The process of Credit Control Management contains of 5 steps that need to be taken.

  1. Letter Of Demand
  2. Summons
  3. Default Judgment
  4. Execution
  5. Emoluments Attachment order

Letter of demands sets out the cause of action on which the demand is based. And will give the other party time to comply with the demand.

Once the Summons process has commenced, this sets the required action in place to ensure that there is control in place to ensure the collection will be effective.  A summons informs a defendant that he/she has 20 business days within which to deliver a Notice of Intention to defend the action, failure to give this notice within that period the plaintiff is able to apply for a default judgement against the aforesaid person.

The details of the claim, which is attached to a Summons, outlining the nature of the Plaintiff’s claim and the amount being claimed from the defendant. The details of claim will set out a description of parties to the action, the background to the dispute, and will ensure that the claim and all the facts upon which the claimed is based is fully outlined. The claim must contain enough detail to enable the defendant to be able to defend the allegations made against him and must include a cope of any written agreement that is relied on.

Once the summons is issued by the court, the summons is send to the appropriate Sheriff with instructions to serve the summons defendant at his residence or place of business. Once the sheriff has served the summons, he will complete a return of service to indicate that service was successful. A Defendant is only deemed to have received the Summons when the Summons has been properly served by the Sheriff.

Then a Plaintiff may apply for Default Judgment where a Defendant has failed to serve a Notice of Intention to Defend within the prescribed time or where the Defendant has failed to deliver its Plea after receiving a Notice of Bar from the Plaintiff. Where the prescribed time lapses, the Plaintiff is entitled, without further Notice to the Defendant, to apply for final Judgment against the Defendant. Where Default Judgment is granted, the Plaintiff is able to demand compliance with the Judgment.  Where the Defendant was not aware of Service of the Summons, it is possible for the Defendant, on learning of the Judgment against him, to apply for a rescission of Judgment. This application is supported by an Affidavit which must provide a satisfactory explanation for the Defendant’s failure to give notice of Intention to Defend and explaining the nature of the defense that will be raised.

Where a party has been ordered to pay a sum of money and he fails to do so, then the other party will be entitled to execute against his property.  Execution is the process in terms of which the judgement debtor’s property is attached by the Sheriff and sold by public auction in order to raise funds to satisfy the Judgement. If the Judgement debtors does not have sufficient executable property, then another means of collecting the money owed will need to be relied on. Since in this instance the Judgment debtor is technically insolvent, the Judgment creditor may wish to apply for the sequestration of the judgment debtor’s estate (where the debtor is an individual), or apply for the winding-up of the Judgment debtor (where the debtor is a company).

An Emoluments attachment order is a court order whereby he judgement creditor can attach part of the salary or wages of the judgement debtor. Once an emolument attachment is in a order has been granted, the employer of the judgement debtors is obliged to pay a certain portion of the judgement debtor’s salary or wages to the judgement creditor.