What is global debt collection?
Global debt collection introduces the international debt recovery process, carried out either by a specialised private debt collection agency (DCA) or by creditor’s internal departments. A multi-national team is usually employed to serve both call-centres and operation departments. This aims to increase the success rate of collection process and improvement of global debt collection service package. By overcoming language barriers using poly-lingual employees, global debt collection agencies strive to provide an up-to-standard recovery and also to preserve debtors’ rights as consumers. Such DCAs have their legal representatives placed in each country of operation. Such debt lawyers and attorneys comply with country and state laws and regulations and can process the debt profile case to local court, if necessary. Global debt collection differs from the national debt recovery in only one aspect: during the pre-legal process, in-house visits are not carried out, unless the agency has a standard collection agent positioned in the same country of operation as the debtor. A Global debt collector targets online business companies, which have unsafe payment methods and foreign debtors.
Global debt collection derivation and law representatives
With the economy and technology evolvement, companies develop as well. Until the end of 2013 more than 40% of business across the world have become online and started offering online products and services (source:
). With the beginning of networked business, international debts have appeared as well. Transnational debt situations occur when a consumer prolongs their payment and the amount becomes late. Such amount can derive from the purchase of goods or services, unpaid online membership fees, etc.
Global debts not only engender the need of international debt collection agencies but also the one of legal representatives. A DCA operating on a transnational level has to comply with various laws and make sure not to perform actions, which might be declared as harassment by local law courts. This is why every agency, that offers global debt collection, carries out the legal and court debt recovery process with the help of different litigation representatives. An international DCA can use different legal representatives like enforcement agents, bailiffs and debt collection attorney. All three types can perform personal visits in debtor’s premises, but only the debt collection solicitor and the bailiff are authorised by law to forcefully collect and sell debtor’s personal possessions and belongings in order to settle the debt in full. However, such agents prefer to deal with the issue peacefully and offer convenient negotiation payment plan to the debtor. This is usually more cost-effective for both consumer (debtor) and lender (creditor).
Involving debt attorneys (who have the same residence as the debtor) in the international debt collection is preferred option by many creditors. Using global debt collection agencies, rather than creditor’s own internal departments, is considered as a better perspective for the original lender. Transnational debt recovery agents are familiar with all complying laws and regulations and will not only process debt collection but also preserve the good name of the creditor even on international level. National standards for enforcement agents, for example, can be found on the website of Great Britain’s Ministry of justice:
Control and supervision over global debt collection
Like national debt recovery, global debt collection process has to be monitored and regulated as well. Generally, transnational recovery agencies comply with different EU acts, but only if they are part of the European Union. Such international regulations are: the EU Order for Payment Procedure, also known as EOPP; the European Enforcement Order (
); the European Payment Order, officially known as European Order for Payment Procedure (
); the European Small Claims Procedure, where the creditor can claim debt amounts no bigger than 2000 EUR-
, etc. Other global debt collection laws and acts according to different countries are: the Federal Trade Commission, Fair Debt Collection Practices Act and the Consumer Financial Protection Bureau for U.S.; the Consumer Protection Act 1987, Administration of Justice Act 1970 and Late Payment of Commercial Debts (Interest) Act for UK; Office of Consumer Affairs for Canada, etc.
Global debt collection process has to be in compliance with debtor’s authorised rights as a consumer. No matter if the subject of debt is an individual, or a business organisation, the international debt recovery company has to adhere to regulated debtor’s rights. Apart from being licensed, a debt company has to conform to accepted time-frames for phone calls; to take into consideration time differences; various country and local holidays (as they are prohibited from contacting the debtor on weekends/official holidays); a global debt collection agency also has to be familiar with the statutory limitation period of debts for each country they serve, etc.
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