A Cambridge builder built a beautiful new home for his client. When he sent in his final invoice for $6,387.02, there was no payment forthcoming. The builder had undertaken a labour only contract and so was unable to withhold the Code of Compliance pending final payment as the client was organising this herself.
CollectIT became involved and as per the Builder’s contract, interest and collection costs were added to the original debt.
The debtor promised she would pay once the Code of Compliance was received from council in four weeks time.
Four weeks later the debtor would not return phone calls or emails. When eventually contact was made, the debtor was apologetic and promised the money. However her promises were broken.
As time went on, it was increasingly evident that this debtor had no intention of paying. As a result, CollectIT filed documents in the District Court and obtained a court order against the debtor for the amount of $9,700.84.
This order was completely ignored, so the builder instructed CollectIT to proceed with enforcement. The appropriate enforcement action in this case was to prepare a distress warrant which resulted in a bailiff being instructed to seize her car from a Paeroa address.
The debtor paid the bailiff in full prior to the car being seized. CollectIT’s client was paid and was very happy with the result. Successful debt collection for a Cambridge building company.
Without CollectIT’s thorough process, this debtor was never going to pay! The fact that she did nothing until her car was about to be seized showed her complete disregard for the hard work and effort the builder had put into her new home.
The builders costs to complete the full process was approximately $900 which he was hesitant to keep continuing with during the process, feeling he was adding more costs to the unpaid amount. The end result meant that not only did he get his initial invoice paid, plus interest, plus costs – well worth getting CollectIT involved.