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1. Costs – No Win No Fee!

Having long standing relationships with all our overseas partners we have agreements to provide these services on a NO WIN NO FEE basis charging the agreed commission rate against monies recovered only.

2. Coverage in Malawi

Malawi is divided into 28 districts. We have 2 local offices in Lilongwe which is the capital and most populous city along with Blantyre which is Malawi’s center of finance and commerce. This ensures we are well placed to recover debts throughout all of Malawi.

 

3. Local Experience

Unlike many of our competitors all cases are handled by the local office or partner. The reasons for this are they speak the debtors’ language, in this case the Chichewa is spoken by 57% of the population along with many other languages such as Chinyanja (13%) and Chiyao (10%). We understand the local cultures and know all the legal processes. These are reasons why Creditreform are the ideal people to help you in collecting debts from overseas.

4. Statute of Limitation in Malawi

6 years but there are special exemptions so whatever the age please contact us and we will advise if we can assist with your claim

How to Instruct Us

We simply require the following details:

PLEASE CALL US ON 0121 442 5330 FOR FURTHER DETAILS

Or ask us to call you – just leave us your details:

 




Malawi Debt Collection – No Win No Fee

Creditreform operates a global specialist International debt collections service. We have local offices and fully approved expert international debt collection agency partners in every country worldwide. All our International debt collection agency partners and offices operate on a No Win No Fee basis charging an agreed commission against monies recovered only.

Main reasons why a local country debt recovery agency is so important rather than trying to recover from the UK are as follows:

The local International Debt collection Partners know:

  1. The local cultures
  2. The languages
  3. The laws
  4. Are in the same time zones

 

Herewith details of our debt collection service Malawi

  • Location of debt recovery office in Malawi?

Our 2 offices are located at:
Blantyre and Lilongwe

  • Number of debt collection staff?

We have 8 lawyers, 6 at Blantyre office and 2 at Lilongwe.

  • How long have you been operating a debt recovery service in Malawi?

We have been in operation since 2012. Our founding Partner however has 12 years of practice experience. Together the team of 8 lawyers has a combined experience of 55 years.

  • What type of debt collection services do you provide? Do you do commercial debt recovery (B2B) and consumer debt recovery (B2C)?

We recover all types of debts i.e. business to business and also business to consumer/ client.

  • Statute of limitations in Malawi:

In Malawi the limitation on recovery of debts depends on the facts bringing rise to the debts. For example, a right to recover a debt secured by mortgage or charge on any real or personal property has a 12-year limitation period whereas a debt arising from tort or contracts, recovery of rents etc has a limitation of 6 years. Recovery of debt arising from an award as a penalty has a limitation of 2 years. However, any acknowledgement of the debt within the limitation period resets the reckoning of time.

  • How EU (European Union) laws effect debt collection in Malawi?

The effect of EU laws on debt collecting in Malawi depends on the agreement of the Parties. If the agreement provides EU as the jurisdiction, there are bottlenecks in enforcement and access to EU Courts. This makes the collection costs higher but it is not necessarily a problem. In the absence of any agreement to the contrary, the local jurisdiction applies, and the collection is easier.

  • How many companies registries in Malawi for businesses (i.e. UK has just 1 central registry)?

Malawi has one Central Companies Registry which is called The Registrar General’s Department (which is the Companies House)

General comments regarding process in Malawi for debt collection and how it differs from UK / other European countries:

  • What is the debt collection process in Malawi?

The collection process in Malawi usually starts with a demand/letter before claim. By law, once a demand letter is served, the debtor has the obligation to pay the principal sum, interest and indemnity for collection charges on a graduated scale charge of 15%. If there is no response or compliance with the demand, we commence legal action in the High Court (Commercial Division). The matter must by law, go for mandatory mediation before the Judge. For straight forward claims, once the defence is filed, we apply for summary Judgement and then enforce the Judgement by means of levying execution on physical property or by way of Third Party Debt orders (getting the Court to order a bank or any party keeping the Defendant’s money to pay the said money directly to our claiming client). For other debts, the matter goes to trial if mediation fails.

For debts less than $2,750.00, the matter is commenced in the Magistrates Courts (lower courts to the High Court of Malawi).

  • Average length of time to collect a debt?

The average length of time is 6 months from the debt of demand/letter before claim.

  • Can late payment fees / interest to be added to claims?

a. Late payment fees: These can be added only if agreed by the Parties in their agreement giving rise to the debt. Penalty interest is only allowed if specifically provided for by the Parties agreement and has to be reasonable. Recently the Courts have held that penalty interest over 15% above agreed and applicable rate is not

b. Interest: interest is applicable on the debt and usually at Commercial leading rate compounded from the date the money fell due to the date of After judgment, a statutory 5% on the judgment sum applies..

 

  • Details on legal service / process in Malawi?

Malawi is a Common law country and hence the Courts play the role of independent referee. For debt collections, the Court process is faster because the cases are taken to the specialized division of the High Court called the Commercial Division (if the debt is above MK2,000,000.00 or $2,750.00). Anything below goes to the Magistrate’s Courts.

Most lawyers in Malawi are general Practitioners and they operate as both solicitors and barristers. There is no distinction like in the United Kingdom where one can be either Solicitor or barrister.

At our practice, before commencing the process, we prepare an ECA (Early Case Assessment Report) detailing the prospects of recovery. This makes sure that there is no wastage of time and resources on debts which are not collectable. When we commence action, we are always sure of the availability of property or money by the debtor which may be used to satisfy the debt. This is a very essential stage as the collection fees are contingent (no-win-no fee) and we make sure the claims are viable.

Over the last 7 years, our practice has collected over MK3,000,000,000.00 (Three Billion Kwacha), that over USD4,000,000.00 (Four Million USD) for clients like Banks, City Councils, private companies and individuals. We have been able to achieve success as we have a Legal Project Management department which makes sure that no date is missed, no time is wasted and nothing falls through the cracks thereby allowing the lawyers to focus on core legal work. Our practice systems are based on Lean Six Sigma and this value is delivered to our clients who are always happy to receive our services.

Specialist Debt Recovery Experts

There are many unique requirements to recovering international debts in all countries including Malawi debt collection services which differ from the UK debt collection agency  services and therefore it is very important that cases are handled directly by our expert international debt collection agencies and not from debt collectors UK. This method of international debt collection sets Creditreform aside from the competition who in many cases try and recover debts from a UK debt collector only. Using the local offices and partners enables us to achieve a far greater success rate and our No Win No Fee service together with competitive commission rates against monies recovered only ensures you get the best service.

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“We are pleased with the friendly and efficient service of Adrian Harding and staff at Creditreform in collecting outstanding overdue debts on our behalf. Some accounts, especially those located overseas have been difficult customers but we are pleased with the high rate of success. We also appreciate that they keep us informed and constantly updated on the progress of the collection”
Bryan de Beer, Phoenix Fragrances
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“Within 48hrs of Creditreform being involved a resolution was agreed and within the week paid in full. The professionalism of the Creditreform team was second to none and I would and indeed do recommend them to colleagues in a similar difficult position This situation was the first time we have had to employ a company for debt recovery and it was good to feel that you have someone else ‘on your side’.”
Dean Lake, Lake Contracts
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“We have been using Credit Reform for a number of years now and we have always been dealt with in a professional and friendly way. Over time, Creditreform have managed to achieve good results for us. Would definitely recommend.”
Anna Zhakrova, Catering Hygiene Specialists Ltd
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“I have worked with Creditreform for many years and always received a first class service. Keep up the good work”
Russell Hardwick, MSC Industrial
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