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EU finance ministers are pressing their indebted and riot-prone Balkan member to embrace a massive austerity plan and plug its debilitating deficit.
But with markets sceptical and the appetite for more bailouts at a low, there are deepening concerns that a Greek meltdown could deal a severe blow to the very European idea of a common currency, and set off a domino effect through Italy, Spain and Portugal.
Yesterday, some European Union leaders said they were confident that Greece would pull itself out its debt crisis under a plan submitted by Prime Minister George Papandreou, who promises to cut expenditure and tighten the country’s notoriously leaky tax system.
Spanish Finance Minister Elena Salgado – whose country holds the rotating EU presidency – said she was not worried that Greece will default.
She refused to discuss the possibility of a bailout in case Greece fails to make debt repayments – fears that have sharply raised its borrowing costs.
“I think Greece is going to do all that is necessary to avoid that,” she said before chairing an EU finance ministers meeting.
A bailout would be a first for the decade-old eurozone, which now looks vulnerable and faces painful, unpopular measures such as budget cutbacks and higher taxes.
Other European governments were less sure – and reluctant to pay for Greece’s failure to manage its debt.
Finland’s finance minister Jyrki Katainen bluntly said the Greeks couldn’t expect “any outside help”. Dutch Finance Minister Wouter Bos said the Greek plan to cut debt needs to be more substantial because it is based on vague one-offs such as a promised fight against corruption.
Markets are also sceptical that Greece can make the cuts that are needed. BNP Paribas currency strategist Ian Stannard said investors believe they “lack detail and in some respects appear unachievable”.
Stannard cited the risk of investors losing their appetite for Greek bonds, 70 per cent of which are held by foreigners.
Bigger, better off countries such as Germany would be faced with leading a bailout, but it’s not certain that their leaders – or voters – would agree. Meanwhile, other countries with heavy debt loads – Spain, Italy, Portugal, Ireland – would have to pay more to borrow if investors flee government bonds because of Greece. Read More
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Keeping with budget this Christmas is essential to ensure that there are no additional overdraft charges in the new year, Moneynet.co.uk has advised consumers.
For those who find that they are getting paid a couple of weeks early, they should be careful that they do not overspend, as this could lead to a strain on cash in the beginning of 2010.
Any consumers who are concerned they may stray into their overdraft this holiday period should arrange an extension with their bank now, as this will avoid them receiving any extra costs.
Andrew Hagger of Moneynet.co.uk said: “Failure to check the state of your current account and adopting a worry about it later attitude could see you run out of cash and faced with some hefty bank charges come the new year.”
The decision last month by the Supreme Court not to force banks to repay overdraft charges meant that an estimated £2.6 billion in fees was not returned to consumers
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The holiday season seems to lure us into overindulgence. Eating too much stuffing or drinking too much eggnog is one thing. Charging too many gifts on your credit cards is another.
Although the holiday season may entice you to spend more than you can afford, a little self-discipline can help you keep your purchases to a manageable limit.
Why You Should Limit Your Holiday Card Purchases
Credit cards are only an illusion that can buy more gifts than you actually can afford. Here’s why you should limit your credit cards purchases this holiday season.
Gifts bought on credit end up costing more. Add in months of finance charges and you’ll ultimately pay more for your gifts than you would if you’d used cash.
Credit scores fall from high balances. Spending more than 30% of your credit limit will cause your credit score to drop.
The best laid plans…. Unexpected post-holiday expenses might postpone your credit card payment plan, lengthening your credit card debt.
By sticking to a few spending principles, you can keep your holiday spending to a minimum and avoid paying for holiday gifts until the next holiday season.
How To Avoid Holiday Debt
When you’ve made the decision to keep your credit card purchases within a reasonable limit, here’s how to put it into practice.
1.Save up. Spending cash instead of using credit for your holiday purchases allows you to avoid holiday debt all together. If you haven’t started saving, put aside something each paycheck starting now and use that to finance your holiday purchases.
2.Set a budget before you shop. Setting a spending limit and sticking to it will keep you from overspending. Be disciplined and don’t go over your budget, no matter what.
