Soft collections are a term used to describe the collection of bad debt by means other than legal action. This process is implemented before legal action is instituted as a last effort to collect monies due quicker and at a lower cost.
Before the soft collection phase may commence it is often necessary to trace a debtor, Vermeulen Attorneys offer this additional service of tracing and we ensure that each matter handed over is vetted. The vetting process looks at the feasibility of the handover in focussing on the debtor’s means and credit record. This is an important tool and may prevent that the client unnecessarily wastes money in pursuing a debt which
Is not collectable.
A matter is normally in a soft collection phase for a month (30days) however, this is depending on the client’s preference. The following steps and tools are used in this phase:
SMS sent to inform the debtor that he/she has been handed over
Should a PTP not be made, a letter of demand will be sent via email and registered post and the matter will proceed to legal action.
Tools used during the soft collection phase:
Internal debtor vetting
Credit listing / bad payment listing