If, due to unpaid obligations, it happens that our debts go to a debt collection company, we should know what rights we have in the case of debt collection and what obligations the debt collection company must fulfill. What to protect yourself from and how not to be fooled? We read about it in the material below.
What rights does a debt collection company have?
We must remember that the debt collection company (in most cases) operates within the limits of applicable law. Her main task is to collect from us a debt that we owe the creditor. Therefore, the rights that this company has are similar to the rights of the creditor. In the first place, a representative of such a company will want to end the case without conflict, acting as a mediator in the case.
The debt collector may ask you to enter your home. But there is no legal basis for this, so we do not have to agree to it. However, it has the right to contact us in any possible and permissible way to notify us that we have a debt. The debt collection company should inform us what title it has to request payment. And also how much is the debt along with the legal basis. In addition, he will inform us when we should pay the due date.
Obligations that the debt collection company must meet
A debt collection company usually comes to us with a proposal to set up a new repayment schedule, which has outgrown us and changed its nature into debt. The company is obliged to provide us with the possibility of an amicable resolution of the case, which will allow us to pay the debt we owe to the creditor in an efficient and convenient way.
The debt collector is obliged to take care of the creditor’s interests, but if he conducts his activities in an empathic and forgiving way, he can also somehow let the debtor stand on his feet – by negotiating the appropriate terms of debt repayment. A debt collection company is required to contact the debtor in every way, but not with third parties, e.g. an employer, regarding the debt of his employee.
What actions cannot a debt collection company take?
We should be aware of what the debt collection company is allowed and what is not allowed, because it will block the unlawful activities that some debt collectors commit on the agenda. Only a bailiff with a court order has the right to enter our house to carry out debt recovery. Without our consent, a debt collection company cannot even cross the threshold of a house or apartment, and if it insists and wants to do it, it is lawless.
We also mentioned earlier that no bystanders can be informed that a debt collection company wants to collect a debt from us. The same applies to forcing us to provide a bank account and disclose assets. Resorting to threats and violence, even physical, is another basis to report company activities to download authorities, as these are situations that fall under the Penal Code.
When the debt collector threatens us with immediate execution, remember that he has no right to do so and we should report it. Only a final court judgment with an enforcement clause has such force of effect. Let us not be deceived and intimidated, and let any unethical or unlawful actions be reported to the appropriate services.
How can the debtor behave towards the debt collection company?
The most important thing we must remember if we receive a phone call or a letter from a debt collection company is to contact us. The worst thing we could do was to avoid contact or dispose of an employee of such a company. If we keep an open attitude of a person who wants a friendly solution and is ready to reach an agreement, we have a chance for success.
The debt collection company is then usually willing to be more favorable to us, demonstrate far-reaching flexibility in negotiating repayment terms, a new repayment schedule and the amount of monthly receivables. And by adopting an attitude that is not going to get along in any way, we can only lose.
What to pay special attention to – how to protect yourself from a debt collection company?
Before a debt collection company knocks on our door, let’s consider reasonable and thoughtful contracting. We tend to borrow more than we need and usually more than we can pay back. Therefore, before we take the wrong step, let’s examine the following:
- How much cash we plan to borrow
- Is the amount of cash we borrow absolutely necessary
- How long do we want to pay back the liability
- Will we be able to repay a certain amount of liability
If our initial, independent analysis shows that we can afford to borrow additional funds, then we do not have to worry about the debt collection company in the future. Let’s just borrow responsibly.