FAQs
Frequently Asked Questions
Below you will find some of our most Frequently Asked Questions about our debt collection services. If there is something else you would like to ask then don’t hesitate to get in touch and we will get back to you as soon as possible.
Can you take a debtor to Court?
Yes. When it comes to debt recovery, legal action is a common occurrence. We orchestrate the legal process in collaboration with our partnered law firm. The prospect of legal action is often suggested when all standard collection attempts have been exhausted.
Is Debt Collection only for large debts?
No. The Australian economy is largely comprised of small to medium enterprises, so it is expected that transaction volumes are also derived of small and medium amounts. We often service clients who refer debts ranging from a few hundred dollars right through to many thousands of dollars. No matter the size of your business, Bluechip Collections can assist.
I have debtors all over Australia. Do you recover from debtors in several States?
Yes. We have the ability and resources to recover debts from all over Australia.
Debt Collection Agency vs Lawyer – which is better?
Why not have both? Bluechip Collections has a strategic process that involves our partnered law firm. Our business model was designed so our clients can enjoy the best of both worlds whilst ensuring costs are kept reasonable. It’s truly a premium service without the premium price tag.
Will I lose my client if I send them to a Debt Collection Agency?
The risk of losing a client is a topic that is often considered and conceptualised prior to us making the initial contact. Our conduct will always remain professional, and our best efforts to maintain an amicable dialogue will be implemented throughout the entire process. In most cases there will be no major concern of losing the debtor as a client. Ultimately, we are an extension of your finance department and therefore we understand that brand preservation is of utmost priority.
What can Debt Collectors do?
This is a complex question, but it can be best summarised as follows:
1. Contact you by phone, text message, via email, or by mail.
2. Commence legal proceedings and obtain a judgment against you.
3. Take enforcement against you.
4. Affect your credit rating.
5. Initiate Bankruptcy Proceedings or Wind Up your Company.
Is debt collection only for when the debt is aged?
No. The data is clear on this – the earlier you refer the debt to us, the better chance we have of collecting the money. The probability of a successful recovery significantly diminishes with age.
How much do you charge?
You can find our Schedule of Fees HERE – https://bluechipcollections.com.au/fees/
What happens if I ignore a Debt Collector?
Ignoring a Debt Collector can prove to be a significant mistake. Debt Collectors will make reasonable efforts to finalise the matter with you amicably. However, in most cases, the debt will not simply disappear if you ignore them.
Debt Collectors can:
1. Contact you by phone, text message, via email, or by mail.
2. Commence legal proceedings and obtain a judgment against you.
3. Take enforcement against you.
4. Affect your credit rating.
5. Initiate Bankruptcy Proceedings or Wind Up your Company.
When will Debt Collectors give up?
This question contains many variables, so it is best considered on a case-by-case basis. Ultimately, a decision is derived by considering the commerciality to proceed and a risk vs reward analysis.
I have received a Demand from a Debt Collection Agency. What should I Do?
We strongly recommend that you carefully follow the instructions on the letter. Do not ignore the correspondence in the hope that the matter disappears. Even if you dispute the debt, you should still contact the Debt Collection Agency to discuss your position and substantiate the reasons for dispute. If you are experiencing hardship due to financial or medical reasons, you will likely be eligible for a moratorium or other remedy, providing you following the procedure in place.