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Signed Credit Application Form puts the cost onto debtors …

CollectIT was engaged to pursue a sole trader from Dunedin who owed our client invoices worth $12,612. Once it was put into the hands of CollectIT, interest was oncharged as well as collection costs as per the creditors credit application form.

The debtor began making payments after a month of discussions, and these continued sporadically for nine months totalling $6,000. The payments then stopped.

After many more follow ups with the debtor, but no further payments, CollectIT applied for a court order and judgment was obtained. All court costs and further interest and collection costs were added on to the debtors amount owing as per the signed credit application form.

Following judgment, the debtor was contacted by CollectIT again. No payments were forthcoming so CollectIT enforced the court order by way of a distress warrant and succeeded in getting two large payments over the next couple of months.

Result: At the end of the day, the total amount paid by the debtor was $18,290. The invoices, interest, court costs and collection costs were all paid by the debtor – it cost the Creditor nothing - and CollectIT had another very happy client.

There is often a lot of time taken to get a result like this as each process with the court takes time as well as creditors often need time to think about how far they want to go with individual matters. From the beginning of CollectIT’s involvement with this matter to being paid in full, the time taken was just under two years.