There is no denying that chasing debt is hugely inconvenient, especially as anyone owing you money leaves you out of pocket temporarily, and the time chasing a debt could probably be better spent elsewhere. To make up for this, a lot of creditors want to know if they can charge interest for their trouble. In this blog, we have taken a look at whether you can charge interest with face-to-face debt recovery and if so, how?
Interest on Business Debts
A lot of debts are business debts, which could be a business owing another business money for a service they received, or a business loan that hasn’t been paid back. Chasing business debts can take a lot of time, energy, and resources, and it’s unlikely that you have this time to spare. When you enlist Cobra Financial for face-to-face debt recovery, you can add interest to B2B debts. We will apply interest and compensation per the Late Payment of Commercial Debt Act, 1998.
Interest on Personal Debts
When it comes to personal debts, adding interest works in a different way. There are debts that are owed to you as an individual, such as a lodger not paying the agreed rent or an employer not paying your wages. You can’t simply add interest onto a personal debt in the same way you can for business debts, and no law or act allows you to do so. If you do want to add on interest, it must have been agreed in advance. For example, you can include interest as a condition of a loan to a friend, and this can be enforced. However, you can’t simply add on interest after the fact.
There are a lot of benefits of choosing face-to-face debt recovery, which is why it’s a route that so many people take. Knowing that you are owed money can be tough but knowing that you might not get it back can be hugely stressful. By utilising face-to-face debt recovery, you can relax knowing that there is a high chance of reclaiming the money you’re owed. Interest can be added to cover the inconvenience if it’s a business debt.
At Cobra Financial, we work with many people who are owed money, including personal and business debts. Regardless of the type of debt you are chasing or the amount of money you are owed, we work tirelessly to recover your funds efficiently. After all, the money should be in the hands of the rightful owner. This includes face-to-face debt recovery, as well as a variety of other tools and techniques.
To find out more about debt recovery at Cobra Financial, or for more information on adding interest to a debt, get in touch with our helpful team.