The Stevens-Lloyd Group, Inc. Mexico Debt Collection Services
Ever since North American Free Trade Agreement (NAFTA) entered into force in January 1994, Mexico has emerged as one of the largest trade partners of the USA. Moreover, due to its proximity and spate of transactions, there has been an increasing number of debt recovery cases from Mexico.
The process of debt collection in Mexico is viewed as a complicated and long-winded one. When attempting to collect a debt from this neighboring country, you need to understand the pertinent laws and procedures. Mexico debt collection laws, like that of every other nation, are different. Since commercial collection agencies are well-versed with the rules, it is easier for them to handle the process.
How does Mexico debt recovery work?
You want to consider the following things while collecting debt in Mexico:
Size of the debt
The size of the debt that is due needs be evaluated before you decide to pursue debt recovery. Take into consideration the costs associated with the collection process. International debt recovery, especially in Mexico, is a slow process, that is time-consuming and expensive. In this context, you need to weigh the various out-of-pocket expenses – such as time and energy – to determine whether debt collection is worth the effort. Given the tediousness of the procedure in Mexico, it is a good idea to ignore the relatively smaller amounts and focus on the medium to larger debts.
Age of the debt
Before going ahead with the task of Mexico debt collection, you want to note how old the outstanding invoice is. The age of the debt is an important factor when it comes to its recovery. It prepares you, as creditor, for how difficult or easy the collection might be. It has been most commonly observed that outstanding debts older than 1 year prove quite difficult for recovery.
Documents present
To enforce payment of the outstanding debt from the debtor, you need to have the proper documentation at hand. Keep your contract, order forms, order confirmations, invoices, promises to pay, acknowledgments, and all other correspondence in place before you opt to take a legal route for debt recovery.
Structure of Debt
It is essential to determine the relationship of the debt – whether it is consumer-related or commercial, before attempting to collect debt. Incidentally, the response rate for consumer-based (personal) debts is typically very low and such debts are less likely to be recovered. Commercial or business-related debts on the other hand, are more likely to be responsive, often leading to full or partial payment of the debt. Consider whether the debt is from a loan or unpaid invoices or transactions, the financial status of your debtor, any interest of the debtor to use your goods or services in the future, and so on. These factors will greatly help you with debt collection in Mexico.
Related challenges
Mexico debt recovery involves many challenges. Mexico consists of large, mostly developed urban areas and remote areas. While the developed areas are easily accessible, it is difficult to commute to far-flung vicinities. Moreover, extreme socio-political changes impact areas differently, often making the rural areas the worst hit.
In Mexico, unlike in the US, there is no standard rate for collection costs and interest. Most debtors in Mexico use this to negotiate a more favorable settlement. Additionally, there is no parameter for communicating with customers, which makes it difficult to communicate with your debtor. Mexico debt collection attorneys or a Mexico debt recovery agency can come of use in this respect by issuing a notarized formal letter to the debtor.
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 relieve you of debt collection in Mexico by calling 888-882-2282 today!
