Purchase of debt of individuals and legal entities collection agency
Professional activity of collectors is aimed at debt collection. Some time ago, their actions, although they were dubious, gave undoubted results. To date, their activities are strictly limited by law. In this regard, the agencies are now engaged in the recovery of only really profitable debts. This article will look at how the purchase of debts of individuals is carried out.
According to the legislation of the Russian Federation, collectors have the right to work with individuals only on the basis of a debt receipt or credit agreement. However, for this it is necessary to adhere to certain conditions:
- The debtor must be solvent.
- The amount of debt is high.
- Loan secured.
- Discount on the purchase of debt - more than half of the amount.
Let's see if a bank has the right to sell debt to collectors. Credit organizations assign the right to claim a loan debt to many defaulters at once.
The law requires that in this case a clause providing for the possibility of transferring the debt to third parties be specified in the agreement with the borrower. If such a provision in the contract is not spelled out, then in the case of transfer to collectors, their actions will be illegal. There is a possibility of concluding an agency agreement between collectors and a credit institution, however this will not give the right to collect funds to the collection service account. That is, the creditor in this case will remain the bank that issued the loan. He only pays for the services of the collection agency to inform the malicious defaulter about the amount of the debt and the obligation to return the money.
Who is interested?
Who is interested in buying debt other than collectors? As a rule, the interested parties are the banking institutions themselves and, in fact, the debtor.
There are many online platforms for listing debt transfer announcements. By law, the debt can be redeemed by any organization or person who has no offenses in the past.There are situations when one bank resells a problem loan to another, or offers the borrower to repay a debt at a discount in order to receive at least some compensation for the losses incurred. However, collectors are, of course, most interested in buying out debt, since this is directly related to their professional activities.
In most situations, a significant discount is made to collectors when buying a debt, since the process of collecting money from a defaulter is quite difficult and costly. Lenders are even interested in the minimum return of funds, since self-recovery can be quite long and difficult. Sale of debt becomes a more optimal option.
The law on collectors makes a number of requirements that relate to the agencies themselves. This includes compulsory liability insurance, registration of an organization in the state register, the minimum amount of share capital, etc.
In what ways is the purchase of debts of individuals?
Types of assignment of rights
Sell debt collectors in several ways.
On receipt.In this case, the creditor transfers the debt to the agency and no longer has the right to collect funds. Representatives of the collection service should independently search for the debtor and collect unpaid debts. A prerequisite is the notification of the debtor in writing of the transfer of its debt collection agency.
Since the activity of collectors is limited by law, only lucrative debts are redeemed. The higher the amount owed and the lower the transaction value, the higher the probability of purchase by collectors. The borrower's solvency, or a mortgage loan, or a guarantee also increases the chance that the agency will be interested in this transaction.
The Civil Code provides for the transfer of debt to interested parties without the consent of the debtor, but his written notification is a prerequisite. Exceeding the time limits for the return of funds or the judgment made in the receipt all the same entitles the lender to transfer the debt to a third party, that is, it can be done at any stage of collection. Debt purchase by collectors is a frequent occurrence.
What can you say about the writ of execution? In this case, the lender will receive compensation for some of the losses, and further work with the debtor will fall entirely on the shoulders of the collectors. The writ of execution makes the chances of successful recovery higher, therefore, collectors are interested in buying back debts with court decisions based on them. Sale of debt on a writ of execution provides for the following conditions:
- Choosing a collection agency.
- The transfer of a complete package of information about the debtor to verify its reliability.
- Discussion of the terms of the transaction.
- Signing a contract of assignment of rights.
- Transfer of documents to collectors and receipt of funds.
- Written notification of the debtor about the repayment of debts.
When can a contract be signed?
The contract of assignment of the right to recover the debt may be signed at any time. To transfer the debt to collectors, the lender must obtain a court order in court and give it to employees of the federal bailiff service. Last within a week begins to conduct enforcement proceedings on the writ of execution. The contract in this case is transferred to the bailiffs.You can buy debts of legal entities.
What can collectors not do?
We must not forget that the collectors are not bailiffs, their powers are completely different. So, collectors are not entitled to the following actions:
- Prohibit the debtor to travel outside the country.
- Limit the debtor in the movements.
- Seize the property of the borrower.
- To penetrate the territory of the private property of the debtor.
Collectors can only inform the debtor about the need to repay the debt and look for funds from the borrower for possible repayment of the debt. After receiving information about the assets of the borrower, the collector has the right to send a request to the performer of a court decision, which will collect money through bailiffs. What threatens the purchase of debt collectors debtor?
Actions of the debtor
The transfer of debt collection by the bank is extremely frightening and shocking to debtors. However, there is no reason for panic in this case. If the borrower plans to pay off the debt, but the bank has transferred the loan to the collectors, then a number of actions will be necessary. First, request from the bank information about the new lender, including the address and name of the agency.This is done to verify the data specified in the assignment agreement.
From the moment of signing the debt redemption agreement, the credit institution no longer has the right to collect funds, so you should wait for a call from the collector to demand repayment. By phone, you can arrange a personal meeting at the agency’s office and indicate your intention to familiarize yourself with the statutory documents, the bank statement and the assignment agreement. Be sure to discuss the possibility of processing copies of documents for consultation with a lawyer. If the documents are not scanned in your presence, you need to verify them with the original papers.
Absolutely all the documents you need to provide a lawyer and get a full consultation. A better option is the presence of an agency representative at a meeting with a lawyer.
Next comes the recount. The collectors do not have the right to add the amount after the purchase of credit debt. If you find flaws or pitfalls in the documents provided, it makes sense to consider the option of filing a lawsuit in court. You can not return the debt until a court decision. Such cases take up a quarter of all cases from lawyers.
If you are satisfied with the conditions prescribed by the contract, you can make a request for debt restructuring. The agency has no right to refuse in this case. It is necessary to deposit money only by the details specified in the contract. Retain receipts are also strictly required.