Collection Agreement

How does the collection management agreement work?

Firstly, all clients must comply with the legislation in their industry for us to be successful in our debt management. For instance, if you are a micro lender you need to comply fully with the National Credit Act and Schools with the rules and Regulation as per School Act.

We have a collection agreement stipulating our terms and conditions for success collections.

Pay-outs are done on a monthly basis.

All the clients collecting matters gets handled as a group. All costs, disbursements gets recovered first. So there is no costs risks for our clients.

The status of every case handed over can be checked on our website 24/7 with detail that includes capital, payment and legal diary for each debtor.

We will hand back your files cost-free if we do not met your reasonable expectations within three months from our initial agreement.

As we carry the costs it is important to get (new) work on a regular basis and this is one of the terms and conditions of our contract.

We have a near-paperless system in place and handovers can be done by scanning and e-mailing, faxing, posting or via physical collections. Although certain courts requires original documentations, but our agent will discuss it with our clients.

Our representatives will make contact on a regular basis that includes physical on sites visits. Our client’s service team is just a phone call or e-mail away.

For your convenience you need only to speak to one person at our office to handle all your requests and queries and will report back to you in reasonable time.

The first payments received will fund the disbursements of tracing, sheriffs, attorneys and fees occurred. Thereafter you will received payments.

Debtors are liable for the cost accounts. On immediate settlements, ProDebt will take 10% commission i.e. 90% of the capital will be paid over to the client in these instances. All payments received on the hand over matters needs to be paid over to us to ensure proper control over handovers.

Explanation of our Collection Agreements

Explanation

  • Full on legal collection process. All debt not older than 2 years. The collector has carte blanch and may use any legal means of collecting the debt.
  • PROCESS
  • The debtor gets contacted formally and given the opportunity to pay his debt without a legal process. Failing to comply results in a full legal process of collection. If the debtor does not comply with arrangements the legal process follows to get judgement, garnish orders or warrant of execution against property. Uncollectable matters get stopped by the discretion of the collector. Regular the discretion of the collector. Regular payments gets monitored and contact is made on a regular basis to insure payments is made.
  • DISTRIBUTION OF PAYMENTS
  • The client receives all payment when the collection is completed and cost, expenses and fees have been paid
  • AGE OF DEBT
  • Age of debt is important as fresher debt gets collected faster but it is the discretion of the client in this matter. The collection cost is much cheaper as payments is fast and no need for legal costs.
  • COST FOR CLIENT
  • Costs gets received from first payments.
  • PAYOUT PROCESS
  • Every month a distribution takes place of payment received on debt. On payments received on debt, the collection commission, VAT, costs and fees is deducted, where after the balance is pay-out.
  • LEGAL COLLECTION
  • The first payments goes to the disbursements like sheriff costs and legal costs. (External accounts we had to pay). After the accounts has been paid we distribute the payments to the client. ALL UNCOLLECTED MATTERS are worked out to real expenses and the matters stopped by yourself gets deducted from the pay-out. If we recommend to stop a matter and the client is persistent the liability for the costs will be for the clients account.
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