Getting a loan from a bank is quite simple. Overestimating your solvency or an unexpected decrease in income (wage delays, job loss, serious illness) can lead to late loan repayments.
Since banks exist at the expense of interest on loans, the search for reliable clients and the ability to collect overdue debts saves them from bankruptcy. In such situations, banks may cooperate with collection firms.
A small debt creates a debtor, a larger debt creates an enemy.
Publius Syrus
- Send the information by registered mail with acknowledgment of receipt. Such letters are proof of serious intentions to resolve the conflict.
- Letters must be correctly formatted from a legal point of view. You should use the services of a credit lawyer.
- Keep all letters, receipts, notices, SMS as evidence in case you go to court.
What should you remember when talking to a debt collector in person?
- A personal meeting can take place only with the consent of the borrower and on the territory proposed by him (not necessarily in his apartment).
- Be sure to look at the documents presented by the agent: ID, passport, cooperation agreement with the bank.
- If a debt collector comes to your home without an invitation, you should not open the door. The law is on your side - it protects the inviolability of home and personality. If the law is violated, the collector bears civil and criminal liability.
- When having a conversation on your territory, make sure that a third party is present who can record what is happening on video or with a voice recorder.
- Communication begins when you are convinced (through presented documents) that these are representatives of a specific organization that has the legal right to receive loan payments.
- Record complete data of the employees with whom you communicated; collect all evidence of boorish behavior and threats emanating from them (recorded conversations, videos, witnesses).
- Write official complaints about illegal actions towards you to supervisory and law enforcement agencies.
- Bank and collection company employees do not have the right to enter the debtor’s premises or seize or seize property. This is only possible for officials in the presence of a judicial act and the corresponding executive document.
- Don’t be afraid to go to court - this is beneficial for you and disadvantageous for collection companies.
There are times when a person for some reason forgets or cannot make a payment on a loan taken out. It is at such moments that there is a chance to get to know the work of collectors personally.
Who are collectors?
These organizations return existing debts. In our country, this phenomenon arose relatively recently. It came to us from the West. At the moment, the value of not only consumer loans, but also other loans is increasing. This is also responsible for the increase in the number of debtors on these loans.
It cannot be said that collectors are “knocking out”, but communication with these subjects will not leave a pleasant impression. The methods of collection that they use, as a rule, are very unpleasant and effective. They use not only knowledge of various laws (collectors are often representatives of the legal environment), but also psychological influence. But although a meeting with debt collectors is a very unpleasant event, it is not fatal.
There is the following algorithm for the activities of collection agency employees:
- The bank contacts such an agency and asks to collect the debt from the borrower. It is this moment that marks the beginning of the work of collectors.
- Next, the necessary information about the borrower is collected. Information such as financial situation, place of residence, place of work and other data that the debtor gave to the bank is required.
- After completing all the previously indicated actions, the collectors notify the debtor of the bank’s demand to repay the debt urgently. This attack is carried out using all available methods: in writing, electronically, using SMS messages. This is done in an extremely sophisticated and very active manner. At first there will be a respectful tone. If the debtor remains silent, the letters will become demanding. To make everything look more convincing, such letters may contain information about what will happen to the debtor in case of non-payment.
- If all the methods used are unsuccessful, then the debtor must be prepared for a personal visit from collectors. But such a visit can also be made to relatives, friends and acquaintances, and the employer.
- If this does not help, collectors move on to judicial collection. They draw up a claim, and they are also representatives of the creditor bank.
A special normative act that would regulate their activities has not yet been adopted. Therefore, in their activities, these agencies are guided by civil law. They act as mediators and negotiators.
Collectors provide services at three stages:
- Pre-trial proceedings;
- Trial;
- Enforcement proceedings.
As a rule, they provide services on the basis of a concluded agency agreement and a notarized power of attorney.
It is important to know that collectors, in addition to rights, also have responsibilities
Responsibilities of collectors:
- Agency employees can disturb debtors only during the daytime (from six o'clock in the morning until ten o'clock in the evening) and only on weekdays.
- They must comply with the Criminal Code and the Civil Code in terms of prohibiting insults and threats against the debtor, as well as in terms of spreading slander.
- To work with personal data, they must have a specially established license. Other restrictions apply to collectors.
