Debt collection by phone

[removalizer]

Hi there I am the owner of a furniture removals and storage company, one of my customers is being quite stubborn paying their storage bill which is now at just over £1300, I am phoning them every day and getting different excuses every time I am very freindly with them and willing to accept payment plans or any payment at all to try and keep the on going charges down.

Am I ok to keep phoning them every day as I am a bit worried about being accused legally of harassement ?

[Curlyben]

Re: Debt collection by phone

In all honesty I would stop the calls and do everything in writing.
I would set a defined time frame for either payment or arrangement and send it recorded.
Make it very clear what will happen if they fail to make conclusive contact.

If they fail to come to the appropriate arrangement then I would sell the stored belongings.

Head it Letter Before Action and give them 14 days to respond.

Can I assume that you have a written agreement in place to cover this service ?

[pompeyfaith]

Re: Debt collection by phone

Probably be best for you to read the OFT debt collection guidelines here:

http://www.oft.gov.uk/shared_oft/bus...dit/oft664.pdf

Providing you keep within those guidelines you will be ok and any complaint they do make will be thrown out as you have done your best to act within the above.

[Sapphire]

Re: Debt collection by phone

I have a small business and if a customer is being awkward paying invoices then I either write or email them stating that if the bill is not paid in full in say 7 days then you will start court proceedings for the full amount, plus costs, plus 8% statutory interest and make sure that you add that a County Court Judgement will be put against their record too, that usually concentrates their brain.
Of course make sure you keep paper copies of everything too.

[removalizer]

Re: Debt collection by phone

Thanks for the replies, Yes I have a signed contract on this, the goods are not worth selling.

I have done small claims court before and it is very difficult and costly.

I just thought the phone calls might work, it has a very positive effect on me when I am late paying a credit card as they phone me every day.

I will give it a couple of weeks then go to small claims

Once again thanks for the advice

[Guest]

Re: Debt collection by phone

Issuing a claim is not difficult or costly, it can all be done online in thirty minutes and for £1300 will cost £70.

Alternatively, you could continue to listen to excuses on the telephone and give up on more than eighteen times what it will cost you to recover.