Debt collection company – a professional entity dealing with debt collection either represents the creditor or acts on its own behalf as the acquirer of the pursued claim. In formal and legal sense, the debt collection company has the same rights as every participant of legal transactions.
The debtors often ignore the representatives of the debt collection company, which usually causes more harm than benefits to them since in spite of lack of special rights a good debt collector is characterised by high level of knowledge on negotiation techniques and legal provisions as well as ability to use them in order to lead to payment of the claim. The task of the debt collector as a negotiator representing the creditor is to lead to amicable payment of the debt, optimally within the determined time limit. If for some reason it is not possible, they are authorised to pursue the claim in court or enforcement proceedings.
It happens that the debtors ignore the facts determined above and refuse to talk to the debt collection company, thinking that they are not obliged to do so. In fact, they are not. They are even not obliged to talk to the creditor themselves. Nevertheless, it is worth remembering that listening to the debt collector and talking to them may be more favourable for the company than institution of the debt recovery procedure in court. We have been writing many times in our Guide and in the Blog that a lot of companies treat the transfer of the case to the debt collector as an ultimate step. If a third party entity calls us, we must take into account the fact that the creditor is determined to recover their money.
The obligations of the debt collector include mainly determination of the reason for occurrence of the delay and checking whether the debtor expresses their willingness to repay the debt. It is a good moment for achievement of understanding in the field of debt repayment, which will be satisfactory both for the creditor and for the debtor. In a lot of cases, it will be possible to spread the debt into instalments.
As a representative of the creditor, the debt collector acts on the basis of the law guaranteeing freedom of business activity (resulting from the Constitution and from the Business Activity Freedom Act dated of 02 July 2004). A good debt collector observes the Personal Data Protection Act, does not terrify or threaten but informs and tries to find a solution. The debtor is entitled to know what debt is the subject of debt collection, i.e. where the liability results from, as well as on behalf of what company the debt collector acts. On the other hand, they should also be aware of the consequences of a refusal to cooperate. The evasion strategy will not be successful in negotiations with a debt collection company. The debtor should not hope that a professional debt collector will ‘let it go’ solely because of the fact that the debtor misleads them. Their task is to recover the money within the determined time limit or to find a favourable solution for their client.
Published on: 9 November 2016