3.Make a list. Santa makes a list and checks it twice, so should you. Even though you might feel compelled to splurge on everyone in your life, you don’t have to. People appreciate simple and meaningful over expensive and useless.
4.Don’t shop for yourself. Avoid the “one for you, one for me” shopping mindset. You’ll end up spending double what you would had you shopped only for the loved ones in your life.
5.Ignore “big” sales. More often than not, they’re not really sales at all. Those “Buy 2, Get 1 Half Off” deals only trick you into buying more than you would otherwise. Remember, stick to your list.
6.Shop online first. The internet makes it easy to shop around. It also makes it harder to buy on impulse. Since most retailers have inventory on their websites, you can decide exactly what you want to buy before going to the mall.
7.Leave your credit cards at home. Without your credit cards, you’ll have a hard time charging them up. If you must use credit for your purchases, pick one credit card and stick to your spending budget.
8.Don’t buy if you can’t afford to pay. Keep in mind that when you use credit, you’re borrowing from your future income. You know your finances better than anyone. Only charge what you can afford and you’ll avoid paying on your holiday debt until the next holiday season.
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NZ Herald reports
A big chunk of the surviving finance company sector is unlikely to outlive the retail deposit guarantee, the Reserve Bank indicated yesterday.
In its twice yearly report on the stability of New Zealand’s financial system, the RBNZ noted that the local banks and their Australian parents had “withstood the crisis better than most” overseas, although they remained overly dependent on offshore money markets and asset quality had deteriorated as reflected in recent results.
However, Deputy Governor and head of financial stability Grant Spencer said the non-bank finance sector, “remains under pressure”.
“Strains are particularly evident in the deposit taking finance company sector where a substantial number of companies are in moratorium or receivership.”
The RBNZ said the same underlying economic issues that were driving surviving finance companies to the wall were also negatively affecting those companies that have secured moratoriums from investors, already driving one into receivership.
The comments come just a day after Hanover Finance said ongoing property market weakness meant it would be unable to make full repayment to debenture investors, as forecast when it sought their approval for a moratorium last year.
READ MORE
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For those consumers who can no longer to afford minimum credit card payments, Ethan Ewing, president of Bills.com offers tips to help consumers understand their odebt relief ptions for help, including: “Now that credit card reform legislation has passed, it’s a great time for consumers to take control of their debt,” said Ewing . “To do so, consumers need to understand the available debt relief options.”
Debt settlement. A debt settlement company works on consumers’ behalf to lower principal balances due, often obtaining savings of 50 percent of the total debt. The firm does not make monthly payments to creditors, but rather negotiates with the consumer’s creditors while the consumer accumulates funds for the settlement. Debt settlement firms charge consumers a fee for their services, typically a percentage of the debt enrolled or a percentage of the debt reduced.
Consumers who persist with a debt settlement plan can resolve their debts in two to three years at significantly lower cost than that of a debt management plan. Debt settlement typically provides better repayment terms than a Chapter 13 bankruptcy filing and does not leave a permanent bankruptcy judgment on one’s record.
Debt settlement may have a negative impact on credit ratings and profiles and is best suited for consumers in serious financial hardship who cannot afford to make minimum payments on bills and who cannot afford the higher monthly obligation typical debt management programs require.
Debt management. Debt management companies, also known as credit counseling agencies, maintain pre-arranged agreements with credit card companies to lower interest rates on a consumer’s existing debt to a creditor-issued “concession rate.” Debt management companies collect a monthly fee from consumers, as well as revenue from the credit card companies called “Fair Share” payments.
In debt management plans, monthly payments decrease, but principal amounts owed do not. Consumers who are able to continue with the payment plans typically can pay off debt in approximately five years. Debt management plans also require higher monthly payments than debt settlement programs, and are best suited for individuals who are facing a less-severe financial hardship than a typical debt settlement customer.
