The Stevens-Lloyd Group, Inc.

Debt Collection in Mexico – A List of Things Before You Begin

Companies doing business in Mexico tend to look at debt collection in Mexico from two points of view. One side of the argument sees debt collection in Mexico as too complicated and nearly impossible to do, while the other is lulled into a false sense of security due to the relatively uncomplicated and straightforward ease of

The truth of the matter is debt collection in Mexico falls somewhere in the middle. Having this understanding will better equip you with your efforts when collecting debt in Mexico due to their rules and regulations, which is why we will always recommend you working with a Commercial Collection Agency.

That being said, should you choose to go it alone, use the following criteria as a checklist, per se, to help guide you in your debt collection in Mexico efforts: The size of the debt, the relationship and structure of the debt, documentation of the debt, and the challenges associated with the debt.

Debt Collection in Mexico Criteria:

The Size
The size of the debt owed should be the primary consideration made before pursuing your debt in Mexico. First, determine the size of the debt and what you costs will be associated with the collection process. Collecting debts internationally, especially in Mexico, can be relatively expensive, time-consuming and often times slow going. Look at things from an economic perspective and the weigh the cost of your efforts, especially your time needed, to determine whether your debt collection in Mexico efforts are worth these valuable resources.

The Relationship and structure
As we previously covered in our First article on Collecting debt in Mexico, before pursuing your debt collection in Mexico efforts, it͛s important to determine the relationship of the debt: is it consumer related or commercial? The response rate for consumer based debts is generally very low and less likely to be recovered, while commercial/business related debts tend to be more responsive and are often easier to recover in the collection process. Is the debt from a loan or is it from unpaid invoices or transactions? Also, what is the financial status of your debtor? Is there an interest of the debtor to use your goods or services in the future? Taking all of this into consideration will help you greatly in your debt collection in Mexico effort

The Documentation
Proper documentation is crucial to your debt collection in Mexico efforts. Contract, invoices, order forms, order confirmations, promises to pay, acknowledgments, any and all correspondence are essential in your efforts that will often make or break your chances of recovery, and will should you choose to take a legal route.

The Challenges
Debt collection in Mexico presents many complications, none more so that locating the debtor. Mexico is comprised of large, largely developed and urban areas, as well as obscure and remote locales; the former often present the easiest environment for collection efforts while the latter pose steep hurdles and challenges with your efforts. Turbulent socio-political changes within the country of Mexico affect areas differently making the rural locales the hardest affected.

Should you choose to go it alone and not use a commercial collections agency like The Stevens Lloyd Group, LLC in your debt collection in Mexico efforts, the above items – The challenges you face, having the proper documentation, the relationship and structure, and the size of the debt – are all things that are imperative for you to check off your list before you begin

Questions? Give us a call Toll-Free: (888) 882-2282

Are a business owner attempting to tackle debt collection in Mexico on your own? Using a reputable collection agency can often help make things easier relieving you of unnecessary burdens . Turning accounts over to an agency for collection may seem like signaling defeat or throwing in the towel to some collectors. Rather than take the defeatist attitude of ͞I can͛t collect this on my own,͟ take the attitude that collection is a team effort with you and your outside agency working together.

We invite you to give The Stevens-Lloyd Group, Inc. a try…
Place an account with us right now and see what we can do for you!

It’s easy. Here’s all you need to do:
Just fill out this convenient online placement sheet.

Once it’s sent, you’ll be on the road to discovering The Stevens-Lloyd Group, Inc. difference!

Answers to Questions Regarding Collecting Debt from Mexico

When it comes to collecting debt from Mexico, and using the services of an International Collection Agency like Stephens-Lloyd Group, LLC, questions often arise. From the type of debt we collect from Mexico and the processes we use, to length of time it takes to recover the outstanding debt and what we need from you to take the necessary steps, we͛ve received…

Below is a list of the most frequently asked questions (FAQs) our firm receives regarding collecting debt from Mexico.

Collecting Debt from Mexico FAQs

Why should I use a commercial collection agency like Stevns-Lloyd Group, LLC to collect my debt from Mexico?
Sadly, the increase of trade with Mexico since the 1990͛s has given rise to a culture of non-payment of contracts and debt creating more and more debt recovery cases from Mexico. Collecting debt from Mexico can be a complicated process. As with all international debt recovery efforts, it͛s important to understand the laws and procedures of Mexico when attempting to collect on a debt. Every country has their own set of rules and regulations when it comes to international debt collection making it difficult for someone outside of an International Collection Agency like Stevens-Lloyd Group to handle.

What type of debt from Mexico do you service?
When it comes to collecting debt from Mexico, we work with all kinds of, both commercial and personal that result from an act of trade between two individuals or companies including contracts, personal loans, bank loans, lines of credit, credit cards, invoices, and more.

What is the debt collection process when collecting debt from Mexico?
We begin by attempting to contact the debtor in his/her home or place of business, making all attempts to recover the debt through amicable methods. Should these efforts be exhausted, we will then proceed with legal actions employing the services of some of the top International Collection Attorneys.