- The collector cannot blackmail the debtor, threaten him, or use obscene language against him. He may also not enter the debtor’s residential premises without his consent.
How to talk to debt collectors correctly
Statistics show that debt collectors manage to force every second borrower to repay their debts. But some agencies tend to use frankly “gangster” methods of their work: threats, blackmail, psychological influence. There are also cases when debt collectors threaten physical harm. The debtor must clearly understand for himself: if he is not dealing with outright criminals, then any threats from collectors are unfounded.
It is worth understanding that if you are going to respond to demanding letters from debt collectors, then you need to write them in the most legal manner possible. This will indicate that you have serious intentions and legal literacy. Often they turn to credit lawyers for help in drafting such answers. As a rule, if collectors see that you have a good and experienced lawyer behind you, they will stop putting pressure on you and the debt will be transferred back to the bank. Send registered letters with acknowledgment of receipt and a description of the contents. If the case goes to court, this can prove that you tried to resolve the conflict peacefully.
How to talk to collectors if they are going to visit you personally? The answer is no. IMPORTANT: they have no right to enter your house without your consent. If subjects who introduce themselves as either debt collectors or bank employees knock on the door, first calmly and politely ask them to leave. Tell him that otherwise you will call the police.
Remember that only a bailiff can come to your house and take an inventory of your property. And then on the basis of a court order, or a writ of execution. If the collectors do not calm down, call your neighbors and make noise, then feel free to call the police and say that unknown persons are trying to break into your place.
You can use the following algorithm:
- The debtor has the right to know that a collector is really calling him. You need to find out from him the name of the agency, his own full name, the basis on which he works with the bank.
- Check the amount of debt and whether it is calculated correctly. If they refuse to provide this data, then simply hang up. It would be better to record the number from which they called.
- If an employee of a collection agency comes to the house, you don’t even have to talk to him.
- Always maintain restraint, calm and confidence when communicating with debt collectors. Collectors are very good at sensing the debtor’s fear and uncertainty.
- Collectors cannot enter your home without permission or seize your property. They bear responsibility for illegal actions.
What to do if debt collectors make threats?
Remember that even if your property is overdue, collectors cannot take away your property, which means you don’t need to succumb to psychological pressure. You need to check the documents that allow the employee to make any claims against you at all.
If you are harshly presented with a demand over the phone, then simply offer to solve the problem peacefully in a personal meeting. Moreover, where and when it is convenient for you. If the collector threatens you, then simply go to the police and write a statement about extortion and a threat to health and life. It is also worth informing the bank itself about this fact, on whose behalf the collector is acting.
In any case, remember: the main thing is to remain calm and confident.
In conclusion to all of the above, we invite you to watch a video on how to talk to debt collectors:
The growth of mortgage and consumer lending over the past few years has led to the formation of a large share of overdue debts. This phenomenon, caused by the instability of the economy and the careless provision of financial instruments to the population, generates a market for collection services.
Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:
APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.
It's fast and FOR FREE!
Every year there are more and more organizations (agencies) specializing in debt collection from unscrupulous clients of credit institutions. Banks sell about half of their total debt through such companies.
For many citizens, communicating with debt collectors is not an easy process. The procedure for debt collection, the rights of organizations and the rights of debtors are determined by current legislation. Persons with loan debts and debt collectors are obliged to act within the legal framework, and all violations by agencies are suppressed on the basis of current laws.
Debt collection by intermediaries
Collection organizations currently use two forms for cooperation with banking institutions:
- An agency agreement (agreement) drawn up on the basis of Article 779 of the Civil Code (Civil Code) of the Russian Federation, which stipulates that the debt collector receives a reward for actions contributing to the return of the debt. The agency may act on behalf of the bank, but the relationship between the debtor and the creditor does not change. The agent acts on behalf of the bank under a power of attorney. The debtor has the right to resolve issues related to the loan debt directly with the creditor.
- An assignment or assignment of rights of claim in accordance with Chapter 24 of the Civil Code provides for the sale of loan debt to a collection agency. Under such an agreement, the collector has the right, on the basis of documents provided by the bank, to demand execution of the loan agreement, but the loan agreement remains in force.
Currently, banks and organizations specializing in debt collection are guided by several legislative and regulatory acts. A separate law on collection activities exists in the form of a draft and references to it by agencies have no legal basis.
