CollectIT began pursuing a debt for an Auckland Accountant in April 2013 when the debt was 18 months old. After approximately 20 unsuccessful attempts at contact which included text messaging, letters to two different addresses, emails to three different addresses and phone messages, the debtor company was loaded as a default debtor on Veda.
The husband and wife had both provided personal guarantees on their contract prior to work being carried out by the Accountant and so were also loaded as default debtors alongside their company.
Six months later CollectIT was contacted by the wife as they had been declined a loan by their bank due to this debt showing on the banks credit check. She felt it was unfair that she and her husband had been loaded as defaulting debtors.
Despite numerous emails showing their signed contract etc, the debtor put in a formal complaint with Veda. CollectIT defended their actions (over three occasions) and the investigation department agreed that all procedures had been correctly followed.
The debtor then issued court proceedings against both CollectIT and the creditor. The first hearing took place in February 2014 and was adjourned after an hour as the referee wanted the husband to be present.
The debtor company was struck off from the Companies Office between the two court hearings.
A second court hearing took place in June in front of a different referee (again no husband present). After hearing all of the evidence, the referee issued a court order in our clients favour against both the husband and wife personally.
No payment was forthcoming from the debtor on the date the court ordered it to be paid. CollectIT was then told by the debtor that she was going to appeal the decision, then her story changed and she advised she would pay the debt in four months’ time. This was unacceptable and CollectIT moved on with enforcing the order by issuing a Warrant to Seize Property. On execution of the Warrant, the debtor gave the bailiff two cheques totalling the full amount of the debt.
Result:
In September and October 2014 payment was received for work that the accountant had carried out for his client three years earlier!
Our client was delighted to have been paid the following - Original invoice $1,725, interest 917.70, collection costs $469.20. The debtor paid a total of $3,111.90
