During the out-of-court debt collection procedure, the debtor is contacted, the debtor’s financial situation and the reasons for the indebtedness are ascertained. In the absence of objections, payment of the debt is agreed. If the debtor does not want to pay the debt voluntarily or is insolvent, a decision is made to initiate legal or bankruptcy proceedings.
It makes sense to give preference to this method of debt recovery in a situation where the claim is clear, recoverable and not time-barred and there are no objections from the debtor.
Forms of cooperation in debt processing:
Claim assignment agreement – the customer assigns the claim to the collection agency for collection. There is a change of person in the debt relationship. The rights ensuring the performance of the obligation are transferred to the new owner of the claim.
Authorisation agreement or agency agreement – the client authorizes the collection agency to represent itself in the proceedings of the transferred debt claims.
Mass claims collection agreement – this is an agency agreement by which the client authorizes the collection company to represent them in the collection of mass claims.