Debt Collection

“Debt collection is the process of pursuing payments of debts owed by individuals or businesses. An organization that specializes in debt collection is known as a collection agency or debt collector. “

When it comes to debt collection it is assumed that a transaction or agreement has been concluded between two or more parties in terms of which goods or service was rendered yet no payment or counter performance has been received.

With debt collection it is important to note, in order to collect the outstanding debt, it is important to prove the specific quantum (amount owing) or to be able to accurately describe the counter performance required.

When approaching your attorney or collection agent it is important to have the agreement or a copy thereof and/or proof of the transaction which has taken place. This is necessary in order to accurately demand payment through a letter of demand and this information will also be needed if the demand was unsuccessful and a summons is to be drafted.

A letter of demand usually demands payment within a reasonable time period where after if demand is not met further legal action will be taken.

Also, note the quantum (amount) of the claim will determine which court in which the matter can be heard.

It is also important to talk to your legal advisor about the cost of pursuing such a claim as often the cost of pursuing a claim may outweigh the claim itself.