When a borrower is no longer able to meet his credit obligations, he becomes a debtor. If the creditor is no longer able to deal with the debtors and their debts on their own, they are called debt recovery service providers or debt collectors. According to the law, both the creditor (bank or non-bank creditor) and the debt recovery service provider, or debt collector, can be involved in debt recovery from the borrower.
Debt recovery service
Debt collector is a merchant (natural or legal person) who, within the framework of his professional activity, is engaged in debt recovery on behalf of or on behalf of the creditor. In order for a debt recovery service provider to be considered as lawful, it must register and receive a special permit or license issued by the Consumer Rights Protection Center or PTAC. At the moment, Latvia is legally operating, ie has obtained a CRPC license for the following debt collectors:
It is important to emphasize and remember that the debtor and the bailiff are not the same , because the debtor does not have any right to lodge the debtor’s property, seize real estate or a car, and block the accounts – the right to do the above-mentioned activities belongs solely to the bailiff who is based on a court decision.
The main task of debtors is to deal with the psychological terrorization of the debtor, trying to bring his debt back to him through voluntary and extrajudicial action. However, it should be emphasized that the debt collector is prohibited from using aggressive forms of communication, threatening, respecting the debtor’s dignity and honor, as well as communicating with the debtor on Sundays and statutory holidays. The Debt Recovery Service Provider operates in accordance with the Law on Out-of-court Recovery. Debt receivers obtain the debtor’s contact information from its creditor, while the rest of the information is obtained from the debt history database. It should be noted that debtor information is stored in debt history databases for at least 3 years from the moment they settle their debts.
voluntary payment of the overdue credit
The debt recovery process begins with a written statement of the debtor to the debtor about the existence of the debt and a call for voluntary payment of the overdue credit. In this written statement, the debt collector must include information about himself, the amount of the debt, the costs of its recovery, the procedure and term of its repayment, as well as information about the possibility for the debtor to make substantiated written objections to the existence, amount and repayment term of the debt, adding that the objection is made a minimum of 21 days from the date of receipt of the notification.
The debtor, of course, has the right to object, provided that they are indeed justified. The debtor, in turn, is also entitled to object to the debtor’s objections by using specific evidence and copies thereof. To avoid getting into debtors’ lists, fill in your credit obligations in full and in full so that they do not turn into debt and damage your credit history, which is one of the most important criteria to be judged before any loan is granted.