The major purpose at this stage of activity is the Debtor’s voluntary settlement of debt to the Customer. Actions taken during the pre-judicial proceedings are aimed at paying the receivables while minimizing costs related to taking vindication actions, including costs related to court entry, bailiff costs, representations costs, etc. The purpose of these actions is to reach agreement in terms of dept recovery.
Arbitration recovery process is:
■ Phone contacts – systematic conversations with the debtor, aimed at negotiating terms of dept repayment, and monitoring payments until the claim has been met;
■ Visit from our collector – in all cases where during telephone contacts an agreement on the term of payment has not been reached, or when transfer confirmation has not been sent within 48 hours, our employee visits the debtor’s seat.
■ Reminders – requests for payment characterized by putting an increasing pressure on the debtor, also informing then on the cost of judicial recovery proceedings
The actions carried out are always discussed with the Customer, including terms and amounts of payments in the reached settlements, as well as the way of securing the settlement.
Our experience tells us that in case of receivable timeout longer than 6 months, the effectiveness of amicable debt collection drops rapidly; therefore, our regular clients already know that the case should be referred for vindication after only 45 days after the term of payment.