Proactive Debt Collection - Legal?

lakill Farm

A client of ours is owed money by a number of persons/business etc.

Anyway instead of going to courts or getting a debt collector in, he was going to get 2 big signs stating the person name, address and how much they owe them and stand outside there gate /house/business premises with the sign until they pay. Would this be a good avenue to persue?

He asked me was it legal? i wasnt sure but heard of the hardware down the country who put the list of debtors in the window.

Gloomtastic!

This question crops up every now and then. All he is doing is stating fact so is not breaking any law. If however, there is any dispute on any of the amount due then your client may be in trouble.

An alternative is to just doorstep the client. Go and sit in or just outside the debtors premises and not leave until you have funds in hand. They may not get the money on the first day but they will get it eventually if they are consistent.

Peterdalkey

I would agree with Gloomtastic, if you are persistant and turn up regularly demanding payment ( works best if debtor customers are within earshot!), they generally pay to make you go away. Tip: Don't whisper!!

mneylon

The "name and shame" idea while it might have its attractions is probably a bad idea in the long run

Parking someone in the client's office until they cough up might be better

lakill Farm

Blacknight wrote: »

The "name and shame" idea while it might have its attractions is probably a bad idea in the long run

Parking someone in the client's office until they cough up might be better

Its not my clients. Its a client who is owed the money by there own debtors. He was just asking my opinion.

mathepac

What is it about the word proactive that causes people to misuse it so frequently? It means to act before an event occurs; any action after the event is reactive. I hear Garda management constantly wittering on about "proactive crime solving"; could their highly paid PRs point out that any action taken after a crime is reactive. "Proactively solving crime" is normally referred to as "crime prevention", but this has no place in Garda stats.

Similarly here. If a debt is incurred, any action taken after the debt is incurred is reactive. The online sellers are the experts and primary exponents of "proactive debt collection" - they get paid before the goods ship!

Rant over.

I don't believe [IANAL] that truth is necessarily a defence against defamation or "naming and shaming". A public disclosure of private facts, where one person reveals information that is not of public concern about another, and where the release of the information would cause offence to a reasonable person, may be actionable under civil law.

Sitting in someone's waiting room telling all new arrivals, "Go ahead bud. I'm just waitin' here on me money like. €3,000 for de ba-rooem I done for him, righ'? He owes me de money for 6 months, righ'?" might not be the best idea.

Peterdalkey

It would, of course be proactive if he were takng the action prior to some other step, such a legal suit or calling in the legbreakers!!

As for looking for his three grand in the waiting room, that is a perfectly legitimate course of action. He just has to ask the debtor or member of staff to make the payment, it is just more effective within the hearing of another visitor.

WIZE

Peterdalkey wrote: »

It would, of course be proactive if he were takng the action prior to some other step, such a legal suit or calling in the legbreakers!!

As for looking for his three grand in the waiting room, that is a perfectly legitimate course of action. He just has to ask the debtor or member of staff to make the payment, it is just more effective within the hearing of another visitor.

Its not pro-active, Its re-active

Peterdalkey

It is also a proactive step if the course of action prevents an overdue debt becoming a bad debt.

mathepac

Peterdalkey wrote: »

It is also a proactive step if the course of action prevents an overdue debt becoming a bad debt.

/\ This nonsense grasshopper.

WIZE wrote: »

Its not pro-active, Its re-active

/\ This very wise

Peterdalkey

In terms of owner managed business, largely the constituents of this forum, proactive means actively managing the problem/issue/opportunity being faced. If it offends the vocabulary police ( or their loyal lieutenants) shame on us!

I would just proffer this which seems to fit rather appropriately

Proactive: adjective
serving to prepare for, intervene in, or control an expected occurrence or situation, especially a negative or difficult one; anticipatory: proactive measures against crime.

mikom

WIZE wrote: »

Its not pro-active, Its re-active

♫
We'll get some overhead lifters and some four barrel quads....... oh yeah

mathepac

Peterdalkey wrote: »

In terms of owner managed business, largely the constituents of this forum, proactive means actively managing the problem/issue/opportunity being faced. ...

/\ This might be interactive grasshopper

Peterdalkey wrote: »

... Proactive: adjective
serving to prepare for, intervene in, or control an expected occurrence or situation, especially a negative or difficult one; anticipatory: proactive measures against crime.

/\ This good definition of proactive grasshopper, but debt management reactive, debt avoidance procative

Peterdalkey

Bad debt avoidance good business but even more proactive. One day you might understand.. Ya gotta actually be there !