Credit Management magazine April 2018

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LEGAL MATTERS Top 12 Tips for Debt Recovery Over the next two publications DWF will be affording CICM members TOP TIPS on Risk Management and Debt Recovery. DD +44 (0)113 261 6124 E jeffersen.gledhill@dwf.law W www.dwf.law/recover Jeffersen Gledhill, Legal Recoveries and Operations Manager 1. KNOW YOUR DEBTOR 'What's in a name? A rose by any other name would smell as sweet.' William Shakespeare. Record the exact name and legal entity of your debtor at the outset and keep an eye out for any changes. Even if you don't have access to more sophisticated commercial credit reports then the Companies House new public beta service, for example, can be accessed free of charge at beta. companieshouse.gov.uk and contains basic company details. There is nothing more frustrating than when a client is unable to tell you who they have contracted with or, worse, instructs you to obtain a judgment and enforce it for you to only later find that the name or address is wrong and have to apply to set aside judgment, amend the party name or address for service, and go back to square one. 2. CHASE YOUR DEBTOR 'Is it the thrill of the chase or just something you do.' Luke Bryan. As the largest recognised professional body in the world for the credit management community, its unsurprising that the CICM’s members see their roles as not just a job but a career and relish chasing debt. From a legal perspective, there is tremendous value in the work that credit professionals do and this includes the relatively routine work of keeping attendance notes of discussions that you have had. Note-taking is important because it can provide you with the necessary evidence to achieve a quick win in a disputed case that has been compromised at an earlier stage. 3. KNOW YOUR CAUSE OF ACTION 'A debt is a debt and must be paid.' Willy Russell. Equally important to achieving a quick result is knowing your cause of action. In the case of a bounced cheque, for example, a cause of action arises against the drawer from the point at which the cheque is returned unpaid and presents an entirely different cause of action to a debt for goods/ services that the cheque payment relates to and, with it, much more limited defences. 4. KNOW YOUR CONTRACTUAL RIGHTS ‘Verba Fortius Accipiuntur Contra Proferentem’ a contract is interpreted against the person who wrote it. You need to know which effective terms have been incorporated into the contract and which clauses are important from a debt recovery perspective. Some include: entire agreement clauses, payment terms (and ‘acceleration clauses’), retention of title clauses, late payment clauses, liquidated damages clauses, dispute resolution clauses choice of law and/ or jurisdiction clauses and indemnity clauses. With Lord Justice Jackson calling for fixed costs to apply to all defended claims up to £250,000, the need for businesses to have a robust contractual indemnity for costs is ever-greater. Our commercial team provides expert advice on contracts across all sectors. 5. KNOW YOUR STATUTORY RIGHTS Even if your terms don't provide for recovery of interest and compensation for late payment, statutory interest may still be awarded. From individuals, this generally equates to eight percent per annum (s.69 of the County Courts Act 1984) but for commercial debts you may be entitled to eight percent plus the Bank of England base rate, a fixed sum of compensation for each invoice paid late and the reasonable costs incurred in recovering the debt, if greater than the fixed sum provided in compensation (the Late Payment of Commercial Debts (Interest) Act 1998). 6.KNOW YOUR TIME LIMITS ‘Bad cases don't age well.’ An Anonymous Insurer. The older the debt the harder it is to recover, not least because debtors move on and their circumstances change but also because staff do too, memories fade with age and documents are lost. Most people have a recollection of significant details but it can be hard to remember all of the relevant circumstances, particularly when being questioned as part of cross-examination. This will always raise doubts in a judge's mind as to the reliability of the witness's evidence. At the other end of the scale, remember that there are strict time limits on which an action founded on contract can be brought – in the case of a ‘simple contract’ an action brought after six years from the date on which the cause of action accrued can provide a full defence, if there has been no written and signed acknowledgment or payment. As a CICM member you can receive free legal advice from DWF visit the cicm website and click on the free advice line. The Recognised Standard / www.cicm.com / April 2018 / PAGE 40
THE PERFECT VENUE FOR THIS YEAR’S CICM Fellows’ Lunch 2018 This year, we are inviting you to one of the most iconic buildings in the world, no other venue is more instantly recognised than the Palace of Westminster. It is impossible to walk through its corridors or dine in its imposing function rooms without a deep sense of awe. Their reputation for outstanding events makes the House of Commons the ideal venue for this year’s Fellows’ Lunch. FRIDAY, 8 JUNE 2018 Arrival drinks served at 11:30am. Tickets £135.00+VAT per person, which includes a tour after the lunch. Please email fellowslunch@cicm.com to book (please note that spaces are limited) House of Commons, London, SW1A 0AA The Recognised Standard / www.cicm.com / April 2018 / PAGE 41
Page 1 and 2: CREDIT MANAGEMENT CM APRIL 2018 £1
Page 3 and 4: APRIL 2018 www.cicm.com 12 NEWS SPE
Page 5 and 6: OURAML SOLUTION WILL HELPYOU SEAL T
Page 7 and 8: Cream goes sour for restaurants OVE
Page 9 and 10: New bank lending volumes on the dec
Page 11 and 12: Eight out of ten do not understand
Page 13 and 14: The Recognised Standard / www.cicm.
Page 15 and 16: INSOLVENCY Regulation oversight In
Page 17 and 18: TECHNOLOGY THE ONLY WAY IS ETHICS C
Page 19 and 20: TECHNOLOGY AUTHOR - James Perry If
Page 21 and 22: y a factor of tenfold. Credit manag
Page 23 and 24: HACHETTE UK may not be a familiar n
Page 25 and 26: Membership Benefits CICM membership
Page 27 and 28: VIEW FROM THE SEA AUTHOR - David An
Page 29 and 30: TRADE TALK It’s good to talk The
Page 31 and 32: SHOCK TO THE SYSTEM Devon-based Fra
Page 33 and 34: COUNTRY FOCUS AUTHOR - Adam Bernste
Page 35: No Impact' could be waiting for the
Page 38 and 39: PAYMENT TRENDS A spring in your ste
Page 42 and 43: FROM THE ARCHIVE Credit Management
Page 44 and 45: CICM MEMBER EXCLUSIVE Your CICM lap
Page 46 and 47: EDUCATION CICM Vulnerability Framew
Page 48 and 49: CREDIT CONTROLLER APPRENTICESHIPS A
Page 50 and 51: HR MATTERS ROUNDUP Can employees re
Page 52 and 53: ASK THE EXPERTS How do consignment
Page 54 and 55: MEET THE PARTNERS THEY'RE WAITING T
Page 56 and 57: New CICM members The Institute welc
Page 58 and 59: FORTHCOMING EVENTS Full list of eve
Page 60 and 61: TAKE CONTROL OF YOUR CREDIT CAREER
Page 62 and 63: View our digital version online at
Page 64 and 65: Cr£ditWho? CICM Directory of Servi
Page 66 and 67: Cr£ditWho? CICM Directory of Servi
Page 68: THE B2B DEBT RECOVERY SPECIALISTS T

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