Month: April 2014

Debt collectors in Johannesburg South Africa

Debt collectors in Johannesburg South Africa are a dime a dozen, but not all are equally efficient or inspire trust as much as the top performers do.

Kredcor – debt collectors in South Africa

We at Kredcor believe we are different, that we are efficient and trustworthy, because:

  • We are registered with the Debt Collectors Council of South Africa, as is required by law
  • we were the first debt collection company to receive a letter of reference from this Council
  • we are members of ADRA, the Association of Debt Recovery Agents of South Africa
  • we collect your money into your bank account
  • Kredcor has been in existence for 14 years now
  • our collection rate success is consistently above industry average
  • our commission rate is below industry average
  • only senior personnel are employed by us, and they take care of your accounts all the way through
  • we update you monthly about our progress, more frequently should you wish

Furthermore, Kredcor also delivers the best credit reports in South Africa:

  • we deliver, where possible, our reports wuthin 48 hours
  • our credit reports only contain fresh information, all confirmed on that day
  • we include our recommendation, using our knowledge and experience
  • you get all the relevant credit risk information at your finger tips
  • you can greatly minimise your credit risk, by identifying potential unscrupulous customers in advance
  • we also assist international businesses wanting to do business in South Africa

We are confident that we can assist you right through the whole business cycle:

  • we investigate your potential customer through our credit report
  • we can perform book keeping services, watching out for potential risks
  • we collect on defaulting debtors, as soon as the red flags go up
  • we default list debtors that can not settle their debt to you
  • we can proceed with legal action where necessary

Kredcor has a good name in the debt collection industry – and we work extremely hard to keep that good name.

Contact us now, and let us prove ourselves to you.

How to collect business debt

How to collect business debt – the very first area I am going to address is cash. Simply put, many small company owners are not conscious and aren’t able to track their cash flow. They view a day-to-day basis at exactly what is in the bank, without any planning whatsoever.

The most convenient and most basic method to take care of this is using an Excel spread sheet to record exactly what money is coming in, what payments are to be made, what cheques have been composed, what outstanding monies are due in and prepare day by day. So simply put, firstly see exactly what is in the bank, where is it going and what is anticipated to come in.

It is very simple – untill you begin to determine something and track it, it isn’t really under your control.

The next issue is outstanding business debt – have you got debtors that owe your company? Exactly how long are they outstanding? Just ask yourself, what are you going to do, to get that money in?

First of all, think of how you are currently doing business and ask how do you work at present? What are your terms? Have you altered them or made them much shorter? Can you work on COD? Or for service companies, can it be prepayment upfront or possibly in many cases, can it be 50 % upfront. Whatever level of cash you can get in advance, in today’s environment, is cash in hand.

Another point we are going to discuss is collecting outstanding debts. This is everything about really chasing after the cash – the part that no one likes. This has to be done frequently and commonly. Individuals have a belief that they will lose their clients which no one will return. The truth is that these individuals have not paid you – they are not clients. Get your cash in – they understand that they owe you the cash and they understand that you deserve to telephone them and ask for the cash owed to you.

I would encourage that you utilize a script when speaking with them on the phone, so that you are brief, respectful however yet strong. For instance: when does it suit you best to come and pay – today? Or tomorrow? Friday or Monday? Pin them down to a time and day, record that time in your journal and make certain there is a follow up call set up. Establish a system, schedule in your time so that everybody is called and it is tracked routinely. If you have 50 individuals to go after, exercise the number of calls you can do in a day, track them, and jot down who stated exactly what. Have actually a particular cut off point. If it exceeds 3 or 4 telephone call, you have to go and see the individual.

Simply put – he who screams loudest has far more opportunity of collecting monies owed to them.

The real truth about ‘credit amnesty’

The real truth about ‘credit amnesty’

The much anticipated Removal of Adverse Consumer Credit Information, with implementation date of 1 April, has finally arrived. Millions of consumers across the country have eagerly awaited the day they will receive a ‘pardon’ for their credit sins and start afresh, with hopes of once again being able to access much needed
credit.

‘The Regulations that has been debated over the past year or so, has finally came into force and we will now see the real effects of removing adverse information from consumers’ profiles as well as the effect on the credit industry as a whole,’ states Credit Ombud Manie van Schalkwyk.

According to the National Credit Regulator’s Credit Bureau Monitor statistics, close to half of the recorded 21 million consumers have impaired credit records. This ranges from consumers with defaults, judgments, admin orders, as well as consumers who are three months or more in arrears with their account payments. ‘In our experience, for a big percentage of cases, consumers were not able to meet their contractual obligations because of financial problems as a result of over indebtedness. The reasons for the over indebtedness will vary from retrenchments, divorce, or other changes in personal circumstances to reckless credit. The recent rise in cost of living as a result of increases in the price of food, petrol and e-tolls costs also had a significant effect on consumer’s ability to service their debts,’ says van Schalkwyk.

