B P Collins Solicitors: talk to the experts
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Companies seeking to trace debtors have been told to be wary of the Data Protection Act 1998.
Offering advice to organisations aiming to collect debt from customers, Startups.co.uk urged businesses to "never assume" that just because a letter sent to a debtor is returned marked "no longer at this address" this is the truth.
The website advised companies operating within the area to use their staff to "seek information" either from the address or others close by.
However, in doing so, debt collectors could be at risk of breaching the Data Protection Act 1998 by giving out confidential information, it warned.
"In particular, do not divulge any information about a debt to non-interested parties," the site stated.
Companies can instead request information, such as a forwarding address, by saying it is regarding a 'private matter', it added.
Noel Quinn, head of commercial finance for Europe a HSBC, said there are a number of options available to companies struggling financially to avoid "the headache of late payments and debt collection", printweek.com reports.
The expert claimed asset and invoice finance are both solutions businesses may wish to explore.
Sarah Jackson, senior associate in the litigation and dispute resolution team comments: "It is always difficult when a determined debtor tries to avoid payment by pretending not to be in when a personal call is made or returning post marked 'not known at this address'. Discreet enquiries should be made of neighbours, without divulging the reason behind the enquiry, to ascertain where the debtor has moved to or can be found.
"From the other point of view, if you move into a property and receive demands for payment of outstanding bills for the previous occupant you should always contact the creditor and explain that the debtor has moved at the earliest opportunity. It is much easier to avoid a potentially embarrassing visit from a process server or bailiff if you tackle the creditors at the outset rather than ignore the demands because they are nothing to do with you."
