Debt Collection Case Using a Stat Demand in New Zealand

In this case study, we will share how Slater Byrne Recoveries used a Stat Demand to help our Client recoup its unpaid debts.  

The Client already had a court Judgment and contacted us with specific instructions to use a Stat Demand so she could get the debt paid. 

The Issue

Even though the Client was clear from the start of onboarding that they want to issue a Stat Demand, we still sent out a first letter informing the debtor of our appointment as the Client’s debt collection agency and the amount they the debtor owed. 

The debtor disputed the debt saying their records showed lower amount as they have been paying off the amount since the date the Judgment was issued. The Client confirmed that the remaining balance was $20,642.95 and the debtor has indeed paid $10,000 of the debt since the Judgment was issued. 

The Solution

Aside from the remaining unpaid debt, the Client also wanted to add the interest to the Stat Demand. We sought advice on this matter from our solicitors who informed us that the Interest on Money Claims Act does not apply to Dispute Tribunal Orders. They also could not find any legal authority that would allow interest to be added to the amount claimed in the Stat Demand. 

Although a bit disappointed that we cannot claim for the interest in the Stat Demand, the Client instructed us to go ahead with the Stat Demand sans the interest. 

At the Client’s instructions, we served the Stat Demand to put pressure on the debtor. Read more about when and how to issue a Stat Demand in New Zealand

The Outcome

Using the Stat Demand proved effective as we received a partial payment from the debtor on the 14th day from its issuance. The following day, the debtor made the rest of the payment, resulting to the recovery of the full amount of debt owed to our Client. 

Debt Collection Using Stat Demand in NZ Review
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