Currently, disputes over debt collection still occur frequently in our life. It may be for objective or subjective reasons for which the borrower does not or cannot make the payment even though you have requested many times with different methods. In this situation, many individuals and businesses often rely on the debt collection service to get their money back.
1. Debt collection service?
Debt collection service means that a service party on behalf of the creditor requests the debtor to pay due/overdue amounts and other assets that the debtor must pay to the creditor under the contract or agreed upon between parties or under a decision of a competent State agency.
During business operations, debts arising is inevitable, and when there are overdue debts, the business usually conducts debt collection by itself. However, due to the lack of experience, the chance of success is very low, the debt collection process takes much time and the opportunity cost is high. Therefore, individuals and businesses often use debt collection service because of their efficiency and reasonable costs.
2. Some measures used in debt collection service
There are many debt collection methods used flexibly depending on the debt’s nature as well as the debtor’s attitude. The most commonly used measures in the most effective way can be mentioned as:
+ Call to notify and make a request to the debtor, including via both personal phone numbers and office phone numbers. This is considered the first step in the implementation process of debt collections including many other activities.
+ Send a written request for payment to the debtor. Usually these notices will be sent to private houses, companies, etc. This affects the psychology and reputation of the debtor. If you do not want many people to know about your’s unpaid debt, you must perform the obligation as soon as possible
+ Meet the debtor in person to discuss, and at the same time put the necessary pressure on the debtor to make the payment.
+ In the end, if the above methods do not work, debt collection agencies will collect all relevant documents, get authorization from the lender to sue the debtor.
3. Why should we use a debt collection service?
Currently, for many businesses with complex debts, debt collection activities are too much, or there is not much time to do it, especially for small businesses or businesses with inexperienced staff in debt collection. Meanwhile, debt collection is required to be done in a more professional and efficient manner. In most cases, using the legal service of a law firm is an effective way to collect debts, which is worth considering for businesses.
The ban on the debt collection service does not affect the legal services of law firms including representing the business to work with the debtor and proceeding with litigation to request debt payment from the debtor. On the other hand, due to the fear of litigation, when a lawyer is involved in the proceedings, the debtor often no longer avoids his/her obligations and the chance of success in debt collection is higher. Therefore, with bad debts, individuals or businesses can completely rely on this service from reputable companies.
Currently, using the legal services of a law firm is considered a safe, effective, and lawful measure for the following reasons:
+ Firstly, the team of lawyers in the law firm is equipped with extensive legal knowledge and experience to provide the most appropriate and effective advice to the client’s case.
+ Second, the related parties do not have to waste time and effort to resolve the dispute by themselves but can authorize a lawyer to represent them. Resolving a dispute by themselves will take a lot of time and effort and can affect their work and life. Therefore, authorizing a lawyer helps the parties save time and effort. Lawyers will represent their clients to negotiate with related parties and participate in proceedings at Arbitration or Court.
+ Third, for legal litigation at the Court, the participation of lawyers helps the parties to maximize their legal rights.
Litigation at the Court must follow the order and procedures prescribed by law and take place over a long period of time. Meanwhile, many individuals and businesses do not understand or fully understand the provisions of the law related to disputes. This directly affects their rights and obligations. Thus, a lawyer representing the client participating in the proceedings is a necessity. A lawyer who has mastered the proceedings, along with his skills and experience, will help the represented person best protect their rights and interests in the proceedings.
Above is the advice of TNTP lawyer on whether to use the legal services of a law firm to resolve disputes in debt collection. Hopefully, with the above sharing, readers can have an overview and consider using debt collection services from reputable companies to recover debts effectively and in accordance with the law.
Best regards,
