recoupe it from the debtor. Just confirm with them.

    Small claims court will mean that you have to go there and you need to get the debtor there also.

    Email can be proof of legal contact as long as the receiver adress do belong to him, or if you have proof that the receiver gave that adress to you as contact adress.

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