When there is such a moment that the loan repayment date has expired and we do nothing about it, we will usually have to recover from the creditor. What does this process look like and what can we expect? What is the difference between field and telephone debt collection? And which loan companies actually use it?

Before debt is collected

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Let’s start with the fact that it is very easy to fall into debt, even if you incur a small amount of several hundred zlotys on so-called free, 30-day payday loan. And this is not always due to a lack of responsibility for your financial obligations. Sometimes life gets so complicated that even if we wanted to, we have a problem with paying off the debt because, for example, we lost our day-to-day jobs, we have no savings and we have no means of living.

However, regardless of the situation in which we find ourselves, we can, or even should, take steps ahead of time that will not lead to the unpleasant situation of debt recovery. Most non-bank loan companies have the option of extending the loan repayment for another few weeks, of course for a fee. However, it is always better to try to negotiate and talk to the creditor than to passively recover.

When does the lender start collecting?

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Theoretically, the next day after exceeding the repayment date of the financial liability, the process of recovering the borrowed money by the creditor begins, called recovery. At the beginning it is called amicable debt collection, involving contact with the debtor through expensive prompts – SMS, letters, telephones, and even personal visits of the field debt collector. What is important! All debt collection activities cost the debtor and this is not enough. For example, at Vivus, from the first day of delay in loan repayment, costs are charged in the form of penalty interest and for debt collection activities: SMS reminder about USD 5 / item, written request for payment about USD 10 / item

If any negotiations between the creditor and the debtor are unsuccessful, the case is either referred to an external debt collection company (additional and considerable cost for the debtor!) Or goes straight to court. Judicial debt collection usually ends with a judgment, thanks to which the debt collector obtains an enforcement order, which is the basis for initiating Jenny Credit enforcement and the auctioning of the debtor’s assets.

Debt collector is not a Jenny Credit

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A debt collector is usually a properly trained employee of a loan company or a specialist from an external debt collection company. The Jenny Credit is a government official and public official who works at the district court and performs Jenny Credit executions.

However, before we meet with the Jenny Credit, we have a chance to settle the matter of debt amicably with a debt collector who is open to our proposals and any negotiations regarding the debt. The sooner we settle the case with the debt collector, the less nerve and less expensive it will be for us.

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