Late repayment of loans has serious consequences. In addition to charging penalty interest, the debtor must take into account the initiation of field debt recovery. Although the debt collector does not have equivalent rights to a court bailiff, his tasks include enforcing payment for a debt. What does debt collection look like and what does this mean for the debtor?
What is field debt recovery?
Borrowing for amounts significantly exceeding financial possibilities is connected with the risk of being unable to settle the debt. Unpaid payday loans and a lack of response to calls for repayment are associated with conducting field debt collection.
It consists of a visit of the debt collector to the debtor’s home or workplace and taking steps to enable the creditor to recover his debt. How long does debt collection begin? Often within 7-14 days, you can expect contact from the debt collector from the moment he accepted the order.
Debt recovery in practice
After exceeding the repayment date, the debtor must first take into account additional costs to the basic amount of payday payable. The next stage is sending the loan company a letter, SMS or e-mail. If this does not work, the debt is transferred to a debt collection company that tries to recover it using available methods.
If the on-site debt collection is unsuccessful, the case is referred to the court, which entails the initiation of proceedings. The most serious consequence of evading repayment is bailiff enforcement and seizure of the debtor’s assets.
What can and what cannot the debt collector?
The debt collector has much less competence than a court bailiff because he is not a government official. However, it is worth knowing what rights an employee of a debt collection company has, and what actions he cannot take against the debtor.
The debt collector’s visit must be announced and the debtor is not obliged to let him into the home. Can the debt collector take photos of the property?
Filming, recording conversations and taking photos is unacceptable and constitutes a violation of the powers of the debt collector. Do many people also have doubts about whether a loan company can take the equipment through recovery? Such actions are also unlawful unless bailiffs have been executed and the debtor’s assets have been auctioned.