This process is designed to encourage a resolution of the debt within three months. If there is no resolution by then your collector will make a determination to continue the process for a further three months based on the likelihood of the debt being recoverable.

BCA Debt follows this process stringently to ensure that every possibility is explored to get the best outcome.  Further information is found in the client guide which outlines all the requirements of a successful debt collection.

Things to take into consideration

1. All steps here are performed at the collector's discretion and may not flow in the exact order; 
2. Some steps will organically be left out of the debt collection process as they are not always necessary.  
3. Debt collection is an emotionally-charged process and the collectors are trained to manage this emotion and perform accordingly.

Step 1 First contact

Once a debt is entered into the system, we make first contact via a letter of demand by email and a phone call using the contact information provided.

When the debtor responds there are three options.

1. The collector enters negotiations for the payment in full.
2. Or by payment arrangement.
3. Discusses any disputes or problems that have occurred with the product or service with the debtor.

If no response, the collector will move to step two.

Step 2 Debtor Contact

See ACCC/ASIC Debt Collection Guidelines. This is imperative reading as there are restrictions as to when and who a collector or creditor can implement the following procedures.

Contacts include:

1. Speaking to the debtor by phone.
2. Letters sent to the debtor (BCA Debt has a series of letters that are utilised after the Letter of Demand has been issued).
3. Emails.
4. SMS.
5. Phone messages.

A minimum of 6 contacts are made per month; if no contact is made a further 4 contacts are attempted.  No more than 10 contacts per month can be made. This is in accordance with the ACCC/ASIC Debt Collector’s Guidelines.

Step 3 Negotiations

Please refer to your client guide for information in regard to negotiated debts.  Also, see ACCC/ASIC Debt Collectors Guidelines in regards to providing information and documents to your collector when requested.  Failure to do so may constitute misleading and deceptive conduct.

1. Collectors negotiate with debtors in regard to the payment of debt.
2. Negotiate payment arrangements.
3. Discuss disputes with the debtor and the client to come to a resolution.
4. Negotiation of debt adjustments in cases where the client or debtor has made an offer. This will be discussed with the client.
5. Research and obtain evidence of any misconduct on either side to effect a resolution to the debt being finalised.
6. Follow the procedure for hardship. Customers who are in hardship are asked to provide us with documents that support this.

Step 4 Locating Persons

If the letter of demand is returned or the phones are disconnected the collectors then utilise paid, in-house databases and searching systems to locate the debtor. (This is a complimentary service)

1. We match all data supplied with information available within BCA Debt’s resources, telephones, addresses, related names and similar spelling.
2. Double-check details to confirm the spelling of addresses.
3. Confirm that the individual is not deceased or incarcerated.
4. Cross-reference between ABN & ASIC.

Step 5 Paid Skip Trace/Investigation:

Further information is sought in regard to the debtor such as business names, aliases, property ownership, partnerships, bankruptcy and insolvency.

Please note if paid searches are required there will be a minimum fee of $330.00 for skip tracing. Your collector will request this if it is agreed upon. with this step, we utilise a professional investigator and this will take place after 3 months of debt being on our database.

Step 6 Person/Field Call:

The Collector may recommend a Personal Call be issued to a debtor if they are not getting any response from them; they may need to verify the debtor’s current residential address or place of work for papers to be served. The personal call involves a Mercantile Agent making a visit to the nominated address of the debtor and handing them a letter of  NOTICE OF INTENTION TO SERVE A GENERAL PROCEDURES CLAIM. The agent is also given instructions on what to discuss with the debtor and demand payment on the account.

There is a fee for the client to pay to have this service and the collector will request this if it is agreed upon.

 

Legal Action or Write-Off:

Each debt is different and may require different actions. If the client agrees to proceed with the legal process, authorisation paperwork is required to be filled in and returned. If no legal action is required, the debt will be written off.

We only take debts through the legal process if they are over $10000 and we are confident they can be collected. There is also an additional fee and money will be requested to be held in trust.

Note: residential property debts for rentals are not included in the legal action process