• “Yes, of course! I will pay the account as soon as possible.” This is the classic delay strategy. The objective is to fool the creditor into thinking that they will pay the account momentarily. The truth is that, on this occasion, they have not provided the creditor with an exact date, and there will come a time where the debtor will have to be contacted again.
• “I have paid the account, it must not have reflected yet.” If the debtor has used this excuse more than once for a single invoice over the space of 30 days, then it is a clear and blatant lie. On the rare occasion that the bank is the guilty party, it is the debtor’s responsibility to pursue the issue with the bank.
• “I have not received an invoice yet.” Probably the most common excuse of the lot. The reason why this excuse is so well used is because it works. However, there are some tactics that can be used to avoid this problem. The first is by ensuring a receipt and ‘item read’ notification on your emails, or by having the debtor pick up a physical receipt from the post office.

In any event, if you believe that the debtor in question is delaying payment or without financing the invoice, ensure that you contact a debt collection agency. For commercial and larger debt issues, contacting a debt collection lawyer is often the best thing to do. If you are looking for an experienced and well-versed debt collection lawyer in South Africa, then make sure you contact Ivan Zartz Attorneys today!

The post The Most Common Excuses That Debtors Make appeared first on Ivan Zartz Attorneys.

Repetition Repetition 

A debt collection agency is likely to follow the exact same process as yourself; contacting the debtor telephonically and issuing letters of warning. If this has not resulted in payment, why would it be any different if a debt collection agency performs the exact same function? It would not only be a waste of money, but it would just prolong the issue. At the end of the day an agency will eventually make use of debt collection attorneys themselves.

Illogical Fear Of Courts 

Many people fear approaching a debt collection attorney because of the realisation of having to go to court. Most of the time the debt collection attorney will head all legal action, requiring little effort from the plaintiff. Aside from providing important information and making an appearance in court, all other duties will be undertaken by the debt collection attorney.

A Debt Collection Attorney Has More Power

By taking the matter to the court, the issue is resolved quickly, especially when using an experienced attorney. By enforcing the state’s hand in dealing with the matter, a final decision made in court will mean that the debtor will have to pay his/her dues or face harsh restrictive credit measures, fines or worse.

Costs 

The belief is that debt collection attorneys charge more than debt collection agencies. This is often true, but both parties will charge fees according to the length of the debt collection process, hourly rates and flat rates. Additionally, both agencies as well as attorneys are admissable to receiving a portion of the debt owed. Because the legal profession is so time dependent, it is in the attorney’s best interest to reach a conclusion with regards to the case as fast as possible, costing you or your business less.

Make sure that you contact a debt collection attorney as soon as a debtor shows signs of protracted nonpayment. Keep an eye on the Ivan Zartz Attorneys blog page where our next blog will highlight the signs that may signal your need for a debt collection attorney.

For the services of the best debt collection attorney in  South Africa, contact Ivan Zartz Attorneys today.

The post 4 Reasons Why A Debt Collection Attorney Is Better Than An Agency appeared first on Ivan Zartz Attorneys.

1. Attorneys who use threats of imprisonment 

This is a no-no within the industry, but it is shocking to realise the number of agencies and attorneys that use this dirty tactic. In a country like South Africa, people are genuinely fearful of the legal system, and will do anything to escape the clutches of the police; even if they are truly exempt from such treatment. An attorney may not use the threat of imprisonment.

2. Attorneys who constantly harass debtors 

Too many people are uneducated to the facts of what is considered harassment or not. To be clear, if an attorney repeatedly contacts you, calls you out of office hours, or contacts your place of work, this is considered harassment. If a debt collection attorney has to continually call you, then the chances are they do not understand their legal profession and the other measures of debt collection.

3. Attorneys who divulge your credit/debt history 

No one other than yourself, your creditor, your financial institution, your legal representative and the debt collection attorney or agency are allowed to know your credit status without your expressed permission. Any information divulged otherwise is illegal.

These tactics are commonly used to ‘squeeze’ money from the debtor. Make sure you understand what debt collection attorneys are allowed and not allowed to do. Alternatively, isn’t it time you used a debt collection attorney who understands the industry to head your unresolved cases of debt collection?

Contact Ivan Zartz Attorneys today for a debt collection attorney who can follow up on your debtors legally and effectively.

The post 3 Things A Debt Collection Attorney Cannot Do appeared first on Ivan Zartz Attorneys.

Mistaken Payment 

When a payment is made by mistake to an organisation or individual the process that happens most often is a form of unofficial mediation whereby the party who has made the mistaken payment approaches the payee. Often, and when providing evidence of a mistake, the payee will likely return the money to the benefactor. However, what happens when the payee refuses to make a repayment?

