In the Cash Collection Business, Persistence Often Pays
One of the prime skills of the cash collector is judging when not to pursue a debt further thereby avoiding further costs. This is particularly the case with smaller debts.
There are exceptions though and one of these occurred recently in the Debt Purchase office of the PAID (Payment Against Invoiced Debtors) division of the Credit Protection Association.
Our well-established Member, a medical supplies distributor, offered our PAID division a debt for £629 for purchase. The debt was nearly a year old and for that reason, did not automatically qualify for purchase under the Members PAID Agreement under which, the debt would have been purchased by CPA from the member and CPA would have taken on the credit and collection risk.
However the Member has worked with CPA for many years, and we wanted to help the member and provide them with the best possible service, so we offered to purchase the debt on a with recourse basis where the credit risk remains with the Member, but CPA PAID picks up the collection costs.
Soon after the collection process started, it became clear that the debtor, a sole trading retail outlet, had abandoned the business and the premises. Undaunted, we proceeded with the collection, obtained judgment by default, ascertained the new place of employment of the debtor and instructed bailiffs.
At that stage however, we did advise our Member that we believed that the prospects of successful collection were slim.
Nonetheless, by collaborating with the bailiff and employing a judicious mixture of telephone calls and emails, CPA PAID has been able to collect in full – some eighteen months after the date the debt was created.
Not surprisingly, our Member is delighted.
Persistence Often Pays.
By David Hawkins – PAID Division – 3rd August 2017
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