In simple terms, credit is considered to be reckless if it is clear from the outset that the Consumer will not be able to afford the repayments, or if no affordability test was done at all.
In our case study (below), the affordability test was indeed done, but it was clear that she would not be able to afford the repayments. It, therefore, seems that the credit was granted recklessly.
Debt Collection Articles
I Have Received A Summons – What Does This Mean?
I Have Received A Summons – What Does This Mean?
Having a Sheriff serve a Summons on you could often be a very scary thing! This is especially true if you know nothing about a Summons and what to do with it. In this article, Kaylee Tree discuss a few important points to remember once you have received a Summons. #Summons #DebtCollection #LetUsHelpYou #StayCalm
Get Your Debtors To Settle Their Account!
Get Your Debtors To Settle Their Account! Here Are Some Tips From A Debt Collector.
A payment arrangement may be a good option when someone owes you money. However, there is nothing fun about having to hold your breath every month in the hope that they will adhere to the payment arrangement monthly and settle their account in total, at the end of it all. In this article, Kaylee Tree provides tips on how you can get your debtor to settle their account. #PaymentArrangements #PayBackTheMoney #DebtCollection
How To Spot A Delinquent Debtor
Are you struggling with your clients not paying on time or at all? This can be detrimental to any business, not to mention dire to a smaller business. Here are five red flags to look out for: Not answering your calls If a client has an outstanding account that you...
Lending Money To Loved Ones – Yay or Nay?
Think about this scenario, your good friend approaches you with a dilemma they are facing- they need money, and they ask you to help. Is it a good or bad idea? Let’s discuss it from a debt collection perspective. Quick and easy payment methods Lending and borrowing...
Voluntary Liquidation
Liquidation is the process whereby a company or close corporation is wound up due to it not trading actively or its inability to continue trading in the normal course. The liquidation of a company will put an end to the juristic entity’s existence. When winding up a...
Liquidation Of Insolvent Companies
As previously discussed in the article regarding voluntary liquidations where the company being liquidated is solvent, liquidation is the process whereby a company or close corporation is wound up due to it not trading actively or its inability to continue trading in...
Writing off bad debt
Writing off bad debt can be very upsetting. You are owed the money, the services were rendered. Why must I write off bad debt? Here’s what the law says on the topic. Let’s first look at prescription What does it mean? Prescribed debt is old debt that has been written...
What Is Surety?
Ever been asked to sign surety for debt? Should it be your child’s study loan, a bond, a car, on behalf of your company or any other debt. This is a big responsibility. You agree to take over payment and be liable for debt should the ‘principal’ not be able to pay it...
The most common excuses made by debtors
Ever found yourself rolling your eyes at the excuses made by debtors that was supposed to pay their account ages ago? Working with debtors daily we found that there are a few trending excuses. Let’s have a look at the most common excuses made by debtors. The “I never...
Instituting Legal Action – A pre-liminary vetting process
When deciding whether to institute legal action for amounts due to either you personally, or to your company, it is a fantastic idea to do a vetting process before making the decision whether or not to sue. There are several factors which to consider, the most...
What Can The Sheriff Attach?
EXECUTION OF JUDGMENTS- WHAT CAN THE SHERIFF ATTACH? When a creditor is in possession of a judgment in its favour, it is in a position to execute this judgment. What exactly is execution and what goods can a creditor execute upon? What is execution? When judgment is...