Bankruptcy. Bankruptcy Attorneys concur that BK’s can leave a severe negative impact on a filer’s credit rating for many years. Credit repair is not as easy as some debt counselors may lead you to believe. Under bankruptcy reform enacted in 2005, it is harder and more expensive to obtain than it used to be. Under the new law, fewer people can eliminate most consumer debt by filing Chapter 7 bankruptcy, taking more people to Chapter 13 filings. Chapter 13 requires consumers to pay back debt on a repayment plan (which can take up to five years), while still suffering the negative repercussions of a bankruptcy on their credit reports and public records. Generally considered a last resort, consumers considering a bankruptcy filing should speak to a bankruptcy attorney licensed in their state.
Read the complete press release online at http://www.emediawire.com/releases/debt/credit/prweb2493574.htm
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Americans continue to hold back on credit card spending as banks slash lines of credit and charge off card accounts at a record pace. The Federal Reserve reported another large dip in consumer credit for September.
The Fed said late Friday that overall consumer credit in the U.S. contracted at an annual rate of 7.2 percent in September, or by a total of $14.8 billion. Analysts had a contraction closer to $10 billion.
September marked the eighth straight month of consumer credit declines.
Credit card debt, called revolving debt in the Fed’s report, led the way once again. Revolving debt fell at a 13.3 percent annual rate or by $9.9 billion to $889 billion. The Fed slightly revised upward the reading from August to reflect an identical 13.3 percent annual contraction rate.
Since September 2008, Americans have shed $86.2 billion in credit card debt. Although many credit consumers restrained card spending, much of the mathematical credit for the plunge can be given to soaring charge off rates at banks.
The Fed said that the annual rate of decline for revolving credit was 10.0 percent in the third quarter of 2009. In the first and second quarters of the year, the annualized rate of decline was 9.6 percent and 9.7 percent, respectively.
Nonrevolving consumer credit – like that found in auto, student or personal loans — dropped at an annual rate of 3.7 percent in September, or nearly $15 billion.
Total consumer credit outstanding in the U.S. stood at $2.455 trillion at the end of September, down from its all-time high of $2.581 trillion in July 2008. The Fed’s report does not include debt backed by real estate
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MADISON, Wis.— Concerned about proposed federal rules that would effectively eliminate its industry, The Association of Settlement Companies (TASC) recently provided the Federal Trade Commission data that supports the value of debt settlement to consumers in response to the agency’s proposed changes to the Telemarketing Sales Rule (TSR).
The FTC is seeking to create amendments—including a ban of advance fees—that would effectively eliminate a viable option for consumers who are struggling with unsecured debt. TASC outlined in a brief historical performance data that clearly illustrates the economic value its member companies deliver to consumers enrolled in debt settlement programs.
For example, based on a recent data analysis of its members, TASC estimates its members settled more than 94,000 accounts representing more than $553 million in debt in the first 6 months of 2009. This is an annual rate of more $1.1 billion in debt settled by TASC members for just 2009.
“We firmly believe that debt settlement should remain an option for those tens of thousands of consumers each year who choose debt settlement as their preferred—and often only available—program to handle their financial situation,” Chris Kesterson, President of TASC, said. “In our response to the FTC, we clearly demonstrate the value consumers receive from our companies who work diligently on their behalf each day to negotiate settlements with creditors.”
TASC is the leading trade group of the debt settlement industry. The cornerstone of TASC’s mission as an organization has always been to promote fair legislation at the state and federal level designed to protect the consumer and to promote best practices of operations by its members.
Without advance fees, debt settlement companies would have to work for free for the duration of the settlement process, which typically takes three years. No company in any industry could accept this, Kesterson pointed out.
“We look forward to working with the FTC in exploring appropriate and comprehensive ways to regulate the entire debt settlement industry, rather than only one segment,” Kesterson said
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Members of the Commercial Collection Agency Association of the Commercial Law League of America reported that for the twelve months ending in September 2009 compared to the same period in 2008, account placement rose by about twenty-eight (28) percent, reaching $17,286,448,679 in the dollars placed for collection.
