Questions &  Answers

To assist you in understanding our debt collection service, AFM lists the most commonly asked questions and our responses.

 

Q. How does AFM collect the debt and how long does it take?

A. Initially we forward a letter of demand or contact the debtor immediately seeking payment.

This is followed up by telephone calls or field visit.

We seek a payment, which will satisfy the debt in full or an arrangement acceptable to you for the debtor to pay by instalments.

Where a repayment arrangement is agreed to this will be documented in an executed Deed of Repayment.

Where the debt is subject to dispute, we will mediate on your behalf to obtain the best result for you.

 

Q. What can be done if the debtor refuses to pay?

A. We would make the debtor aware of the consequences of you instituting legal proceedings for recovery including the costs and a listing with credit reporting agencies as a defaulter.

The listing of an unsatisfied debt can have an adverse effect on the credit rating of a debtor and future applications made for credit.

As debt collection is the core business of AFM it must achieve a high success rate to remain in business.

 

Q. Am I/we liable for any charges or fees? 

A. As a service to you, AFM will pursue the debt to its conclusion without any charge

for letters, telephone calls or visits to the debtor.

We will, however, charge you for any out of pocket costs, such as searches, at their cost to AFM.

AFM will not commit you to any costs or actions without prior discussion and agreement

AFM acts as your agent and the ultimate decisions remain with you.

Where you authorise legal proceedings, AFM will not proceed until it has received payment for these outlays at the rates prescribed.

 

Q. If I proceed with legal action, can I recover the costs?

A. When judgment is entered, the amount recoverable is increased by the professional and Court costs as well as interest from the due date of the debt.

 

Q. Is AFM’s commission recoverable from the debtor?

A. These costs are recoverable where prior agreement is in place with the debtor.

AFM can provide you with suitable terms of trade and credit documentation to allow you to recover discounts, interest and collection costs from slow paying customers.

 

Q. What if I/we do not know the current address of the debtor?

A. AFM has the resources to trace debtors who abscond to avoid their debts and the cost of locating a debtor may be quite low.