The Proper Way to Recover Your Debt
If someone owes you or your business money, it can be a difficult issue to resolve if your debtor refuses to pay. Debtors are protected by numerous laws that prevent lenders and debt collectors from using force or taking advantage of the situation.
This is why you should know your rights and recover the debt in a proper manner. Rainey Collins Lawyers, a firm that handles debt collection cases in Wellington, mentions the importance of resolving the disagreement first, to recover what is owed to you.
Send Out Friendly Reminders
When it comes to debt collection, it is important to do so as quickly as possible — the longer you leave the debt unpaid, the higher the chances of it being disputed.
To collect your debt on time, be sure to contact your debtor with a friendly payment reminder. Keep it simple and professional. Be sure to include your contact details and available payment options — it is best to give your debtor multiple options so that they can choose whatever is more convenient for them.
If they go over the due date, be sure to contact them again, this time with an overdue payment reminder. If there is still no reply, send a final notice. You may have to contact them directly at this point, either through phone calls or by visiting them in person.
If there is still no payment, you may have to send in a formal letter of demand. A formal letter should be used as a last resort, as there is a possibility of damaging your relationship with your debtor.
Escalating the Issue
If a debtor refuses to pay or chooses to dispute the debt, you will have to escalate the issue. At this point, you will want to hire mediation services to help come to an agreement on the amount of debt owed. If mediation does not work, you will have to apply to a Tribunal, Arbitrator, or Court.
Either one of these avenues will help you recover any outstanding money owed to you. Be sure to be aware of all fair debt collection practices so that you understand how to recover it fairly and efficiently.