Legislative grounds
A collection organization is a commercial enterprise that does not have any special status or powers. Such companies operate without accreditation, licensing and standardization. To resolve disputes, collection agencies must, like all subjects of the legal field, use negotiations, courts, claims work and contact law enforcement agencies.
In their activities, debt collection organizations are guided by:
- Civil Code of the Russian Federation;
- Law “On Personal Data”
- Federal Laws (FL) “On Banks”, “On Credit Histories”, “On the Protection of Consumer Rights”, “On the Protection of Information” and other regulations.
Companies specializing in debt recovery operate in addition to the banking sector in the housing and communal services market, debt consulting, debts for telecommunications services and others. Collectors are responsible for their actions in accordance with the Criminal Code (CC) and the Code of Administrative Offenses (CAO).
How to deal with debt collectors?
The principles of relationships with companies and individuals who, on their own behalf or on behalf of the bank, make demands to repay the loan debt, are based on the rights defined by law.
Regardless of the form of communication, the debtor cannot be subjected to pressure that is not provided for by current laws.
General rules of conduct include:
- You need to start communicating by finding out the name of the collector, his position and the name of the organization he represents;
- check the information provided by calling the institution back;
- contact the creditor and find out which company and under what conditions the debt was transferred;
- request a document certifying the transfer of rights to collect debt to a collection company;
When we meet
It is not necessary to communicate with an employee of a collection company who arrives at the debtor’s place of residence. There is no rule to open doors for him and talk to him. If a citizen decides to discuss the situation at home and lets the collector in, then it is necessary to conduct the conversation politely and present the requirements outlined above.
The debtor is not obliged, even upon presentation of the necessary documents, to provide the collector with any information, including personal data, etc.
The debtor's reaction depends on how the collectors behave. If the behavior is aggressive, they should be reminded of criminal liability for illegal entry into housing. It is not recommended to sign any documents, with the exception of papers directly indicating a reduction in debt.
In a telephone conversation
First of all, the representative of the organization must introduce himself. You should not share your personal information over the phone. The conversation should be concise and boils down to the fact that the collector must provide an agreement on the assignment of rights, details of the account and a statement of debt calculation for negotiations. Without such documents, further conversation makes no sense.
If a list of documents is provided and the debtor agrees with the calculations, then the collectors should be informed that the data is correct, and they can contact the judicial authorities to further resolve the issue.
When making multiple calls, the representative must be reminded of the existence of the article “Extortion” in the Criminal Code of the Russian Federation, and the conversation itself must be recorded, if possible. If the debtor is threatened in such cases, it is not superfluous to mention other articles of the Criminal Code related to causing harm to health.
It is advisable to warn the collector that the conversation will be recorded. If aggression is obvious, it is recommended to contact law enforcement authorities, providing audio evidence. As a last resort, you can change your phone number, but you shouldn’t follow the organization’s lead.
Many agencies use the provisions of the Law “On Consumer Credit”, which came into force in July 2019. The regulatory act states that if the agreement provides for the rights of creditors to call, personally meet with the debtor and invite him to negotiations and the borrower has signed such conditions, then the actions of debt collectors are completely legal. Calls cannot be received between 10pm and 8am on weekdays and between 10pm and 9am on weekends.
In any case, the conversation with collectors should be limited, first of all, to receiving written notification of the assignment of claims. Until the documents are provided, you don’t have to communicate with the companies representing the bank’s interests on the loan. If a person cannot cope with the situation on his own, it is recommended to contact a lawyer and draw up a pre-trial claim, which, when reviewed, will act on the collection office as a ban on debt collection for a certain period.
Such a document appeals to the provisions of the law “On the Protection of Personal Data”, “On the Protection of Consumer Rights” and other legislative acts. Experienced lawyers will be able to prove by providing information to the court that the actions of collectors exceed their powers and thereby suspend the process of communication with such an organization.
In addition, the judiciary always faces the following questions as a dilemma:
- organizations that do not have a license for lending activities?
- Do credit institutions have the right to disclose banking secrets by transferring customer data to third parties;
- Is the borrower's consent required for the transfer of claims?
Formation of a correct pre-trial claim can eliminate the work of a collection company and return the actions of interested parties to the legal field.
