What is a debt collector?
I am a tradesman and spending all my time calling clients who have ‘forgotten’ to pay my invoices. I want to get back to doing my own work instead of chasing payment. Can a debt collector help me?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
- A debt collector is someone who has made a business out of recovering payments on behalf of busy creditors.
- If you hire a debt collector they will take over the hassle of writing, calling or visiting your clients and asking for payment until:
- the debt is paid;
- you decide to commence legal proceedings; or
- you choose to write off the debt.
- Debt collectors are experienced at tracking down debtors who have moved.
- They will also be able to advise you about whether the debtor has enough assets to make litigation worthwhile.
- You should confirm that your debt collector has the proper licence to operate in your state or territory.
- Debt collection agencies will charge a fee for their services that may be a percentage of the amount collected. Some debt collectors will not charge you if they determine that the debt is not collectable and needs to be written off. You should ask what their policy is before you engage them.