Emil Hartleb, Executive Director of CCAA stated, “This is a record account placement but there are signs on the horizon that indicate that the delinquency situation with trade receivables might be stabilizing. The gain in account placement for the third quarter of 2009, compared to the third quarter in 2008, was about 12%. This is still a strong showing but significantly less than the gains registered in the fourth quarter of 2008 and the first and second quarters of 2009 compared to the same quarters in the previous year.” Those quarterly gains were: Fourth Quarter 2008 – 25.4%, First Quarter 2009 – 38.4% and Second Quarter 2009 – 39.5%.
Hartleb further stated, “The third quarter of 2009 when compared to second quarter of 2009 showed a decline in placement of about eleven (11) percent. This reflects to a certain degree the seasonality of the data but it also reflects, we believe, stabilization in the past-due accounts that many companies were carrying in their accounts receivable portfolios. Much of these delinquencies have been placed for collection or payment plans have been negotiated with them. This coupled with a lackluster sales environment for many companies makes a continuation of future very strong account placement questionable.”
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The recession may be over but figures released by transtasman debt collection agency Baycorp show its impact is still hitting profit and loss accounts nationwide.
Debt referred to Baycorp, which holds 35 per cent of the market, has been increasing since mid-2007 and is now at its highest level since 2002.
At the same time, the cash collected from debtors has been on a steady decline since mid-2006 and is now at its lowest level since January 2001.
Fewer than four in 10 people who owe money actually stick to the payments they have promised.
Baycorp chief executive Geoff Harper says: “The willingness to pay is almost unchanged. What has changed is people’s ability to pay – this has reduced.”
Debtors are more likely to seek a payment arrangement than pay their debt in full, and the average payment has declined 25 per cent. “People are paying less and taking longer to repay,” Harper says.
There has been a 49 per cent increase in the average amount owed since 2006, and a marked increase in commercial collection referrals. Read More
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An Auckland woman has been lumbered with a $320,000 debt after she claimed she was conned into buying a house at an over-inflated price.
Helen Rutherford bought the house in Meadowbank for $300,000 more than its worth.
Rutherford was taken to the High Court at Auckland by ANZ National over a loan for the house, and lost.
She told the court she agreed to buy 50 Temple St in Meadowbank on April 5, 2007, from Vijay Enterprises for $850,000.
She said she did not know the house was worth only $550,000.
Real estate agent Philip Cavanagh arranged an $800,000 loan so she could buy the house from his associate Raghu Aryasomayajula.
However, Cavanagh has since been declared bankrupt, leaving ANZ National to chase the money from Rutherford.
The bank pre-approved a loan of $427,000 to Rutherford, whose income was $50,000 a year. Days later she and Cavanagh – then an agent for Barfoot and Thompson Mt Albert – applied to the bank for the $800,000 loan. Read MORE
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A primary school’s chocolate fundraiser turned into a debt-collection exercise after parents failed to cough up around $3000.
Birkenhead Primary School’s Parent Teachers Association raised funds by giving pupils boxes of chocolate bars to sell at $2 a bar.
But at the end of the fundraising stint, the Auckland school was $3000 out of pocket, and had to start chasing up parents.
Former PTA chair Vicki Vachias said the association still finished around $600-$700 short. “Most of it came in, a little bit didn’t.”
Vachias said the PTA put the loss down to the recession.
“We just wrote it off as a sign of the times. We just wrote that off as being what happens with some families.”
The event raised about $5500 for the school despite the shortfall.
Principal Nigel Bioletti said the PTA has been active in raising money for the school for a number of years.
“I would think that they would do it again but perhaps there’s a lesson to be learned here. At any school you’re going to have parents that don’t return things. READ MORE
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WASHINGTON — In the often murky waters of the debt collection industry, United Recovery Systems in Houston is considered a “whale hunter.”
In its search for clients, United isn’t looking for mom-and-pop businesses with a few hundred deadbeat customers. It wants bigger fish.
Its client roster includes national banks, international credit card issuers and domestic and foreign auto finance giants, each of whom count on United to make good on their bad accounts.
In the current economic climate, the “whales” are virtually jumping out of the water and into United’s boat. The company is taking in $937 million a month in new accounts, compared with about $550 million a month last year, said United’s marketing director, Sean Keegan.