How long does collecting debt from Mexico take?
When collecting debt from Mexico, if we are able to establish a payment arrangement with the debtor upon the first contact, times of recovery may be expedited quickly. However, should the debtor choose to ignore our first attempts at contact, prove difficult in locating, or oppose paying, negotiations can take several months if not longer. Which is why it is important to hand over your debt collection efforts to a commercial collection agency like Stevens Lloyd Group, LLC as soon as possible.

Do I need to provide Stevens Lloyd Group, LLC with Documents when attempting to collect a debt from Mexico?
Yes. In fact, it is essential. Without the proper documentation supporting the debt (Invoices, promissory notes, contracts, agreements, payment commitments, lines of communication, etc.) it will prove very difficult for us to act on your behalf when collecting debt from Mexico. Please take a moment to read through our post on collecting debt in Mexico: 5 things to consider, we cover this topic in more detail.

Are commercial collection agency fees legal for me to add to the balance of the debt?
Yes, if legal proceedings are necessary while collecting debt from Mexico and there is a ruling of payment where the judge orders the debtor to pay any and all ͞costs and expenses͟ incurred by the plaintiff.

Do you have a question regarding collecting debt from Mexico not answered above? Give the Stevens-Lloyd Group, LLC a call today Toll-Free: (888) 882-2282
If you are a business owner struggling with collecting debt from Mexico, a reputable collection agency can often help. Turning accounts over to an agency for collection may seem like signaling defeat or throwing in the towel to some collectors. Rather than take the defeatist attitude of ͞I can͛t collect this on my own,͟ take the attitude that collection is a team effort with you and your outside agency working together.

We invite you to give The Stevens-Lloyd Group, Inc. a try…
Place an account with us right now and see what we can do for you!

It͛s easy. Here͛s all you need to do:
Just fill out this convenient online placement sheet.
Once it͛s sent, you͛ll be on the road to discovering The Stevens-Lloyd Group, Inc. difference!

Collecting debt from mexico

Tagged on: debt collection mexio
Mitch Stevens August 22, 2017 debt collection mexico, international debt recovery

Collecting Debt In Mexico: 5 Things to Consider

Ever since NAFTA entered into force in January of 1994, Mexico has become one of the largest trade partners of the United States (US). As such, and because of its close proximity, commercial collection agencies are receiving more and more debt recovery cases from Mexico

Most people see collecting debt in Mexico as a complicated and near impossible process. Though not impossible, as with all international debt recovery efforts, it’s important to understand the laws and procedures of Mexico when attempting to collect on a debt. Every country has their own set of rules and regulations when it comes to international debt collection making it difficult for someone outside of a Commercial Collection Agency to handle the debt recovery.

Unlike in the US, collection costs and interest are not standard. Though they are enforceable, most debtors in Mexico will use those as bargaining chips to negotiate a more favorable settlement. Also, the process of communicating with customers regarding the collection of accounts receivables (Also known as “dunning”) is not standardized making it difficult to communicate with your debtor. Your best option, in this case, is to send a notarized formal letter via a commercial collection agency.

Below are 5 things we believe need to be evaluated and considered before preceding with collecting debt in Mexico:

How old is the debt?
Before beginning your debt recovery efforts, it’s important to take note of the age of the outstanding invoice. As with all debt recovery efforts, the age of the debt is very important. Staying on top of your debt recovery efforts, especially when collecting debt in Mexico, is essential. Our client case histories show us, outstanding invoices older than 1 year prove very difficult to collect against.

Is your debt consumer or commercial?
Another important consideration before attempting to collect debt in Mexico is the relationship of the debtor. When it comes to collecting on consumer (personal) debts internationally, the response rate is generally very low and therefore less likely to be retrieved. Commercial/Business accounts on the other hand, or more likely to be responsive resulting in a full or partial payment of the outstanding debt.

What is the size of the debt?
When considering your collection efforts, it’s important to weigh the costs associated with collecting the outstanding debt; and by cost, we͛re not just referring to the out of pocket expense (i.e., time, energy, etc.). The time, energy and out of pocket expenses associated with your debt recovery efforts need to be tallied before you proceed. It might behoove you to ignore the relatively smaller amounts and shift your efforts toward the medium to larger debts.

Do you have the proper documentation?
As with all debt recovery efforts, in order for you to have leverage or legally enforce payment of the outstanding debt against the debtor, proper documentation is a must, especially when collecting debt in Mexico. Contracts, invoices, order forms, order confirmations, acknowledgments, any and all correspondence all qualify for proper documentation

Can you find them?
When it comes to successfully collecting debt in Mexico is the ability for a commercial collection agency to contact or even locate your debtor. Do you have up to date information on the company: Company name, including any legal entities, address, phone numbers, etc? Keeping this information current is important whenever you are doing business domestically or internationally as it will aid in the debt recovery process should the need arise.