Top tips for collecting a Debt from a friend or relative
Private Debt Collection
Many people think of Private Debt Collection as something only Companies or Businesses use but that is not the case at all. We deal with many instance of private debts owing to and from family & friends for matters such as personal loans, goods bought etc so regularly collect debts from friends or relatives on behalf of third parties.
The issue of personal debts being owed from a family member or long term friend is far more common than people would imagine. We regularly receive enquiries for our services where a relationship has broken down over monies being owed. We try our best to mediate a resolution that is satisfactory to all parties and usually results in payment as a closure on the matter.
Of course the is our Premier Debt Collection remedy for these kind of unsavoury situations but this can be avoided using basic communication and dialogue to resolve personal matters and hopefully restoring relations. Collecting a debt from a friend will always present a challenge however you can mitigate this by involving a third party to mediate.
Here is our top 5 tips for collection of personal debts owing
- Get any agreement in writing – We cannot stress this enough. If you are going to loan a friend/relative etc some money, ALWAYS get it documented in writing along with the signatures of both parties. Obviously this can feel impolite but if you have any element of doubt that the money may not get paid back, it is imperative you take this basic step. Clearly state the terms of the loan along with any agreed repayment dates.
- Make it easy for them to pay – If you have agreed a staggered repayment schedule, a standing order from there account to yours will help this kind of situation.
- Document any requests for payment – If a payment date has been missed, you need to let them know you are on top of the situation so a polite letter/email will help remind them that payment was due and needs to be made.
- Stay calm and composed – Never lose your temper with them. It is very frustrating to be owed money especially if you need it yourself but becoming angry and abusive will simply result in a full breakdown and is likely to lead to no further payments.
- Take action – Fingers crossed it does not come to this but where every avenue of communication has been exhausted, it is time to call the professionals, never simply write off your money. Nobody has ever been labelled as a ‘bad person’ for simply requesting to be paid money they have lent/provided in good faith.
Where action is necessary to recover a debt, it literally does pay to speak to a professional. of course there is the Debt Collection option but there is also a legal recourse through the courts and solicitors dependant on the amount. The problem with the latter is that they can be very expensive and can protract the matter however they may be a more appropriate option if the matter is disputed.
For further information on Frontline’s Private Debt Collection services, speak to a Professional Collections Adviser today by calling the helpline on 0333 043 4426 who will provide a free and frank assessment of your situation.