Specific ways of conducting debt collection are debt collection at the bank and business debt recovery. Debt collection in the bank is usually carried out by debt collection specialists, who create a special department of the company. It comes down to making telephone contacts to the bank’s client, sending SMS messages, correspondence, or holding meetings with debtors during field visits. Economic recovery occurs mainly when the entrepreneur has a problem with obtaining payment for his products, services. Most often it is quick debt collection and soft debt recovery. There the debt collection agency works perfect.

If it fails, the case is referred to court. Debt collection of difficult debts includes the recovery of receivables even expired or on the border of limitation. It is mainly provided by professional debt collection companies that only support this form of debt. Debt collection of difficult debts is mainly a team of field negotiators who go to the place of residence of the debtors, conduct conversations with them and make arrangements.

How does debt collection work in practice? Is debt collection at the debtor’s expense?

Debt collection can, of course, be carried out in various ways. Some companies and their employees present a very high level of customer service. In some places it is just the opposite. In practice, debt collection can take on an intense nature, i.e. the number of telephone contacts and SMS messages sent, letters to the debtor. 

• Often employees are very negative about debtors in conversations. Only some debt collection companies conduct arrangements with clients regarding the possibility of paying off debt in installments or setting an additional deadline for them to raise funds. Debt collection is at the debtor’s expense, however, these costs are foreseeable, because the costs of prompts, debt collection letters, SMS messages or field visits are highlighted in banks’ tables of fees and commissions. Some companies, although they carry out these activities, do not add their costs to the debtor’s debt.
• Debt collection is a profession of human activity that has definitely developed recently. Currently, this set of activities is carried out, among others, as online or foreign debt collection. These new categories of debt collection services prove that debt collection companies are expanding their catalog of services, but they also respond to the needs of their clients better than before.

The Debt Collector’s Work

It seems too many that the debt collector and bailiff despite the misleading name act in the same way. Indeed both entities strive to enforce outstanding liabilities from debtors. And their similarities end there. Because, firstly, they appear at a different stage of the proceedings and, secondly, they operate on completely different principles. Let’s check when the debtor may be dealing with debt collection and when with the bailiff!