What are the warning signals that a debtor isn’t going to pay and when do you know it’s time to send a debt across for collection?

The debtor promises payment on a specific date and it does not arrive.  We occasionally still hear excuses such as the cheque is lost in the mail!  They may also blame C-19 and say that their industry has been heavily affected.  They may continually ask for details to pay the account despite prior communication or their online banking and/or credit card were hacked are a good indication.

Their payments are declined when put through.

The debt suddenly becomes disputed after hearing other previous excuses and refuses to pay any or all of the debt.

The debtor ignores all communication whether it be by phone, email or mail. You may receive return to sender mail. 

You are hearing rumours from others in your industry that the debtor owes other people money. If you are a member of Creditor Watch you may be receiving Mercantile agency alerts, insolvency alerts or notices of court judgments with regards to this debtor.

At the commencement of engaging with the debtor, they may be reluctant to sign your Terms and Conditions or Personal Guarantees They may ask for payment on “their” terms which should be a red flag.