Collection Com vs. Contingency Fees
Does your software separate the financial transactions of the debtor from the client effectively per file?
Contingency Commissions are different to Collection Commission. Charging contingency commission is only allowed if you deduct it from the amount owing to the Creditor . . . in other words: the Creditor pays for it.
These commissions can never be collected from the Debtor and doing so contravenes the National Credit Act, the Debt Collectors Act, the Magistrates Court Act and the Supreme Court Act; together with the rules of Codes of Conduct of all our Law Societies and the Debt Collectors Council.
Charging contingency commissions to the debtors account can be viewed as over-reaching and opens the lawyer and debt collector up to very serious penalties from their respective governing bodies.
Each software user has an obligation towards his or her own business to ensure that the software it employs deals with these aspects correctly. How sure are you that yours does?
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