What is noteworthy and what people really need to grasp is that not all of the 9.8 million consumers with impaired records will benefit from this exercise. ‘It is only about 28% of the 21 million credit active consumers, equating to about 5.78 million consumers, who may qualify to benefit from the removal of adverse information,’
adds van Schalkwyk.
Taking a closer look at the 28% of consumers who stand to benefit from the removal of adverse information, 15.4% will definitely benefit as they fall squarely within the adverse listing category which accommodates defaults, while a further 12.6% may benefit because they fall within the category of consumers who have judgments and admin orders on their credit reports. ‘The Regulations also stipulate that information relating to paid-up judgments must be removed. At present, it is difficult to ascertain how many of the 12.6% relate to judgments and how many of those judgments have been paid up, in order for the consumers to qualify to have these removed from their profiles,’ says van Schalkwyk.

In the lead up to 1 April, there have been many misconceptions regarding exactly who will benefit, what information will be removed and even when it was going to be implemented.
Below are some of the common myths regarding the Removal of Adverse Consumer Credit Information:
MYTH 1:
All negative information will be removed from my profile and I will be able to start on a clean slate.
FACT:
According to the regulation governing the Removal of Adverse Consumer Credit Information, only two categories of information qualify for removal, namely adverse listings and paid up judgments. For the purposes of these Regulations, adverse listings are classified as follows:
? Adverse classifications of consumer behaviour such as delinquent, default, slow paying, absconded and not contactable
? Adverse classifications of enforcement action taken by the credit provider such as handed over for collection or recovery, legal action or write off
? Details and results of disputes lodged by consumers, irrespective of the outcome of such disputes
? Adverse consumer credit information contained in the payment profile represented by means of any mark, symbol, sign or in any manner or form.
The adverse information reflected on consumer’s profiles as at 1 April 2014 will be removed – irrespective of whether it was paid or not.
When it comes to Judgment information – the Regulation stipulates that the capital amount owed in terms of the judgment must be paid. Paid up judgments include civil court judgment debts, including default judgements where the consumer has settled the capital amount under the judgments.
In addition to the above, consumers must note that information pertaining to the payment profile line will not be wiped away as part of the cleanup exercise. The payment profile is a recording of a consumer’s payment pattern and is recorded on a monthly basis. ‘If one is in arrears for a period of five months, as an example, that
information will remain on the payment profile and credit providers can still use this information to determine whether or not to grant credit,’ says van Schalkwyk.
MYTH 2:
All judgment information will be removed from a consumer’s records
FACT
Only paid up judgments which were taken between 2009 and 2014 (before 1 April) will be removed as part of the Removal of Adverse Consumer Credit Information exercise. Older judgments should have been removed already due to the maximum retention period of 5 years.
MYTH 3:
A credit provider cannot pursue me for the debt once the default has been removed
FACT
Even if the default information is removed from a consumers’ credit profile, they are still legally obligated to pay the debt. If this is not done, they may open themselves up for legal action by the credit provider or being handed over to debt collectors. The removal of the information does not affect the creditor’s rights in any way.
MYTH 4:
Bureaus only have 7 days after 1 April 2014 to remove information relating to paid up judgments and defaults from a consumer’s profile
FACT
Consumers need to understand that due to the enormity of this exercise it would be impossible to remove all the information overnight and that this is a process that may take time. The Credit Bureaus have until 1 June 2014 to remove all qualifying information and it is only after this period that consumers will be able to lodge
complaints if they find that the information has not been removed as it should have.
MYTH 5:
Consumers are required to follow a process before they can benefit from the ‘amnesty’
FACT
There is no process that consumers need to follow. There will be an automatic removal of all information pertaining to defaults and paid up judgments before 1 June 2014. However, consumer are urged to access their credit records after this period and to check if defaults and paid up judgments have in fact been removed.
Other facts worth noting include:
? Information pertaining to all defaults cannot be displayed as of 1 April 2014
? Once defaults have been removed a credit provider or any other collecting agency may not relist information pertaining to that default
? In the event that consumers have not paid up their judgements, the normal retention periods will apply
? Adverse information may be listed again on consumer’ profiles, relating to new defaults on other accounts

The second leg of the removal of adverse information will come into operation once the National Credit Amendment Bill is promulgated in the near future. ‘Once the bill is promulgated, consumers will on an ongoing basis have all paid up defaults and paid up judgments removed as soon as the credit providers provide the credit bureaus with proof of payment. “This will of course encourage consumers to pay their debts in order for the information to be removed from their profiles” adds van Schalkwyk.