Why use a Debt Collector?
Outsourcing your debt to an experienced debt collection agency has many benefits. It allows your business to:
- receive more cash sooner
- focus on core functions
- reduce operating costs
- improve cost, quality, service and cycle times
- reduce exposure to regulation and technology risks
Debt Recoveries Australia has a range of debt collection and legal services (link to Legal Services page)available to ensure that we can provide a solution to meet your needs. Whether you are looking to make savings through the outsourcing of your receivables management processes or you require a safe brand to collect your severely delinquent debts, Debt Recoveries Australia can help.
What does a debt collector actually do?
A debt collector recovers payment on behalf of another company or person for outstanding debts that individuals or businesses are legally obliged to pay. Demands for payment can be made in writing, verbally over the telephone, email or in person.
Debt Recoveries Australia will act on your behalf to collect your outstanding debts. We handle the entire process including locating your debtors, making contact with your debtors (by mail, phone or in person), negotiating and collecting payment, enforcing any arrangements and handling litigation if necessary. We act within the scope of your instructions and have the experience to effectively negotiate payments of your accounts.
How much does it cost?
We charge on a no collect, no fee basis. Our commission charges are payable by you being our client. If you have a signed written agreement from your customer which states they have agreed to pay these fees, Debt Recoveries Australia will recover these fees from your debtor. Our pricing is commission- based and only charged once we are successful in recovery and then only on the money we receive. There are no debt lodgment fees, sign up fees or withdrawal fees. We also offer free on-line access and free 7-day demand letters.
Can I charge my debtor the collection costs?
The activities of debt collectors are governed by the Australian Consumer Law and Fair Trading Act and the Australian Competition and Consumer Commission.
Essentially debt collectors are prohibited from recovering our fees from a debtor unless a contract exists between the parties allowing for this to occur. Our legal advice indicates that for the addition of our debt collection fees to be legally binding, there must be a written and signed agreement in effect. You may be able to charge the debtor the debt collection costs if it is specified in your terms and conditions or credit application. We offer a free review of your terms and conditions to advise you if you are able to recover these costs.
Can I recover legal costs if I sue someone?
Yes, you can if you are successful in obtaining a court judgment against the debtor or if the debtor pays the debt after the issue of legal proceedings. The court will make an award for a sum that will include the debt, legal costs, and even interest.
If the legal action you issue is defended and you lose the case, then the magistrate may make an order for costs against you in favour of the defendant/s. In this scenario you will still remain liable for our costs too – so beware – if you are going to sue ensure you can prove and substantiate your debt. We will advise you on the best course of action and we will use the advice of our partner, ADC Legal Pty Ltd, see www.adclegal.com.au for further information about our legal services.
When is the best time to give a collection agency debt(s) to collect?
Generally if your customers exceeds your credit terms and you have contacted them more than one or two times or if you have customer(s) over 60 days plus and have had no response or payment. If your customer(s) are refusing to pay your account and they have exceed your credit terms - Act immediately. The faster the account is handed to a collection agency ... the better the result.
How do I get started?
Getting started is simple. Fill in our online form or call us on 1300 799 511. We will forward you a service agreement which needs to be signed and returned to us by email, fax or mail. Demand letters can be sent the same day as we receive your authority and debt details.
What information do I need to provide to you to collect a debt?
We will need a copy of your standard contract and/or invoice. We also ask for the debtor’s contact details and information about the debt owed. We ask that you provide copies of all communications sent and received to/from the debtor. The more information you give us, the better chances we will have of a successful recovery.
How do I lodge my debt with you?
Debts can loaded by form (mail, fax, email), spreadsheet or through our online debt management system. You can fill in our enquiry form here. For larger clients, we have options for bulk debt load from spreadsheets or even integration directly with your accounts or point of sale software.
Will Debt Recoveries Australia treat my customers like we do?
At Debt Recoveries Australia, we see ourselves as an extension of your brand. We call ourselves credit management agents, acting on your behalf. Our staff are highly trained with many years of experience in the debt collection industry. Our staff are up to date with the latest privacy legislation requirements and are experts in conflict resolution.
What are your payment options for our debtors?
We offer a variety of payment options, including BPAY, scheduled direct debits, money orders, cheques and direct deposit/EFT. We offer as many different options as possible to encourage your debtors to pay. We collect payments directly into our trust account and remit the payments to you each month together with a detailed summary of payments received. Click here to see our different payment options.
How can I get a copy of my credit file?
Please visit mycreditfile.com.au to obtain a copy of your credit file.