How collectors work? Part 1
One good turn deserves another. The main thing that on this redness not all blood left.
was Passed “ cheerful “ the ninetieth years of the twentieth century when debts were beaten out by means of direct threats and use of force. Or almost passed. Now the majority of firms and banks try to work in a civilized way and prefer to ask for the help collectors or collection agencies for the solution of questions of return of debts.
However, as collectors can act and the division of bank, will only be called it in a different way. Legal group, for example. Or office on work with clients. The essence does not change. A task of this division (group, department, service) - to convince by all lawful or okolozakonny methods to repay debts. And, it is desirable, percent on them. The bank is the same trade organization, only the goods at it show money. And it is necessary to pay for goods - that is it is necessary to pay for use of its money.
Collectors, professional collectors of debts , claim that they work within a legal framework and do not break laws. Considering what in absolute majority of the countries of the former Soviet Union of laws on collection activity does not exist yet, this statement can mean only that collectors honor the criminal code and do not use frankly criminal methods. The most interesting that as a rule in such companies there are a lot of former law enforcement officers and it is obligatory to eat legal group or at least one lawyer - to remind of that framework of the law which exit out of limits is fraught with legal claims, initiation of legal proceedings and other unpleasant consequences for collectors.
If the client of bank or firm from dear partner turned into the malicious defaulter, that is four solutions of a question:
1. To persuade the client to satisfy honestly a debt.
2. To call to the aid collectors - for a certain percent from an amount of debt.
3. To sell a debt on a payoff of the collection company.
4. To file a lawsuit.
The way No. 1 in business (and furthermore banking business) is unacceptable. Unfortunately, the Christian forgiveness of debts does not promote prosperity of private business.
The way No. 2 assumes that the bank (insurance company, private firm) reserves the right possession of a debt, but all “ dirty work “ provides to do to collectors, of course, for a certain percent. As a rule, on the credits provided with pledge, the percent makes 10 - 25%, on the unsecured unsecured credits the commission increases to 20 - 40% of debt cost. In case in the contract penalties are provided (that is in absolute majority of the credits and loans), the debtor (finally) should pay also a penalty fee for untimely repayment of a debt.
The way No. 3 provides that the bank (private firm) sells “ debt portfolio “ to collection firm for the sum, for 5 - 15% smaller, than cost is long.
Such option for the defaulter has 2 parties.
In - the first if collectors redeemed not returned credit, then “ to convince “ to return money will be all in the ways available to them. Will not give up and to any compromises will not go, differently will lose already the money. And to be ruined not for long.
In - the second, bank nuances like the removal commission - charge of money for the account, an insurance or a penalty fee, as a rule, does not interest them. For them (besides, as a rule) the main thing - the main sum of the credit. So if the borrower in principle is ready to leave mortgage property, the new credit will be able perezanyat under a debt or will be able to find some unknown way the required money - that the option with sale of a debt to collectors eventually can even be to it more favorable, than work with bank which will never refuse all due to it (and, as a rule, stated in the credit agreement in small print) of the commissions.
Banks choose the third way in a case when failure to pay a debt is late more than on 3 - 6 months and the borrower does not make contact with the creditor.
The way No. 4 is the most extreme case. It is known that courts are overloaded, their meetings are constantly postponed, and processes are dragged out for a long time. Even in case of a positive judgment on claim business, work of executive service can tighten payment of debts for several months (at best). Can file a lawsuit as bank (the insurance or any other company demanding compensation of damage), and collection agency in case it redeemed a debt of the careless borrower.
Good luck to you and let you will know data on work of collectors only theoretically, without facing them in practice.
About methods of work of collectors - in the following article.