What is a debt loan with debt collection and what rights does the debtor have?
Debt recovery by a loan company or bank does not always involve litigation and bailiff enforcement. Earlier, attempts will be made to reach an agreement that will end the case amicably to the satisfaction of both parties. That is why debt collection is used. Having debts, it’s definitely worth knowing what the debt recovery procedure is and what rights the debtors have.
What is amicable debt collection?
Court proceedings are associated with costs that are also incurred by banks and loan companies. This naturally reduces the income that would be obtained in the normal form of repayment. To avoid this, loan companies and banks often opt for amicable debt collection. This is a form of mediation, the purpose of which is to establish a dialogue with the debtor and to reach a settlement in the aspect of further repayment of the liability. What is particularly important, the participation of the indebted person in debt collection proceedings is completely voluntary!
Debt loans with debt collection-What are our rights?
It is only up to the person in debt whether he or she decides to seek an amicable agreement with the bank or loan company. The debtor has the right to refuse to meet the debt collector, refuse to let him into the apartment, and not disclose the amount of his property. Debt collector absolutely cannot exert pressure in the form of persistent contact attempts, intimidation or harassment. He also cannot talk to people familiar to the debtor. The debtor’s lack of willingness to participate in the recovery process automatically means a failure of any further negotiations.
Failed recovery can mean a bailiff’s visit
If the debt collection does not bring the intended result in the form of a settlement, the loan company or the bank may submit a request to the court to start bailiff’s enforcement. Before making a decision, the court will often make one more attempt to get the parties to dialogue, already in the courtroom. If this does not bring results, a decision on bailiff proceedings will be made. It is only at this point that the debtor’s property becomes threatened and can be seized by the bailiff at any time.