Debt collection no scam

FORMER customers of the recently closed Network Video in Leongatha have been receiving text messages, ordering them to pay outstanding fines.
When the shop closed in March, there were around 800 DVDs not returned and over $30,000 in outstanding late fees.
The Star called the debt collection company responsible for sending the messages, Melbourne based Legal and Commercial Pty Ltd, and was told the text messages were a legitimate attempt to reclaim debt.
The spokesperson said the customers should have received a letter in the post prior to receiving a text message.
“We do look after quite a few video stores that have closed. Most of the people in Leongatha have been good,” they said.
The spokesperson assured The Star the attempt to recover debt was not a scam, despite some people questioning the process.
Former owner of Leongatha’s Network Video Julie Grant confirmed the text messages were legitimate but she understood why people were questioning the method used.
“They probably should have said it was Video Defaulters, chasing up late fees for Network Video Leongatha and explained a little bit more in the text,” she said.
“I think the way it is worded was a bit blunt.”
Video Defaulters, which is part of Legal and Commercial, complete regular scans of Network Video computer systems and send letters to anybody with an outstanding bill for over $15 or un-returned DVDS.
“A report has been taken of the system by Video Defaulters, but I was unaware it had occurred this month,” Ms Grant said.
“They normally notify me a few weeks prior so that I can do a check of the list, however due to the shop being closed, this was not an option.”
Ms Grant said sending customers text messages usually came after an attempt had been made to recover debt by a formal letter.
When the store was open, Ms Grant would personally send text messages to customers with overdue items or late fees.
Or, if people did happen to receive a letter from Video Defaulters, they could come into the store and negotiate a settlement directly.
Ms Grant said now the store has closed, Video Defaulters is probably more interested in wiping debt off the books.
Because of this, she said they are likely to be open to negotiation.
“I would say they have gone right back to 2012 and done all the ones who never paid. Normally they would only go back three to six months,” she said.
“I tried to clear as much debt as I could before I left and wiped off a lot of small debts.”

Short URL: http://thestar.com.au/?p=25052

Posted by on Jun 5 2018. Filed under Featured, News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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