Retrieve money to a debtor is difficult. In amounts substantial enough, use a collection agency is a must. The creditors may also solicit the services of a bailiff or a lawyer to demand payment of a due to a debtor. Theoretically, the non-payment of a debt can only be successful either a settlement or a lawsuit.

To recover an amount in the shortest possible time and in good conditions, it is advisable to use debt collection companies that have an arsenal of techniques to force the debtor to pay a debt. When the service is ineffective litigation, corporate debt collectors are widely sought in order to be reimbursed for granted. But in recent years, this type of specialized companies is challenged by new service providers, also engaging in debt collection.

debt_collection

The means of collecting a debt

A company has some means to recover its debts. It can implement its legal department to bring a legal action but in another instance, it mandates a debt collection company that will act against the debtor, in his name, to make a regulation to amicably. Thus, the company pays directly to the debt collection agency or by a commission charged on loans.

The alternative for a company in difficulty of recovery is to sell the debt to a debt collection agency, credit insurance or a financial specialist. If this is the case, the debtor must either pay its debts with its original creditor, but with the new holder of debt. In general, regulation is strict and the recovery is imperative carried out in compliance with laws.

The legal provisions governing debt collection

Acts to require a sum of money to a debtor, operated by a collection company are subject to specific legislation and regulations. Thus, any recovery procedure must begin with a reminder letter and formal notice to the debtor. This letter sets out information relating to the creditor, collection company, and all the data on claims. This document must include a minimum of 15 days from the date of mailing, during which the debtor is required to pay its debts. The letter of formal notice must also include the subsequent procedure for non-payment of debts.

From the letter of formal notice, two cases may occur. The debtor accepts the existence of the debt and negotiate repayment with the creditor or denies a debt. In the latter case, the debtor must provide a letter of protest addressed to the creditor with a copy to his representative or the collection company. At this level, the settlement of the debt is at an end. The solution is to resort to litigation to get the refund.

However, some collection companies use pressure tactics more or less legal to force the debtor to pay. These include MisterKol that after exhaustion of all the steps out of court, may enter the insolvent company on a list of companies with payment incidents. This registration would never be rosy for the image of a company and the method is quite a deterrent.

Recovery of credit by the courts

Legal action is seen as a last resort to collect a debt. It seems to be the best solution when the debt is a fairly substantial amount. Generally, the creditor is able to get paid on the assets of the debtor, even if the refund is quite late. However, the seizure of assets of the debtor is impossible without an enforcement order issued by the Commercial Court or civil court. For the least possible delay, enforcement, the creditor may bring an action referred to the competent court or civil jurisdiction of domicile of the debtor.

The order must be served by bailiff to the debtor who has one month from the date of notification to object to enforcement. Note that a debt collection company has no ability to take legal action against a debtor, even if it is mandated by the creditor. However, an insurance company or credit factoring in possession of a debt security may exercise any right of recovery actions as the original creditor.