After beginning the year with 1,200 debt collectors, United has added 300 and will add another 300 by year’s end.
“The volume was so huge that we had to run out and hire collectors,” Keegan said. “I can’t put 5,000 accounts in this guy’s file box for him to work this month. I have to go hire new people.”
United’s growth spurt isn’t an aberration. Across the country, dozens of established collection agencies are expanding their operations and hiring collectors, managers and support staff to keep up with the rising tide of bad debt due to massive job losses.
As real estate values fall, homeowners can no longer tap their home equity to pay down debt. So antsy creditors are farming out more problem accounts to collectors after declaring them as charge-offs, or losses.
With billions of dollars outstanding on millions of past due accounts, creditors want their money now and collection agencies with a track record of success are cashing in. READ MORE
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New Zealand debt forecast for the future
•Treasury estimates showed that without policy changes, gross government debt would rise alarmingly, reaching 48 per cent of GDP by 2013 and 70 per cent of GDP – or about $227 billion – by 2023.
•That level of debt equates to just over $45,000 for every New Zealander. Put another way, it would represent $180,000 of government debt for every family of four – equivalent to a second mortgage on their home.
•Paying interest on that debt would have cost the Government $13.7 billion a year – more than is currently spent on the public health system.
•Debt last peaked at more than 70 per cent of GDP in the 1980s and it took almost 20 years of tough decisions to bring it back to prudent levels.
New Zealands national debt is forecast to reach a maximum of 43 per cent of GDP in 2016/17 and to reduce to about 37 per cent in 2022/23.
The previous net debt indicator is around 2.5 per cent of GDP and the new net debt indicator is around 9 per cent of GDP. Over time, the difference between gross debt and the new net debt indicator narrows because debt is rising faster than financial assets.
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NZ Herald reports
Who will mourn the financial ruin of private property developers? Each week brings the fall of more members of this high-living, once-powerful band.
One day, it seems, they have the best clothes and are seen about town with the best-looking models, behind the wheels of the raciest cars.
Now they are crumbling under their creditors and even hocking their bling on the internet.
This week, Starline Group’s Jamie Peters announced his bankruptcy after putting his name to about $1 billion worth of development work.
He’s the developer who was selling his belongings on the internet a while back, including Cartier and Rolex watches, furniture and even his garden palms.
Peters estimated he had sold more than 1500 properties, starting in 1994 on residential work, buying and selling residential units then moving on to bigger commercial jobs and eventually developing part of Gulf Harbour, Quay Park and big Auckland office blocks.
“I am a proud man and did not want to become bankrupt. I have not run away from my problems. I have dealt with almost every funder face to face over the last two years and with most of them we have resolved the issues,” Peters says.
But he could not resolve problems with funder Bank of Scotland International, nor repay $100 million in loans.
Peters is not alone.
Princes Wharf’s David Henderson of Kitchener Group has Inland Revenue lodging a bankruptcy application against him in the High Court at Auckland for $3.5 million.
Christchurch’s David Henderson – also a developer – has had three of his companies put into liquidation. Others are in receivership and the 31ha $1 billion Five Mile project at Frankton Flats outside Queenstown lies barren.
Mark Bryers, former Blue Chip boss, went bankrupt this month and to add to the misery of this sorry tale, two Blue Chip investors lost their High Court case last week.
Nigel McKenna of Melview Group has two companies in receivership, failed to proceed with Flat Bush in Auckland and has scaled back work.
Greenlane’s Neville Mahon has trouble at the Fiji Beach Resort & Spa managed by Hilton. Last month, his Denarau Investments and Denarau International went into receivership. Investors who own apartments there are working with receivers KordaMentha.
Patrick Fontein’s Kensington Park went to KordaMentha for a time, then rich industrial developer John Sax bought it. He plans to finish the Orewa housing project but in a scaled-back format.
Korean developer Dae Ju wanted to build a $450 million 67-level Elliott apartment tower almost up to the Sky Tower. It was planned to be ready before the 2011 Rugby World Cup.
Asked about progress, New Zealand representative and lawyer Marcus Beveridge this week responded: “No building yet, busy trying to get projects out of the ground.” READ MORE
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New Zealand Herald reports:
Influential property developer Jamie Peters is bankrupt.
