Debt collection process and procedure in Zimbabwe

Debt collection is a task that does not necessarily require recourse to law. The practice of debt collection has existed since time immemorial. Thus, the collection of a debt in Zimbabwe may be achieved without the need for litigation.

There are two main forms of debt collection. The first is where a creditor on his or her own behalf collects a debt. The other is where an agent is employed to collect a debt for a fee or commission. The most common form of debt collection in Zimbabwe are:

• (a) Business to Business Debt Collection (B2B);
• (b) Business to Consumer Debt Collection (B2C)

In order to initiate the process of debt collection in Zimbabwe it is prudent that the nominated legal firm and or legal practitioner be furnished with the following information:

• (a) The nature of the debt;
• (b) The duration of the debt;
• (c) The debtor’s contact details;
• (d) The document(s) if any, giving rise to the debt;
• (e) Whether the debtor is an individual or any entity;
• (f) Whether the debt is local, regional or international in nature

Upon receipt of the above information, the legal practitioner will be able to prepare and draft a letter of demand i.e. a written notice to the debtor, calling on the debtor to pay within a given time frame. The general information included in a letter of demand includes the following:

• (a) A description of the nature of the debt and any interest payable;
• (b) A description of how the debt was incurred (e.g. unpaid rentals etc.);
• (c) A description of the consequences of failure to pay
• (d) A description of any relevant documents (e.g.) contracts, invoices etc).

The procedure for debt collection in Zimbabwe will generally be determined by the terms and conditions that the parties may have agreed on. Where the parties have a written contract such contract will generally include the method of collection i.e. mediation, arbitration or litigation.