What is the cost of doing a debtcollection?
We normally charge a 10% collection commission.
What is the minimum amount for which we do a collection?
We do collections for any amount above R 30 000.00 as R 30 000.00 is the small claims court limit and can be dealt with by the creditor directly in small claims court without incurring legal cost.
What is the process of doing a collection?
- Depending on the type of agreement the 1ststep is to do a letter of demand or a Section 129 Notice.
- Thereafter to issue summons.
- As soon as judgment is obtained a warrant of execution can be issued to attach property
- OR a garnishee order can be obtained
What is our capacity of doing collections for one client?
There is no cap/limit on this.
What is the difference between a Credit matter and a Non-Credit matter? NCA & Non-NCA.
On a Non-NCA matter one only needs to send a letter of demand, and on a NCA matter a Section 129 Notice must be issued before any legal steps can be taken.
Do we only do “soft” (calling) collections or “hard” (summons) collections?
We start off by doing soft collection and when payment is not received, we issue summons.
Where do we do collections?
Mainly in the Jurisdiction of Pretoria.
In duplum/Interest?
Common law In duplum:
Interest will be accumulated over and over. For instance, if payment of R 100 is made in regards to an outstanding amount of R 1000, the interest will be accumulated on the R 900 outstanding balance and this will continue indefinitely.
NCA In duplum:
The amount of interest incurred on any debt cannot exceed the original amount of such a debt, for instance, if the amount owed is R 1000 the total amount to be paid back cannot be more than R 2000.
Prescription of Debt
Debt prescribes 3 years after becoming due and payable.
Who is liable to pay levies in regards to a body corporate?
The owner of the property is liable for payment of levies.