Is debt collection necessary for society?

by | Sep 26, 2022 | Debt Collection, Debt collection

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The debt generation in society appears from the smallest aspects to the macro fields, from each person’s daily activities to national-scale projects. As long as the debt still exists, there is a need to collect the debt. Therefore, debt collection is necessary for society. To prove this, TNTP will give and analyze the views in the article “Is debt collection necessary for society?”

1. Debt collection helps to ensure social security and reduce crime

Perhaps you often see news on social networks about lenders using illegal acts against debtors such as insults, threats of violence, and public disclosure of personal information and pictures; the debtor commits a crime, intentionally causes injury because the party has the right to urge debt payment; the parties quarrel, fight because the debtor fails to pay the debt on time and in full; …

These things have raised security concerns when debt collection activities take place, sometimes it causes other people to be implicated. This consequence occurs because the parties lack knowledge of the law and cannot control their emotions. In this case, if there is a third party to help the parties negotiate, reconcile and find a solution to settle the debt under the law, it will make a big contribution to ensuring social security as well as reducing the rate of crime.

Third parties are usually organizations and individuals with knowledge of the law and debt settlement, having experience and knowing the psychology of the parties in the debt relationship well. One of the organizations with the best ability to collect debts and comply with the law today is law firms and lawyer offices. With their expertise, lawyers will represent their clients to find the most effective debt collection plan. More importantly, these measures are all implemented under the law, which ensures safety for society.

2. Debt collection is an effective assistant for banks

Not only debts between individuals and enterprises, capital debts, taxes, fees, and charges are also a large amount of money that causes banks “headache”.

Unlike debts of individuals and enterprises which have a small number of debtors, banks’ debtors often have a huge number. Therefore, banks always have to build a separate department specializing in debt collection, but this force still does not meet the demand.

Thus, banks often look for debt collection organizations to settle debts. In this way, debt collection organizations become effective assistants, reducing the workload and pressure on banks.

3. Debt collection improves legal knowledge for everyone

During the settlement process, the debt collector will discuss and work with the parties and advise on the provisions of the law on the rights and obligations of each party when lending and paying debts. Through a debt collector, the parties will know the law regulations to limit illegal debt collection acts, as well as implement each party’s rights and obligations legally. Therefore, debt collection can improve legal knowledge for everyone.

4. Debt collection solves labor problems for society

With the increase in debt, the need for debt collection is also higher. This has attracted a large number of employees, whose main work is to contact the debtors and monitor the debt payment process of the debtors.

Debt collector positions are not only recruited in banks, but the recruitment demand at financial companies and law firms is also very large. It can be seen that debt collection is a potential industry that will help solve a significant labor problem for society.

Conclusion

In conclusion, debt collection is a beneficial activity for society if it is carried out and managed strictly under the law. Legal debt collection activities can reduce crime, ensure security, provide effective support to banks, help the parties improve their legal knowledge related to debts, and create jobs for employees. Above are the legal article “Is debt collection necessary for society?”. TNTP hopes this article is useful to you.

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