To the debtor's relatives
Representatives of debt collection companies do not have any privileges. They are legally obliged, on behalf of the bank, to sue the debtor and not take any other actions in relation to him, much less. Any calls, visits or SMS messages are designed to put pressure on the bank client.
The response to such calls should be unambiguous. Collectors must resolve this issue in court, and other negotiations are possible only with the voluntary consent of the debtor. In practice, it is more profitable to resolve the debt problem in court, and paying any even insignificant amount to the bank’s receivers is fraught with further actions that may indirectly affect the interests of relatives.
To the guarantors
Guarantors or co-borrowers bear the same responsibility for repaying the debt as the borrower himself. Communication with debt collectors should be based on the same principles as for the debtor.
The only legal body that makes a verdict on debt repayment and can transfer the case to the executive authorities is the court.
In relation to guarantors, collectors can only act as representatives of the bank in legal proceedings. A person who is jointly and severally liable for a loan, for example a spouse, has the same rights as a debt collector and, under unlawful pressure, can appeal the actions in court or contact the police.
The debt may not be your fault. How then to explain to the collector. what is he.
Even at a car dealership you can encounter fraud when selling a car. ?
If you didn't take out a loan
In the event of demands from a bank or collection agency to repay a non-existent loan, citizens must invite interested parties to contact the judicial authorities with a statement of claim.
There is no point in reacting to demands.
Independent proceedings will take up personal time and will negatively affect your nervous health.
When should you complain?
Appeals about illegal actions of collection agencies, depending on the circumstances, can be sent to state and public authorities. If actions bear signs of crimes provided for by the Criminal Code or offenses for which liability is determined by the Code of Administrative Offenses, complaints and statements should be submitted to the police or to court.
Enterprises that behave unethically and thereby violate the rules of business accepted by society may be disqualified by professional communities, the main of which in this area is NAPCA (National Association of Collection Companies). To publicly counter companies that help credit institutions repay debt, public organizations have been created in Russia to counter debt collectors.
In addition, certain actions may be considered by the Central Bank of Russia, Rospotrebnadzor, the prosecutor's office and other bodies within their competence. To effectively counteract debt collectors, it is recommended to seek help from qualified lawyers, but it should be noted that under any circumstances, debt obligations will be valid and the loan will have to be repaid.
Attention!
- Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
- All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.
That's why FREE expert consultants work for you around the clock!
Many people are forced to take out different loans for a variety of purchases and expenses. Often banks and other credit organizations make it possible to borrow funds in a significant amount quite simply, which leads to the formation of significant debt.
People may not even properly assess their financial condition in advance, so a situation arises when they cannot cope with debts on their own.
Creditors can go to court, but often sell the debt to collectors or use their intermediary services. You must communicate with these specialists carefully and competently to ensure the protection of your rights.
All debtors are forced to deal with various influences from collectors or bailiffs, as well as security employees of the bank where the loan was originally issued.
All of the above specialists begin to regularly call home and work, communicate with relatives and neighbors, come home, and often even threaten with physical violence.
Important! If indeed the collectors immediately begin to blackmail or threaten, then it is advisable to use different programs for recording telephone conversations so that there is evidence of the collectors’ unlawful behavior, after which this evidence can be turned to law enforcement agencies.
When dealing with debt collectors in person, it is advisable to follow certain legal advice:
- It is not recommended to let them directly into the apartment, as this may be dangerous to the health of the citizen;
- it is necessary to study the law “On Collectors” in advance in order to communicate with these specialists exclusively within the framework of the law;
- collectors are not officials, therefore, by law, they cannot demand to be allowed into the house;
- if the specialist understands that the debtor is well versed in the laws, then he will immediately begin to act in accordance with various legislative acts;
- if collectors come at the wrong time, then you don’t have to open the door for them at all, and on weekdays their visit is allowed from 8 to 22 hours, and on weekends this period is shortened from 9 to 20 hours.
How to talk to a debt collector correctly? Tips in the video:
Important! If a person is well versed in the laws, then he himself will want to communicate with debt collectors in order to find out what exactly these specialists need, since such behavior often makes it possible to find out the future outcome of the case.
Checking the legality of claims
If debt collectors visit the debtor, you must first find out whether they have legal grounds.
