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Don’t let your debtors skip the country with your hard-earned profit!
There are an increasing number of Kiwis living overseas who owe millions of dollars in fines, child support, overdue student loan payments and overdue accounts to creditors.
There are steps you can take to minimise the risk of debtors fleeing overseas to avoid payment of their debts and in some cases to stop them leaving.
I was asked recently by a client to recover a substantial debt owing by a debtor who is now believed to be residing in China. The client has been endeavouring to make contact with the debtor and after enquiries conducted by a private investigator it was established that the debtor had left New Zealand.
The client could have minimised their risk if they had endeavoured to make contact with the debtor earlier as they had allowed the debtor’s payments to be in arrears for several months before taking any action. It is very important to act quickly when recovering debts. The longer they are left the harder it is to recover them, especially if the debtor has the left the country.
- Identify late payers immediately and monitor them carefully. When a customer does not settle his/her account within the agreed payment terms this customer must be closely monitored to avoid the debt becoming seriously overdue. In our extensive experience early attention to recovery of the outstanding debt is vital to its successful payment.
- Many debtors may already be considering travelling overseas when they no longer can honour their loan payments and for this reason again do not delay – put the telephone to good use. Letters and other written reminders are not as effective as the telephone in most cases in our experience. Talking to the debtor can also allow you to get information on their intention to leave, their departure date etc.
- If the debtor is intending to leave the country to avoid paying their debts then there are steps that can be taken to prevent their departure and to prevent them taking their property with them … but these steps must be taken early.
- If there is no response to contacting the debtor by telephone we recommend that an early personal visit to the debtor’s property will confirm if the debtor is still residing there.
- If a debtor fails to pay you, whether you think they may be intending to leave the country or not, place the matter in hands of your debt collection professionals, choosing someone with extensive experience in this area.