Condictio Indebiti

A case of condictio indebiti debt collection is different from a normal case of debt collection. Debt collection follows when somebody has rendered a product or service and has not received payment. With the case of a mistaken payment, the debt collection process (in the event that the defendant in a litigated case is not willing to repay) needs to be carried out when certain requirements are met. These requirements are:

• That the defendant has received a particular amount of money
• That the plaintiff has paid that particular amount of money
• That there is an adverse effect of causality between the two parties (the defendant benefits where the plaintiff suffers)
• The payment has to have been made by a mistake or without an actual legal reason for payment
• And lastly, that the error on the part of the plaintiff was excusable

When all of the above conditions have been met, and there is no way in which common law for particular cases has been challenged, the payee (defendant)  is responsible for paying back monies owed.

Although not a case of debt collection, the similarities between cases of debt collection and condictio indebiti often mean that debt collection attorneys are more than experienced enough to assist clients in this regard.

To find out more about our strict measures of debt collection contact Ivan Zartz Attorneys today.

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Sale In Execution Of An Unpaid Home Loan

When the new property owner has not paid the bond or home loan, efforts will be made to enter some sort of financial agreement with the homeowner, often in the presence of legal representatives. After multiple instances of notification, it falls on the bank to sell the house on the market through the sheriff of the court. This can only be done through a court order, a cumulation of decisions made in court, and justified by the financial capacity (or lack thereof) of the individual.

The sale of the house is usually done by an auctioneer, and the auction itself would have been advertised in both the Government Gazette as well as print media. The price at which the house is sold by the auctioneer cannot be denied by the bank, as the property is strictly not their own. Often houses are sold well below their market value due to the nature of the sale.

Legal Opposition To Sale In Execution

There have been recent cases whereby individuals and organisations have challenged the sale in execution. A recent case involved the Lawyers for Human Rights (LHR) where they challenged the courts, believing that the sale of a particular individual’s home far below the market value, as an infringement on the individual’s rights. Some properties are sold for less than the amount owed by the homeowner towards the bank loan or bond. This often means they have to pay additional fees or risk being ‘blacklisted’.

If you require more information on issues regarding property law, sectional title law or debt collection, make sure you contact Ivan Zartz Attorneys today.

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The South African courts have gone a long way in promoting mediation as an alternative form of dispute resolution between parties, especially regarding commercial interests. Arbitration allows parties to formally settle disputes in private (where the arbitration does not include the state), saving businesses a lot of money that would otherwise be spent on legal fees. Additionally, arbitration reduces the pressure that courts and legal professionals experience in alleviating the vast number of commercial dispute resolution cases.

Old Arbitral Procedures

International arbitral procedures, alternatively, has always been an issue within the profession. This is because cases of international arbitration fell within the limits of the outdated Arbitration Act, No 42 of 1965. With the new International Arbitration Act in place, international arbitral procedures will be distinguished from domestic arbitration, and will be governed by as per UNCITRAL Model Law set out in the New York Convention.

New Arbitral Procedures

Although the force of law will still be maintained by executive powers within South Africa, arbitral procedures between international parties will be governed by the laws outlined in the UNCITRAL Conciliation Rules, essentially freeing up the local judiciary and offering commercial parties to settle disputes on their own terms. With the Act in place, foreign arbitral awards will not require government authorization with regards to their enforcement. Additionally, arbitral awards will need to be made an order of the court where parties are acting in good faith. They are not required to make an order of the court if the subject matter is not arbitrable in South Africa.

The new Act, some may say, has been a long time coming, and will certainly make South Africa an inviting location for international dispute resolution.

If you require the services of a dispute resolution attorney or a legal professional with experience in mediation and arbitral procedures, then make sure you contact Ivan Zartz Attorneys as soon as possible.

For more information regarding family law dispute resolution take a look at our dispute resolution page here.

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Compliance with the current regulations requires an understanding of significant commercial Acts such as the Public Finance Management Act, Broad-Based Black Economic Empowerment Act and the Employment Equity Act among many others. There are a number of similar by-laws that apply to individual municipalities or issues regarding health and safety. Forgetting what each Act and by-law entails could have disastrous consequences, and it is for this reason why businesses develop a compliance management system.

The news has been inundated in recent years with many large companies falling short of regulations, and have been charged by the South African government with fines so large that they are probable cause for front page headlines in the country’s newspapers. Most recently, millions of rands had to be paid to the South African Reserve Bank by South Africa’s largest banks for not upholding strict FICA requirements. But how do such large businesses succumb to non-compliance?

Red Tape: A businessman’s worst enemy!

