The Stevens-Lloyd Group, Inc. International Debt Collection Services
International debt collection involves the pursuit and recovery of delinquent amounts and foreign debts on a transnational level. The debts can be collected from individual consumers or businesses. To carry out international debt collection, you require knowledge of different acts and financial regulations.
Every country has their own set of rules and regulations for debt collection, at both domestic and international levels. For those who are not professionals, it is difficult to stay abreast of the policies of different countries where they do business. It is here that debt recovery agents and commercial debt recovery agencies come of use as they are familiar with debt collection laws. They can collect debt more easily.
How does international debt recovery work?
International debt recovery takes places through the following ways:
First-party international debt recovery agents
These agents are part of the subdivisions and internal departments of the creditor’s company. They work within the company. As they recover debts for their own organization, they are often not considered valid collection agencies (FDCPA - Fair Debt Collection Practices Act, ext. link 9, according to GSA laws of Germany, Switzerland, Austria).
They do not have the authority to charge the debtor an interest. Nevertheless, they have the legal right to collect their own debts without requesting the payment of an extra percentage fee. Incidentally, in German-speaking areas, a creditor has no legal authorities to collect their own debts.
Third-party international debt recovery agents
These agents are the most common. Though they act on behalf of the original creditor, they are not part of the original lender’s company. Such agencies collect due debts of the past for a commission fee, which is also known as an interest rate. This amount is the percentage of the entire debt. It can be requested from the lender or the subject of debt, according to the debt collection agency’s policy in the particular place.
Buyers of international debt
International debt purchase involves the process of buying default profiles from the original creditor in lieu of a portion of the debt. Debt buyers then become the new debt owners, whereby they get the legal right to recover the delinquent amounts on their own. The creditor receives a certain amount for the charged-off debts, which makes such international debt collection beneficial for the creditor. As the original lender’s written-off debts mark a loss, international debt purchase is an unexpected profit for the creditor’s company. Therefore, it is considered as a positive financial income.
Monitoring debt collection
The global debt collection process is more complex than debt recovery within a specific area. There are various regulations for international debt recovery, integrated by the EU. Apart from the EU acts and regulations, there are laws for particular countries as well. For example, when the debtor is based in the UK, the international debt collection procedure needs to conform to the Office of Fair Trading (OFT) ext. link 6 but when his/her residence is in Canada, it is the Office of Consumer Affairs (OCA) ext. link 7 that is valid.
Collecting debt in Mexico
Mexico is one of the largest trade partners of the United States. Owing to its close proximity, there have been an increasing number of cases involving debtors who reside in Mexico. As Mexico is a foreign country with a different culture and language, there are different laws monitoring the business of debt collection. A competent international debt recovery agency, with its strong team of international debt collection attorneys well-versed with the laws, can help you collect your due.
The Stevens-Lloyd Group, Inc. is comprised of eager professionals who offer the best debt settlement services. Our debt collection attorneys have gained years of experience negotiating with creditors. Allow us to ease your worry lines by taking care of your international debt collection. Contact 888-882-2282 today!