Without Prejudice – when to use it

Without Prejudice – when to use it

The writer is a debt collector – not a solicitor.

WITHOUT PREJUDICE are two of the most misused and misunderstood words in debt recovery world.

Many actually believe if you place these words on all correspondence – it can’t be used against you in court.

 WRONG!

It affords no such protection at all.

It can, and more than likely, it will be used against you in court.

So when do you use it?

Whenever you make any offer to resolve matters.

Let’s say your debtor ignored your 50% ffer to settle in 7 days. The whole nasty mess ends up in court.

Your debtor will more than likely make his point to the court that you agreed to halve the debt amount.

It’s then up to you to hold up your correspondence showing your “Without Prejudice” offer to the debtor

in which you offered to reduce the debt by half if paid within 7 days.

Your court action will proceed for the full amount and will not be prejudiced

by that 50% offer the debtor failed to take up.

Is that plain and simple?

Richard Adams DCL5286

First International Debt Collection

www.fidc.com.au

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Licensed bonded debt collection agency. ABN: 38 091 890 570 Member of Institute of Mercantile, Agents Australia Collectors Association, Mercantile Agents Association
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