When we stop paying our financial obligations, creditors turn to a debt collector or bailiff for help. However, the powers and scope of activities of the debt collector differ significantly from those available to the bailiff. What are the differences?
Debt enforcement process: judicial or extrajudicial path
If we do not repay the loan or borrowing, the institution in which we got into debt is forced to start the debt enforcement process . It has two paths to choose from: judicial or extrajudicial.
Most often, the debt enforcement process begins with an out-of-court path. This means that a debt collector is starting his activity, whose goal is to recover money by way of settlement.
However, the next step is joining the court path. The case is reported to the court and an enforcement clause is issued after pronouncing the judgment. This means that from now on the debt collection will be carried out by a bailiff . His actions are much more radical than those of the debt collector – he also has much broader powers.
Powers and scope of activities of the debt collector
If the creditor decides to take the extrajudicial path in the debt enforcement process, the debt collector begins the action.
The actions it undertakes are referred to as amicable. His task is to determine why there was a delay in repayment and make an agreement with the debtor to repay the debt.
The debt collector mainly attempts to contact us by phone and by post. He tries to mobilize the debtor to pay the debt. To persuade the debtor to agree, he may communicate the consequences of non-repayment.
The powers of the debt collector are small and are in fact limited to inducing the debtor to cooperate and pay the debt so that there is no need to go to court.
What can a debt collector do?
What activities do not fall within the competence of the debt collector?
The debt collector cannot:
- request disclosure of your account status
- seize or write down our assets,
- pick up anything valuable from home or take care of your salary,
- enter the apartment, if we do not agree to it,
- get in on us at work,
- disclose debt information to our employer,
- disseminate information on our debt,
- talk about our material situation with other people (e.g. a neighbor),
- hang out information about our debt in public places.
Under the law, a debt collector cannot scare us, harass or blackmail us. If you are a victim of this type of situation, you should immediately report it to the police or prosecutor’s office .
However, avoiding the debt collector and not answering his phone is not a good solution. The purpose of his activities is to communicate with the debtor through negotiations. Thanks to this, he can propose to split the remaining debt into convenient, easy to pay installments. This will allow us to avoid a case in court, bailiff enforcement and will significantly reduce the additional costs. We must remember that every reminder about paying off the debt, i.e. prompt is payable.
The sooner we reach an agreement with the debt collector , the lower the costs will be. We should also remember about the ever increasing interest for late payment.