MENACE OF BAD DEBTS

Evening Post, Volume CVIII, Issue 82, 3 October 1929, Page 18

MENACE OF BAD DEBTS

DUNEDIN ALSO SUFFERS

GUARDING THE TRADER

(By Telegraph.) (Special to "The Evening Post.")

DUNEDIN, This Day. A few weeks ago an Auckland collecting agent described credit in Auckland as being "rotten," and, according to Mr. Aitchison, secretary ■of the South Island Traders'. Association, Dunedin cannot pride itself on being immune from the menace of bad debts.

"I would not say that the credit herewas better than in any other place," said Mr. Aitchison, when he showed a "Star" representative sixteen cabinets and rows of filing, indexes showing just to what extent bad debts appear on the books of almost every trading concern iv Dunedin. "The trades-, people here incur just as many debts as in other centres and towns. There is a need for care in giving credit. One of the bad features- of business to-day is that meetings of creditors aro being held without the public knowing anything about them. As a rule the creditors usually come to some agreement with the debtor at private meetings instead of taking the man through the Bankruptcy Court. They aeeept perhaps os'in the pound, and the public is left unguarded as to the man's true financial position. It would be ia the interests of all if the unfinancial , were forced through the Bankruptcy Court. Non-payers get out of their difficulties far too easily. They know it is only necessary to make -their creditors an offer and slide out of their liabilities. Particular care should be exercised by those in the trade.

'' Substantial progress has been made in tho protection rendered by the agency since its inception three years ago. Last year £12,133 was collected and 4945 accounts were" handed in by ,353 creditors for collection. The widespread .adoption of the hire-purchase system has caused people to go in for luxuries-which they-cannot afford. They buy expensive gramophones, wireless sets, and furniture, and'you would bel amazed to see how many women purchase fur coats on. the hire purchase system. They are not in a. position to buy fur coats, and they have a difficulty in paying the instalments-■ In. our districts motor engineering firms predominate, and the number of accounts being collected on their behalf is a certain indication that many people tare running motor-ears .who should not have them. Credit has become an important part of business trading and similar agencies aro in operation in nearly every town in New Zealand,_ supported by the firms, to bring about' a reduction' in the alarming number of bad debts."