Who is helping who?

In the previous post I focused on the consequences of doing the wrong things in the debt collection process and the consequences thereof.

Many will argue saying that "rules are made to be broken" but if you live by a moral standard that is based on a solid foundation of values and principles then we will not need the rules and laws because the rules and laws are there to stop our society slipping into degradation.

I find people/companies, every now and then who have a unique way of collection debt. I am always interested in new ideas, and in most matters, after further explanation is given, the only unique thing about their collection method is that it is a twist of the rules and laws thus entering a gray area.

Gray areas are dangerous places, because we spend more time worrying if we will be caught out and if we are what will we say to defend ourselves. Rather do it right and use the time that you would have spent worrying and thinking out new explanations will be prime time for planning and preparing for new clients, business expansion and anything else that brings in money or joy to your life.

It is easy to bend a rule here or there and get away with it once, but human nature is such that we will push the odds and try it again and again, then when it is to late we will be caught out. The Council for Debt Collectors has been placed there as a regulatory body with the ability to 'cleaning up' the debt collection market and enforcing the laws which govern the collection process. I am afraid to say that many have the perception that some officials are not acting in the interest of their members.

"If you are wise, your wisdom will reward you; if you are a mocker, you alone will suffer." King Solomon in Proverbs 9:12

The LegalSoft Team
Cape Town , South Africa.

The importance of acting

The old saying or truth, act or be acted upon, is demonstrated in life and used daily in the debt collection or legal process.

Being summonsed is a call to act and by failing to act, a Judgment by Default is the 'being acted upon' part. The consequence of a Judgment by Default is that in most matters your name will be added to the notorious 'Black List'. The killer part is that it could happen without you knowing, without you even owing the money, without you even having done business with the Plaintiff.

Let me explain: Mr. A's account is handed over by the plaintiff for collection. The collector, not being able to contact Mr. A appoints a tracer to find Mr A. In some matters, no ID number's are available and name and surname and other odd data is used. Mr B is summoned and by not acting to the summons, because its not his debt or he cannot afford the legal cost of an attorney, Mr B finds himself blacklisted.

I have seen pensioners, being blacklisted for as little as R60.00 (sixty) rand by companies doing collections for their clients on a no recovery, no payment system. The cost of removing that listing is anywhere from R800.00 (eight hundred) and more.

The question at the end of the day, who should take responsibility for the wrongful blacklisting of persons who for many qualified reasons have being the subject of one of these unjustified listing and should we have a minimum judgment amount for black listing's.

Back to the theme of the newsletter, act or be acted upon, email us if you have any comments or questions.

"Sometimes when I consider what tremendous consequences come from little things ... I am tempted to think ... there are no little things " - Bruce Barton

The LegalSoft Team
Cape Town, South Africa.