If your business finds itself in the unfortunate position of having to chase debtors for overdue payments, it's important that you first understand the regulations outlined by Australian Federal Government bodies the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC).
If you're thinking about bombarding your debtor with a debt collection letter every hour on the hour, think again - unnecessary or unduly frequent may amount to undue harassment, according to the ACCC and ASIC.
Instead, regardless of how frustrated you may be, you should temper your debt collection letter so as not to inflame the situation. This rule applies as much to your first letter of demand as it does to your final letter of demand.
Other stipulations include:
- Protecting the privacy of the debtor. Do not disclose the debt to third parties.
- Not misrepresenting yourself. Don't, for example, imply or state outright that you're a representative of the law
- Contacting the debtor - whether over the phone or by debt collection letter - in excess of ten times a month
Please note also that tactics such as embarrassment, demoralisation or intimidation are not legitimate means to recouping your money.
While debt collection is a reality for many businesses, we believe that by investing in our Business Credit Express credit reports you may minimise your risk on incurring bad debt. At Business Credit Express, we advise businesses of all sizes to conduct a thorough credit history check on each prospective new business or deal before investing time, resources, and especially money.
Our reports, which incorporate Veda (formerly Baycorp Advantage) data, ASIC search, and public record, may stop you from exposing your company's finances to risk.
Available for sale online, if after reading about our individual reports you require more information, please call1300 921 621 or email email@example.com