Scary Debt Collection Tactics and Mechanisms

So like all of us we have one or 2 accounts we forgot about and then one day you get a email that you were handed over. Nothing new, one thing that did strike me as new was the aggressive methods employed in collecting these funds, I was checking on NuDebts website and came across the following they offer their clients.

“NAEDO service is collection tool that was started in 2008. There is nothing like it in the market and it is definitely the best collection tool that NuDebt has to offer. The NAEDO service unparalleled performance compared to conventional debt collection speaks for itself. NuDebt can collect up to 80% of the client’s outstanding debtor’s book in 7 days. A NAEDO is a payment instruction that is presented multiple times per day over a defined tracking period until sufficient funds are available. The service is used on all failed debit order clients prior to the call centre collection process and once the Account Holder Verification (AHV) process has been completed. NuDebt is able to process payment instructions on any date. We suggest that we jointly select an account-tracking period for the presentation of the NAEDO payment instruction.

The NAEDO service has the following tracking days: 
3, 4, 7, 14, 21, and 32 days

The types of accounts that can be debited are:
  • Current account
  • Savings account
  • Transmission account

NuDebt is obliged to submit these payment instructions two days before run date to enable BankServ to process the debits on time. NuDebt sends reminders to its clients to ensure we receive the data on time for submission. Should the account return to NuDebt as unpaid or disputed the matters can be electronically diverted to the call centre for collection.”

I could be over paranoid, but we don’t seem to have much control over our own accounts these days, I might start saving money in offshore accounts, can you imagine if they start debiting your account and you are not at fault.

Regrads Eugene Bosman – Definitive I.T