Debt collection and vehicle retention

Nitebob

I asked this question on a business forum and couldn't get an answer...the question is two fold...

1) I know for a fact that if repair costs of a vehicle has not been paid the workshop has retention of that vehicle. I once had a bank pay me for repairs to a vehicle, in order for me to release it, because the bank wanted to collect it for repossession. One of my customers retained vehicles of a large fleet, when they're bill ran into the millions, and they didn't pay. They eventually paid and the vehicles were released. My question is: Say one of my 'customers' owing me R32k brings another vehicle in for repairs, intending to pay cash (as their account is on hold). Do I have legal grounds to refuse giving them the vehicle, pending settlement of their account? The amount has been owing for more than a year now...

2) How does one collect smaller amounts R500 to say R2500? This isn't an amount that will break the bank, but a couple of them can make a huge dent in cash flow. It's too small an amount to sue for, taking legal costs into account, and general collection companies, send out letters etc yielding absolutely no success....even once blacklisted I get no results...

V8

Nitebob wrote: 2) How does one collect smaller amounts R500 to say R2500? This isn't an amount that will break the bank, but a couple of them can make a huge dent in cash flow. It's too small an amount to sue for, taking legal costs into account, and general collection companies, send out letters etc yielding absolutely no success....even once blacklisted I get no results...

Q1 : I have no idea.

Q2 : Small claims court is probably your best bet. THough you must have heard that before?

http://www.justice.gov.za/scc/scc.htm

http://www.iol.co.za/business/personal-finance/how-small-claims-court-system-works-1.1790342#.VfK48RGqpBc

Nitebob

Thanks V8, have heard of them, but assumed that you would need a lawyer for that too...it was a big help

IceCreamMan

Nitebob, how much money you got and how much you prepared to pay lawyers?

I would say no, u do not have the right to retain a vehicle where the repairs have been paid for in lieu of debts incurred for the repair of another vehicle UNLESS you have a court order to do so...

You have a right of retention of a vehicle where the repair bills have not been paid...and bear in mind this would be for repair bills and the like...not bills where you have installed a radio or a sun roof or those kind of attachments.

I would not repair any other vehicles for this client unless cash is paid up front ....but that's me...I am cynical that way. ?

I want to know one thing, why did u release a vehicle where someone owed u 32 k?

good luck

Nitebob

IceCreamMan wrote: I want to know one thing, why did u release a vehicle where someone owed u 32 k?

good luck

It wasn't one vehicle, it was a fleet of vehicles from a customer who has had a 30 day account with me for the last four years. Then suddenly stopped paying. Unfortunately it's the nature of the beast. About 70% of my business is on account. So without the debtors that do pay, I won't be able to pay the rent.

I am not doing any other work for them unless paid in cash, that however does not shrink the R32k and this isn't a isolated incident, another owes R13k (small claims court should take care of that) and yet another...ahem...R140k (he had a 45 day account, with a couple of huge fleets)....

NorioDS

Sorry guys, this ain't the place. Thread locked.