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Persistence Pays Off After Over 20 Promises To Pay a Debt

Friday, February 19, 2016 - Posted by Philip Harvey

A contingent account was referred in July 2012 with a balance of $32,00 owing.

Judgment was entered in 2009 by our client with the last payment received in 2010.

At the time of referral the debtor had been a clear-out for over 12 months and it was also noted that the debtor had experience in the debt collection industry and knowledge of the enforcement options available to us.

Upon receipt of the file a thorough review was undertaken with searches indicating that all past contact numbers had been re-assigned.

Following an extensive skip trace the debtor was located in September 2012 and all contact details were re-established including a current address, phone numbers and an email address.

Between 2012 and 2016 some 20 arrangements were made for payment. We established a pattern whereby:

  • An arrangement was made;
  • Either the 1st payment not be made or payments would continue for a couple of months;
  • Arrangement follow ups would need to be continually conducted conducted;
  • If no payments were made, enforcement action would be taken (Garnishee for Debts) resulting in one off payments; and
  • The debtor would subsequently contact and enter into another arrangement.

This process resulted in approximately $6,000 in payments being received over a 4 year period. During this time we were unable to establish employment details with requests for the debtor to supply details of his assets and liabilities being ignored.

Throughout this period the file was given to different collectors to try an elicit further information from the debtor, with all collectors in agreement that the debtor had capacity to pay, but with the debtors knowledge and education, withholding key information enforcement options were limited.

We recently received an offer to settle the debt which was accepted by our office although this decision was not taken lightly. While recovery in the long-term was looking promising we believed that the stronger and better result for our client was to accept this offer.

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