Prohibiting debt collection, who should businesses hire to recover debts?

On June 17, the National Assembly officially ignored regulations banning the business of debt collection services. Meanwhile, with the current situation, there are many businesses that are occupied by partners, customers, want to pay, extend the payment period or do not want to pay. So what should businesses do and choose who to recover debts that are late to pay, difficult to claim for enterprises.

DFClawyers, with more than 16 years of experience in debt recovery consulting for domestic and international enterprises, we give advice to you as follows:

When you ins arise bad debts,you need to take the following steps:

1. Completing strict dossiers, ensuring legality to bind customer responsibilities for debt recovery

Enterprises need to review the dossiers and documents arising in the process of providing and trading goods and services with partners; see if it's full. For example, dossiers already have contracts, minutes of delivery and receipt of goods and services, documents attached, VAT invoices.. Especially, does the dossier have a record of debt confirmation?

Prohibiting debt collection, who should businesses hire to recover debts?

In case there is no debt confirmation record: Enterprises need to calmly and gently persuade customers to sign the debt comparison and confirmation.

In case of having, but the minutes confirming debts have been made more than 02 years ago; enterprises must also skillfully let customers re-confirm debts. (Because, by law, the time for initiating a civil lawsuit is 02 years, if the debt confirmation is established for more than 02 years, while the debtor does not confirm or perform the obligation to repay the debt, the right to initiate a lawsuit)

2. Conducting strong and drastic debt recovery negotiations

After checking the dossier is complete, ensuring the binding responsibility of repayment of customers, enterprises need to implement strong and drastic collection plans and measures.

A. Preparations ahead of debt recovery negotiations?

• Claimors: Enterprises must send experienced, brave, pressured people or and must be from the head of the department or more to directly take charge and collect debts.
• Subjects to claim: The subjects that need to approach and work on the debtor's side must be the business owner or competent person who decides to repay the debt.
• Quantity and density to collect debts: Enterprises must increase the number, density to meet and press debtors with a minimum frequency of 3.4 times per week.

B. How to negotiate debt recovery effectively?

For this case of bad debts; when exchanging, working must have a clear, definitive, persuasive attitude and create strength on debtors. Ask the debtor to come up with a plan and repayment plan.

When the debtor has a plan, the debt collector must be able to protest and exchange with the debtor to ensure that the plan is feasible and repayable. For example, debtors promising next week will pay off part of the debt; the debt collector should be countered: what source the debtor will take from; is the loan or collection from another unit, if the borrower does not borrow or does not collect, the debtor has another backup plan ...?

The creditor must counter and query the creditor as much information as possible, so as to evaluate the plan, repayment plan of the debtor is capable of implementing or not.

In case the debtor is willing to answer and answer logic all the questions raised by the creditor, it means that the debtor is making a real repayment plan. On the contrary, they do not answer, or answer through the speakers, they need to review the repayment plan of the debtor,

In case the creditor repeatedly comes to work but the debtor circles, he/she cannot give a roadmap for repayment; or have a repayment plan but do not comply with the plan, the creditor should think about other debt collection plans.

3. Initiating lawsuits and judgment enforcement for debt recovery

According to DFC,the plan to sue the Court is one of the feasible and effective plan. Because, only through the intervention of law enforcement agencies, thanks to the sanctions tools and measures to block the coercion of assets, accounts of the judgment enforcement agencies can pressure and force debtors to repay. Otherwise, the debtor will deliberately evade or still promise to commit but do not pay, he keeps stretching and does not know when it will end.

When the creditor sues the debtor to court, surely with the pressure from the court agency will impact in part, changing the views and attitudes of debtors to have plans and repayment plans. If at the stage where the Court does not work, it does not pressure the debtor; creditors need to speed up the settlement, to finish at the court proceedings stage, in order to move on to judgment enforcement. At that time, the creditor has the opportunity to cooperate with the Enforcement Agency to block the account, coerce the debtor's assets and be able to quickly recover and terminate the debt (however this case only applies to active and assets-based debtors).

To implement this measure, perhaps businesses should choose professional debt collection consultants (usually law firms) in initiating lawsuits and enforcing judgments. So how to know if it is a debt collection consultant, just by looking at the capacity records of that unit, see how many successful commercial business cases they have initiated. When finding the right unit as requested, it is necessary to accelerate cooperation to quickly transfer the case to the courts and judgment enforcement agencies to ensure the collection of debts is fast and effective

In short, in the context of the law prohibiting debt collectorsfrom renting, while businesses are entangled with late- and long-term debts that are difficult to claim; the first thing enterprises should actively review dossiers, check the legality of debts; then it is necessary to send someone with the bravery that can cause the debtor to negotiate and work with the debtor for the last time to see if there is progress and results; if there is no result, the enterprise needs the support of a professional debt collection consultant (usually law firms) to help the enterprise initiate lawsuits and enforce judgments; Thus, the debt of the new enterprise is recovered, avoiding melon wire, ensuring that the capital is not lost and not occupied by customers.

It is one of the optimal and effective solutions that DFC Debt Collection Consulting Co., Ltd. offers to customers to help customers handle and solve difficult debts when the law prohibits debt collection.

Thank you!
LS. Le Minh
Cong SDT: 0913,348,538