Although it is getting harder and harder for everyone to get a good night’s notice, clients of non-banking companies still have similar problems. These are unexpected expenses that can thwart plans for timely payment of liabilities. As a result – the spectrum of debt collection activities is being downloaded. What can and can not the debt collector?
Unexpected expenses or other factors hindering the repayment of liabilities are inherent problems of clients of the financial sector. By making a commitment in the form of a loan, loan or payday, you get useful financial help, but also imposes a number of duties. Following the contract, it is necessary to repay the liability in installments in a timely manner or to settle it once at a specified time.
Without undertaking this, the consumer can take on numerous and serious problems as a result. In the case of payday loans, a problem with late payment or defaulting payment is particularly frequent. For this reason, debt collectors of these companies operate quickly and ruthlessly. It is worth being prepared for the actual scope and their duties.
I do not pay you back – and now what?
If you do not pay your remittance in a timely manner and are aware of this situation, the first thing to look at is the provisions of the contract. There, the lender always has the obligation to include all necessary information about the consequences of untimely repayment. However, debt collection activities are not one-piece. On the contrary, they are divided into several specific stages, which are becoming more and more serious along with the time of default by the consumer.
- The first step is to send a payment request or a prompt to the e-mail address or home address. This is a formal, but often not very effective method, which is why many companies use one more step at the beginning of debt collection activities – they delegate employees. Those, call the consumer and inform about his current situation due to the lack of repayment. What is worth knowing, both the monitors and calls are paid – the debtor bears the costs. Usually, the form of admonishing the client about his financial situation is applied for the first 2-3 months.
- The second stage is taking more decisive steps by the lender. In the absence of the debtor’s actions, loan companies usually sell debt to debt collection companies. These, specializing in debt enforcement and at an appropriate cost, take over the lender’s competences.
What can not the debt collector?
The third stage, naturally resulting from the second, is sending a field employee to the debtor. Ten, take a few ways to reach the debtor. Formally, he can only contact the debtor himself. However, there are also cases of attempts to reach close relatives, although this is not legal.
The debt collector also has no right to intrude into the debtor’s home by force, entering him in the workplace and exerting psychological pressure in the form of, for example, blackmail. He can not confiscate his property and force him to repay the debt.
It is the duty of the debt collector to keep the debt issue secret. Only he, the creditor and the debtor should know about him. It is also necessary to preserve the debtor’s personal data and all details about the debt.
What can the local debt collector pay for not paying a payday?
In the case of successful contact with the debtor, the debt collector meets him personally. Next, he presents him with the current status of the debt. It also includes information on the consequences of further avoidance of repayments and presents a proposal for an amicable settlement of the dispute. Everything is done on the basis of persuasion and negotiation, because the debt collector does not really have too wide competences:
- The debt collector has the right to call the debtor’s mobile phone.
- In addition, you may visit the house or apartment after prior notice of the visit.
- He has the right to take actions by means of persuasion in order to encourage debt repayment or negotiate with a loan company.
Why is it worth working with a debt collector?
Negotiating with a debt collector can have positive effects on the debt issue further. Ten, he can negotiate with the lender and propose the following steps.
- Spreading the debt into monthly, small installments easy to pay off.
- Stop sending reminders and other debt collection activities.
An amicable solution to an accrued dispute is a good introduction to getting out of debt. This finally grows from week to week with interest and becomes an ever-growing potential burden. The taking over of the case by state organs ends with the said bailiffs’ execution, and this – rarely ends without material losses.
Ineffective debt collection – what’s next
Unfortunately, it often happens that the actions taken by the debt collector are completely ineffective and the negotiations do not bring the expected results.
If such circumstances arise, then the debt collection agency is entitled to bring the case to court. He, by way of proceeding, sends a court order for payment. If not again, it will not bring the desired results, the specter of the bailiff’s execution falls on the debtor’s head.
What can a court enforcement officer do?
In contrast to the debt collector, the debt collector has much wider competences and can enforce debt in a much more uncompromising manner.
Bailiff’s right to execute property items.
- Household appliances (washing machines, coffee makers, dishwashers, steamers, etc.)
- Computers, laptops, televisions, cameras, smartphones.
- Car, tractor, bike.
- House, flat, plot.
- Money in cash (savings, current cash in pockets).
- Money on bank accounts (savings, retirement, pension, if only the equivalent of the minimum wage remained on the account).
In addition to the loss of property, the bailiff can also enter the debtor’s data into financial registers and debtors’ databases.
As a result, it may mean problems with taking a payday or loan in the future.