To avoid unnecessary abuse and harassment, there are rules about what these law firms can and cannot do.
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The opinions of the employees of s You are personal.
As soon as the late paymentsThe lender will try to get your money back, and from the 90th day of delay you can request collection agency support.
While the Collection points They aim to reclaim capital, sometimes they become invasive. To avoid unnecessary abuse and harassment, there are rules about what can and cannot be done. If they are not complied with, the public agency responsible for their sanction is the collection agency (Redeco).
In the first half of 2018, the Redeco initiated 15,109 measures according to the self-assessment report of the National Commission for the Protection and Defense of Users of Financial Services (Condusef).
“If you believe that your rights are being violated by debt collection agencies, ask Redeco for help. Before you begin, it is important to know whether the debt collection agency is operating correctly or has done something outside of its area of responsibility,” said Sebastián Medrano, director from Coru.com.
The illegitimate extrajudicial collection includes the use of physical or verbal violence, harassment and intimidationeither personally or otherwise, to request payment of a loan or liability arising from a contractual obligation, regardless of who owns the collection rights at the time of collection.
Collection usually takes place in three phases, depending on the time that has passed since the loan was granted:
- Administrative collection: It occurs in the initial phase of non-payment, 1 to 90 days late or in arrears. The company searches for the debtor and unsuccessfully tries to achieve compliance, or the agreed payment agreements are not met.
- Extrajudicial collection: It occurs within 91 to 120 days after overdue debt. The recovery of the loan is requested from the company’s collection agency or through external offices. At this point, the customer will be informed that if a solution is not found, they can contact a legal department.
- Judicial collection: Seek debt recovery through a lawsuit.
What you should know about debt collection agencies
- You are an intermediary. They act as an intermediary between the financial institution and the debtor with the aim of requesting payment of the debt out of court or to negotiate and restructure the loan. However, the deal must be guaranteed by the agency granting the loan.
- The office can inform you about your situation. All calls for collection must be made in a warm tone, the representative is obliged to be respectful and to identify himself. The main function is to inform you of the status of your debts and payment alternatives. The allowed hours are from 7 a.m. to 10 p.m. If you are not available, you have the option to leave a message with the data so that you can communicate, but cannot negotiate with anyone else, let alone with minors or older adults. At the time of contact, the representative must make it clear to you which office he works for and which institution he represents.
- What it can’t do is intimidate you or your acquaintances. Collection agencies must not make threats or speak aggressively to debtors. You also have no authority to appear on behalf of public bodies or to use names or stationery that could imply this.
- A civil debt cannot put you in jail. However, sometimes documents that pretend to be court orders are sent, and this is not allowed.
- It is also not right that they directly burden you; If you reach an agreement with the collection agency, payment must be made directly to the institution where you owe the debt.
Check who you owe before negotiating
There are two major cases that you can encounter with collection points. The first is that a lender, such as a bank, uses your collection area or calls an agency to collect the money, but the bank owns the debt. The office is therefore only dedicated to collecting and brokering the bank.
The second scenario is for the lender, such as a department store, to transfer or sell the overdue portfolio after a payment delay of at least three months. In this case, the debt “changes” the owner and you have to confirm exactly who you should pay now.
New creditors can propose (remove) negotiations to reduce or repay debt.
The Condusef’s recommendation is to check beforehand whether the debt actually changed hands. You can check the name of the companies you owe something to when you check your credit history in a credit bureau.
How to better negotiate with a debt collection agency
- Remember they are mediators. If you agree to negotiate and restructure debt, credit, or finance with the debt collection agency, you must formalize the agreement with the financial company that granted the loan.
- Collecting can be done by both a natural and a moral person. In both cases, however, you must have a legal record. Before accepting a negotiation, you should check the Redeco site to see if it is an authorized representative. There is a list that is updated with the basic data of those who are officially registered for collection tasks.
- The data that Redeco offers you are: Name of the financial institution you work for, name of the office, if it is a natural or legal person, address, phone and email.
- If you acquired a debt with your loan and were unable to pay on time, It’s best to regulate yourself, but if the collection calls have already started, don’t be afraid. Ask about the terms of your debt and the alternatives.
- Only start a negotiation if you can meet it However, if you notice anything unusual, report it. Even if you are very guilty, your rights must be respected for them to count.