To do this, follow these steps:
- Initially, you must ask for documentation available to the visitor, since he must prove that he has the right to represent the interests of a particular bank, which is a creditor;
- you also need to study your own loan agreement to check whether it includes a clause allowing the sale of debt to third parties;
- it is important to request from the collector a copy of the assignment agreement or other document on the basis of which the specialist is acting;
- without the necessary documents, you may not agree to conversations at all;
- the specialist himself must present his passport, and it is not allowed to replace it with any certificate that may be a simple fake;
- it is necessary to check whether a particular person really works in a certain one;
- It is not allowed to contain any inconsistencies or strange data in the received documents, since in this case it is advisable to refuse further communication.
If a specialist refuses to present any documents, then you should simply refuse to talk to him.
How to talk to debt collectors correctly
In order to prevent violation of your rights, as well as to obtain maximum information from the debt collector, it is important to have a good understanding of how to communicate with him.
It is best to take into account the following rules:
- you can refuse to let collectors into your apartment;
- It is not advisable to conduct a dialogue indoors, so you need to go out onto the site yourself;
- It is best to make an appointment at the office of a collection agency;
- it is taken into account that collectors want to get into the housing in order to assess the debtor’s solvency;
- It is advisable to record all conversations and actions of specialists with different devices in order to prevent possible or violent actions;
- you need to immediately talk about the need for a trial;
- it is recommended to report that the debtor is well versed in the law and therefore will not allow his rights to be violated;
- if various illegal actions on the part of collectors are actually recorded, then complaints should be immediately filed with the Central Bank, Rospotrebnadzor or other supervisory organizations.
How to talk to a debt collector correctly? Photo: biz-anatomy.ru Complaints will be effective if there is evidence, and it is also optimal to file a complaint about the presence of fictitious documentation from the collector, unannounced visits and rude attitude.
How to build a conversation
The debtor himself should receive as much information as possible from specialists during communication.
This information includes:
- existence of legal grounds to demand money;
- it is necessary to determine which agency the specialist works for;
- his passport and ID are being examined, but he may not be there, which is not contrary to the law;
- it is important to request documents from the company itself;
- the documentation regarding which the debt was sold or the agency agreement was drawn up is checked.
Can debt collectors sue to collect a debt? See by.
All these questions will help determine whether the person who visited the debtor is a fraudster.
The nuances of communicating by phone
Most often, collectors use frequent and long telephone conversations to influence debtors.
Important! They often call from hidden numbers and begin to threaten and intimidate citizens, and such measures of influence are considered effective for the faint of heart.
Most often, communication takes place over the phone, and people often call even at illegal hours. It is necessary to thoroughly understand the rules of telephone communication in order to prevent such moral influence.
The main conditions include:
- all conversations must be recorded, and the date and time of communication is additionally recorded;
- First, you need to warn the specialist about recording;
- you need to get the caller to introduce himself and also name the agency he represents;
- you should find out which original creditor he represents;
- it is not advisable to provide any information about what the financial situation of the debtor is, as well as who is in his family;
- It is recommended to communicate with caution and restraint;
- Questions must be answered in short sentences;
- no need to make excuses, promise to return the money or cry;
- if the caller starts making threats, then you just need to hang up;
- it is recommended to agree to proceedings in court;
- It is not advisable to give the specialist the opportunity to talk a lot, so you must constantly interrupt him and ask your own questions, and the tone should be similar to the tone of the collector himself.
What mistakes can you make when talking to debt collectors? More details in the video:
Important! If the debtor aims to return the funds, then he may ask about the possibility of restructuring or returning the money in installments.
How to communicate in person
If collectors come home, you have to communicate with them personally.
For this, the following rules are taken into account:
- if an appointment has not been made in advance, then you don’t have to open it to a specialist;
- he must be required to have a passport, a power of attorney to represent rights and an agreement on the basis of which the bank sold the debt;
- If the necessary documents are not shown, then you can stop communicating and close the door.
The bank sold the debt to collectors, what should the borrower do? Read.
Often, debt collectors try to use physical force to break into a house, and under such conditions, the police should be called immediately.
What to do if you don’t have the financial capacity to pay off your debt
If the debtor cannot cope with his debts, then he may try to avoid meeting and communicating with debt collectors in order to wait for the proceedings in court.