The ex-NBR Rich List Aucklander, who is related to Winston Peters and says he has bought and sold real estate worth more than $1 billion, was declared bankrupt in the Auckland High Court after an application was filed by Marac Finance.
Marac was seeking $3 million in outstanding debt.
But yesterday, Peters said a $100 million debt brought him down.
Peters appeared on the Rich List in 2005 with $40 million and in 2006 with $45 million. His Starline Group was involved in large developments around Auckland’s CBD, in Wellington and on northern waterfront land.
“I am exposed to personal liability for debts in excess of $100 million as a direct function of the current global credit crisis which I simply do not have the ability to repay,” Peters said yesterday.
“This issue has similarly affected other individuals involved in development, as well as large organisations such as my primary funder Bank of Scotland International [BOSI].” Read more
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WASHINGTON – Continued job losses, shorter work weeks and falling incomes are being cited as major factors in another record rate of consumer delinquencies in the second quarter of 2009, according to the American Bankers Association’s Consumer Credit Delinquency Bulletin. Delinquency rates hit record quarterly highs in three key loan categories: home equity loans, home equity lines of credit, and bank cards. The composite ratio, which tracks eight closed-end installment loan categories, also hit a record high at 3.35 percent of all accounts (seasonally adjusted) compared to 3.23 percent of all accounts in the previous quarter. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.
ABA Chief Economist James Chessen said the high consumer credit delinquency rates represent the cumulative effect of the longest recession since the Great Depression.
“Six consecutive quarters of job losses have taken their toll,” Chessen said. “With jobs lost and work hours cut, it doesn’t take long for the financial pressure to become overwhelming. Falling behind on debt payments is an unfortunate side effect of high unemployment and a frozen job market. The picture won’t change until the labor market improves and the economy picks up steam. This is going to take time,” Chessen added.
Bank card delinquencies rose 26 basis points to a record 5.01 percent of all accounts. Record delinquency rates occurred in home equity loans – up 49 basis points to 4.01 percent of all accounts – and in home equity lines of credit – up three basis points to 1.92 percent of all accounts.
Auto loans, however, saw improvement. Direct auto loan delinquencies fell 55 basis points to 2.46 percent of all accounts and indirect auto loan delinquencies (arranged through auto dealers) dropped to 3.26 percent of all accounts from 3.42 percent in the previous quarter.
“The good news is that consumers are clearly being more cautious by saving more, spending less and making great efforts to repair their balance sheets,” Chessen said.
The second quarter composite ratio is made up of the following closed-end loans. All figures are seasonally adjusted based upon the number of accounts.
Increased Delinquencies:
Home equity loan delinquencies rose from 3.52 percent to 4.01 percent.
Marine loan delinquencies rose from 2.04 percent to 2.28 percent.
Personal loan delinquencies rose from 3.47 percent to 3.90 percent.
Property improvement loan delinquencies rose from 1.46 percent to 1.79 percent.
RV loan delinquencies rose from 1.52 percent to 1.72 percent.
Decreased Delinquencies:
Direct auto loan delinquencies fell from 3.01 percent to 2.46 percent.
Indirect auto loan delinquencies fell from 3.42 percent to 3.26 percent.
Mobile home loan delinquencies fell from 3.70 percent to 3.53 percent.
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Orlando, FL — The Federal Reserve reported recently that consumers cut debt by a record $21.6 billion in July 2009, an indicator, in part, that Americans are becoming more aware of their personal finances and concerned about their long-term financial stability. The news prompted Etta Money, president of InCharge® Debt Solutions (IDS) to comment, “We hope the great news from the Fed will translate into a trend in which consumers commit more of their resources to paying off their debts and become more focused on money management.”
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NZ Herald reports
Queenstown developer Rod Nielsen’s business practices should be restricted and he must bear responsibility for commercial irresponsibility, says the High Court.
After declaring him bankrupt over a $14.5 million debt owed to failed finance company Bridgecorp, Justice Paul Heath, in the High Court at Auckland, criticised Nielsen’s “speculative” business attitude, The Dominion Post reported.
