Neotel: New low

ADSL South Africa (Broadband South Africa), 17 April 2010

Don’t be too surprised, but word is out that Neotel has sunk to a new low. This must be true if one considers the various complaints voiced relating to the unjustified and threatening legal letters many have received from a legal firm instructed by Neotel. This is simply unacceptable despite Neotel’s best claims to the contrary.

Struggling with unpaid accounts…

ADSL South Africa (Broadband South Africa) has learned that Neotel is struggling to a great extent with unpaid accounts, but there are definitely boundaries both moral and legal that should not be over step in a bid to collect ‘outstanding debt,’ especially when an account is ‘unpaid’ due to the creditor’s failure to deliver or to accept cancellations in a timely fashion.

It’s no secret that unpaid accounts can have a devastating effect on cash flow and day-to-day business operations. In fact, it can force a business to close its doors permanently! Needless to say, it’s important that businesses are allowed to make use of legal entities such as law firms to collect outstanding debt or to reduce the number of unpaid accounts. It’s however a different matter altogether when a creditor goes after people for monies which are not owned to the creditor in the first place. Neotel has made that mistake by instructing a legal firm to send letters to people whom they perceived to be all Neotel subscribers that owe Neotel money, demanding payment or else; perceived to be since many people and other entities that received the mentioned letters didn’t owe Neotel a blue penny in the first place.

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