By court decision they may ask:
- reduce the amount of debt;
- create a more acceptable payment schedule;
- get .
Important! If you create an opinion of yourself as a difficult debtor, you can prevent regular visits and calls from debt collectors, so you need to regularly write statements to the police, talk with references to legislation, or defend your interests in other ways.
What to do if they do not contact the debtor
If claims are made unreasonably without the existence of a debt, then you must immediately contact the police.
The reason for this behavior of collectors may be an error in the database, forged documents, fraud or other situations.
How to deal with threats
Initially, they must be recorded on audio or video. By law, collectors cannot use such methods of influence. The evidence obtained can be contacted with law enforcement agencies.
What to do if illegal actions are detected
You can file complaints not only with the police, but also with the prosecutor’s office, Rospotrebnadzor or even Roskomnadzor.
How often can a debt collector communicate with a debtor? If there is substantial evidence of violations, you can file a lawsuit, and you can demand not only cessation of influence, but also compensation for moral damage.
How the problem is solved
It can be resolved peacefully only by returning the borrowed funds to the creditors. It is possible to agree on drawing up an acceptable schedule. But this option is possible if the borrower has the financial capabilities.
How lawyers talk to debt collectors
Professional lawyers can refer to different laws and case law, so it is much easier for them to build a conversation. Communication is always calm, and the facts are reasoned.
Lawyers do not provide debt collectors with information about debtors and their family members.
Conclusion
Thus, debtors are often forced to deal with debt collectors. It is important to understand well how to communicate with them correctly in order to defend your rights and prevent various threats or even physical influence.
If there are significant violations on the part of these specialists, then a complaint can be filed with various government organizations.
Many debtors who were unable to repay a loan to a credit institution are interested in the question of how to properly talk to debt collectors over the phone so that communication does not turn into a stressful situation every time. If your loan debt was transferred/sold by the bank to a collection company, then it will be useful for you to know some aspects of communication with collectors in order to calmly respond to their phone calls.
If you want not to be afraid of meeting in person or communicating by phone with debt collectors, you should prepare in advance and know how to answer their questions, how to behave and what to say. This article will help you learn how to properly negotiate with collection agencies.
Who are debt collectors and when do they have the right to call the debtor?
Collectors are representatives of organizations specializing in debt collection. Their work pursues the only goal - to repay the borrower’s debt to the bank in any legal way. At the initial stage of work, in most cases, collectors communicate with debtors by telephone, using psychological pressure, and sometimes some form of blackmail and even threats. You should know that if the debtor fails to fulfill his obligations, and the bank “transfers” the defaulter to a collection company, the latter is provided with all the personal data of the debtor: full name, residential address, telephone numbers (mobile, work, home), place of work, information about property owned , information about marital status...
The first official collection company appeared in Russia about 11 years ago, so in our country a collector is a relatively young profession. At the dawn of the development of the collection services market, collectors often used rather aggressive methods of debt collection, so the term “debt collection” was difficult to apply to their work; “debt collection” sounded closer in meaning. Today the situation has changed, the market has become more civilized, and we can say that a competent debt collector is not only a debt collector, but also, to a certain extent, a legally competent consultant who can help the defaulter get out of the current situation and solve financial problems with the holder loan. A competent debt collector can offer the debtor all sorts of loan repayment schemes, but his main goal is still to receive money out of court.
Currently, almost the majority of collection agencies work as agents of the creditor (bank), collecting problem debts for an agency fee, which is usually a percentage of the amount of loan debt collected from the debtor.
How should you talk to debt collectors over the phone?
If you are overdue on several mandatory monthly loan payments, avoid meeting and negotiating with bank representatives to discuss options for resolving your current situation, and have not reached agreements that suit both parties, then your debt may be to a collection company. As soon as this happens, be sure that in the very near future you will start receiving calls from collection agencies, and you should be prepared to talk to collectors by phone.
