COSTS AND DEBT COLLECTORS
Section 19 of Act 114 of 1998 (the Debt Collectors Act),
Which was promulgated on the 7 February 2003, provides that debt collectors are entitled to recover from debtors such “necessary expenses and fees prescribed by the minister (of justice) in the Gazette after consultation with the Council (for Debt Collectors.)”

The Act provides that NO PERSON may collect debts on behalf of any 3rd party unless he or she is registered with the Council for Debt Collectors.

Johnston and Partners are registered Debt Collectors.

THE PROBLEM:

“I lost at law but twice; once when I won a case and once when I lost a case.” Ben Johnson....... It is not salutary that a debtor who finds himself in financial difficulties will liquidate his indebtedness if legal action is instituted. The majority of judgments obtained against debtors in fact remain unsatisfied.

THE SOLUTION:

This problem of costs, which is inherently a part of litigation has been overcome by debt recovery agents collecting debts on a contingency basis.
The ineffectiveness of litigation has been overcome by employing skilled mediators to negotiate with debtors and to motivate them to pay their accounts.
The trick, when dealing with debtors, is to overcome objections without opposing them; to capture without setting a snare!
It is of course not possible to touch every debtor’s heart in the same way.
For this, and other reasons, the knowledge and skill of our staff is constantly being upgraded in order to enable them to consult with, and motivate debtors, from all walks of life, to pay their accounts.
Our firm prides itself as being on the cutting edge of innovation in this industry, and has introduced computer programs which greatly enhance the collection effort.

FIDELITY BOND INSURANCE
Notwithstanding the fact that the Debt Collectors Act,1998, does not make provision for recovery agents to have fidelity bond insurance, Johnston and Partners have, for the protection of it’s clients, obtained fidelity bond insurance.

TRUST ACCOUNT
In terms of section 20 of the Debt Collectors Act, 1998, every registered debt collector must operate a Trust Account and pay over to its clients monthly or as arranged or agreed between the debt collector and it’s clients, money held in trust on behalf of its clients.

ACCOUNTING
Johnston and Partners normally account by the 30th of the month following the month in which payment was made for all money collected on behalf of its clients.
In accounting, full details of payments received are disclosed; the statements reflect, inter alia, the date on which payment was made, the debtor’s name and account number and commission debited.

TERMS AND CONDITIONS FOR COLLECTING DEBTS
This is subject to negotiation and is dependent op such factors as the age of the account, the capital amounts involved and the volume of accounts.

In any event, collections are done on a contingency basis, i.e.-no collection –no charge.

The firm will only contract to collect debts where it is satisfied that it can perform to its own, and its clients expectations.

HOW WILL YOUR ACCOUNT BE HANDELED?
A team, the size of which will be proportionate to the number of accounts handed to us for collection, will concentrate on collecting your accounts.
A second, specialised team, will trace those debtors who have left the addresses supplied to us by yourselves.
The success or otherwise of tracing a debtor depends to a large extent on the information supplied to us by the credit granter.