Collecting on debts can be tricky business. You might think you have every right to do what it takes to get the money owed to you. However, New Zealand laws protect people from unscrupulous debt collection practices. You can get in trouble if you do not follow the rules.
Debt collection lawyers can help you with this. Here are some ways to collect money owed to you without getting into trouble.
Sometimes, all you have to do is ask. Some people that owe you money may not be aware of it. It may be an honest mistake. In some cases, it may be someone else’s fault. You can visit or call the person that owes you and discuss it calmly.
You can also send a polite letter or email asking for payment. You want to keep it as pleasant as possible. This is especially important if the debtor usually pays. If you ask several times and you do not get any response, you can take it up another level.
Get a lawyer
The next step is to consult with a debt collection lawyer. The first thing the lawyer will do is check if the debt is enforceable. This means you have legal grounds to ask for payment. If you do, the lawyer can send the debtor a legal letter to ask for payment.
The letter will also say the legal action you will take if the debtor does not pay. If the debtor does not respond, you can choose to go to court. You should note that this should be your last resort. Going to court takes up a lot of time and money, so the money owed you should be big enough to be worth it.
Find a factoring agency
You may be able to get your money quickly if you are willing to get less. You can sell your invoice to a factoring company. You get cash up front, and the company will take care of debt collection with non-recourse factoring. Of course, you have to pay about 2% of your invoice as a factoring fee.
You also have to pay an interest fee if you want to get back the invoice. However, you avoid the headaches of debt collection.
You have a few options to get money owed you. Whichever one you choose, a debt collection lawyer can help you avoid trouble.