The answer lies in the structure of the business environment. Businesses have not developed practical compliance management systems to deal with regulations that they are faced with on a daily basis. Businesses are rather reactive concerning regulations, and therefore have to part with millions of rands in order to remain afloat. The problem may also be a sign that the business environment is overloaded with regulations, the red tape that so many business directors complain about.

This reoccurring issue adequately highlights the necessity for commercial law attorneys in South Africa. Commercial law attorneys are required to assist businesses in matters regarding regulations and by-laws that normal businesses have no way of highlighting or even distinguishing. Therefore, it becomes important for businesses to associate themselves with legal professionals so that they are protected when the time comes.

If you require a commercial law attorney who specialises in the fields of debt collection, insolvency and sectional titles, make sure you contact Ivan Zartz Attorneys as soon as possible! 

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If customers want to dispute a particular consumption invoice, the municipal job card becomes an important document for both the municipality and the consumer. The municipality will use the job card within the municipal billing department to rectify a billing mistake. Otherwise, the customer can use the job card to prove the fact that they were incorrectly billed and can be used in court if the issue is in litigation. However, municipalities have been withholding municipal job cards from consumers when asked for them. This is illegal for a number of reasons.

• The most important reason as to why this is illegal is because it means that a third party (the municipality in this case) is withholding important information that is relevant to the account holder and is needed by them in order to legally protect themselves.
• This goes directly against the Consumer Protection Act because the job card holds information that is needed by the consumer to dispute a billing mistake.
• The municipality cannot issue a summons, issue credit control measures, black-list or cut services if there is a billing dispute in progress. The dispute needs to be concluded, and this cannot happen if the municipality is withholding job cards.
• Withholding municipal job cards, and starting the debt collection process against the consumer, shows a lack of accountability and transparency on the part of the municipal government.

Consumers must ensure that they collect all the documents and information concerning their dispute with the municipality so that the information may be used in court after the outset of the municipality’s debt collection process.

If you require one of the most experienced debt collection attorneys in South Africa make sure you contact Ivan Zartz Attorneys today!

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The first critical piece of advice for anyone looking to purchase a business is to ensure that tax structuring is in place. The tax structure and the consequences of tax will make an impact on the way the acquisition unfolds. This will also uncover any hidden costs associated with tax.

By evaluating the due diligence of the company that an investor/businessman is willing to acquire will ensure that they know the exact worth of the business. This will indicate the assets that the company currently owns, and how much of an investment injection is necessary not only to acquire the business but also to ensure its optimum operation after purchase.

Those looking to buy a business must also ensure that they understand the regulatory body that controls the market. The bylaws and regulations in place must be thoroughly adhered to by the new business owners. Additionally, the acquisition of a large company will also require the approval of the Competition Commission because an acquisition may have a detrimental impact on the market and therefore for the consumer. The regulations set by the Competition Authority only requires compliance during the acquisition of extremely large companies, though.

A transaction contract is absolutely necessary for both parties in the acquisition. The contract will stipulate exactly when the transactions should take place, as well as their value. Without a contract, there can be no proceedings, but more importantly, a well-written contract will protect both parties. Make sure that a lawyer is available to facilitate the drafting of the contract, and is present during all meetings to ensure that the process complies with the legal and regulatory frameworks in place.

For more legal news, tips and advice, keep in touch with Ivan Zartz Attorneys blog page by clicking the link.

If you require a legal expert for advice during your business acquisition, or to facilitate any other commercial law or family law process, then contact Ivan Zartz Attorneys today!

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Currently, the rate of economic crime in the country doubles that of the international average, even when compared to other states in Africa. This, PricewaterhouseCoopers suggests is a ‘pandemic’, and at least a third of all upper-management in a number of corporate businesses have experienced economic crime in one form or another.

While, internationally, asset misappropriation is the most common form of economic crime, other forms of crime such as cybercrime as well as bribery are also common. Many would think that corruption is the most common economic crime in South Africa, but this is not the case. HR crime is at its worst in South Africa. More than a quarter of employees’ matric certificates cannot be confirmed, while 1 in 15 employees have a falsified tertiary degree or certification. HR crimes are usually noticed when hiring new staff, but the studies suggest that a shocking number of employees in South Africa do not have the correct qualifications.

Those in the field of risk management and auditing suggest that businesses should be proactive with regards to the crimes that plague South African companies. There are many services available on the market that can help businesses prevent fraud, and even HR crimes like that of forged qualifications.

Those of our clients that require our services with regards to commercial law must ensure that they have employed measures that help them prevent economic crimes within their businesses. It is important that they understand the scope and damage that economic crime inflicts on the South African economy, and that they protect themselves accordingly.

If you require the services of a professional commercial law attorney, then make sure you contact Ivan Zartz Attorneys as soon as possible.

Take a look at our commercial law page to see the commercial law services that we offer.

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