We advise you to carefully study the loan agreement before this moment arrives. For example, it is worth paying attention to the presence in the agreement of a clause stating that the bank has the right to transfer overdue debts to collection firms, and under what conditions. If there is no such clause in the loan agreement, then the agreement does not oblige you to communicate with collectors, that is, telephone calls from a collection agency or personal harassment of you by collectors will be considered illegal actions. But if the loan agreement states that the bank has the right to transfer the debt to collectors, then collectors have the right to call and try to collect the loan debt from you. However, when you get a phone call from them, you don’t need to hang up, freak out and worry, it’s important to know a few simple and important rules when communicating with them:
You should realize that if the collection company itself has not gone to court to collect the debt, this means that legal proceedings are unprofitable for it, since it will take too many resources and time, however, they can ruin your life with phone calls.
How to talk to debt collectors in person?
First of all, if you have a personal meeting with a debt collector, you should remain calm and self-controlled. Remember that collectors can use various psychological techniques to “knock out” a debt from you, so sometimes they even resort to illegal methods, such as blackmail and threats. This is certainly unpleasant, and not every person is ready to maintain composure under such pressure and provocations, and calmly talk to debt collectors in a personal meeting.
According to the law, if the debtor refuses to pay the debt to the bank, then collectors have the right to only two methods of collection - either notification and negotiations with the debtor, or filing a claim in court. But, as we mentioned above, filing a lawsuit is not always economically justified for a collection company, so they begin psychological pressure on the debtor, hoping to “knock out debts” without additional costs.
If you have already found out that your “problem loan” has been transferred to a collection company, and you soon need to wait for representatives of the collection agency, we recommend consulting with a lawyer on credit issues who will tell you what rights you have, how the collector should introduce himself, what package of documents he is obliged to present it in order to legally demand repayment of the debt from you.
During a personal meeting, ask the collector to present the document on the basis of which he intends to interact with you personally, such an agreement could be a debt assignment agreement (agency, provision of services to the bank) to make sure that he has the right to negotiate on your case, and also, to find out the identity of the collection agency representative. If this document is missing, you can undoubtedly refuse the meeting and reschedule it until the collector prepares the necessary documents for presentation in accordance with Article 385 of the Civil Code of the Russian Federation “Evidence of the rights of the new creditor.” It is better to set a date for the meeting in advance, since in this case you get the legal right not to even talk on the phone, and not to pick up the phone at all until the appointed day.
When you come to a meeting, you should study all the documents in detail, carefully proofreading them, not even missing commas. Any typo or error is a strong argument for refusal and rescheduling of the meeting, since such a document is invalid, that is, it has no legal force.
In any case, remember, the collector’s task is to get money from you, for which he will do his best to throw you out of balance and your comfort zone, provoking a scandal. Collection agency employees are well trained and have many psychological techniques in their arsenal, which they will definitely use during personal meetings and telephone conversations with the debtor; be sure to keep this in mind and try to be prepared for psychological pressure.
Why don’t collectors and banks immediately file a claim in court?
When a bank goes to court to collect a debt from a defaulter, the loan agreement is automatically terminated. What does this mean for the debtor? And the fact that fines and interest on the loan stop accruing. Litigation can continue for quite a long time, so debtors may deliberately delay this process. It is possible that the judge will take into account the debtor’s compelling arguments and take his side, canceling interest on the loan and fines. In such situations, the bank can only receive the body of the loan, without interest for its use. Often, the borrower can repay the principal debt for quite a long time. For example, based on proven facts of deterioration of the debtor’s financial situation, the court may order an interest-free installment plan for up to 5 years (for voluntary execution of a court decision), the so-called judicial debt restructuring. This is definitely not profitable for the bank!
There is another fairly common reason why a bank does not always go to court - this is the absence of a loan agreement signed by the borrower. This situation is possible when the debtor uses a credit card received from the bank by mail, without concluding a written loan agreement, the person can withdraw money whenever he wants. In this case, the bank has minimal chances of getting its money through the court, since there is no actual paper loan agreement and it is almost impossible to prove that the debtor is violating the terms of the agreement.
It is for these reasons that banks transfer the rights to credit to collection agencies, and the latter, in turn, take advantage of the fact that debtors do not know their rights and legislation.
For example, few users of credit banking products know that on July 1, 2014, the Federal Law of December 21, 2013 N 353-FZ “On consumer credit (loan)” came into force, which gives borrowers and credit organizations new rights and obligations, protecting interests of debtors, and at the same time protects banks from unscrupulous borrowers.
