Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia This is the prescribed textbook for your course. Available NOW at your campus bookstore!
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Debt recovery Chapter 16
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 16-2 Definitions Debtors: Those people who owe money to others. Creditors: Those people who are owed money.
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 16-3 Creditworthiness check Proof of identity of applicant - Name - Address - Assets and liabilities - Employment status If company: - Name of Directors - Address of Directors - Paid-up capital of company Credit references Confirm ownership of property
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 16-4 Credit policy Credit policy should be notified to debtor. e.g. When payment is due Acceptable methods of payment Interest charges for late payments
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 16-5 Punctual payment Incentives to encourage punctual payment of debts: Discount for early payment Credit charge for late payment Notification of overdue accounts - account rendered sent - personal phone call
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 16-6 Debt collection process ACCOUNT RENDERED (for unpaid account) LETTER OF DEMAND Details of debt Date debt incurred Debt Collection Specify date payment to be made Agency Specify legal proceedings will result PAYMENTNegotiation or LEGAL MADE Mediation or PROCEEDINGS Arbitration COURT ISSUES SUMMONS AFFIDAVIT OF SERVICE OF Particulars of claim: SERVICE SUMMONS Names - plaintiff and defendant Proof of service Given to Addresses - plaintiff and defendant of Summons Defendant Details plaintiff’s claim
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 16-7 Defendant - possible responses Service of Summons Agrees to Pay Agrees to Pay Through in Lump Sum in instalments Court Dispute Claim via Judgement Against Filing Defence Defendant (Judgement in Default) For Defendant For Plaintiff Judgement Finish Plaintiff - Judgement Creditor Defendant - Judgement Debtor
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 16-8 Enforcement of the judgement ENFORCE THE JUDGEMENT EXAMINATION SUMMONS/ORAL EXAMINATION Ability of debtor to pay is examined INSTALMENT EXECUTION BANKRUPTCY ORDER AGAINST GOODS PROCEEDINGS Payment by Seizing goods of debtor and Debt > $2000 instalment. selling to satisfy amount owing GARNISHEE ORDER EXECUTION Paid on behalf of debtor AGAINST LAND by employee or bank Sell land owned by (ATTACHMENT OF debtor at public auction EARNINGS ORDER)
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 16-9 Unacceptable behaviour when collecting debts Consumer Credit Code Prevents debt collector from entering residential property to repossess goods. State Trading Acts Prohibits the use of physical force or undue harassment or coercion. Trade Practices Act 1974 (Cwlth) Prohibits the use of physical force or undue harassment or coercion by corporations.