If you want to locate a party who has ‘disappeared’, then there are several ways this can be achieved. Finding a person will depend on how consistent you are in following up leads.
Most importantly, think outside the circle.
Don’t stop asking questions.
You get more with honey than with vinegar.
Here’s what to do…
Use the credit application
Using the credit application that your debtor filled in, proceed to phone all the contacts on the application. But do not discuss that this is a debt collection matter as you will find that the contacts often clam up. Plus, it’s a breach of the privacy act. If asked, just state that this is an important private matter that you can only discuss with the person you’re looking for.
Search the internet
One way to find people these days is to simply Google their name or input their name into social media platforms such as Facebook, Snapchat and Tinder.
Contact other businesses
Ring around the other establishments that you know your debtor has dealt with. Often, they too are looking for your debtor and may be willing to share information with you.
Contact their previous employer
If the debtor you’re chasing is a person, not a business, then contact their previous place of work. Ask if they know your debtor’s whereabouts, where they may be working now, ask to speak to someone whom the debtor spent a lot of time with, or the section they work in, as they will have more information than the receptionist on the phone. We nearly all have someone close at work that we lunch with and spend time with after hours. This is the person you want to reach.
What to do once you have the debtor’s details
If you obtained the debtors home address, or already have the home address, then pay them a visit to the home. If they’ve moved, ask the neighbours if they know where the debtor has moved to.
Ask the people living in the home, “Where are you forwarding the mail to,” and “Are you renting this home or did your purchase it”. If they’re renting, find out from whom, as that might be the same real estate agent that the debtor was renting through.
Also ask the residents whether other people have contacted them to find out details on your debtor. If so, find out whom and contact them. Again, offer to share information.
A word of caution… do not bully anyone for information. If they don’t want to help you, then they don’t have to. If you present with a pleasant attitude and a smile, more people will be willing to help as they will feel comfortable and will often be forthcoming with the information you require.
Also, pay a visit to the debtor’s business address and ask the same questions as you would at the home address. Be aware that you should not discuss this as a debt. Be sensible about this as this is another person’s place of business. And if you’re asked to leave, then do so.
If they have moved their business, ask the neighbours whether they noticed the name of the business on the moving van. Was there anyone in the street they were particularly friendly with who might now where they have gone?
Still no luck? Contact the Department of Land Administration and ask for a title search on the debtors. This should cost approximately $20.00 and will tell you whether your debtor owns other properties. If so, then you can contact the people at those addresses and ask them where they direct their rent. By doing this, you’ll find a constant source of contact for your debtors, as they will always keep in contact with someone who owes them money. This search will also tell you of any properties that your debtor may have recently purchased and as such could be where he is residing now.
Was the person you were dealing with a company (i.e. a Pty Ltd) or just a business? Using this information, you can contact the relevant government agencies for their type of holding. Find out whether the company or business is still registered, or if they have notified the government of a Change of Registered Particulars, which just means they’ve changed their address or name. Ask for details pertaining to other owners or directors. If they’re a company, ask for the address of the registered office. The company’s accountant is often located at the registered office and they would be aware of the debtor’s financial position and contact details. Be aware, though, that there may be a small charge for these searches.
The relevant holdings are as follows:
A company is held with the Australian Securities Commission. Their contact number is 08 9261 4200 and their website is www.asic.wa.gov.au.
A business name is held with the Department of Consumer Employment Protection. Their contact number is 08 9282 0777 and their website is www.docep.wa.gov.au.
Do NOT attempt any of the following
There are some things you’re NOT legally allowed to do in the pursuit of a debt:
- You cannot employ bikers to go and pay the debtor a visit.
- You cannot ring after 9pm or before 7.30am.
- You cannot go onto the debtor’s premises to remove the goods or work that you carried out.
- You cannot threaten them with a 4 x 2 block of wood.
- You cannot divulge information to a third person about the debt.
- You cannot demand the money out of the person’s salary from their employee.
- You cannot place an advertisement in the paper telling everyone the debtor owes you money.
- You cannot place a returned cheque on the wall or in view of your business for all to see (Yes, this was really popular years ago).
- You cannot make a person believe that if they do not pay you’ll pursue criminal charges for the alleged criminal activity they may have done nor tell them if they pay you will not go to the police. This is extortion.
- You may legally have to continue to trade with your debtor if they do not pay their outstanding account, this is under some extreme circumstances.
- You cannot ask a police officer friend to pay a visit in their uniform to “scare” debtors into payment.
Also, read more about Debt Reduction Letters.