Nielsen, who now lives in Las Vegas, originally borrowed $7.5m from Bridgecorp in 2005 to fund the Lake Esplanade development in Queenstown, which was never completed.
Nielsen operated a speculative business in good financial times but did not make adequate provision to deal with any adverse financial conditions, Justice Heath said.
“Property developers cannot do business on the basis that the market will always be buoyant. Mr Nielsen must take responsibility for being, at best, imprudent or, at worst, commercially irresponsible.”
Bridgecorp secured a judgment against the developer in mid-2008 for $13.7m owing but Justice Heath felt Nielsen had “made no real efforts to settle”. Read more
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Every debt is different, circumstances behind it as are the debtors themselves. Before approaching an agency or NZ blacklist, have a look at the following advice and see if you can achieve collection without having to use a collection service.
PREPARE: Review the paperwork on the debtor before making the call. Know the history of the account, credit record, the promises kept/broken. Have all records in front of you, ready for reference.
ATTITUDE: Adopt a straight, professional business-like attitude. You have a contract, you delivered the goods, money is owed, and you have a right to expect payment. Never let it become personal. Don´t yell or raise your voice; and NEVER swear. Don´t threaten; legal action is your recourse.
CONTACT: Make sure you´re talking to the right person. Don´t let the individual brush you off with “You´ll have to talk to the bookkeeper.” Identify the person who will pay the bill. If you can´t get through after several calls, tell the secretary that you know your calls are being screened. Indicate the purpose of your call and if necessary give deadlines.
CONTROL: Control the conversation. Keep it focused on the debt and on the repayment schedule. Don´t let the customer sidetrack you with personal history, excuses, etc. Remember, the object of your call is to collect money, or get a commitment, not to become buddies with the customer or win arguments.
FLEXIBLE: Be ready to adjust to the situation. Think about the kind of customer you´re dealing with and adapt to meet the circumstances. Be prepared to accept a reasonable payment schedule, and a willingness to deal with a customer´s circumstances.
NOTES: Keep detailed, accurate notes of every contact with the customer. Probe for further information on the customer. Notes of these contacts will help you in subsequent phone calls, and may be invaluable in litigation. Good notes will also help in further credit decisions, or in cases where skip tracing may be needed.
PRODUCTIVE: Keep contact brief and to the point. This is a business call, not a social one. View your efforts on a ratio of time expended to results achieved. Long conversations probably mean the customer is stalling you, or trapping you in the buddy syndrome.
PRECISE: Never leave a contact open ended, such as “We´ll talk next week,” or “I´ll send what I can.” Every contact should result in a commitment to payment, of a specific amount, by a specific date, even the check number the customer is using to pay the pledge.
TIME: The longer an account is held, the less likely it is that it will be recovered. If payment or a payout is not arranged within 60 days, place the claim with NZ Blacklist or start legal proceedings.
PLACEMENT: Contact NZ Blacklist and start your road to successful debt collection
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ROME — Here’s another of the Mafia’s trademark offers-you-can’t-refuse, pay or be eaten by a crocodile.
Italy’s anti-Mafia police unit said Wednesday (local time), that it had seized a crocodile used by an alleged Naples mob boss to intimidate local businessmen from whom he demanded protection money.
Officers searching for weapons in the man’s home outside the southern Italian city last week found the crocodile living on his terrace, said police official Sergio Di Mauro.
The crocodile, weighing 40 kilograms and 1.7 metres long, was fed a diet of live rabbits and mice, Di Mauro said.
He said the suspect, an alleged boss in the Naples-based Camorra crime syndicate, used to invite extortion victims to his home and threaten to set the animal on them if they didn’t pay or grant him favours.
The man was not arrested but placed under investigation for illegal possession of an animal, Di Mauro said.
Investigators are also working on extortion charges against him.
Di Mauro said the animal is believed to be a caiman, a species that lives in Central and South America, and it is not yet clear how it got to Italy.
The crocodile was placed in the care of Italy’s forestry service.
- AP
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