    
     
Domestic Turnover Policy
Administration Guide - Over Due Accounts
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Who is responsible for the payment of un recovered legal costs?
Where we have instructed an attorney on your behalf, any unrecovered legal costs will be shared between us on a pro rata basis, according to our respective interests in the amount handed over for collection. Normally, this would amount to our paying the insured percentage of the legal costs incurred.
In cases where you have instructed your own attorney, the same situation will apply provided that the required final demand (incorporating the paragraph referring to our involvement in the outstanding amount) was sent to the defaulting buyer before you handed the matter over to your attorney.
What is your attitude on trade disputes?
We realise that disputes do occur in business, but you will appreciate that very often we do not have the technical knowledge needed to adjudicate on a trade dispute, particularly when it concerns the question of quality. For this reason, we have little choice but to ask you to settle the dispute. A claim will become due for payment once judgment has been obtained in your favour.
How are payments in respect of overdue accounts allocated?
Any payment made before a cause of loss will first liquidate the outstanding amounts which have fallen due.
(Refer Proviso 9.)
What must I do in the event of an insured buyer's liquidation, insolvency, judicial management etc?
The moment you become aware of the order granted against the buyer, immediately complete and send us your claim form (see link).
Your personalised copy of this claim form can be downloaded and printed from this CD or you can download a copy from the Credit Guarantee website at www.creditguarantee.co.za
See a sample of this document in your Credit Guarantee policy file.
-
If the buyer has already been handed over to your attorney for collection of an overdue amount, you must immediately instruct him to close his file.
-
Send us copies of all circulars or other correspondence received from the liquidator or any other legal representative.
-
Proceed to have your claim lodged and admitted in the insolvent estate, provided that there is no danger of any contribution being levied. If you have any doubt in this regard, please contact us before lodging a claim.
Must I refer offers of compromise to you?
Yes, all offers of compromise, whether formal or informal, must be referred to us before acceptance or rejection. We shall weigh up the merits of each offer and, in conjunction with you, decide upon its acceptability or otherwise.
Can I continue making deliveries to a buyer who is overdue for payment?
You may do this under the cover of your policy only if:
-
the overdue amount is not more than 60 days overdue for payment (note that, in respect of certain buyers, the credit limit may reduce the 60 days to 30 days- special condition 152), and/or
-
a cheque, bill or other negotiable instrument received from the buyer has not remained unpaid for more than 15 days, and/or
-
you are not aware of any other information which would suggest that the buyer is in financial difficulties.
If further deliveries are made under contrary circumstances, they will not be covered under your policy.
What must I do if I receive an adverse about an existing buyer?
You must inform us immediately and at the same time advise us of any amounts owing to you. If we feel that specific action should be taken to collect the outstanding amount, you will be advised accordingly.
What is a buyer asks for postponement of the original due date?
Provided that the request for an extension is received on or shortly before the original due date, you may grant a postponement not exceeding 30 days without any reference to us.
Any request for a postponement of more than 30 days must be referred to us for our written approval.
|
