22nd November 2017.

CPA (PAID) Hits The Collection Jackpot Again!

The Credit Protection Association’s debt purchase division has demonstrated once more their collection prowess

Very often the mere transfer  of debt ownership to a third party can aid  recovery – especially in tough collection situations.

A case in point occurred recently in the CPA (PAID) Office, who hold responsibility for debt purchase.

Our Member was owed £14,327 by an apparently well – established engineering company. Some 25 per cent of the debt was nine months overdue but our member had continued supplying throughout last spring and early summer on the basis that “ They always pay us in the end, don’t they”.

In August the Member lost patience and offered the debt to CPA (PAID) for purchase. By that time the age of the debt meant it could only qualify for “non-recourse” purchase, where PAID assumes the bad debt risk. Only the most recent invoices amounting to £2400 were acceptable.

However, in order to assist the Member, PAID purchased the balance with recourse whereby the bad debt risk remained with the Member, and PAID were responsible for all legal and collection costs.

The Member need not have worried about the risk! Soon we had cooperated with retained solicitors, and collected the lot! In addition to the principal sum , we were awarded £500 for legal costs and £1422 for interest and compensation payable under the terms of the Late Payment Act.

The debtor must wish that they had paid on time. Not surprisingly, our Member is delighted, if a little sheepish.

A valuable lesson has been be learned  Do not delay action when it becomes clear that the customer’s cash flow is under pressure.

Refer the debt to experts and avoid risk and worry.

David Hawkins, 22nd November 2017

 

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

See all our latest news here!

Keep up to date with the latest news by following us on social media:-

CPA on Linkedin

CPA on facebook

CPA on twitter

Watch the video to find out how CPA can help you!

How many excuses are there for non-payment?

Click the image to discover step by step advice on how to deal with them!

 

 

 

 

 

Discover how to improve your cashflow in 3 steps.

Click the image to find our answer to the question “How can you get paid on time?”

 

 

 

 

Read our blog – Debt collection agency

Read our Cash Flow Advice

Read about our overdue account recovery service

Read our blog – What is credit management?

Read our blog -What is a credit management company?

Read our blog -Credit Management that works!

Read our blog – How to select a debt collection agency

click to see read about our successes

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.

I consent to supplying my personal information that may be used for marketing purposes and agree with the privacy policy.